United Fire Group, Inc.
United Fire Group, Inc. Fundamental Analysis
United Fire Group, Inc. (UFCS) shows moderate financial fundamentals with a PE ratio of 8.64, profit margin of 8.52%, and ROE of 13.50%. The company generates $1.3B in annual revenue with strong year-over-year growth of 10.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.8/100 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 UFCS's fundamental strength across five key dimensions:
Efficiency Score
WeakUFCS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentUFCS trades at attractive valuation levels.
Growth Score
ModerateUFCS shows steady but slowing expansion.
Financial Health Score
ModerateUFCS shows balanced financial health with some risks.
Profitability Score
WeakUFCS struggles to sustain strong margins.
Key Financial Metrics
Is UFCS Expensive or Cheap?
P/E Ratio
UFCS trades at 8.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UFCS's PEG of 1.80 indicates fair valuation.
Price to Book
The market values United Fire Group, Inc. at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.83 times EBITDA. This is generally considered low.
How Well Does UFCS Make Money?
Net Profit Margin
For every $100 in sales, United Fire Group, Inc. keeps $8.52 as profit after all expenses.
Operating Margin
Core operations generate 10.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.50 in profit for every $100 of shareholder equity.
ROA
United Fire 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
United Fire Group, Inc. produces operating cash flow of $144.60M, showing steady but balanced cash generation.
Free Cash Flow
United Fire Group, Inc. generates strong free cash flow of $139.02M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.45 in free cash annually.
FCF Yield
UFCS converts 14.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.80
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How UFCS Stacks Against Its Sector Peers
| Metric | UFCS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.64 | 18.86 | Better (Cheaper) |
| ROE | 13.50% | 847.00% | Weak |
| Net Margin | 8.52% | 4202.00% | Weak |
| Debt/Equity | 0.00 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 3.08% | -21543.00% (disorted) | Weak |
UFCS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Fire Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
100.00%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining