LSE:HSX

Stock Analysis Report

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Executive Summary

Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services. More Details


Snowflake Analysis

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HSX is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HSX's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

HSX

-0.7%

GB Insurance

-1.7%

GB Market


1 Year Return

-27.1%

HSX

-3.9%

GB Insurance

-8.6%

GB Market

Return vs Industry: HSX underperformed the UK Insurance industry which returned -3.3% over the past year.

Return vs Market: HSX underperformed the UK Market which returned -7.7% over the past year.


Shareholder returns

HSXIndustryMarket
7 Day1.1%-0.7%-1.7%
30 Day-0.7%4.3%3.4%
90 Day14.8%25.7%14.5%
1 Year-27.1%-27.1%0.3%-3.9%-4.9%-8.6%
3 Year-27.0%-29.9%-1.8%-19.6%3.7%-9.0%
5 Year15.6%4.1%35.5%0.07%47.1%13.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSX (£9.98) is trading below our estimate of fair value (£12.41)

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


Price To Earnings Ratio

PE vs Industry: HSX is unprofitable, so we can't compare its PE Ratio to the GB 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 (1.7x) compared to the GB Insurance industry average (1.4x).


Next Steps

Future Growth

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

63.6%

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 (1%).

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 (9% per year) is forecast to grow faster than the UK market (6.5% per year).

High Growth Revenue: HSX's revenue (9% 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 (14.7%).


Next Steps

Past Performance

How has Hiscox performed over the past 5 years?

-47.8%

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 47.8% 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 (-7.6%).


Return on Equity

High ROE: HSX has a negative Return on Equity (-10.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Hiscox's financial position?


Financial Position Analysis

Short Term Liabilities: HSX's short term assets ($5.6B) do not cover its short term liabilities ($10.8B).

Long Term Liabilities: HSX's short term assets ($5.6B) exceed its long term liabilities ($780.8M).


Debt to Equity History and Analysis

Debt Level: HSX's debt to equity ratio (44.6%) is considered high.

Reducing Debt: HSX's debt to equity ratio has increased from 0.4% to 44.6% over the past 5 years.

Debt Coverage: HSX's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: Insufficient data to determine if HSX's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

3.49%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HSX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HSX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HSX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HSX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HSX is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HSX's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Bronek Masojada (59 yo)

21yrs

Tenure

US$698,196

Compensation

Mr. Bronislaw Edmund Masojada, also known as Bronek, serves at Augmentum Capital LLP. He serves as the Group Chief Executive Officer of Hiscox, Ltd since 2000 and has been its Executive Director since Dece...


CEO Compensation Analysis

Compensation vs Market: Bronek's total compensation ($USD1.26M) is below average for companies of similar size in the UK market ($USD1.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bronislaw Masojada
Group CEO & Executive Director21yrsUS$698.20k0.87%
$ 30.1m
Hamayou Hussain
Group CFO & Executive Director4.33yrsUS$539.09k0.023%
$ 806.3k
Richard Watson
no dataUS$541.78k0.14%
$ 4.9m
James Millard
Chief Investment Officer2yrsno datano data
Ian Penny
Chief Information Officer3.75yrsno datano data
Yana O'Sullivan
Head of Investor Relations0.25yrno datano data
Jason Jones
Group Compliance & Audit Directorno datano datano data
Marc Wetherhill
Group General Counsel & Company Secretaryno datano datano data
Kylie O'Connor
Group Head of Communicationsno datano datano data
Regine Fiddler
Chief Marketing Officer0.17yrno datano data
Amanda Brown
Chief Human Resources Officer15yrsno data0.021%
$ 735.7k
Jeremy Pinchin
Chairman of Hiscox Special Risks & Chairman of Hiscox Pension Trustees1.92yrsno datano data

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: HSX's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bronislaw Masojada
Group CEO & Executive Director21yrsUS$698.20k0.87%
$ 30.1m
Hamayou Hussain
Group CFO & Executive Director4.33yrsUS$539.09k0.023%
$ 806.3k
Anne MacDonald
Independent Non Executive Director5.67yrsUS$96.40k0.012%
$ 398.3k
Constantinos Miranthis
Independent Non-Executive Director3.17yrsUS$134.01k0.0020%
$ 68.1k
Robert Childs
Non-Executive Chairman of the Board7.92yrsUS$301.86k0.35%
$ 12.1m
Colin Keogh
Senior Independent Director5.17yrsUS$162.20k0.012%
$ 400.4k
Lynn Pike
Independent Non Executive Director5.67yrsUS$163.66k0.00044%
$ 15.2k
N. Tyler
Director of Hiscox Syndicates Limitedno datano datano data
Michael Goodwin
Independent Non Executive Director3.17yrsUS$124.80k0.0037%
$ 126.5k
Caroline Foulger
Independent Non Executive Director8yrsUS$193.70k0.0084%
$ 289.4k
Thomas Hürlimann
Independent Non-Executive Director3.17yrsUS$146.40k0.0046%
$ 157.7k
Joanne Musselle
Group Chief Underwriting Officer & Executive Director0.83yrno datano data

5.2yrs

Average Tenure

59yo

Average Age

Experienced Board: HSX's board of directors are considered experienced (5.2 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 been diluted in the past year, with total shares outstanding growing by 20%.


Top Shareholders

Company Information

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


Key Information

  • Name: Hiscox Ltd
  • Ticker: HSX
  • Exchange: LSE
  • Founded:
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£3.457b
  • Shares outstanding: 346.43m
  • Website: https://www.hiscoxgroup.com

Number of Employees


Location

  • Hiscox Ltd
  • Wessex House
  • 4th Floor
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSXLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1994
HCXL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1994
HSXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1994
H2X3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1994

Biography

Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Cent...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 01:34
End of Day Share Price2021/01/15 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.