Unum Group (UNM) AI Stock Analysis

• Market Cap: $12.78B
• Dividend Yield: 2.32%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.64
• Revenue Growth: 1.80%
• EPS Growth: -44.44%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 2.09
• Shares Outstanding: 167,331,270
• 10 Day Avg. Volume: 1,195,037
• 30 Day Avg. Volume: 1,374,713
• PEG Ratio: 0.17
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 9.81
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 11.44
• 1Y Price Target: $92.11
• Price Target Upside: 21.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $84.00 ▲(10.57% Upside)

Unum Group's overall stock score reflects stable financial performance with challenges in profitability and cash flow. The earnings call provided positive insights into premium growth and capital strength, but concerns remain over earnings volatility and reserve increases. Technical indicators suggest limited momentum, and valuation metrics are reasonable but not compelling.

Positive Factors

Premium Growth

Sustained premium growth across segments indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Capital Position

A robust capital position provides financial flexibility for strategic investments and shareholder returns, enhancing long-term stability and growth potential.

Cash Flow Generation

Strong cash flow generation ensures liquidity and supports ongoing operations, debt servicing, and potential reinvestment in growth opportunities.

Negative Factors

Operational Efficiency

Challenges in operational efficiency could hinder profitability and competitive positioning, necessitating strategic improvements to sustain margins.

Reserve Increases

Significant reserve increases can strain financial resources and reflect underlying risk management challenges, impacting future earnings stability.

Closed Block Volatility

Volatility in the Closed Block introduces earnings uncertainty, potentially affecting investor confidence and long-term financial planning.

Unum Group Business Overview & Revenue Model

Company Description

Unum Group (UNM) is a leading provider of financial protection benefits in the United States and the United Kingdom. The company operates in the insurance sector and specializes in offering a range of products including disability insurance, life insurance, and supplemental health benefits. Unum's core services are designed to help employees manage their financial risks associated with illness, injury, and death, thereby providing peace of mind to individuals and businesses alike.

How the Company Makes Money

Unum Group generates revenue primarily through the underwriting of insurance products. The company earns money by collecting premiums from policyholders in exchange for coverage. Key revenue streams include group long-term disability insurance, group life insurance, and supplemental health products. Unum also invests the premiums collected in various financial instruments, generating investment income. Additionally, the company benefits from partnerships with employers, providing tailored employee benefits packages that enhance employee retention and satisfaction. Factors such as the growth of the workforce, increasing awareness of the importance of disability and life insurance, and strong relationships with brokers and employers contribute to Unum's earnings.

Unum Group Financial Statement Overview

Summary

Unum Group exhibits strong financial performance with impressive revenue growth and profitability. The balance sheet is stable with moderate leverage, and cash flow generation is robust. However, operational efficiency as indicated by the negative EBIT margin in the TTM period needs attention.

Income Statement

Unum Group has demonstrated strong revenue growth with a TTM increase of 99.8%, indicating robust business expansion. The gross profit margin is high at 84.23% for TTM, showcasing effective cost management. However, the EBIT margin is negative in the TTM period, reflecting operational challenges. Net profit margin remains healthy at 11.80% for TTM, but slightly lower than the previous annual report. Overall, the income statement reflects strong revenue growth and profitability, though operational efficiency needs improvement.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.33 in the TTM period, indicating a balanced approach to leverage. Return on equity is solid at 13.67% for TTM, reflecting effective use of shareholder funds. The equity ratio stands at 18.01%, suggesting a stable capital structure. While the balance sheet shows financial stability, the equity ratio indicates potential room for strengthening equity base.

Cash Flow

Unum Group's cash flow performance is strong, with a significant free cash flow growth rate of 60.6% in the TTM period. The operating cash flow to net income ratio is robust at 2.94, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high at 91.54%, demonstrating effective conversion of profits into cash. Overall, the cash flow statement reflects strong liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.98B	12.79B	12.31B	11.88B	11.84B	13.15B
Gross Profit	3.77B	4.74B	4.03B	3.93B	3.32B	3.09B
EBITDA	1.49B	2.57B	1.94B	2.05B	1.57B	1.27B
Net Income	913.10M	1.78B	1.28B	1.41B	981.00M	793.00M
Balance Sheet
Total Assets	63.68B	61.96B	63.26B	61.15B	70.12B	70.63B
Cash, Cash Equivalents and Short-Term Investments	36.12B	38.33B	38.59B	36.35B	1.46B	45.80B
Total Debt	3.75B	3.74B	3.43B	3.43B	3.44B	3.35B
Total Liabilities	52.77B	51.00B	53.60B	52.41B	58.70B	59.75B
Stockholders Equity	10.91B	10.96B	9.65B	8.73B	11.42B	10.87B
Cash Flow
Free Cash Flow	689.10M	1.39B	1.07B	1.32B	1.28B	478.40M
Operating Cash Flow	815.60M	1.51B	1.20B	1.42B	1.39B	597.50M
Investing Cash Flow	820.10M	-344.40M	-725.90M	-955.90M	-1.34B	-267.70M
Financing Cash Flow	-1.47B	-1.15B	-450.10M	-418.60M	-168.90M	-216.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 75.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 75.97 is below the 20-day moving average (MA) of 76.34, below the 50-day MA of 76.25, and below the 200-day MA of 76.38, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRI	76 Outperform	$8.24B	11.85	33.91%	1.62%	5.63%	67.39%
FG	74 Outperform	$4.37B	9.69	10.12%	2.78%	-4.58%	―
UNM	72 Outperform	$12.78B	14.88	8.35%	2.32%	1.80%	-44.44%
GL	71 Outperform	$10.74B	9.77	22.28%	0.79%	3.73%	17.47%
LNC	70 Outperform	$7.85B	3.71	21.66%	4.39%	35.76%	636.97%
JXN	69 Neutral	$6.65B	13.53	5.50%	3.36%	24.94%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Unum Group Corporate Events

Unum Group Completes $300 Million Senior Notes Offering

On November 14, 2025, Unum Group announced the completion of a $300 million offering of senior notes due in 2035, with a 5.250% annual coupon rate. The proceeds will be used for general corporate purposes, including replacing cash used to repay $275 million of senior notes that matured on November 5, 2025. This financial move is expected to support Unum Group’s ongoing operations and financial stability, potentially enhancing its market position and providing reassurance to stakeholders.

The most recent analyst rating on (UNM) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.