Will Erie Indemnity speedily recuperate?
 | By Vlad Skutelnik | Macroaxis Story |
In this write-up I will digest Erie Indemnity. I will look into why despite ongoing dip, the longer-term fundamental drivers of the firm are still sound. Is the organisation valuation justified? Here I will also cover the company prospective on valuation to give you a better outlook on taking a position in this stock. Erie Indemnity shows prevailing Real Value of $209.59 per share. The current price of the firm is $190.03. At this time the firm appears to be undervalued. This module computes value of Erie Indemnity from reviewing the firm fundamentals such as Current Valuation of 10.47B, Shares Outstanding of 46.19M and Profit Margin of 12.58% as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point assets prices and their ongoing real values will submerge.
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Reviewed by Michael Smolkin
This firm currently holds 125.05M in liabilities with Debt to Equity (D/E) ratio of 11.7 indicating Erie Indemnity may have difficulties to generate enough cash to satisfy its financial obligations. Erie Indemnity dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.68 per share. The company has Profit Margin (PM) of 12.58 % which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 15.16 % which suggests for every 100 dollars of sales it generated a net operating income of 0.15. We determine the current worth of Erie Indemnity using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Erie Indemnity based exclusively on its fundamental and basic technical indicators. By analyzing Erie Indemnity's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Erie Indemnity's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Erie Indemnity. We calculate exposure to Erie Indemnity's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Erie Indemnity's related companies.
Erie Indemnity Investment Alerts
Erie investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Erie Indemnity performance across your portfolios.Please check all investment alerts for ErieErie Indemnity Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Erie value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Erie Indemnity competition to find correlations between indicators driving the intrinsic value of Erie.Erie Indemnity Gross Profit
Erie Indemnity Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Erie Indemnity previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Erie Indemnity Gross Profit growth over the last 10 years. Please check Erie Indemnity's gross profit and other fundamental indicators for more details.
Breaking down the case for Erie Indemnity
Erie Indemnity Company utilizes its assets almost 12.56 percent, getting $0.1256 for each dollar of assets held by the firm. An increasing assets utilization denotes the company is being more effective with each dollar of assets it shows. In plain English assets utilization of Erie Indemnity shows how effective it operates for each dollar spent on its assets. The big decline in price over the last few months for Erie Indemnity could raise concerns from investors as the firm closed today at a share price of 190.03 on 1 in volume. The company management failed to add value to investors and positioning the firm components to exploit market volatility in August. However, diversifying your holdings with Erie Indemnity Company or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.4227. The current volatility is consistent with the ongoing market swings in August 2019 as well as with Erie Indemnity unsystematic, company specific events. Erie Indemnity preserves 9.78x of price to book. Erie Indemnity is trading at 190.03 which is 0.09 percent down. Today lowest is 190.03. Erie Indemnity Market Capitalization is rather stable at the moment. Moreover, Erie Indemnity Issuance Repayment of Debt Securities is increasing over the last 4 years. Taking everything into account, we see that Erie Indemnity Responds to market. The firm is undervalued with very small odds of financial turmoil within the next 24 months. Our primary buy vs hold vs sell advice on the firm is Hold.
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