LSE:AV.

Stock Analysis Report

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Executive Summary

Aviva plc provides various insurance and savings products primarily in the United Kingdom, rest of Europe, North America, and South-East Asia. More Details


Snowflake Analysis

Very undervalued with adequate balance sheet and pays a dividend.


Similar Companies

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. has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

AV.

-2.6%

GB Insurance

-1.9%

GB Market


1 Year Return

-35.0%

AV.

-22.6%

GB Insurance

-16.2%

GB Market

Return vs Industry: AV. underperformed the UK Insurance industry which returned -20.7% over the past year.

Return vs Market: AV. underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

AV.IndustryMarket
7 Day-4.6%-2.6%-1.9%
30 Day-3.0%-2.6%0.7%
90 Day-4.7%-6.7%-4.8%
1 Year-33.7%-35.0%-19.6%-22.6%-13.0%-16.2%
3 Year-36.4%-45.5%-20.6%-34.6%-9.4%-20.6%
5 Year-26.7%-42.9%-1.1%-26.9%13.5%-12.0%

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

Valuation

Is Aviva 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: AV. (£2.74) is trading below our estimate of fair value (£8.29)

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 (4.9x) compared to the GB Insurance industry average (14x).

PE vs Market: AV. is good value based on its PE Ratio (4.9x) compared to the UK market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: AV. is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: AV. is good value based on its PB Ratio (0.6x) compared to the GB Insurance industry average (1.1x).


Next Steps

Future Growth

How is Aviva forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AV.'s forecast earnings growth (11.1% per year) is above the savings rate (1.2%).

Earnings vs Market: AV.'s earnings (11.1% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: AV.'s revenue (7.6% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: AV.'s revenue (7.6% 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 (14.7%).


Next Steps

Past Performance

How has Aviva performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AV. has high quality earnings.

Growing Profit Margin: AV.'s current net profit margins (5.9%) are lower than last year (6.3%).


Past Earnings Growth Analysis

Earnings Trend: AV.'s earnings have grown significantly by 27.7% 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 (-5.3%) over the past year, making it difficult to compare to the Insurance industry average (-7.6%).


Return on Equity

High ROE: AV.'s Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is Aviva's financial position?


Financial Position Analysis

Short Term Liabilities: AV.'s short term assets (£58.0B) exceed its short term liabilities (£28.1B).

Long Term Liabilities: AV.'s short term assets (£58.0B) do not cover its long term liabilities (£428.9B).


Debt to Equity History and Analysis

Debt Level: AV.'s debt to equity ratio (49.4%) is considered high.

Reducing Debt: AV.'s debt to equity ratio has reduced from 56.7% to 49.4% over the past 5 years.

Debt Coverage: AV.'s debt is well covered by operating cash flow (47.5%).

Interest Coverage: AV.'s interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AV.'s dividend (5.66%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AV.'s dividend (5.66%) is in the top 25% of dividend payers in the UK market (5.32%)


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 low payout ratio (10.8%), AV.'s dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AV.'s dividends in 3 years are forecast to be well covered by earnings (40.8% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Amanda Blanc (53 yo)

0.25

Tenure

Ms. Amanda Jayne Blanc has been Chief Executive Officer of Aviva Plc since July 6, 2020 and serves as its Director since January 2, 2020. She had been an Independent Non-Executive Director of Aviva Plc sin ...


Leadership Team

NamePositionTenureCompensationOwnership
Jason Windsor
CFO & Executive Director1.08yrsUK£962.65k0.013%
£ 1.4m
Amanda Blanc
CEO & Director0.25yrno data0.00070%
£ 75.2k
Nick Amin
Interim Chief Operating Officer0.75yrno datano data
Euan Munro
CEO of Investments0.92yrno data0.0051%
£ 551.4k
Christopher Esson
Group Investor Relations Directorno datano datano data
Kirstine Cooper
Group General Counsel & Company Secretary9.83yrsno datano data
Roy Tooley
Head of Secretariat - Corporateno datano datano data
Danielle Harmer
Chief People Officer0.67yrno datano data
Sue Winston
Head of Corporate Reputation & Online Communicationsno datano datano data
Jonna La Toure
Senior Vice President of Communications - USA Regionno datano datano data
Matt Saker
Chief Actuary for Europe Operations11.33yrsno datano data
David Frederick Rogers
Chief Financial Officer of Digital - Asiano datano datano data

0.9yrs

Average Tenure

53yo

Average Age

Experienced Management: AV.'s management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jason Windsor
CFO & Executive Director1.08yrsUK£962.65k0.013%
£ 1.4m
Amanda Blanc
CEO & Director0.25yrno data0.00070%
£ 75.2k
Guillermo de la Dehesa Romero
Chairman of Aviva Spainno dataUK£109.00kno data
Patricia Cross
Independent Non-Executive Director6.83yrsUK£128.00k0.00079%
£ 84.9k
Patrick Flynn
Senior Independent Non-Executive Director0.083yrUK£57.00kno data
Belén Romana García
Independent Non-Executive Director5.33yrsUK£154.00k0.00044%
£ 47.3k
Mark George Culmer
Independent Non-Executive Chairman0.42yrUK£31.00k0.00080%
£ 86.0k
Michael Mire
Independent Non-Executive Director7.08yrsUK£121.00k0.0013%
£ 136.5k

1.1yrs

Average Tenure

59yo

Average Age

Experienced Board: AV.'s board of directors are not considered experienced ( 1.1 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: Insufficient data to determine if 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£10.749b
  • Shares outstanding: 3.93b
  • Website: https://www.aviva.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIVA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AV.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
GU8DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
AVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
AVVI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2009
GU8EDB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 2009

Biography

Aviva plc provides various insurance and savings products primarily in the United Kingdom, rest of Europe, North America, and South-East Asia. The company offers life insurance, long term health and accide ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 20:36
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
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.