Erie Indemnity Co. (ERIE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Allstate Corp.

Everest Group Ltd.

RenaissanceRe Holdings Ltd.

Chubb Ltd.

W.R. Berkley Corp.

Erie Indemnity Co.

Selective Insurance Group, Inc.

American Financial Group, Inc.

Berkshire Hathaway, Inc.

Loews Corp.

Markel Group, Inc.

Why is Erie Indemnity Co. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 25.43%

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 660.44 MM
DIVIDEND PER SHARE(HY) Highest at USD 5.5
RAW MATERIAL COST(Y) Fallen by -8.4% (YoY)

With ROE of 24.61%, it has a very expensive valuation with a 7.25 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -36.56%, its profits have fallen by -6.9%

High Institutional Holdings at 47.09%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -36.56% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Erie Indemnity Co. should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Erie Indemnity Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Erie Indemnity Co.

-36.56%

-1.22

31.37%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.86%

EBIT Growth (5y)

13.89%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

20.72%

Dividend Payout Ratio

52.35%

Pledged Shares

Institutional Holding

47.09%

ROCE (avg)

37.13%

ROE (avg)

25.43%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.25

EV to EBIT

22.46

EV to EBITDA

20.90

EV to Capital Employed

8.50

EV to Sales

3.97

PEG Ratio

Dividend Yield

86.70%

ROCE (Latest)

37.87%

ROE (Latest)

24.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 660.44 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.5

RAW MATERIAL COST(Y)

Fallen by -8.4% (YoY

CASH AND EQV(HY)

Highest at USD 706.69 MM

-6What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 51.2%

NET PROFIT(HY)

At USD 214.91 MM has Grown at -26.26%

ROCE(HY)

Lowest at 25.85%

Here's what is working for Erie Indemnity Co.

Operating Cash Flow

Highest at USD 660.44 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 5.5 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 706.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.4% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 20 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Erie Indemnity Co.

Net Profit

At USD 214.91 MM has Grown at -26.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Dividend Payout Ratio

Lowest at 51.2% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)