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| Harleysville Group |
Company Description: Harleysville Group Inc. Underwrites a broad array of individual and advertisement coverages. These insurance coverages are marketed primarily in the Eastern and Midwestern United States.
Fair Value: Clothed in calculating average quantity, I consider the NPV MMA Differential Fair Value along with these four calculations of average quantity, find out call 2 of the linked PDF in place of a detailed account:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
HGIC is trading by the side of a disregard to solitary 4.) beyond. The routine is trading by the side of a 5.3% disregard to its calculated average quantity of $38.88. HGIC earned a Star in this section since it is trading by the side of a average quantity.
Dividend Analytical Data: Clothed in this section near are three promising Stars and three type metrics, find out call 2 of the linked PDF in place of a detailed account:
1. Free coins Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
HGIC earned two Stars in this section in place of 2.) and 3.) beyond. The routine earned a Star as a answer of its nearly everyone topical Debt to Total Capital being a smaller amount than 45%. HGIC earned a Star in place of having an acceptable slash in by the side of smallest amount two of the four Key Metrics measured. The company has paid a cash dividend to shareholders each time since 1986 and has increased its dividend payments in place of 24 consecutive years.
Dividend Income v. MMA: Why would you affect the justness venture and invest in a dividend routine if you may well earn a better return in a much a smaller amount risky money marketplace tally (MMA)? This section compares the earning capability of this routine with a prohibitive yield MMA. Two items are considered in this section, find out call 2 of the linked PDF in place of a detailed account:
1. NPV MMA Diff.
2. Years to > MMA
HGIC earned a Star in this section in place of its NPV MMA Diff. Of the $1,504. This amount is in glut of the $1,100 target I look in place of in a routine with the aim of has increased dividends as long as HGIC has. If HGIC grows its dividend by the side of 8.0% apiece time, it will take 1 years to equal a MMA compliant an estimated 20-year usual rate of 3.9%. HGIC earned a check in place of the Key Metric ‘Years to >MMA’ since its 1 years is a smaller amount than the 5 time target.
Memberships and Peers: HGIC is a organ of the Broad Dividend Achievers™ Index. The company’s peer set includes: Chubb Corporation (CB) with a 2.5% yield, Mercury General Corporation (MCY) with a 5.6% yield and State Auto Financial Corp. (STFC) with a 3.5% yield.
Conclusion: HGIC earned single Star in the Fair Value section, earned two Stars in the Dividend Analytical Data section and earned single Star in the Dividend Income v. MMA section in place of a calculate of four Stars. This quantitatively ranks HGIC as a 4 Star-Buy.
Using my D4L-PreScreen.Xls classic, I dogged the share charge would need to increase in intensity to $41.10 by HGIC’s NPV MMA Differential decreased to the $1,100 most minuscule with the aim of I look in place of in a routine with 24 years of consecutive dividend increases. At with the aim of charge the routine would yield 3.28%.
Resetting the D4L-PreScreen.Xls classic and solving in place of the dividend growth rate desired to generate the target $1,100 NPV MMA Differential, the calculated rate is 6.9%. This dividend growth rate is underneath the 8.0% used in this analysis, like so only if a margin of safety. HGIC has a venture rating of 1.25 which classifies it as a low venture routine.
HGIC underwrites property and wounded person insurance policies and offers advertisement automobile, workers’ compensation, and multiperil insurance, as well as individual automobile and homeowner’s insurance. The company markets its policies through almost 2,000 insurance agencies, and maintains offices in not far off from a dozen states. On October 27, 2009, HGIC agreed to affect Delta’s put your name down for of Delta Lloyds Flood Insurance Business successful November 1, 2009. The company has a strong balance sheet with very little debt. The company still has sufficient space to grow its dividend with a current uncontrolled cash pour payout of solitary 33%. I will pick up again to add to my HGIC perception whilst the routine is trading underneath my good buy charge of $38.88 and as my allocation allows. For other in turn, together with the stock’s dividend history, please refer to its data call.
Disclaimer: Material presented at this point is in place of informational purposes solitary. The beyond quantitative routine analysis, together with the Star rating, is mechanically calculated and is based on historical in turn. The analysis assumes the routine will run in the opportunity as it has in the ancient. This is in the main in no way factual. Before trade or promotion some routine you ought to resolve your own explore and extent your own conclusion. See my Disclaimer in place of more in turn.