Selective Insurance Group, Inc.
Selective Insurance Group, Inc. Fundamental Analysis
Selective Insurance Group, Inc. (SIGI) shows moderate financial fundamentals with a PE ratio of 11.13, profit margin of 8.74%, and ROE of 13.59%. The company generates $5.3B in annual revenue with strong year-over-year growth of 14.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze SIGI's fundamental strength across five key dimensions:
Efficiency Score
WeakSIGI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSIGI trades at attractive valuation levels.
Growth Score
ModerateSIGI shows steady but slowing expansion.
Financial Health Score
ExcellentSIGI maintains a strong and stable balance sheet.
Profitability Score
WeakSIGI struggles to sustain strong margins.
Key Financial Metrics
Is SIGI Expensive or Cheap?
P/E Ratio
SIGI trades at 11.13 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SIGI's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values Selective Insurance Group, Inc. at 1.44 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.97 times EBITDA. This is generally considered low.
How Well Does SIGI Make Money?
Net Profit Margin
For every $100 in sales, Selective Insurance Group, Inc. keeps $8.74 as profit after all expenses.
Operating Margin
Core operations generate 10.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.59 in profit for every $100 of shareholder equity.
ROA
Selective Insurance Group, Inc. generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Selective Insurance Group, Inc. produces operating cash flow of $1.24B, showing steady but balanced cash generation.
Free Cash Flow
Selective Insurance Group, Inc. generates strong free cash flow of $1.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $19.86 in free cash annually.
FCF Yield
SIGI converts 23.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
650.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SIGI Stacks Against Its Sector Peers
| Metric | SIGI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.13 | 18.86 | Better (Cheaper) |
| ROE | 13.59% | 847.00% | Weak |
| Net Margin | 8.74% | 4202.00% | Weak |
| Debt/Equity | 0.25 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 650.38 | 667.17 | Strong Liquidity |
| ROA | 3.08% | -21543.00% (disorted) | Weak |
SIGI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Selective 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
66.70%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-25.61%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
124.84%
Industry Style: Value, Dividend, Cyclical
High Growth