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Tiziano Frateschi
Tiziano Frateschi
Articles (2808)  | Author's Website |

5 Insurance Companies Trading With Low Price-Earnings Ratios

National Western Life Group tops the list

As of Feb. 8, the GuruFocus All-in-One Screener, a Premium feature, found that the following guru-owned insurance companies have low price-earnings ratios. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.

Employers Holdings

With a market cap of $907 million, Employers Holdings Inc. (EIG) has a price-earnings ratio of 10.89 and a price-book ratio of 0.78. According to the DCF calculator, the stock has a fair value of $43.67 while trading at $31.26.

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The stock has declined 29.18% over the last 12 months and is now 30.38% below the 52-week high and 22.44% above the 52-week low.

The company, which provides workers' compensation insurance, has a GuruFocus profitability rating of 5 out of 10. The return on equity of 7.68% and return on assets of 2.2% are outperforming 52% of companies in the Insurance industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 4.25 is below the industry median of 2.67.

Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder with 2.60% of outstanding shares, followed by HOTCHKIS & WILEY with 0.54% and Pioneer Investments (Trades, Portfolio) with 0.53%.

Trean

With a $789 million market cap, Trean Insurance Group Inc. (TIG) is trading with a price-earnings ratio of 7.89. According to the DCF calculator, the stock has a fair value of $20.95 while trading at $15.44.

The share price was stable over the past 12 months and is now 13.74% below the 52-week high and 55.96% above the 52-week low.

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The insurance company has a GuruFocus profitability rating of 2 out of 10. The return on equity of 46.87% and return on assets of 8.71% are outperforming 93% of companies in the Insurance industry. Its financial strength is rated 6 out of 10 with the cash-debt ratio of 3.52.

The company's largest guru shareholder is Steven Cohen (Trades, Portfolio)'s Point72 Asset Management with 0.15% of outstanding shares.

National Western Life Group

With a market cap of $720 million, National Western Life Group Inc. (NWLI) is trading with a price-earnings ratio of 7.39. According to the DCF calculator, the stock has a fair value of $373 while trading at $198.29.

Shares have declined 28% over the last 12 months and are now 30.64% below the 52-week high and 64.49% above the 52-week low.

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The company, which provides insurance products for the savings, protection and retirement needs of policyholders, has a GuruFocus profitability rank of 4 out of 10. The company's return on equity of 4.46% and return on assets of 0.76% are underperforming 64% of competitors in the industry. Its financial strength is rated 7 out of 10 with no debt.

Tweedy Browne (Trades, Portfolio) is the company's largest guru shareholder with 1.89% of outstanding shares, followed by HOTCHKIS & WILEY with 0.90% and Simons' firm with 0.30%.

ProSight

ProSight Global Inc. (PROS) has a market cap of $548 million and is trading with a price-earnings ratio of 13.65 and a price-book ratio of 0.91. According to the DCF calculator, the stock has a fair value of $9.63 while trading at $12.56.

Shares have declined 14.96% over the last 12 months and are now trading 25.55% below the 52-week high and 73% above the 52-week low.

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The insurance company has a GuruFocus profitability rating of 2 out of 10. The return on equity of 6.29% and return on assets of 1.2% are underperforming 53% of companies in the industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.12.

The company's largest guru shareholder is NWQ Managers (Trades, Portfolio) with 0.35% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.26% and Simons' firm with 0.04.

HCI Group

HCI Group Inc. (HCI) has a market cap of $ 455 million. Its shares are trading with a price-earnings ratio of 15.37. According to the DCF calculator, the stock has a fair value of $39.27 while trading at $56.42.

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Shares have climbed 21.99% over the past 12 months and are currently 10.34% below the 52-week high and 78.49% above the 52-week low.

The company, which provides property and casualty insurance products, has a GuruFocus profitability rating of 6 out of 10. The return on equity of 15.86% and return on assets of 3.68% are outperforming 74% of companies in the industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 2.6.

Simons' firm is the company's largest guru shareholder with 2.80% of outstanding shares, followed by Royce with 2.36%.

Disclosure: I do not own any stocks mentioned.

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About the author:

Tiziano Frateschi
You can read about me on www.theextraincome.info, which gives suggestions on position trading.

Visit Tiziano Frateschi's Website


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