Selective Insurance Group, Inc. (SIGI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Allstate Corp.

Selective Insurance Group, Inc.

Erie Indemnity Co.

W.R. Berkley Corp.

Chubb Ltd.

Loews Corp.

American Financial Group, Inc.

RenaissanceRe Holdings Ltd.

Markel Group, Inc.

Everest Group Ltd.

Berkshire Hathaway, Inc.

Why is Selective Insurance Group, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 10.83%

Positive results in Jun 25

PRE-TAX PROFIT(Q) At USD 108.13 MM has Grown at 237.17%
NET PROFIT(Q) At USD 85.33 MM has Grown at 237.52%
OPERATING CASH FLOW(Y) Highest at USD 1,199.11 MM

With ROE of 7.26%, it has a very expensive valuation with a 2.82 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 -19.79%, its profits have fallen by -33.3%

High Institutional Holdings at 93.67%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.2% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Selective Insurance Group, Inc. 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 Selective Insurance Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Selective Insurance Group, Inc.

-22.5%

-0.49

32.64%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.67%

EBIT Growth (5y)

EBIT to Interest (avg)

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

20.37%

Dividend Payout Ratio

44.30%

Pledged Shares

Institutional Holding

93.67%

ROCE (avg)

ROE (avg)

10.83%

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

2.82

EV to EBIT

EV to EBITDA

251.37

EV to Capital Employed

3.09

EV to Sales

1.76

PEG Ratio

Dividend Yield

0.98%

ROCE (Latest)

ROE (Latest)

7.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

21What is working for the Company

PRE-TAX PROFIT(Q)

At USD 108.13 MM has Grown at 237.17%

NET PROFIT(Q)

At USD 85.33 MM has Grown at 237.52%

OPERATING CASH FLOW(Y)

Highest at USD 1,199.11 MM

DIVIDEND PER SHARE(HY)

Highest at USD 0

NET SALES(Q)

Highest at USD 1,325.97 MM

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 49.8

DEBT-EQUITY RATIO (HY)

Highest at 25.66 %

INTEREST(Q)

Highest at USD 13.26 MM

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

Pre-Tax Profit

At USD 108.13 MM has Grown at 237.17%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 85.33 MM has Grown at 237.52%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 1,325.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 1,199.11 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

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

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

Interest Coverage Ratio

Lowest at 49.8 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

Interest

At USD 13.26 MM has Grown at 38.47%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 13.26 MM

in the last five periods and Increased by 38.47% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 25.66 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio