ENXTPA:CS

Stock Analysis Report

Executive Summary

AXA SA, through its subsidiaries, provides insurance and asset management services worldwide.

Rewards

Trading at 49% below its fair value

Earnings are forecast to grow 20.41% per year

Pays a high and reliable dividend of 5.43%

Risk Analysis

Dividend of 5.43% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.1%) are lower than last year (4.5%)



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.2%

CS

-0.3%

FR Insurance

-1.0%

FR Market


1 Year Return

18.5%

CS

9.3%

FR Insurance

21.3%

FR Market

Return vs Industry: CS exceeded the French Insurance industry which returned 15% over the past year.

Return vs Market: CS underperformed the French Market which returned 24.9% over the past year.


Shareholder returns

CSIndustryMarket
7 Day-0.2%-0.3%-1.0%
30 Day-4.4%-3.8%-0.2%
90 Day-0.7%-1.3%5.1%
1 Year25.6%18.5%15.4%9.3%25.6%21.3%
3 Year20.9%3.2%21.5%4.5%41.5%28.1%
5 Year46.8%14.1%47.5%15.3%61.0%37.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CS (€24.69) is trading below our estimate of fair value (€48.37)

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


Price To Earnings Ratio

PE vs Industry: CS is poor value based on its PE Ratio (42.2x) compared to the Insurance industry average (18.3x).

PE vs Market: CS is poor value based on its PE Ratio (42.2x) compared to the French market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CS is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CS is good value based on its PB Ratio (0.9x) compared to the FR Insurance industry average (1x).


Next Steps

Future Growth

How is AXA forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CS's forecast earnings growth (20.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: CS's earnings (20.4% per year) are forecast to grow faster than the French market (11.7% per year).

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

Revenue vs Market: CS's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: CS's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CS's Return on Equity is forecast to be low in 3 years time (10.5%).


Next Steps

Past Performance

How has AXA performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CS has a large one-off loss of €6.4B impacting its June 30 2019 financial results.

Growing Profit Margin: CS's current net profit margins (1.1%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: CS's earnings have declined by -8.6% per year over the past 5 years.

Accelerating Growth: CS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CS had negative earnings growth (-74.7%) over the past year, making it difficult to compare to the Insurance industry average (-36.8%).


Return on Equity

High ROE: CS's Return on Equity (-1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AXA'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: CS has a low level of unsold assets or inventory.

Debt Coverage by Assets: CS's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.55%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.5%markettop25%4.5%industryaverage5.4%forecastin3Years6.6%

Current dividend yield vs market & industry

Notable Dividend: CS's dividend (5.43%) is higher than the bottom 25% of dividend payers in the French market (1.46%).

High Dividend: CS's dividend (5.43%) is in the top 25% of dividend payers in the French market (4.43%)


Stability and Growth of Payments

Stable Dividend: CS's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (229%), CS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CS's dividends in 3 years are forecast to be covered by earnings (57.1% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Thomas Buberl (46yo)

3.3yrs

Tenure

€5,042,394

Compensation

Dr. Thomas Buberl, Ph.D. served as Chairman of the Board at AXA Equitable Holdings, Inc., since November 2017 until March 2019 and has been its Director since September 2016. He has been Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD5.61M) is above average for companies of similar size in the French market ($USD3.59M).

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


Management Age and Tenure

2.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: CS's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: CS's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Alban de Mailly Nesle (49yo)

    Chief Risk & Investment Officer

    • Tenure: 0.3yrs
  • Etienne Marc Bouas-Laurent (54yo)

    Group Chief Financial Officer

    • Thomas Buberl (46yo)

      CEO & Director

      • Tenure: 3.3yrs
      • Compensation: €5.04m
    • Doina Palici-Chehab (62yo)

      Chief Integration Officer & Employee Shareholders' Representative Director

      • Tenure: 7.8yrs
      • Compensation: €108.07k
    • Andrew Wallace-Barnett

      Senior VP & Head of Investor Relations

      • Tenure: 6yrs
    • Helen Browne

      Group General Counsel

      • Tenure: 3.6yrs
    • Nicolas Leclercq

      Head of Group Corporate Finance & Treasury

      • Astrid Stange

        Chief Operating Officer

        • Tenure: 2.1yrs
      • Marc Blottière

        Group Chief Information Officer

        • Tenure: 2yrs
      • Ulrike Decoene

        Group Head of Communications

        • Tenure: 0.8yrs

      Board Members

      • Claude Bébéar (84yo)

        Honorary Chairman

        • Tenure: 9.8yrs
      • Denis Pierre Duverne (66yo)

        Chairman of the Board

        • Tenure: 1.8yrs
      • Ramon de Oliveira-Cezar (65yo)

        Independent Director

        • Tenure: 10.8yrs
        • Compensation: €179.08k
      • Stefan Lippe (64yo)

        Independent Director

        • Tenure: 7.8yrs
        • Compensation: €215.76k
      • Jean-Pierre Clamadieu (61yo)

        Senior Independent Director

        • Tenure: 0.8yrs
        • Compensation: €103.09k
      • François Martineau (68yo)

        Director

        • Tenure: 11.8yrs
        • Compensation: €81.36k
      • Jean-Denis Talon (78yo)

        Chairman of AXA Canada Operations

        • Thomas Buberl (46yo)

          CEO & Director

          • Tenure: 3.3yrs
          • Compensation: €5.04m
        • Doina Palici-Chehab (62yo)

          Chief Integration Officer & Employee Shareholders' Representative Director

          • Tenure: 7.8yrs
          • Compensation: €108.07k
        • Jacques de Peretti (59yo)

          Chairman & CEO of AXA France

          • Tenure: 1.6yrs

        Company Information

        AXA SA's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: AXA SA
        • Ticker: CS
        • Exchange: ENXTPA
        • Founded: 1852
        • Industry: Multi-line Insurance
        • Sector: Insurance
        • Market Cap: €57.656b
        • Shares outstanding: 2.39b
        • Website: https://www.axa.com

        Number of Employees


        Location

        • AXA SA
        • 25, avenue Matignon
        • Paris
        • Ile-de-France
        • 75008
        • France

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        0HARLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
        CSENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1980
        AXADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
        CSSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1980
        AXAH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
        AXABIT (Borsa Italiana)YesOrdinary SharesITEURJan 1980
        AXAXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1980
        CSPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
        AXA NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1980
        CSWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
        AXAADB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1996
        AXAH.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 1996
        CSNVENXTPA (Euronext Paris)EUR2.29 (RFD 01/01/2020)FREURJan 2020

        Biography

        AXA SA, through its subsidiaries, provides insurance and asset management services worldwide. It operates in seven segments: France, Europe, Asia, AXA XL, the United States, International, and Transversal & Central Holdings. The company offers a range of insurance products, including life and savings, property and casualty, and health. Its products include motor, household, property and general liability insurance, banking, savings vehicles, and other investment-based products for personal/individual and commercial/group customers, as well as health, protection, and retirement products for individual or professional customers. The company also provides term life, whole life, universal life, endowment, and deferred and immediate annuities; medical cover; and other protection and health products, such as disability, cancer, and critical illness. In addition, it offers unit-linked, group term, and hospital cash products and investment products; and coverage against excess and surplus lines, environmental and professional liability, construction, marine, energy, aviation and satellite, fine art and specie, equine, livestock and aquaculture, accident and health and crisis management, and other risks. Further, the company provides casualty, property risk, property catastrophe, specialty, and other reinsurance lines; and individual and group retirement products, and employee benefits. Additionally, it is involved in the provision of investment management services through managed accounts, hedge funds, mutual funds, and other investment vehicles to private clients, as well as fundamental research, quantitative, and brokerage-related services in equities and listed options for institutional investors; management of retail mutual funds for individual investors; and management of investments on behalf of institutional clients. The company was founded in 1852 and is headquartered in Paris, France. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/23 20:51
        End of Day Share Price2020/01/23 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.