| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | Assurant Cost of Revenue | 4,405,333,000 | 4,742,535,000 | 1,808,472,000 | 1,627,624,800 | 2,401,041,263 | Assurant Consolidated Income | 470,907,000 | 141,555,000 | 565,350,000 | 508,815,000 | 408,059,000 |
Assurant price rise is confusing
 | By Ellen Johnson | Macroaxis Story |
This firm current daily volatility is 1.07 percent, with beta of 0.0 and alpha of 0.0 over S&P 500. What is Assurant Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Assurant to move above current price in 30 days from now is near 1%. The Assurant probability density function shows the probability of Assurant Stock to fall within a particular range of prices over 30 days . Considering 30-days investment horizon, Assurant has beta of 0.0 . This suggests the returns on S&P 500 and Assurant do not appear to be sensitive. Additionally, it does not look like the company alpha can have any bearing on the equity current valuation.
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Reviewed by Vlad Skutelnik
The company has 3.69B in debt with debt to equity (D/E) ratio of 67.4 . This implies that the stock may be unable to create cash to meet all of its financial commitments. Assurant dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.12 per share. Earning per share calculations of the firm is based on official Zacks consensus of 5 analysts regarding Assurant future annual earnings. Given the historical accuracy of 88.14%, the future earnings per share of the company is estimated to be 4.3675 with lowest and highest values of 4.01 and 4.6 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses. Assurant financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Assurant, including all of Assurant's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Assurant assets, the company is considered highly leveraged. Understanding the composition and structure of overall Assurant debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding Assurant Total Debt
Assurant liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Assurant has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Assurant balance sheet include debt obligations and money owed to different Assurant vendors, workers, and loan providers. Below is the chart of Assurant main long-term debt accounts currently reported on its balance sheet. You can use Assurant financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Assurant's Liquidity
Assurant financial leverage refers to using borrowed capital as a funding source to finance Assurant ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Assurant financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Assurant's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Assurant's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Assurant's total debt and its cash.
Breaking down the case for Assurant
The modest gains experienced by current holders of Assurant could raise concerns from investors as the firm closed today at a share price of 99.81 on 915657.000 in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.0741. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Assurant preserves 8.16% of operating margin. Assurant is selling for under 100.85. That is 0.64 percent up. Opened at 100.85. Assurant Total Liabilities is increasing over the last 5 years. Also, Assurant Net Cash Flow from Financing is fairly stable at the moment.
To conclude, we belive that Assurant is currently overvalued with below average chance of financial distress in the next two years. Our final buy vs hold vs sell advice on the company is Strong Hold.
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