Wayman Value Investing - New Stock Recommendation - June 2024
A new position is being added to the Wayman portfolio
# # # New Position # # #
Assurant (AIZ)
Recent Price: 172.61
Market Cap: 8.97B
P/FCF: 11.86
P/E: 12.04
P/S: 0.79
LT Debt/Eq: 0.42
Projected 4yr FCF: 3.9B
Wayman Portfolio Tier: Gather
Assurant (AIZ), along with its subsidiaries, delivers business services that support, protect, and connect consumer purchases across North America, Latin America, Europe, and the Asia Pacific. Operating through two segments—Global Lifestyle and Global Housing—Assurant's Global Lifestyle segment provides mobile device solutions, extended service contracts and related services for consumer electronics and appliances, credit and other insurance products, as well as vehicle protection, commercial equipment, and related services. The Global Housing segment offers lender-placed homeowners, manufactured housing, and flood insurance, renters insurance and related products, and voluntary insurance for manufactured housing, condominiums, and homeowners. Initially known as Fortis, the company rebranded to Assurant in February 2004. Founded in 1892, Assurant is headquartered in Atlanta, Georgia.
Insurance premiums offer Assurant a steady, dependable, and recurring revenue source. Assurant's investment portfolio is diversified, and the interest and dividends from this portfolio constitute nearly 5% of its quarterly revenue. Assurant’s revenue streams from multiple segments, with connected living and auto being the most significant, generated $8.2 billion in premiums over the past year, while the residential sector added about $2 billion.
Assurant has a history of increasing dividends since its IPO. Although the recent dividend increase is modest against inflation, it indicates prudent cash allocation. The company also announced a $600 million buyback program in late 2023, continuing its practice of reducing the total share count, which has decreased by nearly 15% over the past five years. Assurant stock has gained over 38% over the last 12 months.
Please keep in mind that while some investors might rely on market catalysts when considering what new positions to take, Wayman considers its style to be “catalyst-free investing.” Our reason for purchasing will always be based on our calculations which show a business is worth far more than where the market is pricing it. - Frank Memcaj, Founder of Wayman Value Investing