Assurant (AIZ) AI Stock Analysis

• Market Cap: $11.92B
• Dividend Yield: 1.36%
• Average Volume (3M): 310.07K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.56
• Revenue Growth: 6.91%
• EPS Growth: 17.60%
• Country: US
• Employees: 14,200
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 5.76
• Shares Outstanding: 50,081,110
• 10 Day Avg. Volume: 291,165
• 30 Day Avg. Volume: 310,074
• PEG Ratio: 0.70
• Price to Book (P/B): 2.18
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 1.06
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 9.49
• 1Y Price Target: $255.67
• Price Target Upside: 7.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 20.78
• Revenue Forecast (FY): $13.50B

• Rating: 73 Outperform
• Price Target: $239.00 ▲(0.41% Upside)

Assurant's overall stock score reflects strong financial performance and positive earnings call outcomes, which are the most significant factors. The company shows solid growth in key segments and has upgraded its financial outlook. However, technical analysis presents mixed signals, and cash flow management needs improvement. Valuation metrics suggest the stock is fairly valued, providing a balanced investment opportunity.

Positive Factors

Revenue Growth

Exceeding revenue estimates indicates strong market demand and effective strategy execution, supporting long-term growth prospects.

Strategic Partnerships

These partnerships enhance product offerings and distribution channels, strengthening competitive positioning and driving future revenue.

Segment Performance

Strong performance in key segments reflects effective business strategy and positions Assurant for sustained profitability and market leadership.

Negative Factors

Cash Flow Management

Weak cash flow growth can limit liquidity and investment capacity, potentially hindering long-term operational and strategic flexibility.

Corporate Segment Losses

Ongoing losses in the corporate segment could strain resources and affect overall profitability, impacting long-term financial health.

Foreign Exchange Impact

Adverse foreign exchange impacts can affect international earnings, adding volatility to financial results and complicating financial planning.

Assurant Business Overview & Revenue Model

Company Description

Assurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment offers mobile device solutions, and extended service products and related services for mobile devices, consumer electronics, and appliances; vehicle protection and related services; and credit protection and other insurance products. The Global Housing segment provides lender-placed homeowners insurance, manufactured housing, and flood insurance; and renters insurance and related products, as well as voluntary manufactured housing insurance, voluntary homeowners insurance, and other specialty products. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in New York, New York.

How the Company Makes Money

Assurant generates revenue through multiple key streams. Its Global Housing segment derives income from property and casualty insurance policies, predominantly in the rental market, providing coverage for landlords and tenants. The Global Lifestyle segment earns revenue by offering protection plans for mobile devices, appliances, and consumer electronics, as well as extended warranty services. The Global Automotive segment focuses on vehicle service contracts and related products, capturing revenue from automotive dealers and consumers. Additionally, Assurant benefits from strategic partnerships with leading retailers and service providers, enhancing its distribution capabilities and expanding its customer base. The company's revenue is further supported by the effective management of its investment portfolio, which generates income through interest and investment gains.

Assurant Financial Statement Overview

Summary

Assurant demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet is stable with manageable leverage, though cash flow management could be improved to enhance liquidity. The company is well-positioned in the insurance industry, but attention to cash flow dynamics is advisable.

Income Statement

Assurant's income statement shows a stable revenue growth trend with a TTM revenue growth rate of 1.93%. The gross profit margin remains strong at 76.04%, indicating efficient cost management. However, the net profit margin has slightly decreased to 5.83% in the TTM, reflecting some pressure on profitability. The EBIT and EBITDA margins are healthy, suggesting solid operational performance.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.38, indicating a balanced approach to leveraging. Return on equity is robust at 13.60%, showcasing effective use of shareholder funds. The equity ratio stands at 15.47%, suggesting a stable financial structure, though there is room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 28.62% in the TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 93.73%, reflecting good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.57B	11.88B	11.13B	10.19B	10.19B	9.61B
Gross Profit	9.69B	9.11B	8.61B	7.83B	4.15B	3.66B
EBITDA	1.40B	1.26B	1.11B	640.20M	1.05B	824.90M
Net Income	848.80M	760.20M	642.50M	276.60M	1.36B	440.80M
Balance Sheet
Total Assets	35.78B	35.02B	33.64B	33.12B	33.92B	44.65B
Cash, Cash Equivalents and Short-Term Investments	0.00	4.19B	3.73B	7.98B	9.50B	9.32B
Total Debt	2.21B	2.08B	2.08B	2.13B	2.20B	2.25B
Total Liabilities	30.02B	29.91B	28.83B	28.89B	28.46B	38.70B
Stockholders Equity	5.76B	5.11B	4.81B	4.23B	5.46B	5.95B
Cash Flow
Free Cash Flow	1.02B	1.11B	935.60M	410.60M	594.30M	1.22B
Operating Cash Flow	1.27B	1.33B	1.14B	596.90M	781.70M	1.34B
Investing Cash Flow	-983.00M	-657.80M	-637.70M	-262.10M	157.60M	-735.20M
Financing Cash Flow	-387.70M	-477.50M	-403.90M	-818.40M	-1.09B	-264.80M

Assurant Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIZ, the sentiment is Positive. The current price of 238.02 is above the 20-day moving average (MA) of 236.92, above the 50-day MA of 227.57, and above the 200-day MA of 207.23, indicating a bullish trend. The MACD of 3.28 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 34.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIZ.

Assurant Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTG	78 Outperform	$6.51B	9.33	14.40%	1.89%	2.20%	9.90%
FNF	74 Outperform	$14.91B	12.79	14.22%	3.69%	3.91%	55.78%
FAF	74 Outperform	$6.12B	13.21	9.28%	3.58%	25.99%	426.44%
AIZ	73 Outperform	$11.92B	14.48	15.41%	1.36%	6.91%	17.60%
ESNT	73 Outperform	$6.25B	9.33	12.35%	1.88%	2.78%	-0.50%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
RYAN	60 Neutral	$13.27B	398.74	11.16%	0.93%	22.77%	-34.97%