Safety Insurance Group (SAFT) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 5.31%
• Average Volume (3M): 81.83K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.32
• Revenue Growth: 13.35%
• EPS Growth: 16.56%
• Country: US
• Employees: 551
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.48
• Shares Outstanding: 14,894,054
• 10 Day Avg. Volume: 100,724
• 30 Day Avg. Volume: 81,833
• PEG Ratio: 0.06
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 9.74
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 9.04
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $84.00 ▲(19.78% Upside)

Safety Insurance Group's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust cash flow management and low leverage enhance its financial stability. While technical indicators suggest potential short-term overbought conditions, the overall outlook remains positive due to its solid fundamentals and appealing dividend yield.

Safety Insurance Group Business Overview & Revenue Model

Company Description

Safety Insurance Group (SAFT) is a prominent provider of property and casualty insurance products, primarily operating in the New England region. The company offers a range of insurance solutions, including personal auto, homeowners, commercial auto, and business insurance, catering to both individual and business clients. With a strong emphasis on customer service and risk management, Safety Insurance Group aims to protect its customers' assets while promoting safety and preparedness in the communities it serves.

How the Company Makes Money

Safety Insurance Group generates revenue primarily through the collection of premiums from its policyholders. The company underwrites various insurance products, and the premiums collected serve as the main source of income. Additionally, Safety Insurance may earn investment income from the reserves held for future claims payouts. Effective risk management and underwriting practices help the company to maintain profitability by minimizing claims costs. Significant partnerships with independent agents and brokers also contribute to its revenue by expanding its distribution channels and enhancing market reach, allowing for a diversified portfolio of insurance products.

Safety Insurance Group Financial Statement Overview

Summary

Safety Insurance Group exhibits strong financial health with consistent revenue growth, improved profitability, and a solid balance sheet. The company effectively manages its cash flows, maintaining high liquidity and low leverage. While the gross profit margin decline is a concern, the company's operational efficiency and financial stability position it well for future growth.

Income Statement

Safety Insurance Group shows a consistent revenue growth trend with a TTM revenue growth rate of 2.58%. The gross profit margin has decreased significantly from previous years, indicating potential cost management issues. However, the net profit margin has improved to 7.11% in the TTM, reflecting better profitability. The EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.047, indicating low leverage and financial stability. Return on equity has improved to 10.11% in the TTM, showcasing effective use of equity to generate profits. The equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Safety Insurance Group demonstrates robust cash flow management with a free cash flow growth rate of 7.72% in the TTM. The operating cash flow to net income ratio is high at 12.41, indicating strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.11B	925.95M	785.06M	864.72M	840.40M
Gross Profit	440.97M	393.10M	283.64M	293.08M	402.99M	435.85M
EBITDA	120.34M	99.84M	32.19M	66.72M	171.69M	182.74M
Net Income	87.27M	70.73M	18.88M	46.56M	130.71M	138.21M
Balance Sheet
Total Assets	2.45B	2.27B	2.09B	1.97B	2.12B	2.05B
Cash, Cash Equivalents and Short-Term Investments	657.93M	612.36M	1.09B	1.08B	1.28B	1.31B
Total Debt	42.63M	45.73M	49.76M	58.34M	57.12M	61.00M
Total Liabilities	1.55B	1.44B	1.29B	1.16B	1.19B	1.17B
Stockholders Equity	899.55M	828.46M	804.27M	812.00M	927.17M	884.68M
Cash Flow
Free Cash Flow	170.81M	124.32M	50.33M	42.23M	133.17M	99.51M
Operating Cash Flow	171.37M	128.69M	52.11M	44.33M	141.39M	109.46M
Investing Cash Flow	-124.09M	-54.54M	24.27M	-19.99M	-65.99M	-35.52M
Financing Cash Flow	-53.65M	-53.33M	-63.53M	-62.64M	-65.57M	-64.57M

Safety Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFT, the sentiment is Positive. The current price of 70.13 is below the 20-day moving average (MA) of 73.32, below the 50-day MA of 71.61, and below the 200-day MA of 74.20, indicating a bullish trend. The MACD of 1.69 indicates Negative momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 49.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAFT.

Safety Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFCS	75 Outperform	$941.99M	8.71	13.21%	1.73%	12.22%	120.73%
SAFT	75 Outperform	$1.15B	13.07	9.97%	5.31%	13.35%	16.56%
UVE	74 Outperform	$935.71M	7.88	27.34%	2.29%	4.61%	73.40%
HRTG	72 Outperform	$837.70M	5.62	41.64%	―	5.92%	93.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$703.63M	8.14	15.10%	3.65%	0.93%	224.95%
PRA	55 Neutral	$1.24B	36.75	2.66%	―	-3.35%	-21.82%