Fact based stock research
Safety Insurance (NasdaqGS:SAFT)

US78648T1007

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Safety Insurance stock research in summary

safetyinsurance.com

ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), Safety Insurance (Property & Casualty Insurance, USA) shares have lower financial characteristics compared with similar stocks. Shares of Safety Insurance are a good value (attractively priced) with a consolidated Value Rank of 83 (better than 83% of alternatives) but show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 37), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on Safety Insurance's financial characteristics. As the company Safety Insurance's key financial metrics exhibit good value (Obermatt Value Rank of 83) but low growth (Obermatt Growth Rank of 13) and risky financing practices (Obermatt Safety Rank of 37), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 83% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	83
Growth Rank	13
Safety Rank	37
Combined Rank	21

Country	USA
Industry	Property & Casualty Insurance
Index	Dividends USA, NASDAQ
Size class	Large

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Safety Insurance

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	73	70	83
GROWTH
GROWTH	70	21	17	13
SAFETY
SAFETY	61	37	37	37
SENTIMENT
SENTIMENT	n/a	45	10	^new
360° VIEW
360° VIEW	n/a	41	28	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Safety Insurance is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	53	73	70	83
GROWTH
GROWTH	70	21	17	13
SAFETY
SAFETY	61	37	37	37
COMBINED
COMBINED	70	21	21	21

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Safety Insurance the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 83 (better than 83% compared with alternatives) for 2022, Safety Insurance shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Safety Insurance. Price-to-Sales (P/S) is 56 which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value for Safety Insurance's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 70. Finally, compared with other companies in the same industry, dividend yields of Safety Insurance are expected to be higher than for 99% of all competitors (a Dividend Yield rank of 99). The only low rank is for expected profits with a Price-to-Profit Rank of 43, indicating that the market expects the company's profit to be low despite a high dividend. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 83, is a buy recommendation based on Safety Insurance's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	28	48	41	56
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	73	28	32	43
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	39	58	65	70
DIVIDEND YIELD
DIVIDEND YIELD	82	95	98	99
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	53	73	70	83

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Safety Insurance; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Safety Insurance shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Safety Insurance. While Sales Growth ranks at 53, professionals currently expect the company to grow more than 53% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 27, which means that, currently, professionals expect the company to grow its profits less than 73% of its competitors, and Capital Growth has a low rank of 19. Historic stock returns were also below average with a current Stock Returns rank of 19 which means that the stock returns have recently been below 81% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	21	19	53
PROFIT GROWTH
PROFIT GROWTH	9	69	30	27
CAPITAL GROWTH
CAPITAL GROWTH	n/a	31	61	19
STOCK RETURNS
STOCK RETURNS	47	41	19	19
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	70	21	17	13

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Safety Insurance.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 37 (better than 37% compared with alternatives), the company Safety Insurance has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Safety Insurance is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Safety Insurance. Leverage is at a rank of 92, meaning the company has a below-average debt-to-equity ratio. It has less debt than 92% of its competitors. Liquidity is also good at a rank of 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 10, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 90% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 37 (worse than 63% compared with alternatives), Safety Insurance has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Safety Insurance. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Safety Insurance and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	73	88	93	92
REFINANCING
REFINANCING	14	10	10	10
LIQUIDITY
LIQUIDITY	82	98	96	57
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	61	37	37	37

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Safety Insurance and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	18	13	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	67	8	^new
MARKET PULSE
MARKET PULSE	n/a	54	51	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	45	10	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Safety Insurance.
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