Safety Insurance Group, Inc.
Safety Insurance Group, Inc. Fundamental Analysis
Safety Insurance Group, Inc. (SAFT) shows moderate financial fundamentals with a PE ratio of 16.77, profit margin of 4.97%, and ROE of 7.16%. The company generates $1.3B in annual revenue with strong year-over-year growth of 13.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SAFT's fundamental strength across five key dimensions:
Efficiency Score
WeakSAFT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSAFT trades at attractive valuation levels.
Growth Score
ExcellentSAFT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSAFT maintains a strong and stable balance sheet.
Profitability Score
WeakSAFT struggles to sustain strong margins.
Key Financial Metrics
Is SAFT Expensive or Cheap?
P/E Ratio
SAFT trades at 16.77 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SAFT's PEG of -1.26 indicates potential undervaluation.
Price to Book
The market values Safety Insurance Group, Inc. at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.56 times EBITDA. This signals the market has high growth expectations.
How Well Does SAFT Make Money?
Net Profit Margin
For every $100 in sales, Safety Insurance Group, Inc. keeps $4.97 as profit after all expenses.
Operating Margin
Core operations generate 6.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.16 in profit for every $100 of shareholder equity.
ROA
Safety Insurance Group, Inc. generates $2.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Safety Insurance Group, Inc. produces operating cash flow of $176.52M, showing steady but balanced cash generation.
Free Cash Flow
Safety Insurance Group, Inc. generates strong free cash flow of $172.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.74 in free cash annually.
FCF Yield
SAFT converts 15.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
33.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How SAFT Stacks Against Its Sector Peers
| Metric | SAFT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.77 | 18.88 | Better (Cheaper) |
| ROE | 7.16% | 801.00% | Weak |
| Net Margin | 4.97% | 2213.00% | Weak |
| Debt/Equity | 0.07 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 33.17 | 615.97 | Strong Liquidity |
| ROA | 2.59% | -19854.00% (disorted) | Weak |
SAFT outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Safety Insurance Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.17%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-26.77%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
81.20%
Industry Style: Value, Dividend, Cyclical
High Growth