AV.

AvivaLSE:AV. Stock Report

Market Cap

UK£15.1b

7D

-5.5%

1Y

37.9%

Updated

20 Sep, 2021

Data

Company Financials +
AV. fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance1/6
Financial Health3/6
Dividends4/6

AV. Overview

Aviva plc provides various insurance, retirement, and savings products in the United Kingdom, Ireland, Canada, France, Italy, Poland, and internationally.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AV. is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AV.'s weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-5.5%

AV.

-6.6%

GB Insurance

-2.5%

GB Market


1 Year Return

37.9%

AV.

21.1%

GB Insurance

22.0%

GB Market

Return vs Industry: AV. exceeded the UK Insurance industry which returned 22% over the past year.

Return vs Market: AV. exceeded the UK Market which returned 19.9% over the past year.


Shareholder returns

AV.IndustryMarket
7 Day-5.5%-6.6%-2.5%
30 Day-6.0%-5.4%-2.1%
90 Day-6.5%-4.4%-1.4%
1 Year48.3%37.9%27.5%21.1%27.1%22.0%
3 Year-6.3%-20.8%1.4%-16.9%14.7%1.8%
5 Year18.7%-11.2%28.9%-5.3%35.5%10.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Aviva Fundamentals Summary

How do Aviva's earnings and revenue compare to its market cap?
AV. fundamental statistics
Market CapUK£15.12b
Earnings (TTM)UK£1.20b
Revenue (TTM)UK£32.83b

12.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AV. income statement (TTM)
RevenueUK£32.83b
Cost of RevenueUK£24.49b
Gross ProfitUK£8.34b
ExpensesUK£7.14b
EarningsUK£1.20b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 25, 2021

Earnings per share (EPS)0.31
Gross Margin25.40%
Net Profit Margin3.67%
Debt/Equity Ratio40.1%

How did AV. perform over the long term?

See historical performance and comparison

Dividends

5.4%

Current Dividend Yield

70%

Payout Ratio

Valuation

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

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AV. (£3.89) is trading below our estimate of fair value (£7.46)

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


Price To Earnings Ratio

PE vs Industry: AV. is good value based on its PE Ratio (12.6x) compared to the UK Insurance industry average (16.1x).

PE vs Market: AV. is good value based on its PE Ratio (12.6x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: AV. is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: AV. is good value based on its PB Ratio (0.8x) compared to the GB Insurance industry average (1.4x).


Future Growth

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

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AV.'s forecast earnings growth (2.9% per year) is above the savings rate (0.9%).

Earnings vs Market: AV.'s earnings (2.9% per year) are forecast to grow slower than the UK market (14.4% per year).

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

Revenue vs Market: AV.'s revenue (10.6% per year) is forecast to grow faster than the UK market (5.5% per year).

High Growth Revenue: AV.'s revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AV.'s Return on Equity is forecast to be low in 3 years time (8.5%).


Past Performance

How has Aviva performed over the past 5 years?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AV. has a high level of non-cash earnings.

Growing Profit Margin: AV.'s current net profit margins (3.7%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: AV.'s earnings have grown by 19.3% per year over the past 5 years.

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

Earnings vs Industry: AV. had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Insurance industry average (11.9%).


Return on Equity

High ROE: AV.'s Return on Equity (6.9%) is considered low.


Financial Health

How is Aviva's financial position?


Financial Position Analysis

Short Term Liabilities: AV.'s short term assets (£147.4B) exceed its short term liabilities (£127.3B).

Long Term Liabilities: AV.'s short term assets (£147.4B) do not cover its long term liabilities (£313.4B).


Debt to Equity History and Analysis

Debt Level: AV.'s debt to equity ratio (40.1%) is considered high.

Reducing Debt: AV.'s debt to equity ratio has reduced from 50.2% to 40.1% over the past 5 years.

Debt Coverage: AV.'s operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AV.'s interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

What is Aviva current dividend yield, its reliability and sustainability?

5.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AV.'s dividend (5.4%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: AV.'s dividend (5.4%) is in the top 25% of dividend payers in the UK market (3.92%)


Stability and Growth of Payments

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

Growing Dividend: AV.'s dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.6%), AV.'s dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AV.'s dividends in 3 years are forecast to be covered by earnings (58.5% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Amanda Blanc (54 yo)

1.17yrs

Tenure

UK£1,791,362

Compensation

Ms. Amanda Jayne Blanc serves as a Director at Welsh Rugby Union Limited. She has been Group Chief Executive Officer of Aviva Plc since July 6, 2020 and serves as its Director since January 2, 2020. She ha...


CEO Compensation Analysis

Compensation vs Market: Amanda's total compensation ($USD2.45M) is below average for companies of similar size in the UK market ($USD3.69M).

Compensation vs Earnings: Insufficient data to compare Amanda's compensation with company performance.


Leadership Team

Experienced Management: AV.'s management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: AV.'s board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: AV. 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

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


Key Information

  • Name: Aviva plc
  • Ticker: AV.
  • Exchange: LSE
  • Founded: 1696
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: UK£15.123b
  • Shares outstanding: 3.89b
  • Website: https://www.aviva.com

Number of Employees


Location

  • Aviva plc
  • St Helen’s
  • 1 Undershaft
  • London
  • Greater London
  • EC3P 3DQ
  • United Kingdom

Listings


Biography

Aviva plc provides various insurance, retirement, and savings products in the United Kingdom, Ireland, Canada, France, Italy, Poland, and internationally. The company offers life insurance, long-term healt...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 21:10
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.