Safety Insurance Group (SAFT) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: 4.97%
• Average Volume (3M): 88.39K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.32
• Revenue Growth: 19.05%
• EPS Growth: 40.69%
• Country: US
• Employees: 551
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.28
• Shares Outstanding: 14,893,552
• 10 Day Avg. Volume: 82,223
• 30 Day Avg. Volume: 88,387
• PEG Ratio: 5.94
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.22
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: 3.10
• 1Y Price Target: $88.00
• Price Target Upside: 20.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $84.00 ▲(15.35%Upside)

Safety Insurance Group's strong financial performance is the most significant factor, supporting a stable outlook. However, bearish technical indicators and fair valuation metrics weigh down the overall score. The absence of earnings call insights and corporate events limits additional context.

Safety Insurance Group Business Overview & Revenue Model

Company Description

Safety Insurance Group (SAFT) is a publicly-traded company that operates in the insurance sector, primarily offering property and casualty insurance products. The company provides a comprehensive range of insurance services, including private passenger automobile, commercial automobile, and homeowners insurance. Safety Insurance Group serves individuals, families, and businesses, mainly in the New England area, delivering tailored insurance solutions to meet their specific needs.

How the Company Makes Money

Safety Insurance Group generates revenue primarily through the underwriting of insurance policies, collecting premiums from policyholders. The company's key revenue streams include premiums from automobile, homeowners, and commercial insurance. Additional income is earned from investment activities, where Safety Insurance Group invests premiums in a diversified portfolio to generate returns. The company's earnings are also influenced by its ability to manage risk effectively, maintain a competitive cost structure, and leverage its strong regional presence and customer relationships. Strategic partnerships with independent insurance agents also play a crucial role in distributing its products and expanding its market reach.

Safety Insurance Group Financial Statement Overview

Summary

Safety Insurance Group demonstrates strong financial performance with solid profitability, a robust balance sheet, and effective cash flow management. The income statement shows healthy revenue growth and improved net profit margin. The balance sheet is stable with low leverage, and cash flow generation is strong, indicating effective capital management.

Income Statement

The income statement reflects strong profitability and healthy revenue growth. The TTM (Trailing-Twelve-Months) gross profit margin is robust at 100%, indicating efficient cost management. The net profit margin improved to 6.29% in TTM, showcasing effective bottom-line growth. Revenue growth has been solid, with a 3.0% increase from the previous year, although EBIT and EBITDA margins slightly declined, indicating higher operating costs.

Balance Sheet

Safety Insurance Group maintains a stable balance sheet with a debt-to-equity ratio of 0.05, suggesting conservative leverage. Return on equity (ROE) is fairly healthy at 8.53% in TTM, reflecting effective use of equity to generate profits. The equity ratio stands at 37.13%, highlighting a solid capital structure though slightly lower than previous years due to increased liabilities.

Cash Flow

The cash flow statement shows strong operational cash generation, with the operating cash flow to net income ratio at 2.11, indicating excellent cash conversion. Free cash flow has grown by 21.75% in the latest period, reflecting robust capital efficiency. The free cash flow to net income ratio of 2.09 underscores effective management of cash relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.15B	1.12B	930.96M	785.06M	864.72M	840.40M
Gross Profit	1.15B	1.12B	930.96M	785.06M	864.72M	840.40M
EBITDA	91.25M	99.33M	28.35M	0.00	171.69M	182.74M
Net Income	72.55M	70.73M	18.88M	46.56M	130.71M	138.21M
Balance Sheet
Total Assets	2.29B	2.27B	2.09B	1.97B	2.12B	2.05B
Cash, Cash Equivalents and Short-Term Investments	64.71M	58.97M	38.15M	1.08B	1.28B	1.31B
Total Debt	44.67M	45.73M	49.76M	58.34M	57.12M	61.00M
Total Liabilities	1.44B	1.44B	1.29B	1.16B	1.19B	1.17B
Stockholders Equity	850.67M	828.46M	804.27M	812.00M	927.17M	884.68M
Cash Flow
Free Cash Flow	151.37M	124.32M	50.33M	42.23M	133.17M	99.51M
Operating Cash Flow	153.00M	128.69M	52.11M	44.33M	141.39M	109.46M
Investing Cash Flow	-65.81M	-54.54M	24.27M	-19.99M	-65.99M	-35.52M
Financing Cash Flow	-53.28M	-53.33M	-63.53M	-62.64M	-65.57M	-64.57M

Safety Insurance Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAFT, the sentiment is Negative. The current price of 72.82 is below the 20-day moving average (MA) of 76.62, below the 50-day MA of 78.65, and below the 200-day MA of 78.36, indicating a bearish trend. The MACD of -1.79 indicates Positive momentum. The RSI at 31.52 is Neutral, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$688.19M	10.83	8.51%	2.37%	14.60%	―
BOW	70 Outperform	$1.11B	25.97	14.40%	―	50.21%	37.28%
SAFT	69 Neutral	$1.08B	14.89	8.75%	4.97%	19.05%	40.69%
HCI	68 Neutral	$1.63B	13.64	28.75%	1.12%	20.89%	3.25%
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
DGICA	68 Neutral	$657.64M	9.05	13.11%	3.94%	5.29%	1200.44%
PRA	60 Neutral	$1.22B	28.88	3.60%	―	-1.00%	―