LSE:BEZ

Stock Analysis Report

Executive Summary

Beazley plc provides risk insurance and reinsurance solutions worldwide.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.4%

BEZ

-1.6%

GB Insurance

0.08%

GB Market


1 Year Return

14.1%

BEZ

-1.3%

GB Insurance

3.5%

GB Market

Return vs Industry: BEZ exceeded the UK Insurance industry which returned -1.3% over the past year.

Return vs Market: BEZ exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

BEZIndustryMarket
7 Day-4.4%-1.6%0.08%
30 Day-1.5%-0.4%-1.3%
90 Day5.2%-8.8%-2.2%
1 Year16.6%14.1%9.9%-1.3%9.0%3.5%
3 Year74.0%59.1%23.6%0.5%18.1%3.1%
5 Year188.9%128.2%39.8%3.9%36.2%5.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

24.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEZ (£5.97) is trading below our estimate of fair value (£7.93)

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


Price To Earnings Ratio

PE vs Industry: BEZ is poor value based on its PE Ratio (25.1x) compared to the Insurance industry average (13.8x).

PE vs Market: BEZ is poor value based on its PE Ratio (25.1x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BEZ is overvalued based on its PB Ratio (2.6x) compared to the GB Insurance industry average (1.7x).


Next Steps

Future Growth

How is Beazley forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEZ's forecast earnings growth (12.1% per year) is above the savings rate (1.2%).

Earnings vs Market: BEZ's earnings (12.1% per year) are forecast to grow slower than the UK market (12.4% per year).

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

Revenue vs Market: BEZ's revenue (7.4% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: BEZ's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEZ's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Beazley performed over the past 5 years?

-20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BEZ's earnings have declined by -20.5% per year over the past 5 years.

Accelerating Growth: BEZ's earnings growth over the past year (263.7%) exceeds its 5-year average (-20.5% per year).

Earnings vs Industry: BEZ earnings growth over the past year (263.7%) exceeded the Insurance industry 21.9%.


Return on Equity

High ROE: BEZ's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: BEZ has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: BEZ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Beazley'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: BEZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: BEZ's debt is covered by short term assets (assets are 21.557940x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%5.4%industryaverage5.1%forecastin3Years2.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BEZ's dividend (1.83%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: BEZ's dividend (1.83%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.6%), BEZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEZ's dividends in 3 years are forecast to be well covered by earnings (43.3% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

David Horton (56yo)

11.1yrs

Tenure

US$1,559,070

Compensation

Mr. David Andrew Horton serves as Director of Lloyd's Syndicate - 6107. He joined Beazley in June 2003 as finance director. Mr. Horton serves as Chief Executive Officer and Director at Lloyd's Syndicate -  ...


CEO Compensation Analysis

Compensation vs. Market: David's total compensation ($USD2.02M) is about average for companies of similar size in the UK market ($USD2.31M).

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


Management Age and Tenure

1.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: BEZ's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: BEZ's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

SellUS$28,32727 Mar 19
Adrian Cox
EntityIndividual
Role
Member of the Board of Directors
Chief Underwriting Officer & Director
Shares5,600
Max PriceUS$5.06
SellUS$358,09114 Feb 19
Adrian Cox
EntityIndividual
Role
Member of the Board of Directors
Chief Underwriting Officer & Director
Shares70,874
Max PriceUS$5.05
SellUS$546,35714 Feb 19
David Horton
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares108,136
Max PriceUS$5.05
SellUS$662,41814 Feb 19
Martin Bride
EntityIndividual
Shares131,107
Max PriceUS$5.05

Ownership Breakdown


Management Team

  • David Horton (56yo)

    CEO & Executive Director

    • Tenure: 11.1yrs
    • Compensation: US$1.56m
  • King Flynn

    Head of Broker Relations - US

    • Tenure: 0yrs
  • Andrew Pryde

    Chief Risk Officer

    • Tenure: 8.8yrs
  • Adrian Cox (47yo)

    Chief Underwriting Officer & Director

    • Tenure: 8.8yrs
    • Compensation: US$1.08m
  • Ian Fantozzi (44yo)

    Chief Operating Officer

    • Tenure: 8.3yrs
  • Pippa Vowles

    Head of Talent Management

    • Tenure: 1.3yrs
  • Stuart Simpson

    Chief Investment Officer

    • Tenure: 0yrs
  • Lou Layton

    Head of Broker Relations & Marketing

    • Tenure: 0.8yrs
  • Sally Lake (40yo)

    Group Finance Director & Executive Director

    • Tenure: 0.4yrs
  • Rachel Turk

    Head of Corporate Development

    • Tenure: 0yrs

Board Members

  • David Roberts (57yo)

    Non-Executive Chairman

    • Tenure: 1.6yrs
    • Compensation: US$211.46k
  • Bob Stuchbery (62yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: US$86.25k
  • David Horton (56yo)

    CEO & Executive Director

    • Tenure: 11.1yrs
    • Compensation: US$1.56m
  • John Likierman (76yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: US$76.00k
  • John Sauerland (55yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: US$67.19k
  • John Reizenstein (63yo)

    Non-Executive Director

    • Tenure: 0.5yrs
  • Catherine Woods (56yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$76.79k
  • Adrian Cox (47yo)

    Chief Underwriting Officer & Director

    • Tenure: 8.8yrs
    • Compensation: US$1.08m
  • Chris LaSala (69yo)

    Senior Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$67.19k
  • Sally Lake (40yo)

    Group Finance Director & Executive Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Beazley plc
  • Ticker: BEZ
  • Exchange: LSE
  • Founded: 1986
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£3.139b
  • Shares outstanding: 525.72m
  • Website: https://www.beazley.com

Number of Employees


Location

  • Beazley plc
  • Plantation Place South
  • 60 Great Tower Street
  • London
  • Greater London
  • EC3R 5AD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZLY.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDDec 2002
BEZLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPDec 2002
2D7DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2002
BEZLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPDec 2002
BEZ NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNDec 2002

Biography

Beazley plc provides risk insurance and reinsurance solutions worldwide. The company's Marine segment underwrites various marine classes, including hull, energy, cargo and specie, piracy, satellite, aviati ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:41
End of Day Share Price2019/10/22 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.