DB:FLN

Stock Analysis Report

Executive Summary

Admiral Group plc provides car insurance products primarily in the United Kingdom, Spain, Italy, France, and the United States.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.0%

FLN

3.0%

DE Insurance

2.4%

DE Market


1 Year Return

6.2%

FLN

22.2%

DE Insurance

4.9%

DE Market

Return vs Industry: FLN underperformed the German Insurance industry which returned 22.2% over the past year.

Return vs Market: FLN exceeded the German Market which returned 4.9% over the past year.


Shareholder returns

FLNIndustryMarket
7 Day2.0%3.0%2.4%
30 Day-2.1%3.7%2.3%
90 Day-5.7%3.9%2.7%
1 Year12.8%6.2%27.5%22.2%8.2%4.9%
3 Year27.4%7.0%69.6%49.1%18.3%8.0%
5 Year92.4%42.3%119.9%76.1%44.2%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

17.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FLN (€23.75) is trading below our estimate of fair value (€28.87)

Significantly Below Fair Value: FLN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FLN is poor value based on its PE Ratio (14.7x) compared to the Insurance industry average (13.4x).

PE vs Market: FLN is good value based on its PE Ratio (14.7x) compared to the German market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: FLN is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: FLN is overvalued based on its PB Ratio (7.3x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Admiral Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FLN's forecast earnings growth (4.2% per year) is above the savings rate (0.2%).

Earnings vs Market: FLN's earnings (4.2% per year) are forecast to grow slower than the German market (12.8% per year).

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

Revenue vs Market: FLN's revenue is expected to decline over the next 3 years (-1% per year).

High Growth Revenue: FLN's revenue is forecast to decline over the next 3 years (-1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FLN's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has Admiral Group performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FLN's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: FLN's earnings growth over the past year (15.2%) exceeds its 5-year average (6.6% per year).

Earnings vs Industry: FLN earnings growth over the past year (15.2%) underperformed the Insurance industry 15.2%.


Return on Equity

High ROE: FLN's Return on Equity (48.1%) is considered outstanding.


Return on Assets

ROA vs Industry: FLN has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: FLN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Admiral 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: FLN has a low level of unsold assets or inventory.

Debt Coverage by Assets: FLN's debt is covered by short term assets (assets are 13.202470x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

6.32%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years6.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FLN's dividend (6.32%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: FLN's dividend (6.32%) is in the top 25% of dividend payers in the German market (3.79%)

Stable Dividend: FLN's dividend payments have been volatile in the past 10 years.

Growing Dividend: FLN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66%), FLN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FLN's dividends in 3 years are not forecast to be well covered by earnings (106.5% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

David Stevens (57yo)

3.4yrs

Tenure

UK£403,662

Compensation

Mr. David Stevens, CBE, has been the Chief Executive Officer of Admiral Group plc since 2016 and served as its Chief Operating Officer from October 1999 to 2016. Mr. Stevens is a co-founder of Admiral Grou ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD523.91K) is about average for companies of similar size in the German market ($USD3.65M).

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


Management Age and Tenure

3.4yrs

Average Tenure

Experienced Management: FLN's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: FLN's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: FLN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£5,177,80715 Aug 19
David Stevens
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares225,000
Max PriceUK£23.01
SellUK£5,489,03008 Mar 19
David Stevens
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares225,000
Max PriceUK£24.43
BuyUK£28,78508 Mar 19
Annette Court
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares1,180
Max PriceUK£24.39

Ownership Breakdown


Management Team

  • David Stevens (57yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: UK£403.66k
  • Duncan Russell

    Chief Financial Officer of AFSL

    • Tenure: 0yrs
  • Mark Waters

    Company Secretary

    • Tenure: 0yrs
  • Geraint Jones (42yo)

    CFO & Director

    • Tenure: 5.2yrs
    • Compensation: UK£1.42m
  • Milena de Focatiis

    Chief Executive Officer of European Insurance

    • Tenure: 3.4yrs
  • Cristina Nestares

    Chief Executive Officer of UK Insurance

    • Tenure: 2.8yrs
  • Elisa Blas

    Head of Business Strategy - Admiral Seguros

    • Tenure: 0yrs
  • Scott Cargill

    Chief Executive Officer of AFSL

    • Tenure: 0.8yrs
  • Marisja Kocznur

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Owen Clarke (55yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£88.10k
  • Karen Green (52yo)

    Non-Executive Director

    • Tenure: 0.8yrs
  • David Stevens (57yo)

    CEO & Director

    • Tenure: 3.4yrs
    • Compensation: UK£403.66k
  • Annette Court (57yo)

    Independent Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£319.44k
  • Andy Crossley (63yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: UK£92.52k
  • Jean Park (64yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£101.50k
  • Mike Brierley (61yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£47.13k
  • Geraint Jones (42yo)

    CFO & Director

    • Tenure: 5.2yrs
    • Compensation: UK£1.42m
  • Justine Alice Roberts (52yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£60.50k
  • George Rountree (47yo)

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£73.10k

Company Information

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


Key Information

  • Name: Admiral Group plc
  • Ticker: FLN
  • Exchange: DB
  • Founded: 1993
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£5.544b
  • Listing Market Cap: UK£6.459b
  • Shares outstanding: 271.64m
  • Website: https://www.admiralgroup.co.uk

Number of Employees


Location

  • Admiral Group plc
  • Ty Admiral
  • David Street
  • Cardiff
  • South Glamorgan
  • CF10 2EH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADMLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2004
AMIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2004
FLNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2004
ADMLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2004
AMIG.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Admiral Group plc provides car insurance products primarily in the United Kingdom, Spain, Italy, France, and the United States. The company operates through four segments: UK Insurance, International Car I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:10
End of Day Share Price2019/10/22 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.