Safety Insurance Group, Inc. (SAFT) 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

Mercury General Corp.

SiriusPoint Ltd.

The Hanover Insurance Group, Inc.

Palomar Holdings, Inc.

NMI Holdings, Inc.

Selective Insurance Group, Inc.

American Financial Group, Inc.

Horace Mann Educators Corp.

Kemper Corp.

Employers Holdings, Inc.

Safety Insurance Group, Inc.

Why is Safety Insurance Group, Inc. ?

INTEREST(HY) At USD 1.18 MM has Grown at 415.79%
INTEREST COVERAGE RATIO(Q) Lowest at 221.52
OPERATING PROFIT(Q) Lowest at USD -18.12 MM

With ROE of 11.10%, it has a expensive valuation with a 1.42 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 -8.36%, its profits have risen by 39.5% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 426.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.36% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Safety Insurance Group, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Safety Insurance Group, Inc.

-6.78%

-0.24

19.64%

S&P 500

20.78%

1.67

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.74%

EBIT Growth (5y)

23.90%

EBIT to Interest (avg)

3.64

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

21.95%

Dividend Payout Ratio

54.33%

Pledged Shares

Institutional Holding

87.65%

ROCE (avg)

0.46%

ROE (avg)

9.97%

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

1.42

EV to EBIT

1245.45

EV to EBITDA

183.75

EV to Capital Employed

1.43

EV to Sales

0.99

PEG Ratio

0.33

Dividend Yield

426.38%

ROCE (Latest)

ROE (Latest)

11.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 174.29 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DIVIDEND PER SHARE(HY)

Highest at USD 0

-29What is not working for the Company

INTEREST(HY)

At USD 1.18 MM has Grown at 415.79%

INTEREST COVERAGE RATIO(Q)

Lowest at 221.52

OPERATING PROFIT(Q)

Lowest at USD -18.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -5.77 %

PRE-TAX PROFIT(Q)

Lowest at USD -17.51 MM

NET PROFIT(Q)

Lowest at USD -13.97 MM

EPS(Q)

Lowest at USD -0.99

Here's what is working for Safety Insurance Group, Inc.

Operating Cash Flow

Highest at USD 174.29 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 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by 0% (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

At USD 1.94 MM has Grown at 40.64%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Safety Insurance Group, Inc.

Interest

At USD 1.18 MM has Grown at 415.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 221.52 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At USD -17.51 MM has Fallen at -161.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -13.97 MM has Fallen at -163.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD -18.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at -5.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -17.51 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -13.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.99

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)