Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance company Unitrin
With that in mind, let's take a closer look at Unitrin's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Chicago (1990)|
|Market Cap||$1.5 billion|
|Trailing-12-Month Revenue||$2.78 billion|
CEO Donald Southwell (since 2006)
Chief Investment Officer John Boschelli (since 2009)
|Return on Equity (average, past 3 years)||4.1%|
|Cash/Debt||$554 million / $561.9 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 90% of the 71 members who have rated Unitrin believe the stock will outperform the S&P 500 going forward. These bulls include WPThatcher and All-Star Staka, who is ranked in the top 2% of our community.
Earlier this week, WPThatcher summed up the Unitrin bull case with a few simple words: "Trading under book by a lot."
Unitrin's recent restructuring initiatives and bargain-like valuation support its five-star CAPS rating. Currently, Unitrin even trades at a price-to-book (0.7) discount to rivals Chubb (1.1), Travelers (0.9), and W.R. Berkley (1.0), as well as other highly rated insurers like Markel
At such a cheap price, CAPS All-Star Staka thinks Unitrin's positives far outweigh its negatives:
- Below tangible book, makes for a good acquisition target
- Good dividend yield with a low payout ratio, could be increased
- Management is winding down unprofitable Fireside Bank (automobile finance subsidiary)
- Underperforming Unitrin Direct gets a fix
- Kemper and Unitrin Specialty are relatively consistent and profitable subsidiaries
- This is a value proposition waiting to be discovered by the market.
- Slow to no growth
- Resignation of CFO might hint to internal divergences (pure speculation)
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