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Safety Insurance Group (NAS:SAFT) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Safety Insurance Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Safety Insurance Group's Piotroski F-Score or its related term are showing as below:

SAFT' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Safety Insurance Group was 8. The lowest was 4. And the median was 6.


Safety Insurance Group Piotroski F-Score Historical Data

The historical data trend for Safety Insurance Group's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 7.00 7.00 6.00

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
Piotroski F-Score 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 7.00 6.00 5.00 5.00 5.00

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Safety Insurance Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Insurance industry and Financial Services sector, Safety Insurance Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Safety Insurance Group's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


How is the Piotroski F-Score calculated?

* 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.

This Year (Sep22) TTM:Last Year (Sep21) TTM:
Net Income was 32.049 + 7.838 + 7.901 + 6.192 = $54.0 Mil.
Cash Flow from Operations was 30.81 + -15.276 + 15.001 + 23.641 = $54.2 Mil.
Revenue was 219.178 + 192.171 + 177.638 + 191.679 = $780.7 Mil.
Average Total Assets from the begining of this year (Sep21)
to the end of this year (Sep22) was
(2144.728 + 2117.391 + 1990.684 + 1947.406 + 1934.153) / 5 = $2026.8724 Mil.
Total Assets at the begining of this year (Sep21) was $2,144.7 Mil.
Long-Term Debt & Capital Lease Obligation was $24.2 Mil.
Total Assets was $1,934.2 Mil.
Total Liabilities was $1,149.8 Mil.
Net Income was 52.965 + 36.174 + 37.667 + 24.82 = $151.6 Mil.

Revenue was 229.487 + 217.436 + 220.068 + 208.037 = $875.0 Mil.
Average Total Assets from the begining of last year (Sep20)
to the end of last year (Sep21) was
(2047.11 + 2054.273 + 2045.66 + 2107.903 + 2144.728) / 5 = $2079.9348 Mil.
Total Assets at the begining of last year (Sep20) was $2,047.1 Mil.
Long-Term Debt & Capital Lease Obligation was $27.3 Mil.
Total Assets was $2,144.7 Mil.
Total Liabilities was $1,216.7 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Safety Insurance Group's current Net Income (TTM) was 54.0. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Safety Insurance Group's current Cash Flow from Operations (TTM) was 54.2. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep21)
=53.98/2144.728
=0.02516869

ROA (Last Year)=Net Income/Total Assets (Sep20)
=151.626/2047.11
=0.07406832

Safety Insurance Group's return on assets of this year was 0.02516869. Safety Insurance Group's return on assets of last year was 0.07406832. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Safety Insurance Group's current Net Income (TTM) was 54.0. Safety Insurance Group's current Cash Flow from Operations (TTM) was 54.2. ==> 54.2 > 54.0 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=24.183/2026.8724
=0.01193119

Gearing (Last Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=27.313/2079.9348
=0.01313166

Safety Insurance Group's gearing of this year was 0.01193119. Safety Insurance Group's gearing of last year was 0.01313166. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep22)=Total Assets/Total Liabilities
=1934.153/1149.788
=1.68218228

Current Ratio (Last Year: Sep21)=Total Assets/Total Liabilities
=2144.728/1216.651
=1.76281284

Safety Insurance Group's current ratio of this year was 1.68218228. Safety Insurance Group's current ratio of last year was 1.76281284. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Safety Insurance Group's number of shares in issue this year was 14.712. Safety Insurance Group's number of shares in issue last year was 15.08. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=53.98/780.666
=0.06914609

Net Margin (Last Year: TTM)=Net Income/Revenue
=151.626/875.028
=0.17328131

Safety Insurance Group's net margin of this year was 0.06914609. Safety Insurance Group's net margin of last year was 0.17328131. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep21)
=780.666/2144.728
=0.36399301

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep20)
=875.028/2047.11
=0.42744552

Safety Insurance Group's asset turnover of this year was 0.36399301. Safety Insurance Group's asset turnover of last year was 0.42744552. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Safety Insurance Group has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Safety Insurance Group  (NAS:SAFT) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Safety Insurance Group Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Safety Insurance Group's Piotroski F-Score 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
Deborah E Gray director 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Glenn Hiltpold 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
Christopher Thomas Whitford 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
Thalia Meehan director C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
John Patrick Drago officer: VP - Marketing 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Ann Marie Mckeown officer: V.P Insurance Operations 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Stephen Albert Varga officer: VP - MIS 20 CUSTOM HOUSE STREET, BOSTON MA 02110
Paul J Narciso officer: VP - Claims C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110
George Murphy officer: VP - Marketing C/O SAFETY INSURANCE GROUP, INC., 20 CUSTOM HOUSE STREET, BOSTON MA 02110
James Berry officer: VP - Insurance Operations C/O SAFETY INSURANCE, 20 CUSTOM HOUSE STREET, BOSTON MA 02110

Safety Insurance Group (NAS:SAFT) Headlines

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