Now trading at a price of $45.23, Unum has moved 1.1% so far today.
Unum returned gains of 14.8% last year, with its stock price reaching a high of $52.15 and a low of $36.27. Over the same period, the stock returned a similar cumulative performance to the S&P 500. As of April 2023, the company's 50-day average price was $45.76.
Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. Based in Chattanooga, TN, the mid-cap Finance company has 10,665 full time employees. Unum has offered a 3.0% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $11,598 | $11,999 | $13,162 | $12,014 | $11,991 | $12,252 |
| Revenue Growth | n/a | 3.45% | 9.69% | -8.72% | -0.19% | 2.18% |
| Interest Income (MM) | $167 | $177 | $188 | $185 | $188 | $193 |
| Net Margins | 5% | 9% | 6% | 7% | 11% | 9% |
| Net Income (MM) | $523 | $1,100 | $793 | $824 | $1,314 | $1,149 |
| Depreciation & Amort. (MM) | $101 | $110 | $114 | $120 | $110 | $108 |
| Diluted Shares (MM) | 220 | 210 | 204 | 205 | 202 | 189 |
| Free Cash Flow (MM) | $1,392 | $1,456 | $350 | $1,277 | $1,316 | $1,096 |
| Capital Expenditures (MM) | $144 | $151 | $119 | $110 | $102 | $120 |
| Total Debt (MM) | $53,254 | $57,390 | $59,680 | $58,628 | $52,367 | $50,290 |
Unum's financial statements include several red flags such as weak revenue growth and decreasing reinvestment in the business, weak operating margins with a positive growth rate, and irregular cash flows. Additionally, the firm has a highly leveraged balance sheet. Unum has positive expected EPS Growth.
An Exceptionally Low P/B ratio but Trades Above Its Graham Number:
Unum has a trailing twelve month P/E ratio of 7.9, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $7.82, the company has a forward P/E ratio of 5.9. In contrast, the market is likely undervaluing Unum in terms of its equity because its P/B ratio is 0.92 while the sector average is 1.58. The company's shares are currently trading 22.6% above their Graham number.
Unum Has an Analyst Consensus of Some Upside Potential:
The 11 analysts following Unum have set target prices ranging from $45.0 to $61.0 per share, for an average of $54.36 with a buy rating. As of April 2023, the company is trading -15.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Unum has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 87.1% of the company's shares, and the insider ownership rate stands at 0.88%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $1,054,569,230.
