Safety Insurance Group, Inc. (SAFT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+71.3%

$178.51

vs $104.24 price

Levered DCF

$372.84

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.06

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	11.59×	17.2×	60.11×	26.58×	9.61×	8.42×	14.19×	14.82×
P/B	1.28×	1.46×	1.4×	1.52×	1.36×	1.32×	1.74×	1.72×
P/S	0.91×	1.09×	1.22×	1.57×	1.46×	1.39×	1.61×	1.48×
EV / EBITDA	8.4×	11.99×	35.41×	18.94×	7.31×	6.44×	10.8×	10.89×
Gross margin	36.4%	35.4%	30.6%	37.3%	46.6%	51.9%	41.8%	41.8%
Operating margin	10.1%	8.1%	2.6%	7.6%	19.0%	20.8%	14.1%	13.1%
Net margin	7.9%	6.4%	2.0%	5.9%	15.1%	16.4%	11.4%	10.0%
Current ratio	0.84×	0×	1.22×	1.28×	1.42×	0×	0×	2.82×
Debt / equity	0.07×	0.06×	0.06×	0.07×	0.06×	0.07×	0.04×	0×
Interest coverage	82.8×	176.55×	29.85×	113.7×	314.69×	397.2×	1,374.23×	1,217.51×
Dividend yield	4.7%	4.4%	4.7%	4.3%	4.3%	4.7%	3.7%	4.0%
Payout ratio	54.3%	75.4%	282.3%	113.9%	41.3%	39.5%	52.9%	58.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.1%	8.5%	2.3%	5.7%	14.1%	15.6%	12.3%	11.6%
Return on invested capital	10.4%	235.8%	2.1%	5.2%	12.9%	460.7%	0.0%	19.8%
Return on assets	4.0%	3.1%	0.9%	2.4%	6.2%	6.7%	4.9%	4.5%
Free cash flow yield	16.8%	10.3%	4.5%	3.4%	10.6%	8.5%	7.3%	9.4%
Earnings yield	8.7%	5.8%	1.7%	3.8%	10.4%	11.8%	7.1%	6.7%
Enterprise value	$1.1B	$1.2B	$1.1B	$1.3B	$1.3B	$1.2B	$1.4B	$1.2B
Net debt / EBITDA	-0.09×	-0.13×	0.36×	0.5×	-0.04×	0.04×	-0.08×	-0.34×
Cash conversion cycle (days)	100	104	108	80	58	51	75	20