Erie Indemnity Company
Erie Indemnity Company Fundamental Analysis
Erie Indemnity Company (ERIE) shows strong financial fundamentals with a PE ratio of 19.69, profit margin of 15.15%, and ROE of 30.32%. The company generates $4.2B in annual revenue with strong year-over-year growth of 18.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 92.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze ERIE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentERIE demonstrates superior asset utilization.
Valuation Score
ModerateERIE shows balanced valuation metrics.
Growth Score
ExcellentERIE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentERIE maintains a strong and stable balance sheet.
Profitability Score
ExcellentERIE achieves industry-leading margins.
Key Financial Metrics
Is ERIE Expensive or Cheap?
P/E Ratio
ERIE trades at 19.69 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ERIE's PEG of 5.28 indicates potential overvaluation.
Price to Book
The market values Erie Indemnity Company at 5.53 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.21 times EBITDA. This signals the market has high growth expectations.
How Well Does ERIE Make Money?
Net Profit Margin
For every $100 in sales, Erie Indemnity Company keeps $15.15 as profit after all expenses.
Operating Margin
Core operations generate 17.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.32 in profit for every $100 of shareholder equity.
ROA
Erie Indemnity Company generates $19.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Erie Indemnity Company produces operating cash flow of $702.76M, showing steady but balanced cash generation.
Free Cash Flow
Erie Indemnity Company generates strong free cash flow of $572.27M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.39 in free cash annually.
FCF Yield
ERIE converts 4.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.69
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How ERIE Stacks Against Its Sector Peers
| Metric | ERIE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.69 | 18.86 | Neutral |
| ROE | 30.32% | 847.00% | Weak |
| Net Margin | 15.15% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.59 | 667.17 | Neutral |
| ROA | 19.49% | -21543.00% (disorted) | Strong |
ERIE outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Erie Indemnity Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
73.75%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
114.51%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
89.83%
Industry Style: Value, Dividend, Cyclical
High Growth