Selective Insurance Group Inc (SIGIP) stock analysis
Close on Oct 30, 2026Market cap $5.89BP/E 12.3Yield 1.59%
StockData Score
Prices as of Oct 30, 2026How the score works
Mixed14 of 30 checks passed
Selective Insurance passes 14 of the 30 checks behind our score; 7 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 4/6
- Past performance
- 3/6
- Financial health
- 0/6
- Dividend
- 4/6
What stands out
Trading below fair value
The share price of $98.83 is below our fair value estimate of $110.60.
Earnings grew over 5 years
Net income grew 13.6% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 14.5% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 28.4% a year over the last three fiscal years.
What to watch
Margin of safety under 20%
The price is 10.6% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 14.2% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.
P/E above the industry
Selective Insurance's P/E of 12.3 is above the Fire, Marine, and Casualty Insurance median of 10.4.
P/B above the industry
Selective Insurance's price-to-book of 1.61 is above the Fire, Marine, and Casualty Insurance median of 1.61.
Valuation3/6
P/E below its 5-year median
Selective Insurance's P/E of 12.3 is below its own 5-year median of 18.6.
P/E above the industry
Selective Insurance's P/E of 12.3 is above the Fire, Marine, and Casualty Insurance median of 10.4.
P/S below the industry
Selective Insurance's price-to-sales of 1.08 is below the Fire, Marine, and Casualty Insurance median of 1.24.
P/B above the industry
Selective Insurance's price-to-book of 1.61 is above the Fire, Marine, and Casualty Insurance median of 1.61.
Trading below fair value
The share price of $98.83 is below our fair value estimate of $110.60.
Margin of safety under 20%
The price is 10.6% below fair value, less than the 20% cushion we look for.
Growth4/6
Revenue growing 10%+ a year
Revenue grew 14.5% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 28.4% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 29.7% over the last twelve months, against a 5-year average of 13.6% a year.
Growing slower than the industry
Revenue grew 7.0% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 7.0%.
Guidance raised
Selective Insurance raised its 2026 After-tax net investment income outlook on Jul 23, 2026.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance3/6
Return on equity under 15%
Return on equity was 14.2% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 3.3%; for a bank or insurer, 1% or more is considered good.
Return on equity below the industry
Selective Insurance's return on equity of 14.2% is below the Fire, Marine, and Casualty Insurance median of 18.2%.
Earnings grew over 5 years
Net income grew 13.6% a year on average over the last five fiscal years.
Net margin above its 5-year average
Net margin was 9.1% over the last twelve months, against a 5-year average of 8.0%.
Net margin below the industry
Selective Insurance's net margin of 9.1% is below the Fire, Marine, and Casualty Insurance median of 12.9%.
Financial health0/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt coverage
Needs operating cash flow.
Interest coverage
Interest expense is not reported separately.
Short-term liquidity
Insurers do not split assets into current and non-current.
Bankruptcy risk (Altman Z)
The Altman model does not apply to insurers.
Dividend4/6
Pays a dividend
Selective Insurance paid dividends worth 1.7% of the share price over the last twelve months.
Yield below Treasuries
The 1.7% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 4.0% or more; Selective Insurance yields 1.7%.
Dividend not cut
The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.
Covered by earnings
Dividends take 19.6% of net income.
Covered by free cash flow
Dividends take 8.2% of free cash flow.
Fair value
How we estimate itOur estimate per share
$110.60
The share price is 11% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 14.5× | 18.6× | 10.4× | $116.98 | 50% |
| P/B | 1.7× | 1.8× | 1.6× | $104.21 | 50% |
| Fair value | $110.60 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 18.6
- Fire, Marine, and Casualty Insurance median 10.4
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $49.52M
- Value traded per 1% price move
- $39.89M
Downside
Low risk
- Typical loss in a bad month
- 12.8%
- Volatility (annualized)
- 24%
- Sharpe ratio, 1 year
- 1.18
- Beta to the S&P 500 (5Y)
- 0.40
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +9.8% | +14.5% | +12.8% | +9.6% | |
| Net income | +125.3% | +27.5% | +13.6% | +10.9% | |
| EPS, diluted | +131.9% | +28.4% | +12.9% | +10.1% | |
| Free cash flow | +11.7% | +15.4% | +17.6% | – | |
| Dividend per share | +9.8% | +11.3% | +10.8% | +10.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 10.8% | 10.0% | 13.9% | |
| Return on assets | 2.2% | 2.7% | 3.3% | |
| Debt to equity | – | 0.20 | – | |
| Capex to revenue | – | 0.8% | 0.7% | |
| Diluted shares | 59M | 60M | 61M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Selective Insurance generated $4.67B from operations and spent $662.61M on capital expenditure, dividends and share buybacks. 21% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 8.7% | 0.37× | 4.26× | 13.9% |
| FY2024 | 4.3% | 0.38× | 4.17× | 6.8% |
| FY2023 | 8.6% | 0.37× | 4.12× | 13.3% |
| FY2022 | 6.3% | 0.33× | 3.86× | 8.2% |
| FY2021 | 12.0% | 0.34× | 3.52× | 14.1% |
| FY2020 | 8.4% | 0.32× | 3.75× | 10.0% |
| FY2019 | 9.5% | 0.34× | 4.20× | 13.6% |
| FY2018 | 6.9% | 0.33× | 4.46× | 10.2% |
| FY2017 | 6.8% | 0.33× | 4.64× | 10.4% |
| FY2016 | 6.9% | 0.32× | 4.87× | 10.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$466.41M
- Cash generatingOperating cash flow above zero$1.23B
- Return on assets improvedROA up on the prior year1.8% → 3.5%
- Earnings backed by cashOperating cash flow above net income$1.23B vs $466.41M
- Less leverageLong-term debt to assets fell3.8% → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise61M → 61M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.41 → 0.39