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Safety Insurance Group (NAS:SAFT) Owner Earnings per Share (TTM)

: 0.80 (As of Sep. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Safety Insurance Group's Owner Earnings per Share (TTM) ended in Sep. 2022 was $0.80. It's Price-to-Owner-Earnings ratio for today is 108.78.


The historical rank and industry rank for Safety Insurance Group's Owner Earnings per Share (TTM) or its related term are showing as below:

SAFT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 6.06   Med: 11.88   Max: 114.91
Current: 108.77


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Safety Insurance Group was 114.91. The lowest was 6.06. And the median was 11.88.


SAFT's Price-to-Owner-Earnings is ranked worse than
97.56% of 287 companies
in the Insurance industry
Industry Median: 8.17 vs SAFT: 108.77

Safety Insurance Group's Earnings per Share (Diluted) for the three months ended in Sep. 2022 was $0.42. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $3.62. It's PE Ratio ratio for today is 24.04.

Safety Insurance Group's EPS without NRI for the three months ended in Sep. 2022 was $0.42. Its EPS without NRI for the trailing twelve months (TTM) ended in Sep. 2022 was $3.62. It's PE Ratio without NRI ratio for today is 24.04.


Safety Insurance Group (NAS:SAFT) Owner Earnings per Share (TTM) Historical Data

The historical data trend for Safety Insurance Group's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Safety Insurance Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.84 6.39 7.76 6.74 11.25

Safety Insurance Group Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.72 11.25 7.92 3.51 0.80

Safety Insurance Group (NAS:SAFT) Owner Earnings per Share (TTM) Competitive Comparison

For the Insurance - Property & Casualty subindustry, Safety Insurance Group's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Safety Insurance Group (NAS:SAFT) Owner Earnings per Share (TTM) Distribution

For the Insurance industry and Financial Services sector, Safety Insurance Group's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Safety Insurance Group's Owner Earnings per Share (TTM) falls into.



Safety Insurance Group Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Safety Insurance Group's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 54.0
Depreciation, Depletion and Amortization 6.9
Change In Deferred Tax 10.2
5Y Average of Maintenance Capital Expenditure 7.8
Change In Working Capital -51.5
Shares Outstanding (Diluted Average) 14.7

1. Start with "Net Income" from income statement. Safety Insurance Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was $54.0 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Safety Insurance Group's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Sep. 2022 was $6.9 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Safety Insurance Group's Change In Deferred Tax for the trailing twelve months (TTM) ended in Sep. 2022 was $10.2 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $7.8 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Safety Insurance Group's 5-Year Average Maintenance Capital Expenditure = $7.8 Mil

5. "Change In Working Capital" is from cashflow statement. Safety Insurance Group's Change In Working Capital for the trailing twelve months (TTM) ended in Sep. 2022 was $-51.5 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Safety Insurance Group's Shares Outstanding (Diluted Average) for the months ended in Sep. 2022 was 14.712 Mil.

Safety Insurance Group's Onwer Earnings Per Share for Sep. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 53.98 +6.893+10.184
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-7.8102932962247+-51.484)/14.712
=0.80

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=87.02/0.80
=108.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Safety Insurance Group Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Safety Insurance Group's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Safety Insurance Group (NAS:SAFT) Business Description

Safety Insurance Group logo
Traded in Other Exchanges
Address
20 Custom House Street, Boston, MA, USA, 02110
Safety Insurance Group Inc is a provider of private passenger automobile insurance in Massachusetts. The company also offers property and casualty insurance products, including commercial automobile, homeowners, dwelling fire, umbrella, and business owner policies. It operates in the business segment of Property and casualty insurance operations.
Executives
Farina John Daniel Jr. director 20 CUSTOM HOUSE ST BOSTON MA 02110
Gray Deborah E director 20 CUSTOM HOUSE STREET BOSTON MA 02110
Hiltpold Glenn officer: VP of Actuarial Services 20 CUSTOM HOUSE STREET BOSTON MA 02110
Moran Mary Coffey director DANVERS BANCORP, INC. ONE CONANT STREET DANVERS MA 01923
Whitford Christopher Thomas officer: VP, CFO and Secretary 20 CUSTOM HOUSE STREET BOSTON MA 02110
Srb Corp 10 percent owner 125 HIGH STREET OLIVER STREET TOWER, 9TH FLOOR BOSTON MA 02110
Palisades Safety & Insurance Association 10 percent owner C/O PLYMOUTH ROCK MANAGEMENT CO OF NJ 581 MAIN STREET, 4TH FLOOR WOODBRIDGE NJ 07095
Plymouth Rock Co Inc 10 percent owner 695 ATLANTIC AVENUE BOSTON MA 02111
Meehan Thalia director C/O SAFETY INSURANCE GROUP, INC. 20 CUSTOM HOUSE STREET BOSTON MA 02110
Drago John Patrick officer: VP - Marketing 20 CUSTOM HOUSE STREET BOSTON MA 02110
Mckeown Ann Marie officer: V.P Insurance Operations 20 CUSTOM HOUSE STREET BOSTON MA 02110
Varga Stephen Albert officer: VP - MIS 20 CUSTOM HOUSE STREET BOSTON MA 02110
Narciso Paul J officer: VP - Claims C/O SAFETY INSURANCE 20 CUSTOM HOUSE STREET BOSTON MA 02110
Murphy George officer: VP - Marketing C/O SAFETY INSURANCE GROUP, INC. 20 CUSTOM HOUSE STREET BOSTON MA 02110
Berry James officer: VP - Insurance Operations C/O SAFETY INSURANCE 20 CUSTOM HOUSE STREET BOSTON MA 02110
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