Unum Group (UNM) AI Stock Analysis

• Market Cap: $13.63B
• Dividend Yield: 2.15%
• Average Volume (3M): 970.95K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.38
• Revenue Growth: 1.69%
• EPS Growth: 25.54%
• Country: US
• Employees: 10,833
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Life
• EPS (TTM): 2.04
• Shares Outstanding: 174,361,910
• 10 Day Avg. Volume: 1,103,915
• 30 Day Avg. Volume: 970,950
• PEG Ratio: -1.01
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.33
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.39
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: $95.09
• Price Target Upside: 21.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $91.00 ▲(16.38%Upside)

Unum Group's solid financial performance, combined with attractive valuation metrics and positive corporate events, supports a strong stock score. While technical indicators show moderate strength, challenges in certain segments were noted in the earnings call, slightly tempering the overall outlook.

Positive Factors

Capital Management

High levels of excess capital and significant cash flow generation support potential upside to long-term share repurchases.

Financial Performance

Unum Group sees 2025 EPS growth of 8-12%, which is above analyst and consensus estimates.

Risk Management

Unum announced a transaction to reinsure $3.4bn of statutory long-term care reserves with Fortitude Re, which is viewed as a positive step in management’s goal to de-risk the business.

Negative Factors

Earnings

UNM shares traded down owing to the earnings miss and weaker disability results in the quarter.

Growth Expectations

UNM lowered its 2025 EPS growth outlook to 6-10% and lowered its core premium growth expectation to 3-6%.

Premium Income

Lower premium income reduces EPS forecasts, with EPS falling 2.3% in 2025 while FY26E-27 virtually unchanged.

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 sale of insurance policies and related services. The company's key revenue streams include premiums collected from policyholders for various types of insurance coverage, such as disability, life, and supplemental health insurance. Unum also earns income from investments made with the premiums collected, which contributes to its overall profitability. Significant partnerships with employers and brokers help drive sales by offering Unum's products as part of employee benefits packages. The company focuses on maintaining a strong underwriting discipline and efficient claims management to ensure profitability and sustainability in its operations.

Unum Group Financial Statement Overview

Summary

Unum Group shows strong revenue growth and improved profitability, supported by robust cash flow. Favorable leverage position is noted, but asset management needs attention.

Income Statement

Unum Group has demonstrated consistent revenue growth, with a notable increase from $12.39 billion in 2023 to $12.89 billion in 2024. The net profit margin improved significantly, reflecting strong operational efficiency. However, the absence of EBIT and EBITDA figures for 2024 limits a complete profitability assessment.

Balance Sheet

The company's debt-to-equity ratio improved, indicating a favorable leverage position with a decrease in total debt relative to equity. The equity ratio remains strong, ensuring stability. Nonetheless, a substantial drop in total assets from 2023 to 2024 raises some concerns about asset management.

Cash Flow

The cash flow position is robust, with a significant increase in free cash flow from $1.07 billion in 2023 to $1.39 billion in 2024. This growth underscores strong operational cash generation capabilities. The operating cash flow to net income ratio remains healthy, indicating efficient conversion of earnings into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.73B	12.79B	12.39B	11.99B	12.01B	13.16B
	Gross Profit
12.50B	12.79B	11.93B	11.52B	11.80B	13.16B
	EBIT
2.09B	2.54B	1.93B	1.82B	820.10M	739.80M
	EBITDA
2.21B	2.45B	1.94B	2.05B	1.57B	1.27B
	Net Income Common Stockholders
1.57B	1.78B	1.28B	1.41B	981.00M	793.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.82B	1.40B	146.00M	1.51B	1.46B	1.67B
	Total Assets
67.01B	15.65B	63.26B	61.43B	70.12B	70.63B
	Total Debt
3.33B	3.74B	3.43B	3.43B	3.44B	3.35B
	Net Debt
3.24B	3.58B	3.28B	3.31B	3.37B	3.15B
	Total Liabilities
57.05B	51.00B	53.60B	52.24B	3.90B	3.76B
	Stockholders Equity
9.96B	10.96B	9.65B	9.20B	11.42B	10.87B
Cash Flow		Free Cash Flow
1.44B	1.39B	1.07B	1.32B	1.28B	478.40M
	Operating Cash Flow
1.57B	1.51B	1.20B	1.42B	1.39B	597.50M
	Investing Cash Flow
-374.20M	-344.40M	-725.90M	-955.90M	-1.34B	-267.70M
	Financing Cash Flow
-1.24B	-1.15B	-450.10M	-418.60M	-168.90M	-216.90M

Unum Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UNM, the sentiment is Neutral. The current price of 78.19 is below the 20-day moving average (MA) of 80.66, below the 50-day MA of 78.66, and above the 200-day MA of 71.85, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 19.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UNM.

Unum Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNM	79 Outperform	$13.63B	9.22	14.68%	2.15%	1.69%	25.54%
GL	74 Outperform	$9.89B	9.75	20.47%	0.90%	5.41%	16.60%
PRI	74 Outperform	$8.49B	17.43	23.87%	1.61%	10.18%	-9.75%
FG	70 Outperform	$4.24B	8.51	12.72%	2.79%	-1.72%	95.91%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
LNC	62 Neutral	$5.54B	4.62	16.91%	5.54%	8.31%	-2.30%
CNO	58 Neutral	$3.66B	12.88	12.47%	1.84%	-0.78%	-16.22%

Unum Group Corporate Events

Unum Group Holds Annual Shareholders Meeting, Elects Directors

On May 22, 2025, Unum Group held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected eleven directors for one-year terms, approved executive compensation, ratified Ernst & Young LLP as the independent auditor for 2025, and endorsed the Unum European Holding Company Limited SAYE Share Option Scheme 2025. These decisions reflect continued shareholder support for the company’s leadership and strategic initiatives, potentially strengthening its market position and operational stability.

The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.

Unum Group Increases Quarterly Dividend by 10%

On May 22, 2025, Unum Group announced that its Board of Directors has authorized a 10% increase in the quarterly dividend on its common stock, setting the new rate at 46 cents per share, effective in the third quarter of 2025. This decision reflects the company’s strong financial performance and commitment to delivering value to its shareholders, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (UNM) stock is a Buy with a $66.00 price target. To see the full list of analyst forecasts on Unum Group stock, see the UNM Stock Forecast page.