Assurant Inc Valuation – March 2019 #AIZ

Company Profile (excerpt from Reuters): Assurant, Inc., incorporated on October 10, 2003, is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance and renters insurance and related products (multi-family housing business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products.

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – March 2019

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,832,744,329 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 58.77% Pass
5. Moderate PEmg Ratio PEmg < 20 13.36 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.17 Pass
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $7.08
MG Growth Estimate 7.19%
MG Value $161.89
Opinion Undervalued
MG Grade A
MG Value based on 3% Growth $102.61
MG Value based on 0% Growth $60.15
Market Implied Growth Rate 2.43%
Current Price $94.56
% of Intrinsic Value 58.41%

Assurant, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Undervalued after growing its EPSmg (normalized earnings) from $4.78 in 2015 to an estimated $7.08 for 2019. This level of demonstrated earnings growth outpaces the market’s implied estimate of 2.43% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value above the price.

At the time of valuation, further research into Assurant, Inc. revealed the company was trading below its Graham Number of $124.38. The company pays a dividend of $2.28 per share, for a yield of 2.4%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 13.36, which was below the industry average of 26.11, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Assurant, Inc. fares extremely well in the ModernGraham grading system, scoring an A.

Stage 3: Information for Further Research

Graham Number $124.38
PEmg 13.36
PB Ratio 1.17
Dividend Yield 2.41%
TTM Dividend $2.28
Number of Consecutive Years of Dividend Growth 15

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2018
Long-Term Debt & Capital Lease Obligation $2,006,000,000
Total Assets $41,089,300,000
Intangible Assets $6,102,000,000
Total Liabilities $35,955,400,000
Shares Outstanding (Diluted Average) 63,600,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $8.35
Dec2018 $3.98
Dec2017 $9.39
Dec2016 $9.13
Dec2015 $2.05
Dec2014 $6.44
Dec2013 $6.30
Dec2012 $5.67
Dec2011 $5.51
Dec2010 $2.50
Dec2009 $3.63
Dec2008 $3.76
Dec2007 $5.38
Dec2006 $5.57
Dec2005 $3.50
Dec2004 $2.53
Dec2003 $1.70
Dec2002 -$9.17
Dec2001 $0.90
Dec2000 $0.85

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $7.08
Dec2018 $6.36
Dec2017 $7.25
Dec2016 $6.10
Dec2015 $4.78
Dec2014 $5.86
Dec2013 $5.29
Dec2012 $4.59
Dec2011 $4.09
Dec2010 $3.64
Dec2009 $4.26
Dec2008 $4.44
Dec2007 $4.43
Dec2006 $2.91
Dec2005 $1.02
Dec2004 -$0.36
Dec2003 -$1.59

Recommended Reading:

Other ModernGraham posts about the company

Assurant Inc Valuation – June 2018 $AIZ
Assurant Inc Valuation – March 2017 $AIZ
21 Best Undervalued Stocks of the Week – 8/27/16
Assurant Inc Valuation – August 2016 $AIZ
Assurant Inc Valuation – February 2016 $AIZ

Other ModernGraham posts about related companies

Humana Inc Valuation – March 2019 #HUM
American International Group Inc Valuation – March 2019 #AIG
Chubb Ltd Valuation – March 2019 #CB
Loews Corporation Valuation – March 2019 #L
Anthem Inc Valuation – February 2019 $ANTM
Arthur J Gallagher & Co Valuation – February 2019 $AJG
Brighthouse Financial Inc Valuation – February 2019 $BHF
Allstate Corp Valuation – February 2019 $ALL
Hartford Financial Services Group Inc Valuation – February 2019 $HIG
Unum Group Valuation – February 2019 $UNM

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc Valuation – June 2018 $AIZ

Company Profile (excerpt from Reuters): Assurant, Inc., incorporated on October 10, 2003, is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products.

AIZ Chart

AIZ data by YCharts

 

Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – June 2018

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $6,458,506,173 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 121.56% Pass
5. Moderate PEmg Ratio PEmg < 20 13.73 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.23 Pass
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

 

Stage 2: Determination of Intrinsic Value

EPSmg $7.46
MG Growth Estimate 4.08%
MG Value $124.20
Opinion Fairly Valued
MG Grade A-
MG Value based on 3% Growth $108.11
MG Value based on 0% Growth $63.38
Market Implied Growth Rate 2.61%
Current Price $102.37
% of Intrinsic Value 82.42%

Assurant, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Fairly Valued after growing its EPSmg (normalized earnings) from $5.86 in 2014 to an estimated $7.46 for 2018. This level of demonstrated earnings growth supports the market’s implied estimate of 2.61% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

At the time of valuation, further research into Assurant, Inc. revealed the company was trading below its Graham Number of $115.44. The company pays a dividend of $2.15 per share, for a yield of 2.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 13.73, which was below the industry average of 30.02, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Assurant, Inc. fares extremely well in the ModernGraham grading system, scoring an A-.

Stage 3: Information for Further Research

Graham Number $115.44
PEmg 13.73
PB Ratio 1.23
Dividend Yield 2.10%
TTM Dividend $2.15
Number of Consecutive Years of Dividend Growth 14

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 3/1/2018
Long-Term Debt & Capital Lease Obligation $2,004,400,000
Total Assets $32,427,900,000
Intangible Assets $1,221,500,000
Total Liabilities $27,926,900,000
Shares Outstanding (Diluted Average) 54,189,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $7.27
Dec2017 $9.39
Dec2016 $9.13
Dec2015 $2.05
Dec2014 $6.44
Dec2013 $6.30
Dec2012 $5.67
Dec2011 $5.51
Dec2010 $2.50
Dec2009 $3.63
Dec2008 $3.76
Dec2007 $5.38
Dec2006 $5.57
Dec2005 $3.50
Dec2004 $2.53
Dec2003 $1.70
Dec2002 -$9.17
Dec2001 $0.90
Dec2000 $0.85

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $7.46
Dec2017 $7.25
Dec2016 $6.10
Dec2015 $4.78
Dec2014 $5.86
Dec2013 $5.29
Dec2012 $4.59
Dec2011 $4.09
Dec2010 $3.64
Dec2009 $4.26
Dec2008 $4.44
Dec2007 $4.43
Dec2006 $2.91
Dec2005 $1.02
Dec2004 -$0.36
Dec2003 -$1.59
Dec2002 -$2.65

Recommended Reading:

Other ModernGraham posts about the company

Assurant Inc Valuation – March 2017 $AIZ
21 Best Undervalued Stocks of the Week – 8/27/16
Assurant Inc Valuation – August 2016 $AIZ
Assurant Inc Valuation – February 2016 $AIZ
Assurant Inc. Valuation – November 2015 Update $AIZ

Other ModernGraham posts about related companies

Torchmark Corp Valuation – June 2018 $TMK
Humana Inc Valuation – June 2018 $HUM
American International Group Inc – June 2018 $AIG
Chubb Ltd Valuation – June 2018 $CB
Loews Corp Valuation – May 2018 $L
Anthem Inc Valuation – May 2018 $ANTM
Berkshire Hathaway Inc Valuation – May 2018 $BRK-B
Arthur J Gallagher & Co Valuation – April 2018 $AJG
Allstate Corp Valuation – April 2018 $ALL
Hartford Financial Services Group Inc Valuation – April 2018 $HIG

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc Valuation – March 2017 $AIZ

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – March 2017.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Assurant Inc (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. is a provider of risk management solutions in the housing and lifestyle markets. The Company operates in North America, Latin America, Europe and Asia. The Company’s segments include Global Housing, Global Lifestyle and Global Preneed. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (multi-family housing business), and field services, valuation services and other property risk management services (mortgage solutions business). Through its Global Lifestyle segment, it provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (global connected living business); vehicle protection services, and credit insurance. The Global Preneed segment provides pre-funded funeral insurance and annuity products. Its Global Preneed Segment operates in the United States and Canada.

AIZ Chart

AIZ data by YCharts

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Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Recent valuations of the components of the Dow Jones Industrial Average are available for free members, including this one of Microsoft Corporation.  In addition, here is a post detailing what can be found within each individual company’s valuation.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – March 2017

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,490,446,365 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 74.22% Pass
5. Moderate PEmg Ratio PEmg < 20 16.14 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.50 Pass
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg $6.14
MG Growth Estimate 2.41%
MG Value $81.81
Opinion Overvalued
MG Grade B-
MG Value based on 3% Growth $89.03
MG Value based on 0% Growth $52.19
Market Implied Growth Rate 3.82%
Current Price $99.11
% of Intrinsic Value 121.14%

Assurant, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position . The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $5.29 in 2013 to an estimated $6.14 for 2017. This level of demonstrated earnings growth does not support the market’s implied estimate of 3.82% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

At the time of valuation, further research into Assurant, Inc. revealed the company was trading above its Graham Number of $98.92. The company pays a dividend of $2.03 per share, for a yield of 2% Its PEmg (price over earnings per share – ModernGraham) was 16.15, which was below the industry average of 18.78, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Assurant, Inc. performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

Graham Number $98.92
PEmg 16.15
PB Ratio 1.50
Dividend Yield 2.05%
TTM Dividend $2.03
Number of Consecutive Years of Dividend Growth 14

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 12/1/2016
Long-Term Debt & Capital Lease Obligation $1,067,020,000
Total Assets $29,709,128,000
Intangible Assets $1,103,431,000
Total Liabilities $25,611,028,000
Shares Outstanding (Diluted Average) 61,935,000

Earnings Per Share History

EPS History
Next Fiscal Year Estimate $6.05
Dec2016 $9.13
Dec2015 $2.05
Dec2014 $6.44
Dec2013 $6.30
Dec2012 $5.67
Dec2011 $5.51
Dec2010 $2.50
Dec2009 $3.63
Dec2008 $3.76
Dec2007 $5.38
Dec2006 $5.57
Dec2005 $3.50
Dec2004 $2.53
Dec2003 $1.70
Dec2002 -$9.17
Dec2001 $0.90
Dec2000 $0.86

Earnings Per Share – ModernGraham History

EPSmg History
Next Fiscal Year Estimate $6.14
Dec2016 $6.10
Dec2015 $4.78
Dec2014 $5.86
Dec2013 $5.29
Dec2012 $4.59
Dec2011 $4.09
Dec2010 $3.64
Dec2009 $4.26
Dec2008 $4.44
Dec2007 $4.43
Dec2006 $2.91
Dec2005 $1.02
Dec2004 -$0.36
Dec2003 -$1.58
Dec2002 -$2.65
Dec2001 $0.53

Recommended Reading:

Other ModernGraham posts about the company

21 Best Undervalued Stocks of the Week – 8/27/16
Assurant Inc Valuation – August 2016 $AIZ
Assurant Inc Valuation – February 2016 $AIZ
Assurant Inc. Valuation – November 2015 Update $AIZ
The Best Companies of the Insurance Industry – October 2015

Other ModernGraham posts about related companies

American International Group Inc Valuation – March 2017 $AIG
Torchmark Corporation Valuation – March 2017 $TMK
Humana Inc Valuation – Initial Coverage $HUM
Chubb Ltd Valuation – March 2017 $CB
Stewart Information Services Corp Valuation – Initial Coverage $STC
Loews Corporation – February 2017 $L
Kemper Corp Valuation – Initial Coverage $KMPR
CNO Financial Group Inc Valuation – January 2017 $CNO
Anthem Inc Valuation – January 2017 $ANTM
American Financial Group Inc Valuation – January 2017 $AFG

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc Valuation – August 2016 $AIZ

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Stocks for Using A Benjamin Graham Value Investing Strategy – August 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Assurant Inc (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. is a provider of specialty protection products and related services. The Company’s segments include Assurant Solution, Assurant Specialty Property, Assurant Health and Corporate & Other. The Assurant Solutions segment provides mobile device protection products and services; debt protection administration; credit insurance; extended service products and related services for consumer electronics, appliances and vehicles, and offers pre-funded funeral insurance. The Assurant Specialty Property segment provides lender-placed homeowners insurance; property preservation and valuation services; flood insurance; renters insurance and related products, and manufactured housing homeowners insurance. The Assurant Health segment provides individual health and small employer group health insurance.

AIZ Chart

AIZ data by YCharts

[level-free]
To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Recent valuations of the components of the Dow Jones Industrial Average are available for free members, including this one of Microsoft Corporation.  In addition, here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – August 2016

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,277,584,399 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 35.79% Pass
5. Moderate PEmg Ratio PEmg < 20 14.59 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.19 Pass
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

AIZ value chart August 2016

EPSmg $6.00
MG Growth Estimate 4.60%
MG Value $106.24
Opinion Fairly Valued
MG Grade B+
MG Value based on 3% Growth $87.04
MG Value based on 0% Growth $51.02
Market Implied Growth Rate 3.04%
Current Price $87.55
% of Intrinsic Value 82.41%

Assurant, Inc. qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company’s strong financial position. The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Fairly Valued after growing its EPSmg (normalized earnings) from $4.59 in 2012 to an estimated $6 for 2016. This level of demonstrated earnings growth supports the market’s implied estimate of 3.04% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

At the time of valuation, further research into Assurant, Inc. revealed the company was trading below its Graham Number of $123.04. The company pays a dividend of $1.8 per share, for a yield of 2.1%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share – ModernGraham) was 14.59, which was below the industry average of 16.56, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Assurant, Inc. performs fairly well in the ModernGraham grading system, scoring a B+.

Stage 3: Information for Further Research

AIZ charts August 2016

Graham Number $123.04
PEmg 14.59
PB Ratio 1.19
Dividend Yield 2.06%
TTM Dividend $1.80
Number of Consecutive Years of Dividend Growth 13

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information 6/1/2016
Long-Term Debt & Capital Lease Obligation $1,165,255,000
Total Assets $29,804,213,000
Intangible Assets $1,121,220,000
Total Liabilities $25,196,142,000
Shares Outstanding (Diluted Average) 62,723,000

Earnings Per Share History

Next Fiscal Year Estimate $8.85
Dec2015 $2.05
Dec2014 $6.44
Dec2013 $6.30
Dec2012 $5.67
Dec2011 $5.51
Dec2010 $2.50
Dec2009 $3.63
Dec2008 $3.76
Dec2007 $5.38
Dec2006 $5.57
Dec2005 $3.50
Dec2004 $2.53
Dec2003 $1.70
Dec2002 -$9.17
Dec2001 $0.90
Dec2000 $0.86

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $6.00
Dec2015 $4.78
Dec2014 $5.86
Dec2013 $5.29
Dec2012 $4.59
Dec2011 $4.09
Dec2010 $3.64
Dec2009 $4.26
Dec2008 $4.44
Dec2007 $4.43
Dec2006 $2.91
Dec2005 $1.02
Dec2004 -$0.36
Dec2003 -$1.58
Dec2002 -$2.65
Dec2001 $0.53
Dec2000 $0.29

Recommended Reading:

Other ModernGraham posts about the company

Assurant Inc. Valuation – November 2015 Update $AIZ
The Best Companies of the Insurance Industry – October 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Assurant Inc. Analysis – August 2015 Update $AIZ

Other ModernGraham posts about related companies

Humana Inc Valuation – August 2016 $HUM
Chubb Limited Valuation – August 2016 $CB
Torchmark Corporation Valuation – August 2016 $TMK
Anthem Inc Valuation – August 2016 $ANTM
American Financial Group Inc Valuation – August 2016 $AFG
AFLAC Inc Valuation – August 2016 $AFL
Hartford Financial Services Group Inc Valuation – August 2016 $HIG
MetLife Inc Valuation – August 2016 $MET
Genworth Financial Inc Valuation – August 2016 $GNW
Aetna Inc Valuation – July 2016 $AET

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc Valuation – February 2016 $AIZ

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Companies Benjamin Graham Would Invest In Today – February 2016.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Assurant Inc (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of insurance products and related services, which operates in North America, Latin America, Europe and across the world. The Company operates in four segments: Assurant Solution, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits. Assurant Solutions provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance, renters insurance and related products and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance.

[level-free]

To read the details of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference. Here is a free sample valuation pdf, and here is a post detailing what can be found within each individual company’s valuation.

[/level-free]
[not-level-free]

Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $4,571,593,388 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 10.34% Fail
5. Moderate PEmg Ratio PEmg < 20 14.08 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.06 Pass
Score
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

AIZ value chart February 2016

EPSmg $4.92
MG Growth Estimate 1.06%
MG Value $52.27
Opinion Overvalued
MG Grade B-
MG Value based on 3% Growth $71.33
MG Value based on 0% Growth $41.81
Market Implied Growth Rate 2.79%
Current Price $69.25
% of Intrinsic Value 132.50%

Assurant, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the insufficient earnings growth over the last ten years. The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis.

As for a valuation, the company appears to be Overvalued after growing its EPSmg (normalized earnings) from $4.59 in 2012 to an estimated $4.92 for 2016. This level of demonstrated earnings growth does not support the market’s implied estimate of 2.79% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price. Assurant, Inc. performs fairly well in the ModernGraham grading system, scoring a B-.

Stage 3: Information for Further Research

AIZ value chart February 2016

Graham Number $93.05
PEmg 14.08
PB Ratio 1.06
Dividend Yield 1.98%
Number of Consecutive Years of Dividend Growth 13

[/not-level-free]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Balance Sheet Information Dec2015
Long-Term Debt $1,171,382,000
Total Assets $30,075,948,000
Intangible Assets $833,512,000
Total Liabilities $25,551,981,000
Shares Outstanding (Diluted Average) 69,017,000

Earnings Per Share History

Next Fiscal Year Estimate $5.60
Dec2015 $2.05
Dec2014 $6.44
Dec2013 $6.30
Dec2012 $5.67
Dec2011 $5.51
Dec2010 $2.50
Dec2009 $3.63
Dec2008 $3.76
Dec2007 $5.38
Dec2006 $5.57
Dec2005 $3.50
Dec2004 $2.53
Dec2003 $1.70
Dec2002 -$9.17
Dec2001 $0.90
Dec2000 $0.85

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $4.92
Dec2015 $4.78
Dec2014 $5.86
Dec2013 $5.29
Dec2012 $4.59
Dec2011 $4.09
Dec2010 $3.64
Dec2009 $4.26
Dec2008 $4.44
Dec2007 $4.43
Dec2006 $2.91
Dec2005 $1.02
Dec2004 -$0.36
Dec2003 -$1.59
Dec2002 -$2.65
Dec2001 $0.53
Dec2000 $0.28

Recommended Reading:

Other ModernGraham posts about the company

Assurant Inc. Valuation – November 2015 Update $AIZ
The Best Companies of the Insurance Industry – October 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Assurant Inc. Analysis – August 2015 Update $AIZ

Other ModernGraham posts about related companies

American International Group Inc Stock Valuation – February 2016 $AIG
Chubb Ltd Stock Valuation – February 2016 $CB
Prudential Financial Inc Valuation – February 2016 $PRU
Anthem Inc Valuation – February 2016 $ANTM
Aflac Inc Valuation – February 2016 $AFL
MetLife Inc Valuation – February 2016 Update $MET
Aetna Inc Valuation – February 2016 Update $AET
Marsh & McLennan Company Valuation – January 2016 Update $MMC
Aon PLC Valuation – January 2016 Update $AON
Progressive Corp Valuation – November 2015 Update $PGR

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc. Valuation – November 2015 Update $AIZ

Benjamin Graham taught that Intelligent Investors must do a thorough fundamental analysis of investment opportunities to determine their intrinsic value and inherent risk.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company or by reviewing the 10 Most Undervalued Companies for the Defensive Investor – October 2015.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a stock analysis showing a specific look at how Assurant Inc. (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of insurance products and related services, which operates in North America, Latin America, Europe and across the world. The Company operates in four segments: Assurant Solution, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits. Assurant Solutions provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance, renters insurance and related products and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance.

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Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – November 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor; must pass all 6 of the following tests.
1. Adequate Size of the Enterprise Market Cap > $2Bil $5,546,285,559 Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Pass
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end 2.58% Fail
5. Moderate PEmg Ratio PEmg < 20 17.25 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 1.22 Pass
Score
Enterprising Investor; must pass all 3 of the following tests, or be suitable for the Defensive Investor.
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

AIZ value Chart November 2015

EPSmg $4.88
MG Growth Estimate 2.91%
MG Value $69.99
Opinion Overvalued
MG Value based on 3% Growth $70.82
MG Value based on 0% Growth $41.51
Market Implied Growth Rate 4.37%
Current Price $84.24
% of Intrinsic Value 120.37%

Assurant Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the insufficient earnings growth over the last ten years.  The Enterprising Investor has no initial concerns.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company.

As for a valuation, the company appears to be overvalued after growing its EPSmg (normalized earnings) from $4.09 in 2011 to an estimated $4.88 for 2015.  This level of demonstrated earnings growth does not support the market’s implied estimate of 4.37% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value below the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Assurant Inc. (AIZ)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

AIZ Charts November 2015

Graham Number $60.91
PEmg 17.25
PB Ratio 1.22
Dividend Yield 1.35%
Number of Consecutive Years of Dividend Growth 12

 

[/level-mg-stocks-screens-subscriber]

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Long-Term Debt $1,171,305,000
Total Assets $30,586,090,000
Intangible Assets $1,185,899,000
Total Liabilities $25,902,490,000
Shares Outstanding (Diluted Average) 67,633,000

Earnings Per Share History

Next Fiscal Year Estimate $2.35
Dec14 $6.44
Dec13 $6.30
Dec12 $5.67
Dec11 $5.51
Dec10 $2.50
Dec09 $3.63
Dec08 $3.76
Dec07 $5.38
Dec06 $5.57
Dec05 $3.50
Dec04 $2.53
Dec03 $1.70
Dec02 -$9.17
Dec01 $0.90
Dec00 $0.85

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $4.88
Dec14 $5.86
Dec13 $5.29
Dec12 $4.59
Dec11 $4.09
Dec10 $3.64
Dec09 $4.26
Dec08 $4.44
Dec07 $4.43
Dec06 $2.91
Dec05 $1.02
Dec04 -$0.36
Dec03 -$1.59
Dec02 -$2.65
Dec01 $0.53
Dec00 $0.28

Recommended Reading:

Other ModernGraham posts about the company

The Best Companies of the Insurance Industry – October 2015
The 20 Best Stocks For Value Investors This Week – 8/15/15
Assurant Inc. Analysis – August 2015 Update $AIZ
47 Companies in the Spotlight This Week – 5/16/15
Assurant Inc. Quarterly Valuation – May 2015 $AIZ

Other ModernGraham posts about related companies

American International Group Inc. Valuation – November 2015 Update $AIG
Cincinnati Financial Corp Valuation – November 2015 Update $CINF
American Financial Group Inc. Valuation – November 2015 Update $AFG
Loews Corporation Valuation – November 2015 Update $L
Allstate Corporation Valuation – October 2015 Update $ALL
Humana Inc. Valuation – October 2015 Update $HUM
Torchmark Corporation Valuation – October 2015 Update $TMK
MetLife Inc. Valuation – October 2015 Update $MET
Aetna Inc. Valuation – October 2015 Update $AET
Cigna Corporation Analysis – October 2015 Update $CI

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  See my current holdings here.  This article is not investment advice; any reader should speak to a registered investment adviser prior to making any investment decisions.  ModernGraham is not affiliated with the company in any manner.  Please be sure to review our detailed disclaimer.

Assurant Inc. Analysis – August 2015 Update $AIZ

In the wake of the great financial crisis it can sometimes be difficult for Intelligent Investors to find a solid financial company in which to invest, because they require specific achievements over the historical period.  Many investors may simply decide to throw out the worst years with the rationale that they are outliers that shouldn’t be considered when evaluating the company’s prospects, but doing so would involve speculation.  We don’t know whether the financial crisis will happen again, but we do know that if it does, we can expect to see similar results as we did before.  By continuing to require the same standards for the historical period, Intelligent Investors are able to whittle down banks to only those with the best financial position, and then they are able to determine an intrinsic value to get a sense of whether the company is a good investment.  In addition, a company must have strong financial statements to prove that it is stable enough for Intelligent Investors.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Assurant Inc. (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of insurance products and related services, which operates in North America, Latin America, Europe and across the world. The Company operates in four segments: Assurant Solution, Assurant Specialty Property, Assurant Health and Assurant Employee Benefits. Assurant Solutions provides mobile device protection, debt protection administration, credit-related insurance, warranties and service contracts and pre-funded funeral insurance. Assurant Specialty Property provides lender-placed homeowners insurance, renters insurance and related products and manufactured housing homeowners insurance. Assurant Health provides individual health and small employer group health insurance. Assurant Employee Benefits primarily provides group dental insurance, group disability insurance and group life insurance.
[level-free]

To read the rest of this valuation, you must be logged in as a premium member. If you are not a premium member, please consider becoming one.

Premium members can view a full ModernGraham valuation of the company and have access to download a PDF version of the valuation for easy reference.
[/level-free]
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Downloadable PDF version of this valuation:

ModernGraham Valuation of AIZ – August 2015

Stage 1: Is this company suitable for the Defensive Investor or the Enterprising Investor?

What kind of Intelligent Investor are you?

Defensive Investor
1. Adequate Size of the Enterprise Market Cap > $2Bil Pass
2. Earnings Stability Positive EPS for 10 years prior Pass
3. Dividend Record Dividend Payments for 10 years prior Fail
4. Earnings Growth Increase of 33% in EPS in past 10 years using 3 year averages at beginning and end Fail
5. Moderate PEmg Ratio PEmg < 20 Pass
6. Moderate Price to Assets PB Ratio < 2.5 OR PB*PEmg < 50 Pass
Score
Enterprising Investor
1. Earnings Stability Positive EPS for 5 years prior Pass
2. Dividend Record Currently Pays Dividend Pass
3. Earnings Growth EPSmg greater than 5 years ago Pass

Stage 2: Determination of Intrinsic Value

EPSmg 5.41
MG Growth Estimate 4.84%
MG Value $98.32
Opinion Fairly valued
MG Value based on 3% Growth $78.43
MG Value based on 0% Growth $45.97
Market Implied Growth Rate 3.07%
Current Price $79.19
% of Intrinsic Value 80.54%

Assurant Inc. qualifies for the Enterprising Investor but not the more conservative Defensive Investor.  The Defensive Investor is concerned with the inconsistent dividend record and the insufficient earnings growth over the last ten years.  The Enterprising Investor has no initial concerns.  As a result, all Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with the next stage of the analysis.

As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $4.09 in 2011 to an estimated $5.41 for 2015.  This level of demonstrated earnings growth supports the market’s implied estimate of 3.07% annual earnings growth over the next 7-10 years.  As a result, the ModernGraham valuation model, based on Benjamin Graham’s formula, returns an estimate of intrinsic value within a margin of safety relative to the price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Assurant Inc. (AIZ)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Stage 3: Information for Further Research

AIZ charts August 2015

 

PEmg 14.63
PB Ratio 1.14
Dividend Yield 1.40%
Number of Consecutive Years of Dividend Growth 1

Useful Links:

ModernGraham tagged articles Morningstar
Google Finance MSN Money
Yahoo Finance Seeking Alpha
GuruFocus SEC Filings

Most Recent Balance Sheet Figures

Long-Term Debt $1,171,229,000
Total Assets $30,842,080,000
Intangible Assets $1,216,156,000
Total Liabilities $26,014,120,000
Shares Outstanding (Diluted Average) 69,244,000

Earnings Per Share History

Next Fiscal Year Estimate $3.94
Dec14 $6.42
Dec13 $6.30
Dec12 $5.67
Dec11 $5.51
Dec10 $2.50
Dec09 $3.63
Dec08 $3.76
Dec07 $5.38
Dec06 $5.57
Dec05 $3.50
Dec04 $2.53
Dec03 $1.70
Dec02 -$9.17
Dec01 $0.90
Dec00 $0.85

Earnings Per Share – ModernGraham History

Next Fiscal Year Estimate $5.41
Dec14 $5.86
Dec13 $5.29
Dec12 $4.59
Dec11 $4.09
Dec10 $3.64
Dec09 $4.26
Dec08 $4.44
Dec07 $4.43
Dec06 $2.91
Dec05 $1.02
Dec04 -$0.36

Disclaimer:

The author did not hold a position in any company mentioned in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from Wikipedia for the sole purpose of identifying the company; this article is not affiliated with the company in any manner.

[/level-mg-stocks-screens-subscriber]

Assurant Inc. Quarterly Valuation – May 2015 $AIZ

220px-Assurant_LogoIn the wake of the great financial crisis it can sometimes be difficult for Intelligent Investors to find a solid financial company in which to invest, because they require specific achievements over the historical period.  Many investors may simply decide to throw out the worst years with the rationale that they are outliers that shouldn’t be considered when evaluating the company’s prospects, but doing so would involve speculation.  We don’t know whether the financial crisis will happen again, but we do know that if it does, we can expect to see similar results as we did before.  By continuing to require the same standards for the historical period, Intelligent Investors are able to whittle down banks to only those with the best financial position, and then they are able to determine an intrinsic value to get a sense of whether the company is a good investment.  In addition, a company must have strong financial statements to prove that it is stable enough for Intelligent Investors.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Assurant Inc. (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of specialized insurance products and related services in North America and select worldwide markets. The Company operates in four segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits. Assurant Solutions is focused on: domestic and international extended service contracts (ESC) and warranties, preneed life insurance, and credit insurance. The product line within Assurant Specialty Property is homeowners insurance, consisting of fire and dwelling hazard insurance. Assurant Health offers medical insurance and short-term medical insurance to individuals and families in the medical insurance market. The Company offers group disability, dental, vision, life and supplemental worksite products, as well as individual dental products.

FITB data by YCharts

Defensive Investor – must pass all 6 of the following tests: Score = 5/6

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – FAIL
  5. Moderate PEmg ratio – PEmg is less than 20 – PASS
  6. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – must pass all 3 of the following tests or be suitable for a defensive investor: Score = 3/3

  1. Earnings Stability – positive earnings per share for at least 5 years – PASS
  2. Dividend Record – currently pays a dividend – PASS
  3. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $64.66
MG Value $85.69
MG Opinion Fairly Valued
Value Based on 3% Growth $75.17
Value Based on 0% Growth $44.06
Market Implied Growth Rate 1.99%
PEmg 12.47
PB Ratio 0.89

Balance Sheet – March 2015

Total Debt $1,171,000,000
Total Assets $30,800,000,000
Intangible Assets $1,203,000,000
Total Liabilities $25,672,000,000
Outstanding Shares 70,800,000

Earnings Per Share

2015 (estimate) $3.25
2014 $6.44
2013 $6.30
2012 $5.67
2011 $5.51
2010 $2.50
2009 $3.63
2008 $3.76
2007 $5.38
2006 $5.57
2005 $3.50

Earnings Per Share – ModernGraham 

2015 (estimate) $5.18
2014 $5.86
2013 $5.29
2012 $4.59
2011 $4.09
2010 $3.64

Dividend History

Conclusion

Assurant Inc. qualifies for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor is concerned by the insufficient earnings growth over the last ten years, while the company passes all of the Enterprising Investor’s requirements.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities.  As for a valuation, the company appears fairly valued after growing its EPSmg (normalized earnings) from $4.09 in 2011 to an estimated $5.18 for 2014.  This level of demonstrated growth supports the market’s implied estimate of 1.99% earnings growth and leads the ModernGraham valuation model, which is based on Benjamin Graham’s formula, to return an estimate of intrinsic value within a margin of safety relative to the market price.

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Assurant Inc. (AIZ)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in Assurant Inc. (AIZ) or in any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from the Wikipedia; this article is not affiliated with the company in any manner.

Assurant Inc. Quarterly Valuation – February 2015 $AIZ

220px-Assurant_LogoIn the wake of the great financial crisis it can sometimes be difficult for Intelligent Investors to find a solid financial company in which to invest, because they require specific achievements over the historical period.  Many investors may simply decide to throw out the worst years with the rationale that they are outliers that shouldn’t be considered when evaluating the company’s prospects, but doing so would involve speculation.  We don’t know whether the financial crisis will happen again, but we do know that if it does, we can expect to see similar results as we did before.  By continuing to require the same standards for the historical period, Intelligent Investors are able to whittle down banks to only those with the best financial position, and then they are able to determine an intrinsic value to get a sense of whether the company is a good investment.  In addition, a company must have strong financial statements to prove that it is stable enough for Intelligent Investors.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Assurant Inc. (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of specialized insurance products and related services in North America and select worldwide markets. The Company operates in four segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits. The products offered by the segments include warranties and service contracts, pre-funded funeral insurance, lender-placed homeowners insurance, manufactured housing homeowners insurance, individual health and small employer group health insurance, group dental, disability, and life insurance and employee-funded voluntary benefits. In October 2013, FirstService Corporation completed the sale of its Field Asset Services business to Assurant, Inc. In October 2013, Assurant Inc acquired Lifestyle Services Group Ltd. In April 2014, Assurant Inc acquired StreetLinks LLC. In September 2014, Assurant Inc expands mortgage industry offerings with acquisition of eMortgage Logic.
AIZ Chart

AIZ data by YCharts

Defensive Investor – must pass all 6 of the following tests: Score = 5/6

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – FAIL
  5. Moderate PEmg ratio – PEmg is less than 20 – PASS
  6. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – must pass all 3 of the following tests or be suitable for a defensive investor: Score = 3/3

  1. Earnings Stability – positive earnings per share for at least 5 years – PASS
  2. Dividend Record – currently pays a dividend – PASS
  3. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $61.44
MG Value $157.02
MG Opinion Undervalued
Value Based on 3% Growth $85.00
Value Based on 0% Growth $49.83
Market Implied Growth Rate 0.99%
PEmg 10.48
PB Ratio 0.86

Balance Sheet – December 2014

Total Debt $1,171,000,000
Total Assets $31,562,000,000
Intangible Assets $841,000,000
Total Liabilities $26,381,000,000
Outstanding Shares 72,100,000

Earnings Per Share

2014 $6.44
2013 $6.30
2012 $5.67
2011 $5.51
2010 $2.50
2009 $3.63
2008 $3.76
2007 $5.38
2006 $5.57
2005 $3.50
2004 $2.53

Earnings Per Share – ModernGraham 

2014 $5.86
2013 $5.29
2012 $4.59
2011 $4.09
2010 $3.64
2009 $4.26

Dividend History
AIZ Dividend Chart

AIZ Dividend data by YCharts

Conclusion:

Assurant Inc. is suitable for the Enterprising Investor, but not the Defensive Investor, who is concerned by the low level of earnings growth over the last ten years.  The less conservative Enterprising Investor looks at a shorter horizon and has no initial concerns.  As a result, value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities.  As for a valuation, the company appears undervalued after growing its EPSmg (normalized earnings) from $3.64 in 2010 to $5.86 for 2014.  This level of demonstrated growth outpaces the market’s implied estimate of 0.99% annual earnings growth and leads the ModernGraham valuation model, which is based on Benjamin Graham’s formula, to return an estimate of intrinsic value above the market price.

Be sure to check out previous ModernGraham valuations of Assurant Inc. (AIZ) for greater perspective!

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Assurant Inc. (AIZ)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in Assurant Inc. (AIZ) or in any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from the Wikipedia; this article is not affiliated with the company in any manner.

Assurant Inc. Quarterly Valuation – November 2014 $AIZ

220px-Assurant_LogoIn the wake of the great financial crisis it can sometimes be difficult for Intelligent Investors to find a solid financial company in which to invest, because they require specific achievements over the historical period.  Many investors may simply decide to throw out the worst years with the rationale that they are outliers that shouldn’t be considered when evaluating the company’s prospects, but doing so would involve speculation.  We don’t know whether the financial crisis will happen again, but we do know that if it does, we can expect to see similar results as we did before.  By continuing to require the same standards for the historical period, Intelligent Investors are able to whittle down banks to only those with the best financial position, and then they are able to determine an intrinsic value to get a sense of whether the company is a good investment.  In addition, a company must have strong financial statements to prove that it is stable enough for Intelligent Investors.  This is best done by utilizing a systematic approach to analysis that will provide investors with a sense of how a specific company compares to another company.  By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries.  What follows is a specific look at how Assurant Inc. (AIZ) fares in the ModernGraham valuation model.

Company Profile (obtained from Google Finance): Assurant, Inc. (Assurant) is a provider of specialized insurance products and related services in North America and select worldwide markets. The Company operates in four segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits. The products offered by the segments include warranties and service contracts, pre-funded funeral insurance, lender-placed homeowners insurance, manufactured housing homeowners insurance, individual health and small employer group health insurance, group dental, disability, and life insurance and employee-funded voluntary benefits. In October 2013, FirstService Corporation completed the sale of its Field Asset Services business to Assurant, Inc. In October 2013, Assurant Inc acquired Lifestyle Services Group Ltd. In April 2014, Assurant Inc acquired StreetLinks LLC. In September 2014, Assurant Inc expands mortgage industry offerings with acquisition of eMortgage Logic.

Defensive Investor – must pass all 6 of the following tests: Score = 5/6

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion – PASS
  2. Earnings Stability – positive earnings per share for at least 10 straight years – PASS
  3. Dividend Record – has paid a dividend for at least 10 straight years – PASS
  4. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period – FAIL
  5. Moderate PEmg ratio – PEmg is less than 20 – PASS
  6. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50 – PASS

Enterprising Investor – must pass all 3 of the following tests or be suitable for a defensive investor: Score = 3/3

  1. Earnings Stability – positive earnings per share for at least 5 years – PASS
  2. Dividend Record – currently pays a dividend – PASS
  3. Earnings growth – EPSmg greater than 5 years ago – PASS

Valuation Summary

Key Data:

Recent Price $68.59
MG Value $161.81
MG Opinion Undervalued
Value Based on 3% Growth $85.92
Value Based on 0% Growth $50.37
Market Implied Growth Rate 1.54%
PEmg 11.58
PB Ratio 0.94

Balance Sheet – September 2014

Total Debt $1,171,000,000
Total Assets $30,673,000,000
Intangible Assets $1,233,000,000
Total Liabilities $25,331,000,000
Outstanding Shares 73,000,000

Earnings Per Share

2014 (estimate) $6.63
2013 $6.30
2012 $5.67
2011 $5.51
2010 $2.50
2009 $3.63
2008 $3.76
2007 $5.38
2006 $5.57
2005 $3.50
2004 $2.53

Earnings Per Share – ModernGraham 

2014 (estimate) $5.93
2013 $5.29
2012 $4.59
2011 $4.09
2010 $3.64
2009 $4.26

Dividend History

Conclusion:

Assurant Inc. qualifies for the Enterprising Investor but not the Defensive Investor.  The Defensive Investor is concerned by the level of growth in earnings over the last ten years while the Enterprising Investor has no initial concerns.  As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities.  As for a valuation, the company appears undervalued after growing its EPSmg (normalized earnings) from $3.64 in 2010 to an estimated $5.93 for 2014.  This level of demonstrated growth outpaces the market’s implied estimate of 1.54% earnings growth and leads the ModernGraham valuation model, which is based on Benjamin Graham’s formula, to return an estimate of intrinsic value above the market price.

Be sure to check out previous ModernGraham valuations of Assurant Inc. (AIZ) for better perspective!

The next part of the analysis is up to individual investors, and requires discussion of the company’s prospects.  What do you think?  What value would you put on Assurant Inc. (AIZ)?  Where do you see the company going in the future?  Is there a company you like better?  Leave a comment on our Facebook page or mention @ModernGraham on Twitter to discuss.

Disclaimer:  The author did not hold a position in Assurant Inc. (AIZ) or in any of the other companies listed in this article at the time of publication and had no intention of changing that position within the next 72 hours.  Logo taken from the Wikipedia; this article is not affiliated with the company in any manner.

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