Unum Group UNM
United StatesFinancial Services · Insurance - LifeUSD
101.85 USD (+9.3%)
13 analysts
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Unum Group is a US insurer offering life, disability, and accident insurance, as well as supplemental benefits, primarily through employers in the United States and the United Kingdom.
Key points
from its scores- ✓Favourable backdrop8.5
- ✕Fragile balance sheet2.8
- ✕Weak growth2.8
- ✕Demanding valuation3.0
AI analysis
bottom line, main risk, context and newsAttractive forward valuation and sustainable dividend, but negative growth and sensitivity to elevated long-term rates warrant caution until earnings improve.
Unum Group shows moderate financial health (ROE 6.35%, ROA 1.10%) and mixed valuation: the forward P/E of 9.88 is attractive, but the current P/E of 21.78 and the P/B adjusted for ROE of 2.15 suggest the market already discounts a recovery. Earnings growth is negative (-16.20%), which weighs on the growth score. The dividend is sustainable (payout 42.99%). The high interest rate environment in the US is a relevant factor for its investment portfolio, with a slightly negative effect.
The main risk is the sensitivity of Unum's investment portfolio to a prolonged environment of elevated long-term rates (10-year Treasury at 5.28%), which can compress the value of its fixed-income assets and pressure its solvency and results.
Context and risks
Unum Group operates in the life and disability insurance sector in the US, a long-duration business. The sharp rise in long-term rates (10-year Treasury at 5.28%) pressures the value of its fixed-income assets and makes financing more expensive, although as an insurer it also benefits from higher investment returns. The main risk is the sensitivity of its investment portfolio to a prolonged high-rate environment, which can compress asset values and affect solvency.
Is Unum Group stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 16% above the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 21.8 | 13.7 | +59% |
| EV / EBITDA | 13.2 | 10.1 | +31% |
| Price / book | 1.4 | 1.9 | −26% |
| Price / sales | 1.1 | 3.5 | −68% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 3.0 out of 10 (median for Financial Services: 5.2).
Average analyst target: 101.85 USD, +9.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 4.4 (sector 8.8), Growth 2.8 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 21.8
- Forward P/E
- 9.9
- EV / EBITDA
- 13.2
- Price / book
- 1.4
- Price / sales
- 1.1
- PEG
- 1.03
- Market cap
- 14.8B USD
- Enterprise value
- 16.7B USD
Profitability
- ROE
- 6.4%
- ROA
- 1.1%
- ROIC (approx.)
- 10.2%
- Gross margin
- 29.3%
- Operating margin
- 11.4%
- Net margin
- 5.3%
- Free cash flow
- −2.2B USD
- FCF yield
- −15.1%
- Cash conversion
- −177%
Solvency
- Total debt
- 4.0B USD
- Net debt
- 1.9B USD
- Cash
- 2.1B USD
- EBITDA
- 1.3B USD
- Net debt / EBITDA
- 1.52
- Debt / equity
- 36.88
- Current ratio
- 17.26
- Quick ratio
- 4.13
Growth
- Revenue growth
- +0.3%
- Earnings growth
- −16.2%
- EPS (TTM)
- 4.28 USD
- EPS (forward)
- 9.43 USD
Dividend
- Dividend yield
- 2.2%
- Payout
- 43.0%
Risk and market
- Beta
- 0.24
- Analyst consensus
- Buy (13)
- Target price
- 101.85 USD
- 52-week range
- 69.02 – 96.77
Recent news
All UNM news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Unum Group
Is Unum Group stock cheap or expensive?
On P/E and Price / book, it trades 16% above the Financial Services median on average. Valuation score: 3.0 out of 10 (median for Financial Services: 5.2). Average analyst target: 101.85 USD, +9.3% versus the price. This is not investment advice.
What score does Unum Group get on MeridIAn Screener?
It scores 4.9 out of 10, rank 1,769 of 2,130 (better than 17% of the companies analysed). Its strongest category is Risk & Context (8.5) and its weakest, Financial health (2.8). Analysis of 08/10/2026.
What is Unum Group's P/E ratio?
Its P/E is 21.8: the share price equals 21.8 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 9.9.
How much is Unum Group worth on the stock market?
Its market capitalisation is 14.8B USD.
Does Unum Group pay a dividend?
Yes: its dividend yield is 2.17% and it pays out 43% of its earnings.
How has Unum Group stock performed over the last year?
It has risen 25.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 69.02 and 96.77 USD. Past performance does not guarantee future results.
What do analysts think of Unum Group?
13 analysts cover it; their average recommendation is “Buy” and their average target is 101.85 USD (+9.3% versus the price). It is an estimate, not market data.