Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Unum Group (NYSE:UNM) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of UNM, it is a financially-healthy company with a a strong track record high-grade dividend payments, trading at a great value. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Unum Group here.
Undervalued established dividend payer
UNM’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. UNM appears to have made good use of debt, producing operating cash levels of 0.46x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. UNM’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of UNM’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of US companies with similar levels of earnings, UNM’s share price is trading below the group’s average. This further reaffirms that UNM is potentially undervalued.
UNM 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 Unum Group, I’ve put together three pertinent aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for UNM’s future growth? Take a look at our free research report of analyst consensus for UNM’s outlook.
- Historical Performance: What has UNM’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of UNM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.