Safety Insurance Group provides private passenger automobile insurance in Massachusetts and New Hampshire. The company was founded in 1979 and is based in Boston, Massachusetts.
SAFT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Safety Insurance Group Inc. To summarize, we found that Safety Insurance Group Inc ranked in the 45th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for SAFT, they are:
Interest coverage, a measure of earnings relative to interest payments, is 431.23 -- which is good for besting 97.39% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately merely 16.5% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
SAFT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 42.73% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HMN, L, APAM, BRO, and DFIN can be thought of as valuation peers to SAFT, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]
AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" of Safety Insurance Company, Safety Indemnity Insurance Company and Safety Property and Casualty Insurance Company, collectively referred to as Safety Group (Safety). Concurrently, AM Best has affirmed the Long-Term ICR of "bbb+" of Safety Insurance Group, Inc. (Delaware) [NASDAQ/GS: SAFT], the publicly traded parent of Safety. The outlook of these Credit Ratings (ratings) remains stable. All companies are domiciled in Boston, MA, except where specified.