Assurant(US:AIZ) ZACKSยท2025-11-12 13:11Core Insights - Assurant, Inc. (AIZ) shares closed at $225.52, close to its 52-week high of $230.55, indicating strong investor confidence and potential for further price appreciation [1] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [1] Financial Performance - Assurant's earnings grew by 16.6% over the last five years, outperforming the industry average of 9.8% [2] - The company has consistently beaten earnings estimates, with an average surprise of 22.74% over the last four quarters [2] Valuation Metrics - Assurant shares are trading at a forward price-to-earnings multiple of 1.98X, lower than the industry average of 2.14X and the Finance sector's 4.27X [3] - The company has a Value Score of A, indicating attractive valuation compared to peers [3] Growth Projections - The Zacks Consensus Estimate for Assurant's 2025 earnings per share indicates a year-over-year increase of 14.7%, with revenues projected at $12.75 billion, reflecting a 6.6% improvement [9] - For 2026, earnings per share and revenues are expected to increase by 9.3% and 5.1%, respectively, compared to 2025 estimates [9] Analyst Sentiment - Three out of four analysts have raised their estimates for 2025, and four out of five have increased estimates for 2026 in the past 30 days [10] - The Zacks Consensus Estimate for 2025 and 2026 earnings has increased by 7.8% and 2.4%, respectively, over the past month [10] Return on Capital - Assurant's return on equity in the trailing 12 months was 18.6%, exceeding the industry average of 15.3% [13] - The return on invested capital (ROIC) was 12.2%, significantly higher than the industry average of 2.1%, indicating efficient capital utilization [14] Business Segments and Growth Drivers - Fee-based, capital-light units account for 52% of segment revenues and are expected to grow in double digits [7] - Connected Living and Global Lifestyle units are projected to drive EBITDA growth for 2025 [7] - Growth in Global Housing is anticipated from improved claims experience and higher average premiums [17] Capital Management and Shareholder Returns - Assurant plans to return $300 million to shareholders in 2025 through share repurchases and dividend increases [7][20] - The company has a solid capital management policy, with an 11% dividend hike approved in November 2024, marking the 20th consecutive year of increases [20] Overall Outlook - Assurant's focus on capital-light businesses and growth in Connected Living is expected to favor its results [23] - The company has a favorable VGM Score of A, indicating strong value, growth, and momentum compared to peers [24]