Now trading at a price of $41.28, Unum has moved -4.7% so far today. In contrast, the S&P 500 index moved 1.3%. Read below for a basic value analysis of Unum.
Unum shares moved 67.6% over the last 52 weeks, with a high of $46.64 and a low of $25.77. During this time, the stock outperformed the S&P 500 index by 75.6%. As of January 2022, the company's 50-day average price is $41.0. Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. The mid-cap Financial Services company has 10,100 full time employees and is based in Chattanooga, TN. Unum has returned a 2.9% dividend yield over the last 12 months.
The Company Has Positive Cash Flows and Low Leverage:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $11,999 | $13,162 | $11,853 |
| Revenue Growth | n/a | 9.69% | -9.95% |
| Net Margins | 9.17% | 6.02% | 6.95% |
| Net Margins Growth | n/a | -34.35% | 15.45% |
| Earnings Per Share | $5.24 | $3.89 | $4.02 |
| EPS Growth | n/a | -25.76% | 3.34% |
| Free Cash Flow (MM) | $1,591 | $478 | $1,277 |
| FCF Growth | n/a | -69.93% | 166.97% |
| Capital Expenditures (MM) | -$151 | -$119 | -$110 |
| LT Debt to Equity | 0.29 | 0.31 | 0.3 |
Unum Is Undervalued at Today's Prices:
Compared to the Financial Services sector's average of 13.34, Unum has a trailing twelve month P/E ratio of 7.0 and, according to its EPS guidance of 6.77, an expected P/E ratio of 6.1. Unum's PEG ratio is 0.47 based on its 15.0% annual average growth rate of historical and projected earnings per share. This suggests that company's shares are undervalued.
Furthermore, Unum is likely undervalued in terms of its equity because its P/B ratio is 0.9 compared to its sector average of 1.95. The company's shares are currently trading -36.9% below their Graham number, implying there is a margin of safety for the stock. The Graham number is calculated according to the formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 4.38 * 43.488) = $65.47
Unum Is the Subject of Mixed Market Indicators:
13 analysts are following Unum and have set target prices ranging from $41 to $52 per share. On average, they have given the company a rating of hold. At the current price of $41.28, UNM is trading -10.55% away from its average analyst target price of $46.15 per share, implying an analyst consensus of some upside potential for the stock.
The company has an average amount of shares sold short since 2.7% of the company's shares are tied to short positions. Institutions own 88.9% of Unum's shares, while the insider ownership rate stands at 0.77%. The biggest shareholder is Blackrock Inc. with a 12% stake in the company worth approximately $950,053,062.
