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United Fire Group, Inc. (NASDAQ:UFCS) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of UFCS, it is a financially-sound , dividend-paying company with a a great history of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on United Fire Group here.
Excellent balance sheet with proven track record and pays a dividend
In the past couple of years, UFCS has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did UFCS outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 3.2% earnings growth. This paints a buoyant picture for the company. Looking at UFCS’s capital structure, the company has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
UFCS is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For United Fire Group, I’ve compiled three fundamental aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for UFCS’s future growth? Take a look at our free research report of analyst consensus for UFCS’s outlook.
- Valuation: What is UFCS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether UFCS is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UFCS? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.