UNM Stock Analysis — Unum Group
Sector: Financials
AI Verdict
UNM trades at 8.9x next year’s earnings with nearly 100% EPS growth expected, making it cheap for the growth you’re getting if its actuarial edge holds up.
Competitive Moat
Unum Group specializes in group disability and supplemental insurance, leveraging decades of actuarial data and employer relationships to maintain pricing power and underwriting accuracy. Its scale and embedded distribution in workplace benefits create switching costs for employers and brokers.
Summary
A near-doubling in expected earnings (+97.4% forward EPS growth) puts UNM’s valuation in the spotlight.
Where It Stands
UNM delivered 1.5% revenue growth and trades at 8.9x forward earnings, a steep discount to the financial sector median of 14x, with a trailing PEG of 0.18 indicating growth is far outpacing its valuation.
Key Metrics
- Trailing P/E: 17.6x
- Forward P/E: 8.9x
- PEG Ratio: 0.18
- Earnings Growth: +1.0%
- Revenue Growth: +0.0%
- Dividend Yield: 0.02%
- 52-Week High: $83.13
- 52-Week Low: $68.28
Analyst Consensus
13 Buy · 5 Hold · 0 Sell (18 analysts)
Bull Case
With analysts forecasting 97.4% EPS growth and a forward P/E of just 8.9x, the stock is priced as if growth will vanish, offering substantial upside if even part of that forecast materializes.
Bear Case
If the forward P/E reverts to the sector median of 14x but earnings disappoint, a compression back to the trailing 17.6x multiple could erase much of the expected upside.
Catalyst to Watch
Watch for quarterly earnings — confirmation or disappointment of the near-100% EPS growth forecast will set the tone for valuation resets.