United Fire Group (UFCS) AI Stock Analysis

• Market Cap: $948.62M
• Dividend Yield: 1.73%
• Average Volume (3M): 116.24K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.58
• Revenue Growth: 12.22%
• EPS Growth: 120.73%
• Country: US
• Employees: 877
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.50
• Shares Outstanding: 25,514,330
• 10 Day Avg. Volume: 115,084
• 30 Day Avg. Volume: 116,242
• 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: 1.00
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 5.92
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.66
• Revenue Forecast (FY): $1.29B

• Rating: 75 Outperform
• Price Target: $41.00 ▲(34.29% Upside)

United Fire Group's strong earnings call performance and attractive valuation are the most significant factors driving the stock score. The company's solid financial performance and bullish technical indicators further support a positive outlook, despite some challenges in market conditions.

Positive Factors

Revenue Growth

The growth in net written premiums, particularly in core commercial business, indicates strong demand and effective market penetration, supporting long-term revenue expansion.

Profitability Improvements

Improved profit margins suggest better cost management and pricing strategies, enhancing the company's ability to generate sustainable profits over time.

Investment Income Growth

Increased investment income contributes to overall earnings stability and provides a buffer against underwriting volatility, supporting long-term financial health.

Negative Factors

Soft Market Conditions

Soft market conditions can lead to pricing pressures and reduced margins, challenging the company's ability to maintain profitability in the long term.

Decline in Specialty Premiums

A decline in specialty premiums could indicate weakening demand or increased competition, potentially impacting revenue growth in niche markets.

Decreased Gross Profit Margin

A significant drop in gross profit margin suggests rising costs or pricing pressures, which could erode profitability if not addressed effectively.

United Fire Group Business Overview & Revenue Model

Company Description

United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and commercial multiple peril and inland marine insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and fidelity and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa.

How the Company Makes Money

United Fire Group generates revenue primarily through the underwriting of insurance premiums. The company collects premiums from policyholders in exchange for providing insurance coverage. This revenue is supplemented by investment income derived from the company's investment portfolio, which includes fixed-income securities, equities, and other financial instruments. Key revenue streams include personal lines, commercial lines, and life insurance products. Additionally, UFCS benefits from strategic partnerships with agents and brokers who help distribute its insurance products, enhancing market reach and customer acquisition. The successful management of claims and underwriting risk also plays a crucial role in maintaining profitability, as effective loss control can lead to lower claim payouts and higher overall earnings.

United Fire Group Financial Statement Overview

Summary

United Fire Group demonstrates a solid financial position with improving profitability and efficient cash flow management. The company has shown resilience with revenue and profit growth, despite some challenges in gross profit margins and operating cash flow. The low leverage and strong return on equity further enhance its financial stability, positioning it well within the insurance industry.

Income Statement

United Fire Group has shown a positive revenue growth rate of 2.27% in the TTM, indicating a recovery from previous periods. The net profit margin improved to 8.23%, reflecting enhanced profitability. However, the gross profit margin decreased significantly from 18.05% in 2024 to 5.80% in the TTM, which could indicate rising costs or pricing pressures. The EBIT and EBITDA margins have improved, suggesting better operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio, indicating conservative leverage, which is favorable for stability. The return on equity improved to 13.31% in the TTM, showing effective use of equity to generate profits. However, the equity ratio has not been explicitly provided, which limits a complete assessment of asset financing.

Cash Flow

Free cash flow growth is positive at 2.03% in the TTM, indicating improved cash generation. The free cash flow to net income ratio remains strong at 96.60%, suggesting efficient conversion of profits into cash. However, the operating cash flow has decreased compared to previous periods, which could impact liquidity if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.25B	1.10B	988.22M	1.06B	1.08B
Gross Profit	295.24M	225.92M	83.93M	137.84M	200.91M	-1.46M
EBITDA	160.24M	95.22M	-25.95M	22.93M	106.60M	-162.86M
Net Income	111.28M	61.96M	-29.70M	15.03M	80.59M	-112.71M
Balance Sheet
Total Assets	3.75B	3.49B	3.14B	2.88B	3.01B	3.07B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.13B	102.15M	96.92M	132.38M	88.12M
Total Debt	146.13M	117.06M	50.00M	50.00M	50.00M	50.00M
Total Liabilities	2.86B	2.71B	2.41B	2.14B	2.13B	2.24B
Stockholders Equity	898.71M	781.53M	733.75M	740.11M	879.12M	825.15M
Cash Flow
Free Cash Flow	297.53M	328.43M	160.85M	-3.39M	15.94M	22.57M
Operating Cash Flow	306.26M	340.30M	171.74M	-1.25M	29.92M	41.44M
Investing Cash Flow	-282.98M	-292.49M	-149.89M	-19.17M	31.73M	-92.87M
Financing Cash Flow	13.09M	51.09M	-16.45M	-15.03M	-17.49M	18.66M

United Fire Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.53
• 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 UFCS, the sentiment is Positive. The current price of 30.53 is below the 20-day moving average (MA) of 35.27, below the 50-day MA of 32.60, and above the 200-day MA of 29.28, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 67.79 is Neutral, neither overbought nor oversold. The STOCH value of 57.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UFCS.

United Fire Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFCS	75 Outperform	$948.62M	8.77	13.21%	1.73%	12.22%	120.73%
SAFT	75 Outperform	$1.13B	12.90	9.97%	5.31%	13.35%	16.56%
UVE	74 Outperform	$932.91M	7.85	27.34%	2.29%	4.61%	73.40%
HRTG	72 Outperform	$873.25M	5.86	41.64%	―	5.92%	93.02%
ACIC	68 Neutral	$582.75M	6.90	29.35%	―	16.34%	-1.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
DGICA	62 Neutral	$716.42M	8.28	15.10%	3.58%	0.93%	224.95%

United Fire Group Corporate Events

United Fire Group Reports Strong Q3 2025 Results

United Fire Group, Inc. (UFG) is a property and casualty insurance company based in Cedar Rapids, Iowa, providing a range of insurance products across the United States through its subsidiaries.

United Fire Group Reports Record Earnings in Q3 Call

United Fire Group’s recent earnings call conveyed a positive sentiment, underscored by a robust financial performance. The company reported record net income and improvements in its combined ratio, reflecting significant growth across key business areas. Despite these achievements, the call also highlighted challenges due to soft market conditions and a slight decline in specific premium lines.

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.