Unum Group (UNM) AI Stock Analysis

• Market Cap: $13.26B
• Dividend Yield: 2.22%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.63
• 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: 1,689,610
• 30 Day Avg. Volume: 1,324,864
• 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: 1.28
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: 11.44
• 1Y Price Target: $92.75
• Price Target Upside: 17.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $78.00 ▼(-1.56% Downside)

Unum Group's overall stock score is primarily influenced by stable financial performance and strategic corporate events. However, technical indicators suggest bearish momentum, and challenges in profitability and cash flow generation weigh on the score.

Positive Factors

Strong Market Position

Unum's premium growth across segments indicates a strong market position and high levels of persistency, which are crucial for long-term stability and competitiveness.

Robust Capital Position

A robust capital position provides Unum with the flexibility to pursue strategic actions and return capital to shareholders, supporting long-term financial health.

Share Repurchase Program

The new share repurchase program reflects confidence in the company's financial health and can enhance shareholder value over the long term.

Negative Factors

Declining Profitability Margins

Declining profitability margins can impact Unum's ability to generate sufficient returns, affecting long-term financial performance and investor confidence.

Significant Reserve Increases

Significant reserve increases indicate potential future liabilities and can strain financial resources, impacting Unum's long-term profitability and stability.

Decline in Free Cash Flow

A decline in free cash flow growth suggests potential liquidity challenges, which could limit Unum's ability to invest in growth opportunities and return capital to shareholders.

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 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: Positive
• Last Price: 79.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 79.24 is above the 20-day moving average (MA) of 75.81, above the 50-day MA of 75.82, and above the 200-day MA of 76.36, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 65.45 is Neutral, neither overbought nor oversold. The STOCH value of 93.31 is Negative, 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
FG	77 Outperform	$4.19B	9.30	10.12%	2.92%	-4.58%	―
JXN	73 Outperform	$7.32B	14.90	5.50%	2.97%	24.94%	―
PRI	72 Outperform	$8.26B	11.88	33.91%	1.61%	5.63%	67.39%
LNC	71 Outperform	$8.78B	4.15	21.66%	3.90%	35.76%	636.97%
GL	68 Neutral	$11.12B	10.11	22.28%	0.75%	3.73%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	64 Neutral	$13.26B	15.44	8.35%	2.22%	1.80%	-44.44%

Unum Group Corporate Events

Unum Group Announces New $1 Billion Buyback Program

On December 4, 2025, Unum Group announced that its Board of Directors authorized a new share repurchase program, allowing the company to buy back up to $1 billion of its common stock starting January 1, 2026. This move, which follows the termination of the current program on December 31, 2025, reflects Unum’s strategic financial management and could impact its market positioning and shareholder value.

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.