Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 27 Jul 2026
SAFT· Financial Services
Safety Insurance Group
Safety Insurance Group has a solid financial health but struggles with profitability metrics, particularly its low operating margin of 6.35%.
Buffett fit
Weak fit
Owner
19
Durability
50
Management
66
Price
89
Score updated 22 Oct 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Financial Services stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Safety Insurance Group, I'd focus on improving the , which currently sits at just 6.35%.
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The 10-year outlook is uncertain due to the company's low profitability, with a of only 32.7% compared to the sector's top-quintile cutoff of 81.9%.
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Management has maintained a flat share count over the past five years, indicating discipline in .
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Currently, the yield is at 18.76%, which is attractive.
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- What would change the call
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of $191.99M indicates strong cash generation.
- 2Net debt/EBITDA of 0.07 shows excellent management.
- 3Interest coverage ratio of 39.4 suggests strong ability to cover interest expenses.
- 4Flat share count CAGR of -0.2% indicates disciplined .
Concerns
5- 1 of 6.35% is significantly below the sector's top-quintile cutoff of 58.3%.
- 2 of 32.7% is well below the sector's top-quintile cutoff of 81.9%.
- 35-year EPS CAGR of -6.65% raises concerns about long-term profitability.
- 4Net income margin of 4.97% is insufficient for sustainable growth.
Price history
$104+32.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Safety Insurance Group generates cash through upfront premium collections for various insurance products, including auto and homeowners insurance. The company reported $1.25B in revenue with a net income of $99.26M, indicating a net margin of 4.97%. With a of $191.99M, the unit economics appear stable but face pressure from low .
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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