Safety Insurance Group (SAFT) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 5.06%
• Average Volume (3M): 88.63K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.31
• Revenue Growth: 19.05%
• EPS Growth: 40.69%
• Country: US
• Employees: 551
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.45
• Shares Outstanding: 14,893,552
• 10 Day Avg. Volume: 70,350
• 30 Day Avg. Volume: 88,634
• 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: 1.15
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: 13.24
• 1Y Price Target: $74.00
• Price Target Upside: 3.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $74.00 ▲(3.93% Upside)

Safety Insurance Group's strong financial performance and attractive dividend yield are key strengths. However, bearish technical signals and slight fluctuations in operating margins offset some of these positives. Overall, the stock presents a balanced opportunity with potential income benefits but also near-term market pressure.

Safety Insurance Group Business Overview & Revenue Model

Company Description

Safety Insurance Group, Inc. provides private passenger and commercial automobile, and homeowner insurance in the United States. The company's private passenger automobile policies offer coverage for bodily injury and property damage to others, no-fault personal injury coverage for the insured/insured's car occupants, and physical damage coverage for an insured's own vehicle for collision or other perils. It also provides commercial automobile policies that offer insurance for commercial vehicles used for business purposes, including private passenger-type vehicles, trucks, tractors and trailers, insure individual vehicles, and commercial fleets; and homeowners policies, which provide coverage for homes, condominiums, and apartments for losses to a dwelling and its contents from various perils, and coverage for liability to others arising from ownership or occupancy. In addition, the company offers business owners policies that cover apartments and residential condominiums, restaurants, office condominiums, processing and services businesses, special trade contractors, and wholesalers. Further, it provides personal umbrella policies, which provide personal excess liability coverage over and above the limits of individual automobile, watercraft, and homeowner's insurance policies; and commercial umbrella and business owner policies, as well as underwrites dwelling fire insurance for non-owner-occupied residences. Additionally, the company offers inland marine coverage for homeowners and business owner policies, and watercraft coverage for small and medium sized pleasure crafts. It distributes its products through independent agents. The company was formerly known as Safety Holdings Inc and changed its name to Safety Insurance Group, Inc. in April 2002. Safety Insurance Group, Inc. was founded in 1979 and is headquartered in Boston, Massachusetts.

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 excellent profitability and effective cash flow management. The company maintains a conservative leverage profile and solid capital structure, although operating margins have shown slight fluctuations.

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	1.11B	930.96M	785.06M	864.72M	840.40M
Gross Profit	1.15B	393.10M	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	612.55M	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: 71.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 71.2 is below the 20-day moving average (MA) of 71.23, below the 50-day MA of 75.69, and below the 200-day MA of 77.71, indicating a bearish trend. The MACD of -1.50 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.23 is Neutral, 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	76 Outperform	$682.08M	7.62	11.68%	2.45%	14.28%	148.61%
DGICA	71 Outperform	$598.14M	7.14	15.20%	4.21%	3.40%	978.24%
BOW	70 Outperform	$1.05B	21.24	13.23%	―	50.21%	37.28%
Sector *	69 Neutral	€15.55B	11.95	14.69%	5.80%	3.71%	-2.29%
HCI	68 Neutral	$1.62B	13.56	28.75%	1.16%	20.89%	3.25%
PRA	67 Neutral	$1.22B	25.18	4.05%	―	-1.00%	―
SAFT	64 Neutral	$1.05B	14.36	10.08%	5.06%	19.05%	40.69%