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HSX

HiscoxLSE:HSX Stock Report

Last Price

UK£9.71

Market Cap

UK£3.4b

7D

4.1%

1Y

-3.0%

Updated

17 Jan, 2022

Data

Company Financials +
HSX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends2/6

HSX Stock Overview

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, rest of Europe, the United States, and internationally.

Hiscox Competitors

Admiral Group

LSE:ADM

UK£9.4b

Direct Line Insurance Group

LSE:DLG

UK£4.1b

Beazley

LSE:BEZ

UK£3.0b

Lancashire Holdings

LSE:LRE

UK£1.3b

Price History & Performance

Summary of all time highs, changes and price drops for Hiscox
Historical stock prices
Current Share PriceUK£9.71
52 Week HighUK£10.22
52 Week LowUK£7.64
Beta0.79
1 Month Change13.07%
3 Month Change15.55%
1 Year Change-3.04%
3 Year Change-37.22%
5 Year Change-3.52%
Change since IPO493.47%

Recent News & Updates

May 07
Hiscox Ltd's (LON:HSX) CEO Will Probably Struggle To See A Pay Rise This Year

Hiscox Ltd's (LON:HSX) CEO Will Probably Struggle To See A Pay Rise This Year

Performance at Hiscox Ltd ( LON:HSX ) has not been particularly rosy recently and shareholders will likely be holding...

Shareholder Returns

HSXGB InsuranceGB Market
7D4.1%-0.1%-0.5%
1Y-3.0%1.7%8.7%

Return vs Industry: HSX underperformed the UK Insurance industry which returned 1.7% over the past year.

Return vs Market: HSX underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is HSX's price volatile compared to industry and market?
HSX volatility
HSX Average Weekly Movement3.3%
Insurance Industry Average Movement3.5%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.5%
10% least volatile stocks in GB Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
19013,000Aki Hussainhttps://www.hiscoxgroup.com

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, rest of Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It provides commercial insurance for small-and medium-sized businesses, household, media, events and entertainment, high net worth personal lines, fine art, and luxury motor through brokers, other insurers, and distribution partners, as well as directly to businesses online and telephone.

Hiscox Fundamentals Summary

How do Hiscox's earnings and revenue compare to its market cap?
HSX fundamental statistics
Market CapUS$4.59b
Earnings (TTM)-US$24.20m
Revenue (TTM)US$3.07b

1.5x

P/S Ratio

-189.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HSX income statement (TTM)
RevenueUS$3.07b
Cost of RevenueUS$2.79b
Gross ProfitUS$285.30m
ExpensesUS$309.50m
Earnings-US$24.20m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.07
Gross Margin9.29%
Net Profit Margin-0.79%
Debt/Equity Ratio30.7%

How did HSX perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

-162%

Payout Ratio

Valuation

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

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSX (£9.71) is trading below our estimate of fair value (£16.47)

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


Price To Earnings Ratio

PE vs Industry: HSX is unprofitable, so we can't compare its PE Ratio to the UK Insurance industry average.

PE vs Market: HSX is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HSX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HSX is overvalued based on its PB Ratio (1.8x) compared to the GB Insurance industry average (1.3x).


Future Growth

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

33.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: HSX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HSX's is expected to become profitable in the next 3 years.

Revenue vs Market: HSX's revenue (7.5% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: HSX's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSX's Return on Equity is forecast to be low in 3 years time (13.4%).


Past Performance

How has Hiscox performed over the past 5 years?

-66.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSX is currently unprofitable.

Growing Profit Margin: HSX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HSX is unprofitable, and losses have increased over the past 5 years at a rate of 66.8% per year.

Accelerating Growth: Unable to compare HSX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HSX is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (18.5%).


Return on Equity

High ROE: HSX has a negative Return on Equity (-0.96%), as it is currently unprofitable.


Financial Health

How is Hiscox's financial position?


Financial Position Analysis

Short Term Liabilities: HSX's short term assets ($6.0B) do not cover its short term liabilities ($11.6B).

Long Term Liabilities: HSX's short term assets ($6.0B) exceed its long term liabilities ($773.5M).


Debt to Equity History and Analysis

Debt Level: HSX has more cash than its total debt.

Reducing Debt: HSX's debt to equity ratio has increased from 17% to 30.7% over the past 5 years.

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

Interest Coverage: HSX's interest payments on its debt are not well covered by EBIT (0.8x coverage).


Balance Sheet


Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSX's dividend (1.74%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: HSX's dividend (1.74%) is low compared to the top 25% of dividend payers in the UK market (4.05%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: HSX is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: HSX's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Aki Hussain (48 yo)

no data

Tenure

US$755,176

Compensation

Mr. Hamayou Akbar Hussain, also known as Aki, serves as Group Chief Executive Officer at Hiscox Ltd since January 01, 2022. He had been Group Chief Financial Officer at Hiscox Ltd since April 2016 and serv...


CEO Compensation Analysis

Compensation vs Market: Aki's total compensation ($USD755.18K) is below average for companies of similar size in the UK market ($USD1.79M).

Compensation vs Earnings: Aki's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: HSX's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: HSX's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HSX 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

Hiscox Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: Hiscox Ltd
  • Ticker: HSX
  • Exchange: LSE
  • Founded: 1901
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: UK£3.363b
  • Shares outstanding: 346.46m
  • Website: https://www.hiscoxgroup.com

Number of Employees


Location

  • Hiscox Ltd
  • Chesney House
  • 96 Pitts Bay Road
  • Pembroke
  • HM 08
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 22:56
End of Day Share Price2022/01/17 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.