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FSCO vs UFCS

FSCO
FS Credit Opportunities Corp.
BEARISH
Price
$5.00
Market Cap
$1.01B
Sector
Financial Services
AI Confidence
85%
UFCS
United Fire Group, Inc.
BULLISH
Price
$39.46
Market Cap
$1.01B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
FSCO
6.58
UFCS
8.81
Forward P/E
FSCO
--
UFCS
10.58
P/B Ratio
FSCO
--
UFCS
1.07
P/S Ratio
FSCO
--
UFCS
0.73
EV/EBITDA
FSCO
--
UFCS
5.94

Profitability

Gross Margin
FSCO
0.0%
UFCS
11.48%
Operating Margin
FSCO
0.0%
UFCS
14.05%
Profit Margin
FSCO
0.0%
UFCS
8.53%
ROE
FSCO
--
UFCS
13.72%
ROA
FSCO
--
UFCS
2.71%

Growth

Revenue Growth
FSCO
--
UFCS
9.8%
Earnings Growth
FSCO
--
UFCS
20.0%

Financial Health

Debt/Equity
FSCO
--
UFCS
0.17
Current Ratio
FSCO
--
UFCS
0.68
Quick Ratio
FSCO
--
UFCS
0.47

Dividends

Dividend Yield
FSCO
15.83%
UFCS
2.03%
Payout Ratio
FSCO
104.88%
UFCS
14.29%

AI Verdict

FSCO BEARISH

FSCO exhibits severe fundamental weakness, highlighted by a critical Piotroski F-Score of 1/9, indicating poor financial health. While the current price of $5.00 sits slightly below the growth-based intrinsic value of $5.32, this is overshadowed by an unsustainable dividend payout ratio of 104.88%. The technical trend is completely bearish (0/100), and the company is currently paying out more than it earns, signaling a high risk of a dividend cut. Overall, the stock presents as a classic dividend trap with deteriorating fundamentals.

Strengths
Current price is trading slightly below estimated intrinsic value ($5.32)
Low P/E ratio of 6.58 relative to sector averages
Strong long-term historical price appreciation (5Y Change +70.4%)
Risks
Critical financial health failure (Piotroski F-Score 1/9)
Unsustainable dividend payout ratio (104.88%)
Strong bearish technical momentum (0/100 trend score)
UFCS BULLISH

UFCS presents a compelling deep-value opportunity, trading significantly below both its Graham Number ($60.97) and estimated Intrinsic Value ($132.16). While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company's low Debt/Equity ratio (0.17) and robust earnings growth (20% YoY) provide a strong fundamental cushion. Despite a bearish technical trend and recent insider selling, the valuation metrics (P/E 8.81, P/B 1.07) suggest the stock is heavily undervalued relative to its profitability and growth trajectory.

Strengths
Significant undervaluation relative to Graham Number ($60.97) and Intrinsic Value ($132.16)
Strong earnings growth (20% YoY) with a high average surprise rate (78.26%)
Very low leverage with a Debt/Equity ratio of 0.17
Risks
Strongly bearish technical trend (10/100) suggesting short-term momentum is negative
Recent insider selling activity (Net Bearish)
Low current ratio (0.68) and quick ratio (0.47), though common in insurance

Compare Another Pair

FSCO vs UFCS: Head-to-Head Comparison

This page compares FS Credit Opportunities Corp. (FSCO) and United Fire Group, Inc. (UFCS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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