$226.15
arrow_drop_up0.40%Is AIZ a Buy or Sell based on AI Analysis?
Fundamental Analysis
Assurant Inc has a solid financial standing, as evidenced by its high market quality score of 58 and strong net margin of 5.77%. The company also boasts a healthy return on equity of 14.22%, indicating that it efficiently utilizes shareholder's funds to generate profits. Additionally, with a low debt-to-equity ratio of 0.44 and a current ratio of 0.42, Assurant Inc demonstrates sound financial management and liquidity. Furthermore, the company's dividend yield of 1.6% and consistent annual dividends per share of $2.82 highlight its commitment to rewarding shareholders. On the other hand, Assurant Inc's technical rating is classified as neutral, suggesting that the stock may not be exhibiting strong bullish or bearish signals. Moreover, the company's beta of 0.49 indicates that it is less volatile compared to the overall market, providing a sense of stability for investors. With a price-to-sales ratio of 0.84 below the industry average, Assurant Inc's stock may be viewed as undervalued by some investors. Additionally, the company's price-to-book ratio of 1.95 and price-to-cashflow ratio of 8.13 further support the notion of a potentially attractive valuation proposition for investors looking to capitalize on Assurant Inc's growth prospects.
Positive Development
Assurant Inc. has been named on Forbes' list of America's Best Employers 2024, indicating a positive work environment and high employee satisfaction. The company has been consistently outperforming its competitors in the insurance sector, as shown in headlines from February 2024. Assurant Inc. has been recognized for its strong financial performance, with a PB (Price-to-Book) ratio of 1.8424, indicating a strong market value compared to its book value. The company's financial health is also evident from its low debt-to-equity ratio of 0.4326 and a low debt-to-total-capital ratio of 0.302, which suggests that the company has a strong financial position.
Negative Development
Despite the positive developments, the company's stock price has shown a downward trend in recent weeks, with a decrease from 181.75 to 178.03 from February 27 to March 4. The company's payout ratio of 0.237 is relatively high, which may indicate that the company is not generating enough earnings to cover its dividend payments. The company's long-term debt to total asset ratio is high at 0.0619, indicating that the company has a relatively high level of debt compared to its assets. The company's total debt to equity ratio is also high at 0.4326, which may indicate that the company is highly leveraged.
Technical Analysis
Assurant Inc (AIZ) has a technical rating of NEUTRAL, with a price of $178.03 and a market cap of $9.25B. The stock price has seen a decrease of -$2.43 or -1.35% compared to the previous close, with a seven-day price change percent of -0.37%. The company's technical indicators for the month include one buy indicator (ATR) and four hold indicators (RSI, MACD, ADX, and ROC), alongside three sell indicators (CCI, WILLR, and STOCHRSI). The stock also has a beta of 0.49, indicating lower volatility compared to the market. In terms of financial performance, Assurant Inc has a return on equity of 14.22%, operating margin of 9.64%, and net margin of 5.77%. The company has a dividend yield of 1.6% and a payout ratio of 18.31%. Additionally, Assurant Inc has a strong balance sheet with assets totaling $33.64B and liabilities of $28.83B, resulting in a debt-to-equity ratio of 0.44. The stock's technical analysis suggests a neutral stance, with a mix of buy, hold, and sell indicators influencing market sentiment.
Conclusion and recommendation
Assurant Inc (AIZ) is a stock in the Financial Services sector with a current market value of $9.25B. The company has a neutral technical rating and a dividend yield of 1.6%, making it a relatively stable investment option. Assurant Inc has shown strong financial performance with positive revenue growth of 9.21% and a net margin of 5.77%. Additionally, the company has a solid return on equity of 14.22%, indicating efficient use of shareholder funds. However, the stock currently trades at a price-to-book ratio of 1.95, which may suggest that it is slightly overvalued compared to its tangible assets. In conclusion, Assurant Inc appears to be a promising investment opportunity for those seeking a stable and reliable stock in the financial services sector. With a market score of 67 and industry value score of 22, the company has demonstrated resilience and strength in the market. Investors may want to keep an eye on the company's performance in terms of price-to-book ratio and earnings growth forecast. Overall, Assurant Inc presents itself as a solid choice for long-term investors looking for steady returns in the financial services industry.