United Fire Group (UFCS) AI Stock Analysis

• Market Cap: $772.92M
• Dividend Yield: 2.13%
• Average Volume (3M): 108.18K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.61
• Revenue Growth: 14.28%
• EPS Growth: 148.61%
• Country: US
• Employees: 877
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.90
• Shares Outstanding: 25,492,014
• 10 Day Avg. Volume: 88,931
• 30 Day Avg. Volume: 108,177
• PEG Ratio: -0.04
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 2.19
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.18
• Enterprise Value/Ebitda: 6.57
• 1Y Price Target: $33.00
• Price Target Upside: 8.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $34.00 ▲(11.37% Upside)

United Fire Group's strong earnings performance and undervaluation are significant positives. However, slowing revenue growth and challenges in investment volatility and rate achievement pose potential risks. The technical indicators suggest a neutral market sentiment.

United Fire Group Business Overview & Revenue Model

Company Description

United Fire Group, Inc. (UFCS) is a property and casualty insurance company headquartered in Cedar Rapids, Iowa. The company primarily operates in the insurance sector, offering a range of products including personal and commercial insurance lines. Its core services encompass various forms of coverage such as auto, home, and business insurance, as well as surety bonds and workers' compensation. UFCS focuses on providing tailored insurance solutions to meet the diverse needs of its clients, driven by a commitment to customer service and financial stability.

How the Company Makes Money

United Fire Group generates revenue primarily through the collection of premiums from its insurance policies. The company underwrites various types of insurance, and the premiums collected from policyholders constitute the main revenue stream. Additionally, UFCS earns investment income by investing the premiums it receives prior to claims being paid out. This investment income can be a significant contributor to overall earnings. The company may also engage in reinsurance arrangements to mitigate risk, which can affect its financial performance. Key partnerships with independent agents and brokers facilitate the distribution of its insurance products, enhancing its market reach and customer base.

United Fire Group Financial Statement Overview

Summary

United Fire Group shows strong revenue and cash flow growth with a solid balance sheet. The absence of debt and improved return on equity highlight financial resilience, despite some operational challenges.

Income Statement

United Fire Group has shown a strong revenue growth of 14.4% from 2023 to 2024. The gross profit margin remains consistent at 100%, as expected in the insurance industry. The net profit margin improved significantly from a negative position in 2023 to 4.9% in 2024, indicating a turnaround in profitability. However, the absence of positive EBIT and EBITDA margins in the latest reports suggests operational challenges.

Balance Sheet

The company has a solid equity position with a debt-to-equity ratio of 0, indicating no debt burden in 2024. The return on equity improved significantly to 7.9% in 2024 from a negative in the previous year, showing efficient use of equity. The equity ratio stands at 22.4%, reflecting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

United Fire Group's free cash flow grew by 104.2% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 5.5, indicating robust cash flow relative to net earnings. The free cash flow to net income ratio is exceptionally strong at 5.3, further supporting the company's cash flow strength.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.25B	1.10B	988.22M	1.06B	1.08B
Gross Profit	275.30M	225.92M	83.93M	137.84M	200.91M	1.07B
EBITDA	133.10M	95.22M	-25.95M	22.93M	106.60M	-162.73M
Net Income	91.84M	61.96M	-29.70M	15.03M	80.59M	-112.71M
Balance Sheet
Total Assets	3.66B	3.49B	3.14B	2.88B	3.01B	3.07B
Cash, Cash Equivalents and Short-Term Investments	202.40M	201.05M	102.15M	96.92M	132.38M	88.12M
Total Debt	117.16M	117.06M	50.00M	50.00M	50.00M	50.00M
Total Liabilities	2.82B	2.71B	2.41B	2.14B	2.13B	2.24B
Stockholders Equity	845.67M	781.53M	733.75M	740.11M	879.12M	825.15M
Cash Flow
Free Cash Flow	291.61M	328.43M	160.85M	-3.39M	15.94M	22.57M
Operating Cash Flow	301.88M	340.30M	171.74M	-1.25M	29.92M	41.44M
Investing Cash Flow	-236.39M	-292.49M	-149.89M	-19.17M	31.73M	-92.87M
Financing Cash Flow	-16.77M	51.09M	-16.45M	-15.03M	-17.49M	18.66M

United Fire Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.53
• 50DMA: Negative
• 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 UFCS, the sentiment is Neutral. The current price of 30.53 is below the 20-day moving average (MA) of 30.80, below the 50-day MA of 30.94, and above the 200-day MA of 28.29, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UFCS.

United Fire Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UVE	―	$889.49M	7.43	27.34%	2.45%	4.47%	73.40%
SAFT	―	$1.02B	11.79	10.08%	5.37%	18.52%	65.66%
DGICA	―	$652.52M	7.80	15.20%	3.86%	3.40%	978.24%
HRTG	―	$715.58M	6.66	33.49%	―	9.35%	77.04%
UFCS	―	$772.92M	8.54	11.68%	2.13%	14.28%	148.61%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ACIC	―	$572.02M	7.11	31.54%	―	23.68%	16.14%

United Fire Group Corporate Events

United Fire Group to Release Q3 2025 Earnings

United Fire Group, Inc. announced that it will release its third quarter 2025 earnings after the market closes on November 4, 2025, with an earnings call scheduled for November 5, 2025. This announcement provides stakeholders the opportunity to hear management discuss the company’s financial performance, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (UFCS) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.

United Fire Group Approves Severance Agreement for Executive

On August 15, 2025, United Fire Group‘s Board of Directors approved a Change in Control Severance Agreement for SVP & Chief Human Resources Officer, Steven D. Hernandez. Effective August 28, 2025, the agreement includes provisions such as an 18-month non-competition clause, severance benefits, continued insurance, full vesting of long-term incentives, and outplacement services, enhancing the executive’s security in the event of a company control change.

The most recent analyst rating on (UFCS) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.

United Fire Group Appoints Gilda L. Spencer as Director

On August 15, 2025, United Fire Group, Inc. announced the appointment of Gilda L. Spencer as a Class A director, effective immediately. Spencer, with her extensive legal and insurance background, will serve on the board’s risk management and compensation and human capital committees, bringing valuable insights to the company’s regulatory and governance strategies. Her appointment is expected to enhance UFG’s board capabilities and contribute to the company’s long-term success.

The most recent analyst rating on (UFCS) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.

United Fire Group Announces Quarterly Dividend

On August 15, 2025, United Fire Group, Inc. (UFG) announced a quarterly cash dividend of $0.16 per share, payable on September 12, 2025, to shareholders of record as of August 29, 2025. This marks the 230th consecutive quarterly dividend since March 1968, highlighting UFG’s consistent financial performance and commitment to returning value to its shareholders.

The most recent analyst rating on (UFCS) stock is a Hold with a $26.00 price target. To see the full list of analyst forecasts on United Fire Group stock, see the UFCS Stock Forecast page.

United Fire Group Reports Strong Q2 Earnings

United Fire Group’s recent earnings call conveyed a strong financial performance, marked by record net written premiums, improved underwriting profits, and a significant return on equity. Despite some challenges in rate achievement and alternative distribution, the overall sentiment was positive, emphasizing strategic growth and disciplined management.

United Fire Group Reports Strong Q2 2025 Results

United Fire Group, Inc. (UFG) is a property and casualty insurance company operating across the United States, known for its strong underwriting capabilities and strategic partnerships with independent agencies.