Unum Group (NYSE: UNM)

Sector: Financial Services Industry: Insurance - Life CIK: 0000005513
Market Cap 18.81 Bn
P/B 2.17
P/E 64.52
P/S 1.80
ROIC (Qtr) 6.16
Div Yield % 1.28
Rev 1y % (Qtr) 0.23
Total Debt (Qtr) 3.77 Bn
Debt/Equity (Qtr) 0.34
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About

Unum Group, a Delaware-based corporation with the ticker symbol UNM, is a leading provider of financial protection benefits in the United States and the United Kingdom. The company operates in various segments, including Unum US, Unum International, Colonial Life, Closed Block, and Corporate. Unum Group's offerings are designed to help individuals and employers protect their financial well-being in the event of illness, injury, or loss of life. Unum Group's business activities encompass the design, underwriting, and marketing of a range of financial...

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Investment thesis

Bull case

  • Strong tangible asset base of 63.17B provides 16.77x coverage of total debt 3.77B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 555.40M exceeds capital expenditure of 132.30M by 4.20x, indicating strong organic growth funding capability.
  • Tangible assets of 63.17B provide exceptional 153.02x coverage of deferred revenue 412.80M, showing strong service capability backing.
  • Retained earnings of 13.35B provide strong 37.71x coverage of intangibles 353.90M, indicating quality earnings retention.
  • Retained earnings of 13.35B represent substantial 1.20x of equity 11.12B, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 687.70M provides thin coverage of dividend payments of (306.20M) with a -2.25 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 687.70M barely covers operating expenses of 1.99B with a 0.35 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 13.35B provide limited buffer against comprehensive income items of (1.81B), which is -7.38x, indicating elevated exposure to market risks.
  • Operating cash flow of 687.70M is outpaced by equity issuance of (1.01B) (-0.68 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 158.20M provides only 0.76x coverage of interest expenses of 208.80M, indicating potential refinancing risks in a rising rate environment.

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Insurance - Life
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MET Metlife Inc 81.60 Bn 15.56 1.20 20.23 Bn
2 AFL Aflac Inc 78.90 Bn 18.62 3.49 8.69 Bn
3 MFC Manulife Financial Corp 63.37 Bn 16.53 2.20 10.71 Bn
4 PUK Prudential Plc 38.02 Bn 21.76 0.58 -
5 PRU Prudential Financial Inc 36.75 Bn 10.28 0.60 32.56 Bn
6 PRI Primerica, Inc. 19.72 Bn 133.62 17.82 0.65 Bn
7 UNM Unum Group 18.81 Bn 64.52 1.80 3.77 Bn
8 GL Globe Life Inc. 14.78 Bn 13.56 2.87 2.71 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.34 0.25
EV to Cash from Ops. EV/CFO 16.03 38.74
EV to Debt EV to Debt 5.78 4.98
EV to EBIT EV/EBIT 48.18 18.23
EV to EBITDA EV/EBITDA 40.60 14.59
EV to Free Cash Flow [EV/FCF] EV/FCF 17.28 34.05
EV to Market Cap EV to Market Cap 1.16 1.00
EV to Revenue EV/Rev 2.08 2.53
Price to Book Value [P/B] P/B 2.17 2.19
Price to Earnings [P/E] P/E 64.52 26.16
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.41 3.59
Dividend Payout Ratio % Div Payout % (Qtr) 41.10 22.49
Dividend per Basic Share Div per Share (Qtr) 1.80 1.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 54.23 0.41
Interest Coverage Int. cover (Qtr) 5.47 7.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -5.25 -27.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -2.83 19.69
Dividend Growth (1y) % Div 1y % (Qtr) 10.77 15.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.37 89.68
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -50.74 64.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.42 82.78
EBT Growth (1y) % EBT 1y % (Qtr) -58.54 344.70
EPS Growth (1y) % EPS 1y % (Qtr) -54.90 2,261.01
FCF Growth (1y) % FCF 1y % (Qtr) -59.97 186.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -16.07 50.91
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.21 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.37 0.12
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.34 0.49
Interest Cover Ratio Int Coverage (Qtr) 5.47 7.54
Times Interest Earned Times Interest Earned (Qtr) 5.47 7.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.70 15.04
EBIT Margin % EBIT Margin % (Qtr) 8.74 14.45
EBT Margin % EBT Margin % (Qtr) 7.14 12.36
Gross Margin % Gross Margin % (Qtr) 38.30 45.61
Net Profit Margin % Net Margin % (Qtr) 5.60 10.89