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 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 583.67% 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 6%; for context, that number is higher than only 1.39% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Unum Group has a reliance on debt greater than 72.79% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LPLA, ESNT, FOCS, AMP, and HIG can be thought of as valuation peers to UNM, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Unum Group and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
More than half (55%) of U.S. workers don't protect their income with disability insurance. Seven out of 10 Baby Boomers also forego this coverage,1 despite being more likely to need it. This generation makes up nearly half (47%) of all long term disability claims,2 according to internal claims data from Unum (NYSE: UNM), a leading provider of disability insurance.
With student loan debt topping more than $1.6 trillion nationwide, employee benefits provider Unum (NYSE: UNM) found a novel solution to help its employees pay some of those burdensome loans. Announced to employees in 2019, Unum's Student Debt Relief Program, managed by Fidelity Investments, allows the company's 9,500 U.S. employees to transfer up to 40 hours of carry-over paid time off (PTO) into a payment against student debt. In the first year of the program, the company paid $625,000 in student loan principal and estimated interest for participating employees, with an average payment of $1,200.
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...
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...