Unum(US:UNM) ZACKS·2025-07-14 17:41Core Insights - Unum Group (UNM) shares have increased by 9.6% year to date, outperforming the Finance sector and the Zacks S&P 500 Composite, which grew by 8.4% and 5.9% respectively [1] - The company's market capitalization stands at $14.07 billion, with an average trading volume of 1.25 million shares over the last three months [1] Valuation Metrics - Unum Group's shares are trading at a forward price-to-book value of 1.25X, which is lower than the industry average of 1.83X, the Finance sector's 4.26X, and the Zacks S&P 500 Composite's 8.42X [3] - The company has a Value Score of A, indicating it is considered affordable compared to its peers [3] Growth Projections - The Zacks Consensus Estimate for Unum Group's 2025 revenues is $13.2 billion, reflecting a year-over-year increase of 2.8% [8] - Expected earnings per share for 2026 indicate a growth of 9.1%, while revenues are projected to increase by 3.5% from 2025 estimates [8] - Long-term earnings growth is anticipated at 7.2%, surpassing the industry average of 6% [8] Analyst Sentiment - The average price target for UNM shares is $94.43, suggesting a potential upside of 17.4% from the last closing price [9] - However, analysts have recently lowered their earnings estimates for 2025 and 2026 by 0.3% and 0.1% respectively over the past 60 days [12] Dividend Performance - Unum Group raised its dividend by 10% in May 2025, marking the 16th increase in 15 years, with a projected payout of $300–$330 million and a payout ratio of approximately 19.4% [12] - The dividend yield stands at 2.1%, slightly above the industry average, making it attractive for income-focused investors [12] Operational Performance - Premium income rose by 3.5% year over year to $2.7 billion in Q1 2025, driven by growth in core segments and the recapture of a previously ceded individual disability block [15] - The company projects sales growth of 5–10%, premium growth of 4%-7%, and a 6–10% increase in after-tax adjusted operating EPS for 2025 [15] - Unum U.S. and Colonial Life segments have shown consistent growth in operating income, with Colonial Life's adjusted operating income up 1.8% to $115.7 million in Q1 2025 [16] Financial Stability - Unum Group maintains a solid capital position, enhancing its financial flexibility and supporting prudent capital outlay [17] - The company has faced challenges such as rising expenses, declining premiums in the Closed Block segment, and muted growth in investment income due to past low-rate investments [18]