Unum Group is a leading provider of financial protection benefits in the United States and the United Kingdom. Its primary businesses are Unum US, Colonial Life and Unum UK. Unum's portfolio includes disability, life, accident and critical illness coverage. The company was founded in 1848 and is based in Chattanooga, Tennessee.
UNM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UNM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Unum Group ranked in the 78th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 422.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Unum Group ended up being:
Unum Group's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 3.27% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Unum Group has a reliance on debt greater than 66.55% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as UNM, try STC, GNW, BRP, AFG, and FOCS.
Unum Group (UNM) Q2 2020 Earnings Conference Call July 29, 2020 8:00 AM ET Company Participants Tom White – Investor Relations Rick McKenney – President and Chief Executive Officer Steve Zabel – Chief Financial Officer Mike Simonds – Chief Operating Officer Tim Arnold – Head-Colonial Life and Voluntary Benefits Conference...
Net income for the second quarter of 2020 included net after-tax realized investment gains of $25.4 million and an after-tax impairment loss of $10 million on the right-of-use asset related to one of our operating leases on an office building, we do not plan to continue to occupy. Net income in the second quarter of 2019 included a net after-tax realized investment loss of $5.7 million.
Unum Group (UNM) gains 3.2% in after-hours trading after Q2 adjusted operating EPS of $1.23 beats the average analyst estimate of $1.21.Compares with $1.36 in the year-ago quarter.Unum U.S. adjusted operating income of $231.9M fell 8.8% Y/Y; premium income rose 1.2% to $1.52B and net investment income fell 3.9% to $176.9M.Unum...