Unum Group (UNM) Stock Analysis
Unum Group (UNM) Stock Analysis
Analysis from 10-Q filed 2025-11-04. Data as of Q4 2025.
Overall Grade: F (Concerning)
Unum Group faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 4.2% | Cash flow pressure |
| Debt/Equity | 0.3x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore Unum Group: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: Unum Group earns N/A ROIC
Unum Group's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-11-04.
| Metric | UNM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 6.6% | Warning | Moderate equity returns |
Cash Flow: Unum Group generates $555.4M FCF at 4.2% margin, positive NaN/8 quarters
Unum Group generated $555.4M in free cash flow (TTM), a 4.2% FCF margin, a margin that ranks Bottom 50% in Financials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-04.
| Metric | UNM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 4.2% | Warning | Thin cash margins |
| Free Cash Flow (TTM) | $555.4M | Good | Positive cash generation |
| OCF/Net Income | 0.9x | Good | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Unum Group at 0.3x leverage
Unum Group's debt-to-equity ratio of 0.3x reflects moderate leverage. Total debt of $3.8B offset by $158.2M in cash. Source: 10-Q filed 2025-11-04.
| Metric | UNM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.3x | Good | Conservative capital structure |
| Net Cash Position | $-3.6B | Warning | Net debt position |
Valuation: Unum Group trades at 18.2x earnings
Unum Group trades at a P/E of 18.2x. Free cash flow yield of 4.2% reflects market expectations for growth.
| Metric | UNM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 18.2x | Adequate | Reasonable valuation |
| EV/Sales | 1.3x | Excellent | Attractive revenue multiple |
| FCF Yield | 4.2% | Good | Lower cash yield |
| Dividend Yield | 2.3% | Adequate | Growth focus over income |
Capital Allocation: Unum Group returns 9.8% shareholder yield
Unum Group's total shareholder yield is 9.8% (dividends 2.3% + buybacks 7.6%). Source: 10-Q filed 2025-11-04.
| Metric | UNM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 9.8% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 7.6% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $1.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 4.2% | Bottom 50% | 0.2x below |
| Return on Equity (ROE) | 6.6% | Bottom 25% | 0.6x below |
| P/E Ratio | 18.2x | N/A | - |
Financial Scorecard
| Metric | UNM | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 4.2% | Warning | Bottom 50% of sector (median: 21.7%) |
| Debt to Equity Ratio | 33.9% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 18.2x | Adequate | Fair value |
| Free Cash Flow Yield | 4.2% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is Unum Group's Return on Invested Capital (ROIC)?
Unum Group (UNM) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Unum Group's Free Cash Flow Margin?
Unum Group (UNM) has a free cash flow margin of 4.2%, generating $555.4 million in free cash flow over the trailing twelve months. A thin FCF margin may indicate heavy reinvestment or operational challenges.
Q: Is Unum Group stock overvalued or undervalued?
Unum Group (UNM) trades at a P/E ratio of 18.2x, which is above the sector median of N/A. The EV/Sales multiple is 1.3x. Free cash flow yield is 4.2%, which is in line with market averages.
Q: Does Unum Group pay a dividend?
Unum Group (UNM) currently pays a dividend yield of 2.3%. Including share buybacks, the total shareholder yield is 9.8%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is Unum Group's revenue and earnings growth?
Unum Group (UNM) grew revenue by 1.5% year-over-year. Earnings per share decreased by 55.2% compared to the prior year. Modest growth indicates a mature business with stable demand.
Q: Is Unum Group buying back stock?
Unum Group (UNM) repurchased $1.0 billion of stock over the trailing twelve months. This represents a buyback yield of 7.6%.
Q: How does Unum Group compare to competitors in Financials?
Compared to other companies in Financials, Unum Group (UNM) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 4.2% trails the sector median of 21.7% (Bottom 27% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with Unum Group?
Investors in Unum Group (UNM) should monitor these potential warning signs: 1) FCF margin is thin at 4.2%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-04. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.