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United Fire Group Inc (UFCS) is a regional property and casualty insurer focused on commercial lines, primarily serving small to mid-sized businesses in the Midwest and South.
Investment Thesis
UFCS is a classic 'steady-as-she-goes' regional insurer. The company focuses on niche commercial lines (contractors, retail, manufacturing) where it has deep local expertise and long-term agent relationships. While the company has faced some margin pressure due to inflation, it is currently in the middle of a strategic pivot toward higher-margin, specialized lines of business. With a very conservative investment portfolio and a long history of dividend payments, UFCS offers safety and income for defensive investors.
Key Growth Drivers
Niche Commercial Focus
By specializing in small business commercial insurance, UFCS avoids the cutthroat competition and commodity pricing of the personal auto and home markets.
Conservative Investment Portfolio
A high-quality fixed income portfolio provides a steady stream of investment income that supports the dividend and protects book value during market volatility.
Disciplined Underwriting Transition
Management is actively shedding underperforming books of business and utilizing new data analytics to improve their pricing accuracy.
Valuation & Financial Modeling
UFCS trades near its book value, reflecting its stable but slow-growth profile. It is a classic value stock that offers a decent yield and significant downside protection given its strong balance sheet.
Risk Factors & Bear Case
Localized catastrophic events (tornadoes, hail) in the Midwest are the primary risk. Additionally, as a smaller regional carrier, it may struggle to compete with the technology investments being made by massive national insurers.
Conclusion
United Fire Group is a solid, conservative income vehicle. It is appropriate for risk-averse investors seeking reliable insurance exposure. Rated 'Hold' for growth, 'Buy' for value/income.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 64.5GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.6%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.10%
Trailing Yield
$2.10
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
20%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, UNITED FIRE GROUP INC (UFCS) receives a "Hold" rating with a composite score of 58.3/100, ranked #252 out of 4446 stocks. Key factor scores: Quality 65/100, Value 78/100, Momentum 57/100. This is quantitative analysis only — not investment advice.
UNITED FIRE GROUP INC (UFCS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does UNITED FIRE GROUP INC Do?
United Fire Group, Inc., together with its subsidiaries, provides property and casualty insurance for individuals and businesses in the United States. The company offers commercial and personal lines of property and casualty insurance; and commercial multiple peril and inland marine insurance, as well as assumed reinsurance products. Its commercial policies include fire and allied lines, other liability, automobile, workers' compensation, and fidelity and surety coverage; and personal lines comprise automobile, and fire and allied lines coverage, including homeowners. The company sells its products through a network of independent agencies. United Fire Group, Inc. was founded in 1946 and is headquartered in Cedar Rapids, Iowa. UNITED FIRE GROUP INC (UFCS) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Kevin J. Leidwinger and employs approximately 1,090 people, headquartered in CEDAR RAPIDS, Iowa. With a market capitalization of $932M, UFCS is one of the notable companies in the Financials sector.
UNITED FIRE GROUP INC (UFCS) Stock Rating — Hold (April 2026)
As of April 2026, UNITED FIRE GROUP INC receives a Hold rating with a composite score of 58.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.UFCS ranks #252 out of 4,446 stocks in our coverage universe. Within the Financials sector, UNITED FIRE GROUP INC ranks #70 of 900 stocks, placing it in the top 10% of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
UFCS Stock Price and 52-Week Range
UNITED FIRE GROUP INC (UFCS) currently trades at $37.58. The 52-week high for UFCS is $40.63, which means the stock is currently trading -7.5% from its annual peak. The 52-week low is $25.01, putting the stock 50.3% above its annual trough. Recent trading volume was 0 shares, suggesting relatively thin trading activity.
Is UFCS Overvalued or Undervalued? — Valuation Analysis
UNITED FIRE GROUP INC (UFCS) carries a value factor score of 78/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 9.40x, compared to the Financials sector average of 14.78x — a discount of 36%. The price-to-book ratio stands at 0.99x, versus the sector average of 1.19x. The price-to-sales ratio is 0.70x, compared to 0.89x for the average Financials stock. On an enterprise value basis, UFCS trades at 7.51x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, UNITED FIRE GROUP INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
UNITED FIRE GROUP INC Profitability — ROE, Margins, and Quality Score
UNITED FIRE GROUP INC (UFCS) earns a quality factor score of 65/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.6%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 2.6% versus the sector average of 1.3%.
On a margin basis, UNITED FIRE GROUP INC reports gross margins of 100.0%. The operating margin is 9.2% (sector: 21.8%). Net profit margin stands at 7.3%, versus 17.8% for the average Financials stock. Revenue growth is running at 17.5% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
UFCS Debt, Balance Sheet, and Financial Health
UNITED FIRE GROUP INC has a debt-to-equity ratio of 308.0%, compared to the Financials sector average of 118.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.32x, suggesting adequate working capital coverage. Total debt on the balance sheet is $146M. Cash and equivalents stand at $234M.
UFCS has a beta of 0.52, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for UNITED FIRE GROUP INC is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
UNITED FIRE GROUP INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, UNITED FIRE GROUP INC reported revenue of $1.34B and earnings per share (EPS) of $4.64. Net income for the quarter was $100M. Gross margin was 100.0%. Operating income came in at $125M.
In FY 2025, UNITED FIRE GROUP INC reported revenue of $1.39B and earnings per share (EPS) of $4.64. Net income for the quarter was $118M. Revenue grew 10.6% year-over-year compared to FY 2024. Operating income came in at $148M.
In Q3 2025, UNITED FIRE GROUP INC reported revenue of $354M and earnings per share (EPS) of $1.54. Net income for the quarter was $39M. Revenue grew 9.6% year-over-year compared to Q3 2024. Operating income came in at $49M.
In Q2 2025, UNITED FIRE GROUP INC reported revenue of $335M and earnings per share (EPS) of $0.90. Net income for the quarter was $23M. Revenue grew 11.4% year-over-year compared to Q2 2024. Operating income came in at $29M.
Over the past 8 quarters, UNITED FIRE GROUP INC has demonstrated a growth trajectory, with revenue expanding from $301M to $1.34B. Investors analyzing UFCS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
UFCS Dividend Yield and Income Analysis
UNITED FIRE GROUP INC (UFCS) currently pays a dividend yield of 2.1%. At this yield, a $10,000 investment in UFCS stock would generate approximately $$210.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.4%, meaning UFCS yields less than the typical sector peer. The net margin of 7.3% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
UFCS Momentum and Technical Analysis Profile
UNITED FIRE GROUP INC (UFCS) has a momentum factor score of 57/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
UFCS vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing UFCS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full UFCS vs S&P 500 (SPY) comparison to assess how UNITED FIRE GROUP INC stacks up against the broader market across all factor dimensions.
UFCS Next Earnings Date
No upcoming earnings date has been announced for UNITED FIRE GROUP INC (UFCS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy UFCS? — Investment Thesis Summary
UNITED FIRE GROUP INC presents a balanced picture with arguments on both sides. The quality score of 65/100 indicates above-average profitability and business fundamentals. The value score of 78/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 84/100) reduces downside risk.
In summary, UNITED FIRE GROUP INC (UFCS) earns a Hold rating with a composite score of 58.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on UFCS stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.5%
Sector: 9.4%
+88% VS SCTR
Gross Margin
Core pricing power
100.0%
Sector: 0.0%
+Infinity% VS SCTR
Operating Margin
Operating efficiency
9.2%
Sector: 21.8%
-58% VS SCTR
Net Margin
Bottom-line conversion
7.3%
Sector: 17.8%
-59% VS SCTR
Return on Equity
Equity capital efficiency
10.6%
Sector: 8.5%
+24% VS SCTR
Return on Assets
Asset base utilization
2.6%
Sector: 1.3%
+107% VS SCTR
Debt/Equity
Financial leverage load
308.0%
Sector: 118.5%
-160% VS SCTR
Dividend Yield
Direct cash return
2.1%
Sector: 2.4%
-13% VS SCTR
-17%
Price / Sales
0.7x
-21%
UNITED FIRE GROUP INC exhibits a 14% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
2.6%
Sector: 1.3%
Gross Margin
Pricing power and cost efficiency
100.0%
Sector: 0.0%
Operating Margin
Core business profitability
9.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
7.3%
Sector: 17.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.41%
Yield Delta-13%
Income Projection audit
A $10,000 investment would generate approximately $210 annually in dividends at the current trailing rate.