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United Fire Group Inc. (UFCS) Fundamental Analysis & AI Grade 2026

UFCS Nasdaq Fire, Marine & Casualty Insurance CIK: 0000101199
Updated This Month • Analysis: May 7, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
68% Confidence
N/A
B
68% Conf
Pending
Analysis scheduled

📊 UFCS Key Takeaways

Revenue: $369.4M
Net Margin: 8.1%
Free Cash Flow: $41.1M
Current Ratio: N/A
Debt/Equity: 0.15x
EPS: $1.15
AI Grade: B with 68% confidence
United Fire Group Inc. (UFCS) receives a B fundamental grade with 68% confidence from our AI analysis based on SEC 10-K filings. With revenue of $369.4M, net profit margin of 8.1%, and return on equity (ROE) of 3.2%, United Fire Group Inc. demonstrates mixed fundamentals in the Finance sector. Below is our complete UFCS stock analysis for 2026.

Is United Fire Group Inc. (UFCS) a Good Investment?

Claude

United Fire Group demonstrates solid operational fundamentals with 10.6% revenue growth, strong free cash flow of $41.1M, and an exceptionally conservative balance sheet with 0.15x debt-to-equity ratio. However, critically low returns on equity (3.2%) and assets (0.8%) indicate poor capital efficiency, and the severe disconnect between 87.4% EPS growth and 10.6% revenue growth suggests non-operational factors are driving earnings growth, warranting caution before committing capital.

United Fire Group Inc. Key Strengths (UFCS)

Claude
  • + Strong revenue growth of 10.6% YoY demonstrating solid business momentum in competitive insurance market
  • + Excellent free cash flow of $41.1M with 11.1% FCF margin showing strong operational cash generation capability
  • + Fortress balance sheet with 0.15x debt-to-equity ratio, $162M cash reserves, and 11.9x interest coverage providing financial stability
  • + Reasonable 10.3% operating margin appropriate for property and casualty insurance sector

UFCS Stock Risks: United Fire Group Inc. Investment Risks

Claude
  • ! Critically low returns on equity (3.2%) and assets (0.8%) indicate fundamentally inefficient capital deployment despite profitability
  • ! Severe disconnect between 87.4% EPS growth and 10.6% revenue growth signals share buybacks, non-recurring gains, or accounting adjustments inflating per-share metrics
  • ! Cyclical insurance industry exposure to catastrophic losses, underwriting cycles, and reserve adequacy risks creates earnings volatility

Key Metrics to Watch

Claude
  • * Return on equity trajectory and capital efficiency improvements needed
  • * Combined loss ratio and underwriting profitability trends
  • * Decomposition of EPS growth: organic earnings generation vs. share count reduction vs. non-recurring items
  • * Free cash flow sustainability, dividend coverage, and capital allocation discipline

United Fire Group Inc. (UFCS) Financial Metrics & Key Ratios

Revenue
$369.4M
Net Income
$30.1M
EPS (Diluted)
$1.15
Free Cash Flow
$41.1M
Total Assets
$3.9B
Cash Position
$162.0M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

UFCS Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 10.3%
Net Margin 8.1%
ROE 3.2%
ROA 0.8%
FCF Margin 11.1%

UFCS vs Finance Sector: How United Fire Group Inc. Compares

How United Fire Group Inc. compares to Finance sector averages

Net Margin
UFCS 8.1%
vs
Sector Avg 25.0%
UFCS Sector
ROE
UFCS 3.2%
vs
Sector Avg 12.0%
UFCS Sector
Current Ratio
UFCS 0.0x
vs
Sector Avg 1.2x
UFCS Sector
Debt/Equity
UFCS 0.2x
vs
Sector Avg 2.0x
UFCS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is United Fire Group Inc. Stock Overvalued? UFCS Valuation Analysis 2026

Based on fundamental analysis, United Fire Group Inc. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
3.2%
Sector avg: 12%
Net Profit Margin
8.1%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.15x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

United Fire Group Inc. Balance Sheet: UFCS Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.15x
Debt/Assets
75.7%
Interest Coverage
11.94x
Long-term Debt
$146.3M

UFCS Revenue & Earnings Growth: 5-Year Financial Trend

UFCS 5-year financial data: Year 2021: Revenue $1.2B, Net Income $14.8M, EPS N/A. Year 2022: Revenue $1.1B, Net Income -$112.7M, EPS N/A. Year 2023: Revenue $1.1B, Net Income $80.6M, EPS N/A. Year 2024: Revenue $1.3B, Net Income $15.0M, EPS $0.59. Year 2025: Revenue $1.4B, Net Income -$29.7M, EPS $-1.18.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: United Fire Group Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.18 indicates the company is currently unprofitable.

UFCS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
11.1%
Free cash flow / Revenue

UFCS Quarterly Earnings & Performance

Quarterly financial performance data for United Fire Group Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $331.1M $17.7M $0.67
Q3 2025 $323.0M $19.7M $0.76
Q2 2025 $301.2M -$2.7M $-0.11
Q1 2025 $296.0M $13.5M $0.52
Q3 2024 $274.0M $694.0K $0.25
Q2 2024 $267.1M $694.0K $-0.11
Q1 2024 $267.1M $694.0K $0.03
Q3 2023 $235.6M $694.0K $-0.20

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

United Fire Group Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$56.6M
Cash generated from operations
Capital Expenditures
$15.5M
Investment in assets
Dividends Paid
$5.1M
Returned to shareholders

UFCS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for United Fire Group Inc. (CIK: 0000101199)

📋 Recent SEC Filings

Date Form Document Action
May 26, 2026 8-K ufcs-20260520.htm View →
May 22, 2026 4 xslF345X06/primarydocument.xml View →
May 22, 2026 4 xslF345X06/primarydocument.xml View →
May 22, 2026 4 xslF345X06/primarydocument.xml View →
May 22, 2026 4 xslF345X06/primarydocument.xml View →

Frequently Asked Questions about UFCS

What is the AI rating for UFCS?

United Fire Group Inc. (UFCS) has an AI grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.

What are UFCS's key strengths?

Claude: Strong revenue growth of 10.6% YoY demonstrating solid business momentum in competitive insurance market. Excellent free cash flow of $41.1M with 11.1% FCF margin showing strong operational cash generation capability.

What are the risks of investing in UFCS?

Claude: Critically low returns on equity (3.2%) and assets (0.8%) indicate fundamentally inefficient capital deployment despite profitability. Severe disconnect between 87.4% EPS growth and 10.6% revenue growth signals share buybacks, non-recurring gains, or accounting adjustments inflating per-share metrics.

What is UFCS's revenue and growth?

United Fire Group Inc. reported revenue of $369.4M.

Does UFCS pay dividends?

United Fire Group Inc. pays dividends, with $5.1M distributed to shareholders in the trailing twelve months.

Where can I find UFCS SEC filings?

Official SEC filings for United Fire Group Inc. (CIK: 0000101199) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is UFCS's EPS?

United Fire Group Inc. has a diluted EPS of $1.15.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is UFCS's fundamental grade?

Based on our AI fundamental analysis in June 2026, United Fire Group Inc. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is UFCS stock overvalued or undervalued?

Valuation metrics for UFCS: ROE of 3.2% (sector avg: 12%), net margin of 8.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is UFCS's AI grade for 2026?

Our dual AI analysis gives United Fire Group Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is UFCS's free cash flow?

United Fire Group Inc.'s operating cash flow is $56.6M, with capital expenditures of $15.5M. FCF margin is 11.1%.

How does UFCS compare to other Finance stocks?

Vs Finance sector averages: Net margin 8.1% (avg: 25%), ROE 3.2% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 7, 2026 | Data as of: 2026-03-31 | Powered by Claude AI