Safety Insurance Group Inc (SAFT) stock analysis

P/E above its 5-year median

Safety Insurance's P/E of 21.8 is above its own 5-year median of 17.4.

P/E above the industry

Safety Insurance's P/E of 21.8 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S below the industry

Safety Insurance's price-to-sales of 1.19 is below the Fire, Marine, and Casualty Insurance median of 1.28.

P/B above the industry

Safety Insurance's price-to-book of 1.79 is above the Fire, Marine, and Casualty Insurance median of 1.62.

Trading above fair value

The share price of $104.43 is above our fair value estimate of $77.18.

Margin of safety under 20%

The price is 35.3% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 16.6% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 28.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -19.4% over the last twelve months, against a 5-year average of -6.4% a year.

Growing slower than the industry

Revenue grew 4.6% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 8.0% over the last twelve months and averaged 8.5% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 2.8%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Safety Insurance's return on equity of 8.0% is below the Fire, Marine, and Casualty Insurance median of 15.9%.

Earnings shrank over 5 years

Net income shrank 6.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 5.5% over the last twelve months, against a 5-year average of 7.4%.

Net margin below the industry

Safety Insurance's net margin of 5.5% is below the Fire, Marine, and Casualty Insurance median of 12.0%.

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.

Pays a dividend

Safety Insurance paid dividends worth 3.5% of the share price over the last twelve months.

Yield below Treasuries

The 3.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Safety Insurance yields 3.5%.

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 76.5% of net income.

Covered by free cash flow

Dividends take 36.6% of free cash flow.