Valuation
26% of the score, 28% here after data gaps
53median 13
Erie Indemnity is valued at 16.1x its operating profit, including debt: an ordinary multiple.
25x
20x
15x
10x
6x
16.1x
Full points at 6x or less, none from 25xfull points
ERIEErie Indemnity
$222.04-33% 1Y
$222.04
$207.2452 weeks$333.53
RyuScore
Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
RyuScore 77 out of 100, Strong
Strong. Erie Indemnity scores higher than 93% of the 1,794 companies Ryufin scores.
Carried by return on capital and return on new capital, with nothing holding it far back.
Financial Services median 58 · all companies 50
Return on capital
18% of the score, 20% here after data gaps
100median 34
Over 7 years the business earned 27% a year after tax on the capital it uses.
2%
8%
15%
25%
27%
None at 2% or less, full points from 25%full points
7 years agolatest 30%
Return on new capital
16% of the score, 17% here after data gaps
100median 49
For every dollar of operating profit earned over 6 years, yearly profit grew by 14 cents. New capital earned 54%, and 26% of profit went back into the business.
-5%
12%
14%
None at minus 5 cents, full points from 12 centsfull points
Capital allocation
14% of the score, 15% here after data gaps
88median 64
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
Assets against salesAssets grew 9.7% a year, sales 9.9%
8812%
-2%
-0.3%
0 pointsfull points
Cycle position
12% of the score, 13% here after data gaps
50median 62
Today's operating margin of 18% is 1.19x its normal 15%: above its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
2x
1.5x
1x
0.7x
1.2x
A trough earns points, a peak costs themfull points
10 years agonow 18%
Balance sheet
Taken out: its 8% is shared by the others
n/ano data
No debt or interest figures on file.
Earnings quality
6% of the score, 7% here after data gaps
73median 90
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
Cash against profitOperating cash flow was 1.05x profit over 3 years
660.7x
1x
1.3x
1x
0 pointsfull points
AccrualsCash ran ahead of profit by 4.1% of assets
808%
0%
-8%
-4.1%
0 pointsfull points
How the RyuScore works
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. For ERIE, balance sheet could not be measured from the filings, so it is taken out and the remaining weights scale up.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.
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