Vericity, Inc. (VERY) | Investment Case

1. Company Snapshot

1.a. Company Description

Vericity, Inc., together with its subsidiaries, provides life insurance protection products for the middle American market.The company operates through Agency and Insurance segments.The Agency segment sells life insurance products for unaffiliated insurance companies through its call center distribution platform, as well as through its independent agents and other marketing organizations.

This segment is also involved in the insurance lead sale activities through its eCoverage web presence.The Insurance segment provides term life, accidental death, and final expense products.Vericity, Inc.

is headquartered in Chicago, Illinois.

Show Full description

1.b. Last Insights on VERY

Have nothing to say about that one ...

1.c. Company Highlights

Last Price	11.43
Change Percentage	1.33%
Open	11.42
Previous Close	11.28
Market Cap ( Millions)	170
Volume	110635
Year High	12.13
Year Low	4.7
M A 50	11.34
M A 200	10.82

FCF Yield	2.84%
Dividend Yield	0.00%
ROE	-8.93%
Debt / Equity	44.47%
Net Debt / EBIDTA	-2764.24%
Price To Book	1.54
Price Earnings Ratio	-17.19
Price To FCF	35.18
Price To sales	0.96
EV / EBITDA	-142.37

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

J.C. Flowers Completes Sale of Vericity for Approximately $170 Million

Jun -28

Source: prnewswire.com

SHAREHOLDER ALERT: Levi & Korsinsky, LLP Announces Investigation of Vericity, Inc.

Dec -20

Source: prnewswire.com

VERICITY SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of Vericity, Inc. (VERY) and Encourages Investors to Contact the Firm

Dec -11

Source: prnewswire.com

VERY ALERT: Levi & Korsinsky, LLP Announces Investigation of Vericity, Inc.

Nov -09

Source: prnewswire.com

VERY ALERT: Levi & Korsinsky, LLP Announces Investigation of Vericity, Inc.

Oct -19

Source: prnewswire.com

VERY ALERT: Levi & Korsinsky, LLP Announces Investigation of Vericity, Inc.

Oct -12

Source: prnewswire.com

Vericity shares surge on US$170M iA Financial takeover

Oct -03

Source: proactiveinvestors.com

J.C. Flowers-backed Vericity to be acquired for 101% premium to Monday's close

Oct -03

Source: Market Watch

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.06%)

6. Segments

Insurance

Expected Growth: 4.8%

Growing demand for workers' compensation insurance, increasing focus on risk management and cost containment, and rising awareness of workplace safety drive the market growth.

Agency

Expected Growth: 5.5%

Growing demand for personalized insurance products, increasing adoption of digital insurance platforms, and rising awareness of risk management among individuals and businesses are expected to drive the growth of Vericity's Agency.

Corporate & Other Segment

Expected Growth: 4.5%

The Corporate & Other Segment's growth is driven by increasing interest income and decreasing unallocated corporate expenses, resulting in a forecasted CAGR of 4.5%. This growth is further supported by Vericity's strategic cost management and efficient allocation of resources.

7. Detailed Products

VericityLife

A comprehensive life insurance product that provides financial protection to policyholders and their loved ones in the event of death or terminal illness.

VericityShield

A supplemental health insurance product that provides additional financial protection against unexpected medical expenses.

VericityRetire

A retirement savings product that helps individuals build a nest egg for their golden years.

VericityProtect

A disability insurance product that provides income protection in the event of illness or injury.

VericityInvest

A suite of investment products that provide individuals with a range of investment options to grow their wealth.

8. Vericity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vericity, Inc. is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high for Vericity, Inc. due to the availability of alternative products and services, and the high demand for quality products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Vericity, Inc. due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate for Vericity, Inc. due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Vericity, Inc. due to the presence of several competitors in the market, and the need to differentiate itself through innovation and quality products.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.78%
Debt Cost	3.95%
Equity Weight	69.22%
Equity Cost	4.46%
WACC	4.30%
Leverage	44.47%

11. Quality Control: Vericity, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SLR Investment

A-Score: 7.7/10

Value: 6.9

Growth: 6.6

Quality: 7.8

Yield: 10.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Independent Bank

A-Score: 6.6/10

Value: 6.9

Growth: 6.9

Quality: 7.5

Yield: 7.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

Chemung Financial

A-Score: 6.4/10

Value: 5.8

Growth: 5.6

Quality: 5.5

Yield: 6.0

Momentum: 7.5

Volatility: 8.0

1-Year Total Return ->

Atlantic American

A-Score: 5.1/10

Value: 7.7

Growth: 3.7

Quality: 5.2

Yield: 2.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

Citizens

A-Score: 3.9/10

Value: 4.0

Growth: 4.1

Quality: 5.9

Yield: 0.0

Momentum: 6.5

Volatility: 2.7

1-Year Total Return ->

Vericity

A-Score: 3.6/10

Value: 6.7

Growth: 4.2

Quality: 4.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-2.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

4.30%

Vericity, Inc. - US92347D1000

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on VERY

Have nothing to say about that one ...

1.c. Company Highlights

Strong Momentum

More Volatile

Lower Quality

Lower Growth

Fairly Valued

Lower Yield

Medium Volatility

Average Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.06%)

6. Segments

Insurance

Expected Growth: 4.8%

Agency

Expected Growth: 5.5%

Corporate & Other Segment

Expected Growth: 4.5%

7. Detailed Products

VericityLife

VericityShield

VericityRetire

VericityProtect

VericityInvest

8. Vericity, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Vericity, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.43$

Current Price

11.43$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA