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UNM

Unum GroupNYSE:UNM Stock Report

Market Cap

US$5.0b

7D

0.3%

1Y

48.0%

Updated

26 Sep, 2021

Data

Company Financials +
UNM fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance1/6
Financial Health4/6
Dividends6/6

UNM Overview

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland.

Unum Group Competitors

Prudential Financial

NYSE:PRU

US$40.1b

Aflac

NYSE:AFL

US$35.3b

Principal Financial Group

NasdaqGS:PFG

US$17.3b

Lincoln National

NYSE:LNC

US$12.9b

Price History & Performance

Summary of all time highs, changes and price drops for Unum Group
Historical stock prices
Current Share PriceUS$24.34
52 Week HighUS$15.93
52 Week LowUS$31.98
Beta1.71
1 Month Change-10.12%
3 Month Change-14.33%
1 Year Change47.96%
3 Year Change-37.70%
5 Year Change-31.07%
Change since IPO-55.54%

Recent News & Updates

Aug 05

Unum - Buy It Cheap Due To LTC And COVID-19

Unum reported yesterday and promptly fell despite improving guidance and delivering good results. I quickly unlocked and deployed capital with the precision of a missile strike, locking in a 4.8% well-covered yield for the foreseeable future. Unum could drop more - or not. Either way, at $24-27/share, the company is trading low enough to warrant a "BUY". You should most definitely take a look at the company here.

Jul 22
Unum Group's (NYSE:UNM) Upcoming Dividend Will Be Larger Than Last Year's

Unum Group's (NYSE:UNM) Upcoming Dividend Will Be Larger Than Last Year's

Unum Group's ( NYSE:UNM ) dividend will be increasing to US$0.30 on 20th of August. This will take the dividend yield...

Shareholder Returns

UNMUS InsuranceUS Market
7D0.3%0.3%0.1%
1Y48.0%42.2%35.3%

Return vs Industry: UNM exceeded the US Insurance industry which returned 42.2% over the past year.

Return vs Market: UNM exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is UNM's price volatile compared to industry and market?
UNM volatility
UNM Beta1.71
Industry Beta0.97
Market Beta1

Stable Share Price: UNM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: UNM's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
184810,500Rick McKenneyhttps://www.unum.com

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.

Unum Group Fundamentals Summary

How do Unum Group's earnings and revenue compare to its market cap?
UNM fundamental statistics
Market CapUS$4.97b
Earnings (TTM)US$702.40m
Revenue (TTM)US$13.33b

7.1x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNM income statement (TTM)
RevenueUS$13.33b
Cost of RevenueUS$10.23b
Gross ProfitUS$3.10b
ExpensesUS$2.40b
EarningsUS$702.40m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.44
Gross Margin23.27%
Net Profit Margin5.27%
Debt/Equity Ratio31.4%

How did UNM perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

34%

Payout Ratio

Valuation

Is Unum Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UNM ($24.34) is trading below our estimate of fair value ($82.91)

Significantly Below Fair Value: UNM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UNM is good value based on its PE Ratio (7.1x) compared to the US Insurance industry average (9.5x).

PE vs Market: UNM is good value based on its PE Ratio (7.1x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: UNM is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: UNM is good value based on its PB Ratio (0.5x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Unum Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UNM's forecast earnings growth (17.2% per year) is above the savings rate (2%).

Earnings vs Market: UNM's earnings (17.2% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: UNM's earnings are forecast to grow, but not significantly.

Revenue vs Market: UNM's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: UNM's revenue is forecast to decline over the next 3 years (-0.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UNM's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has Unum Group performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UNM has high quality earnings.

Growing Profit Margin: UNM's current net profit margins (5.3%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: UNM's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: UNM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: UNM had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Insurance industry average (76%).


Return on Equity

High ROE: UNM's Return on Equity (6.4%) is considered low.


Financial Health

How is Unum Group's financial position?


Financial Position Analysis

Short Term Liabilities: UNM's short term assets ($15.4B) exceed its short term liabilities ($595.7M).

Long Term Liabilities: UNM's short term assets ($15.4B) do not cover its long term liabilities ($59.3B).


Debt to Equity History and Analysis

Debt Level: UNM's debt to equity ratio (31.4%) is considered satisfactory.

Reducing Debt: UNM's debt to equity ratio has reduced from 37.1% to 31.4% over the past 5 years.

Debt Coverage: UNM's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: UNM's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Dividend

What is Unum Group current dividend yield, its reliability and sustainability?

4.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: UNM's dividend (4.93%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: UNM's dividend (4.93%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: UNM's dividends per share have been stable in the past 10 years.

Growing Dividend: UNM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.6%), UNM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UNM's dividends in 3 years are forecast to be well covered by earnings (24.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Rick McKenney (52 yo)

6.33yrs

Tenure

US$13,258,738

Compensation

Mr. Richard Paul McKenney, also known as Rick, has been the President of Unum Group since April 01, 2015 and has been its Chief Executive Officer since May 2015. Mr. McKenney is responsible for evaluating...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD13.26M) is above average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: UNM's management team is considered experienced (3.2 years average tenure).


Board Members

Experienced Board: UNM's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: UNM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Unum Group's employee growth, exchange listings and data sources


Key Information

  • Name: Unum Group
  • Ticker: UNM
  • Exchange: NYSE
  • Founded: 1848
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$4.975b
  • Shares outstanding: 204.39m
  • Website: https://www.unum.com

Number of Employees


Location

  • Unum Group
  • 1 Fountain Square
  • Chattanooga
  • Tennessee
  • 37402
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:21
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.