Allstate Corporation Stock Fair Value – ALLSTATE CORPORATION Reports Fourth Quarter 2022 Earnings Results for Fiscal Year 2022
February 20, 2023
Earnings Overview
On February 1, 2023, ALLSTATE CORPORATION ($NYSE:ALL) announced its earnings results for the fourth quarter of fiscal year 2022, which ended on December 31, 2022. Total revenue decreased by 134.8% year over year to USD -284.0 million, while net income increased by 4.9%, amounting to USD 13647.0 million.
Transcripts Simplified
ALLSTATE CORPORATION reported a fourth quarter underwriting loss due to auto insurance operating at a combined ratio above their targets, but homeowners insurance continued to be a strong source of profit. Auto insurance had a combined ratio of 112.6 in the quarter and 110.1 for the year, substantially worse than their targets given rapidly increasing loss costs. Commercial insurance was negatively impacted by the same auto insurance cost pressures, but also inadequate pricing for coverage provided to transportation network companies. Auto margin had a combined ratio of 95 for the year despite pandemic related pressures, such as decreased mileage driven, increased claims severity, and rising used car prices.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Allstate Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 51.41k | -1.42k | -2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Allstate Corporation. More…
| Operations | Investing | Financing |
| 5.02k | 510 | -5.24k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Allstate Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 97.96k | 80.61k | 66.44 |
Key Ratios Snapshot
Some of the financial key ratios for Allstate Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.8% | – | -3.0% |
| FCF Margin | ROE | ROA |
| 9.0% | -5.4% | -1.0% |
Market Price
At the opening, the stock opened at 127.4 and closed at 128.2, decreasing by 0.2% from the previous closing price of 128.5. The company’s growth strategy focuses on strengthening their core business, investing in technology and innovation, and expanding their products and services to capture new opportunities in the market. Furthermore, ALLSTATE CORPORATION continues to make strategic acquisitions to expand their geographic reach and diversify their portfolio. Overall, ALLSTATE CORPORATION reported solid financial results for the fourth quarter and is poised for continued future growth and success. Live Quote…
Analysis – Allstate Corporation Stock Fair Value
At GoodWhale, we have conducted a comprehensive analysis of ALLSTATE CORPORATION‘s financials. After careful examination, we have determined the intrinsic value of ALLSTATE CORPORATION share to be around $141.6, using our proprietary Valuation Line. Currently, the stock is priced at $128.2, a fair price which is slightly undervalued by 9.5%. From our assessment, we can see that the current price provides a great opportunity for investors to capitalize on ALLSTATE CORPORATION. More…
Peers
Allstate Corporation is an American publicly held insurance company headquartered in Northfield Township, Illinois, a suburb of Chicago. Allstate was founded in 1931 as part of Sears, Roebuck and Co., and was spun off in 1993. The company also has personal lines insurance operations in Canada. Allstate is a leading insurer of properties and casualty insurance in the United States.
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Summary
Allstate Corporation reported strong fourth quarter earnings results for the year ending December 31, 2022. Total revenue decreased by 134.8% compared to the same period the previous year, however, net income increased by 4.9%. This suggests that despite the significant revenue decline, Allstate managed to control costs and remain profitable.
Furthermore, the company’s long-term success is evident in its year-over-year net income growth. As such, Allstate Corporation could prove to be an attractive investment opportunity for investors seeking long-term capital appreciation.
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