Unum Group (UNM) stock analysis

P/E above its 5-year median

Unum's P/E of 56.6 is above its own 5-year median of 7.8.

P/E above the industry

Unum's P/E of 56.6 is above the Accident and Health Insurance and Medical median of 21.5.

P/S above the industry

Unum's price-to-sales of 1.01 is above the Accident and Health Insurance and Medical median of 0.81.

P/B below the industry

Unum's price-to-book of 1.17 is below the Accident and Health Insurance and Medical median of 2.29.

Price against fair value

We could not estimate a fair value: it needs at least two valuation methods with positive inputs.

Margin of safety

Depends on the fair value estimate.

Revenue growing under 10% a year

Revenue grew 2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -15.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -73.4% over the last twelve months, against a 5-year average of -1.4% a year.

Growing slower than the industry

Revenue grew -4.2% over the last twelve months; the Accident and Health Insurance and Medical median is 6.8%.

Guidance raised

Unum raised its Full-year 2026 after-tax adjusted operating income per share growth outlook on Jul 28, 2026.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 2.2% over the last twelve months and averaged 13.7% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.4%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Unum's return on equity of 2.2% is below the Accident and Health Insurance and Medical median of 11.9%.

Earnings shrank over 5 years

Net income shrank 1.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.9% over the last twelve months, against a 5-year average of 9.9%.

Net margin below the industry

Unum's net margin of 1.9% is below the Accident and Health Insurance and Medical median of 2.0%.

Low debt

Debt is 35.0% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 30.8% five years ago to 35.0%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 46.8% of total debt.

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

Unum paid dividends worth 1.8% of the share price over the last twelve months.

Yield below Treasuries

The 1.8% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Unum yields 1.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 9 fiscal years.

Not covered by earnings

Dividends take 127% of net income, leaving little room.

Covered by free cash flow

Dividends take 19.0% of free cash flow.