Assurant, Inc. (NYSE: AIZ) stands out in the financial services sector, particularly within the insurance – property & casualty industry. With a market cap of $9.88 billion, Assurant is a formidable player, offering a wide range of protection services for connected devices, homes, and automobiles across North America, Latin America, Europe, and the Asia Pacific.
Currently trading at $194.15, the stock has shown resilience with a modest price change of 1.86 (0.01%). Investors eyeing Assurant will note its 52-week range of $161.28 to $228.68, suggesting a stable yet potentially lucrative investment opportunity. The forward P/E ratio of 10.05 indicates that the stock is reasonably priced relative to its earnings expectations, although the absence of other valuation metrics like the trailing P/E or PEG ratio leaves some gaps in the financial analysis.
Assurant’s financial performance is noteworthy. The company reported a revenue growth of 4.10%, showcasing its ability to expand in a competitive market. With an EPS of 14.46 and a return on equity of 15.33%, Assurant demonstrates strong profitability and efficient use of shareholder capital. Moreover, the company generates significant free cash flow, totaling $901,337,472, which provides flexibility for investments, dividends, and potential acquisitions.
Speaking of dividends, Assurant offers a dividend yield of 1.65% with a conservative payout ratio of 20.47%. This indicates that the company retains a substantial portion of its earnings for growth initiatives while still rewarding shareholders.
Analysts have a favorable outlook on Assurant, with five buy ratings against just one hold and zero sell ratings, reflecting confidence in the stock’s future performance. The target price range of $200.00 to $250.00, with an average target of $227.40, presents a potential upside of 17.13% from its current trading price. This potential growth makes Assurant an attractive option for investors seeking both stability and capital appreciation.
Technical indicators provide additional insights. The stock’s 50-day moving average is $201.19, while the 200-day moving average stands at $200.17, suggesting a slight short-term dip but overall stability. The RSI (14) at 45.02 indicates that the stock is neither overbought nor oversold, providing a balanced entry point for investors. However, the MACD of -3.23 with a signal line of -4.08 suggests bearish momentum, which investors should monitor.
Assurant’s operations are divided into two main segments: Global Lifestyle and Global Housing. The Global Lifestyle segment focuses on mobile device solutions, consumer electronics, and vehicle protection services. Meanwhile, Global Housing covers lender-placed and voluntary insurance products for homes and condominiums. This diversified business model allows Assurant to mitigate risks and capitalize on various market opportunities.
Founded in 1892 and headquartered in Atlanta, Georgia, Assurant has a long-standing history of adapting to market changes and delivering value to its clients and shareholders. With its strong growth prospects, robust financials, and a solid reputation, Assurant, Inc. presents a compelling case for investors seeking exposure to the insurance sector with promising upside potential.
