LSE:AV.

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record 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


Market Performance


7 Day Return

6.6%

AV.

5.8%

GB Insurance

2.0%

GB Market


1 Year Return

-7.0%

AV.

-1.2%

GB Insurance

3.3%

GB Market

Return vs Industry: AV. underperformed the UK Insurance industry which returned -1.2% over the past year.

Return vs Market: AV. underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

AV.IndustryMarket
7 Day6.6%5.8%2.0%
30 Day1.0%-0.3%-1.0%
90 Day-4.5%-7.8%-1.7%
1 Year0.3%-7.0%3.7%-1.2%8.3%3.3%
3 Year8.9%-9.1%21.8%4.8%19.0%4.5%
5 Year6.9%-18.1%40.7%11.1%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: AV. (£4.05) is trading below our estimate of fair value (£9.32)

Significantly Undervalued: AV. is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: AV. is good value based on its PE Ratio (6.9x) compared to the Insurance industry average (15x).

PE vs Market: AV. is good value based on its PE Ratio (6.9x) compared to the UK market (16.4x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: AV. is good value based on its PB Ratio (0.9x) compared to the GB Insurance industry average (2x).


Next Steps

Future Growth

How is Aviva expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: AV.'s earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: AV.'s earnings are forecast to decline over the next 3 years (-1% per year).

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

Revenue vs Market: AV.'s revenue (6.1% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: AV.'s revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AV.'s Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Aviva performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AV.'s earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: AV.'s earnings growth over the past year (104.5%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: AV. earnings growth over the past year (104.5%) exceeded the Insurance industry 15.2%.


Return on Equity

High ROE: AV.'s Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: AV.'s Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: AV. has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Aviva'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: AV. has a low level of unsold assets or inventory.

Debt Coverage by Assets: AV.'s debt is covered by short term assets (assets are 5.320770x debt).


Financial Institutions Analysis

Asset Level: AV.'s level of assets compared to its equity is very high.

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

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

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

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

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


Next Steps

Dividend

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

8.03%

Expected Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.0%markettop25%5.4%industryaverage4.8%forecastin3Years8.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: AV.'s dividend (7.47%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: AV.'s dividend (7.47%) is in the top 25% of dividend payers in the UK market (5.42%)

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 (51.4%), 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

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

0.5yrs

Average management tenure


CEO

Maurice Tulloch (50yo)

0.6yrs

Tenure

UK£2,195,000

Compensation

Mr. Maurice Ewen Tulloch, C.M.A. has been a Director of The Geneva Association since June 14, 2019. Mr. Tulloch has been Group Chief Executive Officer at Aviva Plc since March 04, 2019 and its Executive Di ...


CEO Compensation Analysis

Compensation vs. Market: Maurice has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Maurice's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.5yrs

Average Tenure

53yo

Average Age

Experienced Management: AV.'s management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: AV.'s board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£97,63220 Sep 19
Glyn Barker
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares25,000
Max PriceUK£3.91
SellUK£236,48426 Mar 19
Andrew Briggs
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares57,399
Max PriceUK£4.12
BuyUK£59,66021 Dec 18
Adrian Montague
EntityIndividual
Role
Chairman of the Board
Non- Executive Chairman
Shares16,168
Max PriceUK£3.69
BuyUK£105,75008 Nov 18
Andrew Briggs
EntityIndividual
Role
Senior Key Executive
Executive Officer
Shares25,000
Max PriceUK£4.23

Ownership Breakdown


Management Team

  • Tom Stoddard (53yo)

    Executive Officer

    • Tenure: 0.3yrs
    • Compensation: UK£2.28m
  • Sue Winston

    Head of Corporate Reputation & Online Communications

    • Tenure: 0yrs
  • Maurice Tulloch (50yo)

    Group CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£2.20m
  • Andy Briggs (53yo)

    Executive Officer

    • Tenure: 0.5yrs
    • Compensation: UK£2.30m
  • Kirsty Cooper (55yo)

    Group General Counsel & Company Secretary

    • Tenure: 8.8yrs
  • Jason Windsor (47yo)

    CFO & Executive Director

    • Tenure: 0.08yrs
  • Chris Esson

    Group Investor Relations Director

    • Tenure: 0yrs
  • Roy Tooley

    Head of Secretariat - Corporate

    • Tenure: 0yrs
  • Caroline Prendergast

    Interim Chief People Officer

    • Tenure: 1.3yrs
  • Erica Arnold

    Chief Operating Officer

    • Tenure: 0.08yrs

Board Members

  • Adrian Montague (71yo)

    Non- Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: UK£638.00k
  • Guillermo de la Dehesa Romero (78yo)

    Chairman of Aviva Spain

    • Tenure: 0yrs
    • Compensation: UK£109.00k
  • Patricia Cross (60yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£128.00k
  • Patrick Flynn (59yo)

    Independent Non Executive Director

    • Tenure: 0.3yrs
  • Glyn Barker (66yo)

    Senior Independent Director

    • Tenure: 2.4yrs
    • Compensation: UK£171.00k
  • Maurice Tulloch (50yo)

    Group CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: UK£2.20m
  • Belén Romana García (54yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£115.00k
  • Claudia Arney (48yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£157.00k
  • Jason Windsor (47yo)

    CFO & Executive Director

    • Tenure: 0.08yrs
  • Michael Mire (71yo)

    Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: UK£119.00k

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£15.870b
  • Shares outstanding: 3.92b
  • 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)SPON ADR EA REPR 2 ORD SHS GBP0.25USUSDOct 2009
GU8EDB (Deutsche Boerse AG)SPON ADR EA REPR 2 ORD SHS GBP0.25DEEUROct 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 Analysis2019/10/13 20:35
End of Day Share Price2019/10/11 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.

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