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ALL The Allstate Corporation - Fundamental Analysis

BULLISH
ALL Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Property & Casualty
Current Price
$214.3
Analyst Target
$236.1
+10.2% Upside
52W High
$215.7
52W Low
$176.0

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$56.08B
P/E
6.95
ROE
34.5%
Profit margin
12.5%
Debt/Equity
0.29
Dividend yield
1.87%

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
88%
Analysis Accuracy
Allstate (ALL) trades near its 52-week high at $214.30, reflecting strong multi-year momentum with a 147.3% return over five years and accelerating earnings growth of 222.2% YoY. The stock is significantly undervalued relative to peers, trading at a P/E of 6.95 versus the sector average of 22.13, while delivering superior profitability metrics including a 34.47% ROE and 24.44% operating margin. Despite recent insider selling, the company maintains a fortress balance sheet with a low 0.29 debt/equity ratio and a sustainable 1.87% dividend yielding only 12.71% of earnings. Analysts concur on upside, with a $236.10 target implying 10% appreciation, reinforcing a compelling risk-reward profile in a sector facing mixed growth trends.

Key Strengths

Exceptional ROE of 34.47% significantly exceeds sector average of 26.51% and peer group, indicating superior capital efficiency
Attractive valuation with P/E of 6.95 vs. sector average of 22.13, creating substantial margin of safety and re-rating potential
Strong operating leverage evidenced by 24.44% operating margin and 12.53% net margin in a capital-intensive industry
Low financial leverage with debt/equity of 0.29, well below sector average of 0.76, providing strategic flexibility
Highly sustainable dividend policy with a 12.71% payout ratio, leaving ample room for buybacks or reinvestment

Key Risks

Recent insider selling by CEO and officers totaling $49.78M over the past six months signals potential lack of confidence at the top
Missing earnings estimates for the last four quarters (0/4 beats) with no surprise data, suggesting weakening execution or conservative guidance
Revenue growth of 3.80% YoY lags far behind sector average of 28.52%, raising concerns about top-line vitality
Extremely low liquidity ratios (current ratio 0.43, quick ratio 0.29) typical for insurers but still a structural vulnerability in stress scenarios
Forward P/E of 11.26 nearly doubles current P/E, implying earnings growth expectations are already priced in and leaving little room for disappointment
AI Fair Value Estimate
Based on comprehensive analysis
$236.1
+10.2% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
85
Excellent
Value
95
Future
75
Past
80
Health
85
Dividend
90
AI Verdict
Allstate presents a compelling value opportunity with best-in-class profitability and a steep discount to sector valuations, supported by strong cash generation and a healthy balance sheet, even as modest revenue growth and recent insider selling temper enthusiasm; the $236.10 analyst target implies meaningful upside from the current $214.30 price
Key drivers: Deep valuation discount to peers (P/E 6.95 vs. 22.13), Exceptional ROE of 34.47% and operating margin strength, Analyst target implying 10% upside with consensus buy rating
Confidence
90%
Value
95/100

Allstate is dramatically cheaper than its Financial Services peers on earnings, despite superior profitability, creating a clear valuation anomaly that suggests potential for multiple expansion

Positives
  • P/E of 6.95 is less than one-third of the sector average (22.13)
  • Price/Book of 2.20 is reasonable given 34.47% ROE, implying efficient equity use
Watchpoints
  • Forward P/E of 11.26 suggests near-term growth already priced in
  • Lack of EV/EBITDA and EV/Revenue data limits full enterprise valuation view
Future
75/100

While earnings are exploding due to margin expansion and underwriting discipline, top-line stagnation remains a concern; however, price momentum is positive with +6.9% over the last month and +11.6% over the past year

Positives
  • Earnings growth of 222.2% YoY indicates strong bottom-line momentum
  • Q/Q earnings growth of 214.80% shows sustained acceleration
Watchpoints
  • Revenue growth of only 3.80% YoY is weak relative to sector average of 28.52%
  • No recent earnings beats over the last four quarters, signaling possible guidance issues or execution slippage
Past
80/100

Allstate has delivered robust long-term profitability and share price appreciation over 5Y and 3Y horizons, but recent quarters show a troubling inability to exceed expectations, undermining confidence in forward momentum

Positives
  • Consistently high profitability with stable 24.44% operating margin and 12.53% net margin
  • Five-year stock return of +147.3% demonstrates strong shareholder value creation
Watchpoints
  • No earnings beats in the last four quarters (0/4), indicating declining earnings quality
  • Quarterly earnings data lacks transparency with missing dates and estimates
Health
85/100

Allstate’s conservative leverage profile provides resilience relative to peers like MetLife (D/E 1.64), though insurance models inherently carry low liquidity ratios due to liability-driven balance sheets

Positives
  • Very low debt/equity ratio of 0.29, well below sector average of 0.76
  • High ROA of 5.09% indicates efficient asset utilization for an insurer
Watchpoints
  • Current ratio of 0.43 and quick ratio of 0.29 suggest structural liquidity tightness
  • Missing total cash, debt, and OCF data limits full solvency assessment
Dividend
90/100

Allstate’s dividend policy is highly disciplined, offering a secure 1.87% yield with minimal earnings payout, positioning it as a reliable income source within the financial sector

Positives
  • Dividend yield of 1.87% is attractive in the current rate environment
  • Extremely low payout ratio of 12.71% ensures long-term sustainability and room for growth
Watchpoints
  • Lack of 5-year average yield data limits visibility into dividend growth trend
  • No ex-dividend date provided, reducing transparency for income investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$214.3
Analyst Target
$236.1
Upside/Downside
+10.2%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ALL and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
ALL
The Allstate Corporation
Primary
+147.3% +74.4% +11.6% +3.5% +6.9% +5.9%
TFC
Truist Financial Corporation
Peer
+16.8% +14.0% +1.8% +11.0% +4.9% +1.4%
PYPL
PayPal Holdings, Inc.
Peer
-67.3% -30.1% -26.8% -13.0% -7.6% -5.2%
MET
MetLife, Inc.
Peer
+99.3% +16.2% -2.0% -1.3% -3.0% +3.3%
AFL
Aflac Incorporated
Peer
+197.5% +73.0% +6.5% +8.2% +4.1% +0.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
6.95
Forward P/E
11.26
PEG Ratio
N/A
P/B Ratio
2.2
P/S Ratio
0.84
EV/Revenue
0.84
EV/EBITDA
5.61
Market Cap
$56.08B

Profitability

Profit margins and return metrics

Profit Margin 12.53%
Operating Margin 24.44%
Gross Margin 28.2%
ROE 34.47%
ROA 5.09%

Growth

Revenue and earnings growth rates

Revenue Growth +3.8%
Earnings Growth +222.2%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +214.8%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.29
Low debt
Current Ratio
0.43
Weak
Quick Ratio
0.29
Poor
Cash/Share
$36.97

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-11-05
$13.95
+84.4% surprise
2025-07-30
$7.76
+100.7% surprise
2025-04-30
$3.53
+39.3% surprise

Financial Services Sector Comparison

Comparing ALL against 32 companies in the Financial Services sector (19 bullish, 12 neutral, 1 bearish)
P/E Ratio
6.95
This Stock
vs
22.34
Sector Avg
-68.9% (Discount)
Return on Equity (ROE)
34.47%
This Stock
vs
26.06%
Sector Avg
+32.3% (Excellent)
Profit Margin
12.53%
This Stock
vs
25.09%
Sector Avg
-50.1% (Weaker)
Debt to Equity
0.29
This Stock
vs
0.75
Sector Avg
-60.9% (Less Debt)
Revenue Growth
3.8%
This Stock
vs
20.1%
Sector Avg
-81.1% (Slower)
Current Ratio
0.43
This Stock
vs
1.41
Sector Avg
-69.8% (Weaker)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
ALL
The Allstate Corporation
BULLISH $56.08B 6.95 34.5% 12.5% $214.3
TFC
Truist Financial Corporation
BULLISH $57.99B 12.03 8.0% 28.6% $44.86
PYPL
PayPal Holdings, Inc.
BULLISH $58.77B 12.61 24.4% 15.0% $62.81
MET
MetLife, Inc.
BULLISH $52.36B 14.81 12.8% 5.3% $78.64
AFL
Aflac Incorporated
NEUTRAL $60.28B 15.01 15.6% 23.6% $114.34

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-03 WILSON THOMAS JOSEPH II Chief Executive Officer Sale 16,807 $3,183,319
2025-11-03 JEEVANJEE ZULFIKAR Officer of Subsidiary Company Stock Award 5,110 -
2025-10-20 WILSON THOMAS JOSEPH II Chief Executive Officer Sale 16,807 $3,260,883
2025-10-06 WILSON THOMAS JOSEPH II Chief Executive Officer Sale 16,807 $3,532,582
2025-10-03 MERTEN JESSE E Divisional Officer Stock Award 538 -
2025-10-03 RIZZO MARIO Officer of Subsidiary Company Stock Award 199 -
2025-10-01 TRAQUINA PERRY M Director Stock Award 195 $41,083
2025-10-01 KEANE MARGARET M Director Stock Award 160 $33,709
2025-09-05 GUPTA SUREN K Divisional Officer Stock Award 13,898 -
2025-08-22 PRINDIVILLE MARK Q Officer of Subsidiary Company Sale 7,383 $1,524,094
2025-08-22 PRINDIVILLE MARK Q Officer of Subsidiary Company Option Exercise 7,383 $460,109
2025-07-01 TRAQUINA PERRY M Director Stock Award 206 $41,229
2025-07-01 KEANE MARGARET M Director Stock Award 168 $33,624
2025-06-05 FERREN ERIC K Officer Stock Award 245 -
2025-06-02 WILSON THOMAS JOSEPH II Chief Executive Officer Sale 181,460 $38,007,781
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
20 analysts
Keefe, Bruyette & Woods
2025-11-11
main
Outperform Outperform
UBS
2025-11-10
main
Buy Buy
Wells Fargo
2025-11-07
main
Equal-Weight Equal-Weight
BMO Capital
2025-11-07
main
Outperform Outperform
JP Morgan
2025-11-06
main
Overweight Overweight
Wells Fargo
2025-10-24
main
Equal-Weight Equal-Weight
JP Morgan
2025-10-09
main
Overweight Overweight
UBS
2025-10-08
main
Buy Buy
Wolfe Research
2025-09-16
init
Outperform
BMO Capital
2025-08-20
main
Outperform Outperform