Safety Insurance Group (SAFT) AI Stock Analysis

• Market Cap: $1.19B
• Dividend Yield: 4.5%
• Average Volume (3M): 58.60K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.27
• Revenue Growth: 19.05%
• EPS Growth: 40.69%
• Country: US
• Employees: 551
• Sector: Financial
• Sector Strength: 84
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.28
• Shares Outstanding: 14,893,552
• 10 Day Avg. Volume: 46,320
• 30 Day Avg. Volume: 58,597
• PEG Ratio: -3.08
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Safety Insurance Group's stock demonstrates stable financial performance with robust revenue growth and solid cash flow generation, bolstered by a strong balance sheet with low leverage. The technical indicators show a slightly positive momentum, and the stock is fairly valued with an attractive dividend yield. Although operational efficiency could be improved, the overall outlook is positive, reflecting industry stability and growth potential.

Safety Insurance Group Business Overview & Revenue Model

Company Description

Safety Insurance Group, Inc. is a provider of private passenger automobile, commercial automobile, and homeowners insurance products. Headquartered in Boston, Massachusetts, the company primarily serves customers in the New England area. Safety Insurance Group offers a range of insurance products designed to meet the diverse needs of individuals and businesses, including coverage for automobiles, homes, and various other personal and commercial risks.

How the Company Makes Money

Safety Insurance Group generates revenue primarily through the collection of premiums from its policyholders. The company offers various insurance policies, including auto, homeowners, and commercial insurance, and charges premiums based on the level of coverage and risk assessment. In addition to premium income, Safety Insurance Group earns investment income from its invested assets portfolio, which includes bonds, stocks, and other securities. The company's financial performance is also influenced by factors such as claims expenses, underwriting results, and operating expenses. Strategic partnerships with independent insurance agents and brokers play a significant role in distributing its insurance products and expanding its market reach.

Safety Insurance Group Financial Statement Overview

Summary

Safety Insurance Group exhibits a healthy financial trajectory with impressive revenue and cash flow growth. The company maintains a strong balance sheet with low leverage, providing a stable foundation for future operations. While profitability margins have room for improvement, particularly in operational efficiency, the overall financial health is positive, aligning well with industry standards for stability and growth.

Income Statement

Safety Insurance Group has demonstrated strong revenue growth with a 20.34% increase in total revenue for 2024 compared to 2023. The gross profit margin remains at 100% as expected in the insurance industry due to the nature of revenue reporting. There has been a notable increase in net income, which has improved the net profit margin to 6.32% from 2.03% in 2023. However, EBIT and EBITDA margins are relatively low at 5.49%, suggesting room for efficiency improvements in operations.

Balance Sheet

The debt-to-equity ratio is relatively low at 0.055, indicating prudent financial leverage management. The return on equity (ROE) has improved to 8.54%, reflecting better profitability from shareholders' equity. The equity ratio stands at 36.5%, showing a stable reliance on equity financing. The balance sheet indicates a solid financial position, though the company could benefit from higher asset utilization.

Cash Flow

Operating cash flow has increased significantly by 146.89% to $128.69 million in 2024, enhancing liquidity. Free cash flow demonstrates substantial growth of 146.93%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 1.82, suggesting efficient conversion of profits into cash. Overall, the cash flow is strong, supporting potential future investments and risk mitigation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.12B	930.96M	785.06M	864.72M	840.40M
	Gross Profit
1.12B	930.96M	785.06M	864.72M	840.40M
	EBIT
61.51M	12.32M	60.27M	164.27M	174.77M
	EBITDA
61.51M	28.35M	0.00	171.69M	182.74M
	Net Income Common Stockholders
70.73M	18.88M	46.56M	130.71M	138.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
58.97M	38.15M	1.08B	1.28B	1.31B
	Total Assets
2.27B	2.09B	1.97B	2.12B	2.05B
	Total Debt
45.73M	49.76M	58.34M	57.12M	61.00M
	Net Debt
-13.24M	11.60M	33.04M	-6.49M	7.23M
	Total Liabilities
1.44B	1.29B	1.16B	1.19B	1.17B
	Stockholders Equity
828.46M	804.27M	812.00M	927.17M	884.68M
Cash Flow		Free Cash Flow
124.32M	50.33M	42.23M	133.17M	99.51M
	Operating Cash Flow
128.69M	52.11M	44.33M	141.39M	109.46M
	Investing Cash Flow
-54.54M	24.27M	-19.99M	-65.99M	-35.52M
	Financing Cash Flow
-53.33M	-63.53M	-62.64M	-65.57M	-64.57M

Safety Insurance Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.13
• 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 SAFT, the sentiment is Positive. The current price of 83.13 is above the 20-day moving average (MA) of 78.24, above the 50-day MA of 77.72, and above the 200-day MA of 79.42, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 86.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAFT.

Safety Insurance Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFCS	77 Outperform	$711.10M	11.01	8.51%	2.24%	14.60%	―
DGICA	74 Outperform	$700.87M	9.65	13.11%	3.50%	5.29%	1200.44%
PRA	74 Outperform	$1.19B	28.15	3.60%	―	1.16%	―
BOW	70 Outperform	$1.24B	29.69	14.40%	―	50.21%	37.28%
SAFT	69 Neutral	$1.19B	16.37	8.75%	4.50%	19.05%	40.69%
HCI	67 Neutral	$1.88B	15.74	28.75%	0.97%	20.95%	3.25%
Sector *	64 Neutral	$12.83B	9.83	7.64%	16985.66%	12.34%	-5.73%