LSE:ADM

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 Analysis

Outstanding track record second-rate 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

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


Market Performance


7 Day Return

7.2%

ADM

22.7%

GB Insurance

10.0%

GB Market


1 Year Return

1.5%

ADM

-29.4%

GB Insurance

-23.0%

GB Market

Return vs Industry: ADM exceeded the UK Insurance industry which returned -26.5% over the past year.

Return vs Market: ADM exceeded the UK Market which returned -22.7% over the past year.


Shareholder returns

ADMIndustryMarket
7 Day7.2%22.7%10.0%
30 Day4.2%-19.2%-17.6%
90 Day-4.7%-28.9%-27.3%
1 Year8.0%1.5%-21.6%-29.4%-18.9%-23.0%
3 Year31.3%10.2%-18.8%-33.3%-12.9%-24.2%
5 Year92.4%41.9%-10.6%-33.4%1.6%-21.8%

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

Valuation

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

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADM (£22.01) is trading below our estimate of fair value (£27.35)

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


Price To Earnings Ratio

PE vs Industry: ADM is poor value based on its PE Ratio (14.8x) compared to the Insurance industry average (13.2x).

PE vs Market: ADM is poor value based on its PE Ratio (14.8x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ADM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ADM is overvalued based on its PB Ratio (7x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

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

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADM's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: ADM's earnings are forecast to decline over the next 3 years (-2.6% per year).

High Growth Earnings: ADM's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ADM's revenue is expected to decline over the next 3 years (-18.1% per year).

High Growth Revenue: ADM's revenue is forecast to decline over the next 3 years (-18.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADM's Return on Equity is forecast to be very high in 3 years time (42%).


Next Steps

Past Performance

How has Admiral Group performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADM has high quality earnings.

Growing Profit Margin: ADM's current net profit margins (31.8%) are higher than last year (31.2%).


Past Earnings Growth Analysis

Earnings Trend: ADM's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: ADM's earnings growth over the past year (9.4%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: ADM earnings growth over the past year (9.4%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: ADM's Return on Equity (46.6%) is considered outstanding.


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: ADM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ADM's debt is covered by short term assets (assets are 12.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

6.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ADM's dividend (6.36%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: ADM's dividend (6.36%) is low compared to the top 25% of dividend payers in the UK market (7.3%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.1%), ADM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADM's dividends in 3 years are not forecast to be well covered by earnings (105.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

David Stevens (57yo)

3.83s

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 ($USD500.77K) is below average for companies of similar size in the UK market ($USD3.42M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Stevens
3.83yrsUK£403.66k2.91% £184.6m
Geraint Jones
CFO & Director5.58yrsUK£1.42m0.027% £1.7m
Marisja Kocznur
Head of Investor Relationsno datano datano data
Alistair Hargreaves
Chief Operating Officer of UK Insuranceno datano datano data
Elisa Blas
Head of Business Strategy - Admiral Segurosno datano datano data
Milena de Focatiis
Head of UK & European Insurance and Executive Directorno datano data0.012% £750.2k
Mark Waters
Company Secretaryno datano datano data
Cristina Nestares
Chief Executive Officer of UK Insurance3.17yrsno data0.0022% £138.1k
Scott Cargill
Chief Executive Officer of AFSL1.17yrsno datano data
Duncan Russell
Chief Financial Officer of AFSLno datano datano data

3.5yrs

Average Tenure

Experienced Management: ADM's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Stevens
3.83yrsUK£403.66k2.91% £184.6m
Geraint Jones
CFO & Director5.58yrsUK£1.42m0.027% £1.7m
Milena de Focatiis
Head of UK & European Insurance and Executive Directorno datano data0.012% £750.2k
Owen Clarke
Senior Independent Director1.25yrsUK£88.10k0.050% £3.1m
Karen Green
Independent Non-Executive Director1.25yrsUK£33.17kno data
Annette Court
Independent Chairman2.92yrsUK£319.44k0.0035% £219.2k
Andrew John Crossley
Independent Non-Executive Director2yrsUK£92.52k0.00037% £23.4k
Jean Park
Independent Non-Executive Director6.17yrsUK£101.50k0.0014% £88.1k
Justine Alice Roberts
Independent Non-Executive Director3.75yrsUK£60.50kno data
George Rountree
Independent Non-Executive Director4.75yrsUK£73.10kno data

3.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ADM's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Admiral Group plc
  • Ticker: ADM
  • Exchange: LSE
  • Founded: 1993
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£6.336b
  • Shares outstanding: 287.86m
  • 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 Insurance, Price Comparison, and Other. It underwrites car insurance, van insurance, household insurance, travel insurance, and other products. The company also operates price comparison Websites, including Confused.com in the United Kingdom, compare.com in the United States, leLynx.fr in France, ConTe.it in Italy, and rastreator.com and seguros.es in Spain. It offers its insurance products primarily under Admiral, Apparent, Balumba, Bell, Diamond, Elephant, Elephant Auto, Gladiator, L’Olivier, Qualitas Auto, and WiYou Seguros brands. Admiral Group plc was founded in 1993 and is headquartered in Cardiff, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 20:34
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.