Series may be undervalued with poor growth indicators, but the 15 analysts following the company give it an rating of hold. Their target prices range from $287.0 to $450.0 per share, for an average of $384.27. At today's price of $307.31, Series is trading -20.03% away from its average target price, suggesting there is an analyst consensus of strong upside potential for the stock.
Everest Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Europe, and internationally. Based in Hamilton, Bermuda, the Large-Cap Finance company has 3,037 full time employees. Series has offered a 2.6% dividend yield over the last 12 months.
Series has a trailing twelve month P/E ratio of 22.8, compared to an average of 15.92 for the Finance sector. Considering its EPS guidance of $66.47, the company has a forward P/E ratio of 4.6.
On the other hand, the market is potentially undervaluing Series in terms of its book value because its P/B ratio is 0.84. In comparison, the sector average P/B ratio is 1.78. The company's shares are currently -36.2% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and net assets.
If analysts are giving the stock a bad rating, it's likely that they are looking beyond simple valaution metrics and attempting to forecast the company's growth potential. For example, Series has narrow margins as you can see in the financial summary below.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,231 | $9,598 | $11,866 | $12,060 | $14,587 | $17,281 |
| Interest Income (M) | $32 | $28 | $62 | $98 | $130 | $147 |
| Operating Margins | 13% | 6% | 13% | 5% | 15% | 9% |
| Net Margins | 12% | 5% | 12% | 5% | 17% | 8% |
| Net Income (M) | $1,009 | $514 | $1,379 | $597 | $2,488 | $1,373 |
| Depreciation & Amort. (M) | $31 | $50 | $76 | $55 | -$64 | -$167 |
| Diluted Shares (M) | 40 | 40 | 39 | 39 | 41 | 43 |
| Earnings Per Share | $24.7 | $12.78 | $34.62 | $15.19 | $60.19 | $31.78 |
| EPS Growth | n/a | -48.26% | 170.89% | -56.12% | 296.25% | -47.2% |
| Free Cash Flow (M) | $1,852 | $2,874 | $3,833 | $3,695 | $4,553 | $4,957 |
| Total Debt (M) | $3 | $10 | $17 | $19 | $22 | $22 |
| Net Debt / EBITDA | -0.71 | -1.25 | -0.88 | -2.14 | -0.64 | -0.92 |
