DB:18M

Stock Analysis Report

Sabre Insurance Group

Executive Summary

Sabre Insurance Group plc, through its subsidiaries, engages in the writing of general insurance for motor vehicles in the United Kingdom.

Rewards

Trading at 29.2% below its fair value

Earnings are forecast to grow 0.29% per year

Earnings grew by 24.9% over the past year

Risk Analysis

Dividend of 4.56% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and fair value.

Share Price & News

How has Sabre Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 18M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

18M

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

19.1%

18M

27.1%

DE Insurance

14.8%

DE Market

Return vs Industry: 18M underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: 18M exceeded the German Market which returned 16.6% over the past year.


Shareholder returns

18MIndustryMarket
7 Day1.3%0.4%0.07%
30 Day-2.4%0.8%1.9%
90 Day1.3%4.5%7.1%
1 Year26.9%19.1%32.7%27.1%18.4%14.8%
3 Yearn/a64.7%44.8%17.4%7.0%
5 Yearn/a95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

How volatile is Sabre Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sabre Insurance Group undervalued compared to its fair value and its price relative to the market?

28.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 18M (€3.43) is trading below our estimate of fair value (€4.85)

Significantly Below Fair Value: 18M is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 18M is poor value based on its PE Ratio (15.4x) compared to the Insurance industry average (11.9x).

PE vs Market: 18M is good value based on its PE Ratio (15.4x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 18M is poor value based on its PEG Ratio (53.2x)


Price to Book Ratio

PB vs Industry: 18M is overvalued based on its PB Ratio (2.9x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Sabre Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 18M's forecast earnings growth (0.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 18M's earnings (0.3% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 18M's earnings are forecast to grow, but not significantly.

Revenue vs Market: 18M's revenue (4.4% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 18M's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 18M's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Sabre Insurance Group performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 18M has high quality earnings.

Growing Profit Margin: 18M's current net profit margins (24.9%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: 18M's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: 18M's earnings growth over the past year (24.9%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: 18M earnings growth over the past year (24.9%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: 18M's Return on Equity (18.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sabre Insurance Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 18M has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 18M's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 18M's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 18M has a sufficient allowance for bad loans.

Low Risk Liabilities: 18M reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 18M has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 18M has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 18M has an appropriate level of bad loans.


Next Steps

Dividend

What is Sabre Insurance Group's current dividend yield, its reliability and sustainability?

4.50%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years5.8%

Current dividend yield vs market & industry

Notable Dividend: 18M's dividend (4.56%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 18M's dividend (4.56%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 18M's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 18M's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.3%), 18M's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 18M's dividends in 3 years are not forecast to be well covered by earnings (91.7% payout ratio).


Next Steps

Management

What is the CEO of Sabre Insurance Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Geoff Carter (48yo)

2.3yrs

Tenure

UK£760,000

Compensation

Mr. Geoffrey Richard Carter has been Chief Executive Officer of Sabre Insurance Group plc since May 2017. Mr. Carter served as Chief Operating Officer of Sabre Insurance Group plc since November 2015. He s ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD987.00K) is about average for companies of similar size in the German market ($USD1.28M).

Compensation vs Earnings: Geoff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 18M's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 18M's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€1,42215 Oct 19
James Ockenden
EntityIndividual
Role
Senior Key Executive
Chief Actuary
Shares42,686
Max Price€0.033
Buy€22,97729 Apr 19
Rebecca Shelley
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,205
Max Price€3.19
Buy€23,03429 Apr 19
Catherine Barton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares7,198
Max Price€3.20
Sell€1,405,81610 Apr 19
Geoffrey Carter
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares420,000
Max Price€3.35
Sell€635,96410 Apr 19
Adam Westwood
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Risk Officer & Executive Director
Shares190,000
Max Price€3.35
Sell€1,405,81610 Apr 19
Trevor Webb
EntityIndividual
Role
Other Key Executive
Claims Director
Shares420,000
Max Price€3.35

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.6%.


Management Team

  • Geoff Carter (48yo)

    CEO & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£760.00k
  • Adam Westwood (36yo)

    CFO, Chief Risk Officer & Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£412.00k
  • Trevor Webb (54yo)

    Claims Director

    • James Ockenden (39yo)

      Chief Actuary

      • Tenure: 4.3yrs
    • Anneka Kingan

      Company Secretary & Head of Internal Audit

      • Tenure: 1.7yrs

    Board Members

    • Patrick Joseph Snowball (69yo)

      Non-Executive Chairman

      • Tenure: 2.2yrs
      • Compensation: UK£150.00k
    • Andy Pomfret (60yo)

      Senior Independent Director

      • Tenure: 1.9yrs
      • Compensation: UK£59.00k
    • Geoff Carter (48yo)

      CEO & Executive Director

      • Tenure: 2.3yrs
      • Compensation: UK£760.00k
    • Rebecca Shelley (54yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: UK£70.00k
    • Catherine Barton (45yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: UK£70.00k
    • Adam Westwood (36yo)

      CFO, Chief Risk Officer & Executive Director

      • Tenure: 2.3yrs
      • Compensation: UK£412.00k
    • Ian Clark (59yo)

      Independent Non-Executive Director

      • Tenure: 2.3yrs
      • Compensation: UK£60.00k

    Company Information

    Sabre Insurance Group plc's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Sabre Insurance Group plc
    • Ticker: 18M
    • Exchange: DB
    • Founded: 1982
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: UK£754.998m
    • Listing Market Cap: UK£886.642m
    • Shares outstanding: 250.00m
    • Website: https://www.sabreplc.co.uk

    Number of Employees


    Location

    • Sabre Insurance Group plc
    • Sabre House
    • 150 South Street
    • Dorking
    • Surrey
    • RH4 2YY
    • United Kingdom

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SBRELSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2017
    18MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017
    SBRELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2017

    Biography

    Sabre Insurance Group plc, through its subsidiaries, engages in the writing of general insurance for motor vehicles in the United Kingdom. The company offers its products through a network of insurance brokers, as well as through its own direct brands, including the Go Girl, Insure 2 Drive, and Drive Smart. Sabre Insurance Group plc was founded in 1982 and is based in Dorking, the United Kingdom. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 22:05
    End of Day Share Price2020/01/17 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.