Unum Group (UNM) AI Stock Analysis

• Market Cap: $14.14B
• Dividend Yield: 2.09%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.41
• Revenue Growth: 1.69%
• EPS Growth: 25.54%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 76
• Industry: Insurance - Life
• EPS (TTM): 2.04
• Shares Outstanding: 174,361,910
• 10 Day Avg. Volume: 1,116,898
• 30 Day Avg. Volume: 1,259,106
• PEG Ratio: -0.88
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.89
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $97.67
• Price Target Upside: 21.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 74 Outperform
• Price Target: $90.00 ▲(11.83%Upside)

Unum Group demonstrates strong financial stability and a solid valuation, making it attractive for investors. The company's strategic initiatives and positive corporate events further enhance its prospects, despite some operational challenges highlighted in the earnings call.

Positive Factors

Capital Management

The company left the door open to raising the buyback guide when the LTC deal closes, which would be beneficial to the stock price.

De-risking Strategy

Unum announced a transaction to reinsure $3.4bn of statutory long-term care reserves with Fortitude Re, which is viewed as a positive step in management’s goal to de-risk the business.

Financial Performance

Unum Group sees 2025 EPS growth of 8-12%, which is above analyst and consensus estimates.

Negative Factors

Earnings Forecast

Lower premium income reduces EPS forecasts, with EPS falling 2.3% in 2025 while FY26E-27 virtually unchanged.

Earnings Performance

UNM shares traded down owing to the earnings miss and weaker disability results in the quarter.

Premium Growth

UNM lowered its 2025 EPS growth outlook to 6-10% and lowered its core premium growth expectation to 3-6%.

Unum Group Business Overview & Revenue Model

Company Description

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, and Poland. It operates through Unum US, Unum International, Colonial Life, and Closed Block segments. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products. It also provides group pension, individual life and corporate-owned life insurance, reinsurance pools and management operations, and other products. The company sells its products primarily to employers for the benefit of employees. Unum Group sells its products through field sales personnel, independent brokers, consultants, and independent contractor agency sales force. The company was founded in 1848 and is based in Chattanooga, Tennessee.

How the Company Makes Money

Unum Group generates revenue primarily through the sale of insurance policies and related services. The company's key revenue streams include premiums collected from policyholders for various types of insurance coverage, such as disability, life, and supplemental health insurance. Unum also earns income from investments made with the premiums collected, which contributes to its overall profitability. Significant partnerships with employers and brokers help drive sales by offering Unum's products as part of employee benefits packages. The company focuses on maintaining a strong underwriting discipline and efficient claims management to ensure profitability and sustainability in its operations.

Unum Group Financial Statement Overview

Summary

Unum Group exhibits solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet is stable, with manageable debt levels, although return on equity has room for improvement. Cash flow generation remains healthy, supporting operational needs, but there is a slowdown in free cash flow growth.

Income Statement

The company's revenue has shown consistent growth, with a TTM revenue of $12.87 billion, up from $12.79 billion in the previous year. Gross profit margin is strong at approximately 69.8%, and the EBIT margin stands at 16.2%. However, the net profit margin has slightly decreased due to lower net income in the TTM period.

Balance Sheet

The balance sheet demonstrates moderate strength, with a debt-to-equity ratio of 0.37, indicating manageable leverage. The equity ratio is 16.3%, reflecting a reasonable equity position. However, the return on equity has declined slightly, reflecting decreased profitability relative to shareholder equity.

Cash Flow

Operating cash flow has remained stable, supporting a strong free cash flow position with a slight upward trend. The free cash flow to net income ratio is robust, showcasing efficient cash generation relative to earnings. However, the free cash flow growth rate has slowed, indicating a need for careful cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.87B	12.79B	12.39B	11.99B	12.01B	13.16B
Gross Profit	8.98B	6.01B	11.93B	11.52B	11.80B	13.16B
EBITDA	2.21B	2.45B	1.94B	2.05B	1.57B	1.27B
Net Income	1.57B	1.78B	1.28B	1.41B	981.00M	793.00M
Balance Sheet
Total Assets	62.46B	61.96B	63.26B	61.43B	70.12B	70.63B
Cash, Cash Equivalents and Short-Term Investments	237.70M	1.40B	146.00M	1.51B	1.46B	1.67B
Total Debt	3.74B	3.74B	3.43B	3.43B	3.44B	3.35B
Total Liabilities	51.25B	51.00B	53.60B	52.24B	3.90B	3.76B
Stockholders Equity	10.19B	10.96B	9.65B	9.20B	11.42B	10.87B
Cash Flow
Free Cash Flow	1.44B	1.39B	1.07B	1.32B	1.28B	478.40M
Operating Cash Flow	1.57B	1.51B	1.20B	1.42B	1.39B	597.50M
Investing Cash Flow	-374.20M	-344.40M	-725.90M	-955.90M	-1.34B	-267.70M
Financing Cash Flow	-1.24B	-1.15B	-450.10M	-418.60M	-168.90M	-216.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 80.48
• 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 UNM, the sentiment is Positive. The current price of 80.48 is above the 20-day moving average (MA) of 80.47, above the 50-day MA of 80.40, and above the 200-day MA of 74.98, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 51.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRI	74 Outperform	$8.75B	17.97	23.90%	1.46%	10.18%	-9.75%
GL	74 Outperform	$10.14B	9.99	20.47%	0.83%	5.41%	16.60%
UNM	74 Outperform	$14.14B	9.57	14.68%	2.09%	1.69%	25.54%
FG	67 Neutral	$4.18B	8.39	12.72%	2.79%	-1.72%	95.91%
LNC	65 Neutral	$5.89B	4.90	16.91%	6.52%	8.31%	-2.30%
Sector *	58 Neutral	HK$91.42B	5.42	-3.21%	4.84%	7.36%	-55.21%
CNO	58 Neutral	$3.73B	13.14	12.47%	1.73%	-0.78%	-16.22%

Unum Group Corporate Events

Unum Group Completes Major Transaction with Fortitude Re

On July 1, 2025, Unum Group announced the completion of a significant transaction with Fortitude Reinsurance Company Ltd., as outlined in their Master Transaction Agreement from February 26, 2025. This transaction involved Unum Life Insurance Company of America ceding a 100% quota share of its closed block individual long-term care business and individual disability business to Fortitude Reinsurance, impacting $3.4 billion in statutory reserves and $120 million of in-force premium respectively, effective January 1, 2025.

The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.

Unum Group Holds Annual Shareholders Meeting, Elects Directors

On May 22, 2025, Unum Group held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected eleven directors for one-year terms, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for 2025, and endorsed the Unum European Holding Company Limited SAYE Share Option Scheme 2025. These decisions reflect continued shareholder support for the company’s leadership and strategic initiatives, potentially strengthening its market position and operational stability.

The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.

Unum Group Increases Quarterly Dividend by 10%

On May 22, 2025, Unum Group announced that its Board of Directors has authorized a 10% increase in the quarterly dividend on its common stock, setting the new rate at 46 cents per share, effective in the third quarter of 2025. This decision reflects the company’s strong financial performance and commitment to delivering value to its shareholders, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.