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LRE

Lancashire HoldingsLSE:LRE Stock Report

Last Price

UK£5.29

Market Cap

UK£1.3b

7D

0.5%

1Y

-26.9%

Updated

21 Jan, 2022

Data

Company Financials +
LRE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends3/6

LRE Stock Overview

Lancashire Holdings Limited provides specialty insurance and reinsurance products in London and Bermuda.

Lancashire Holdings Competitors

Admiral Group

LSE:ADM

UK£9.2b

Direct Line Insurance Group

LSE:DLG

UK£4.0b

Hiscox

LSE:HSX

UK£3.2b

Berkshire Hathaway

NYSE:BRK.A

US$682.2b

Price History & Performance

Summary of all time highs, changes and price drops for Lancashire Holdings
Historical stock prices
Current Share PriceUK£5.29
52 Week HighUK£7.66
52 Week LowUK£4.88
Beta0.71
1 Month Change4.13%
3 Month Change4.75%
1 Year Change-26.93%
3 Year Change-7.76%
5 Year Change-21.05%
Change since IPO65.83%

Recent News & Updates

Aug 23
With EPS Growth And More, Lancashire Holdings (LON:LRE) Is Interesting

With EPS Growth And More, Lancashire Holdings (LON:LRE) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

LREGB InsuranceGB Market
7D0.5%-0.6%-1.3%
1Y-26.9%2.7%7.8%

Return vs Industry: LRE underperformed the UK Insurance industry which returned 3.2% over the past year.

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

Price Volatility

Is LRE's price volatile compared to industry and market?
LRE volatility
LRE Average Weekly Movement3.1%
Insurance Industry Average Movement3.4%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.5%

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

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

About the Company

FoundedEmployeesCEOWebsite
2005n/aAlex Maloneyhttps://www.lancashiregroup.com

Lancashire Holdings Limited provides specialty insurance and reinsurance products in London and Bermuda. The company operates through four segments: Property, Energy, Marine, and Aviation. It offers property direct and facultative, property political risk and sovereign risk, and property terrorism and political violence insurance products, as well as property reinsurance services; aviation AV52, aviation consortium, airline hull and liability, and satellite insurance products; marine hull, total loss only, mortgagees interests insurance, mortgagees additional perils, excess protection and indemnity, marine war, and builder’s risks; and energy insurance products covering upstream, downstream and onshore operational, and upstream construction all risks business.

Lancashire Holdings Fundamentals Summary

How do Lancashire Holdings's earnings and revenue compare to its market cap?
LRE fundamental statistics
Market CapUS$1.73b
Earnings (TTM)US$77.90m
Revenue (TTM)US$649.20m

22.2x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LRE income statement (TTM)
RevenueUS$649.20m
Cost of RevenueUS$395.60m
Gross ProfitUS$253.60m
ExpensesUS$175.70m
EarningsUS$77.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 10, 2022

Earnings per share (EPS)0.32
Gross Margin39.06%
Net Profit Margin12.00%
Debt/Equity Ratio28.7%

How did LRE perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Lancashire Holdings 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: LRE (£5.29) is trading below our estimate of fair value (£13.66)

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


Price To Earnings Ratio

PE vs Industry: LRE is poor value based on its PE Ratio (22.2x) compared to the UK Insurance industry average (14.4x).

PE vs Market: LRE is poor value based on its PE Ratio (22.2x) compared to the UK market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: LRE is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LRE is good value based on its PB Ratio (1.1x) compared to the GB Insurance industry average (1.3x).


Future Growth

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

47.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LRE's forecast earnings growth (47.3% per year) is above the savings rate (0.9%).

Earnings vs Market: LRE's earnings (47.3% per year) are forecast to grow faster than the UK market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LRE's revenue (7.3% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: LRE's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LRE's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Lancashire Holdings performed over the past 5 years?

-19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LRE has high quality earnings.

Growing Profit Margin: LRE's current net profit margins (12%) are higher than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: LRE's earnings have declined by 19.4% per year over the past 5 years.

Accelerating Growth: LRE's earnings growth over the past year (47.5%) exceeds its 5-year average (-19.4% per year).

Earnings vs Industry: LRE earnings growth over the past year (47.5%) exceeded the Insurance industry 18.5%.


Return on Equity

High ROE: LRE's Return on Equity (5%) is considered low.


Financial Health

How is Lancashire Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LRE's short term assets ($2.0B) exceed its short term liabilities ($944.2M).

Long Term Liabilities: LRE's short term assets ($2.0B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

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

Reducing Debt: LRE's debt to equity ratio has increased from 25.7% to 28.7% over the past 5 years.

Debt Coverage: LRE's debt is well covered by operating cash flow (53%).

Interest Coverage: LRE's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Dividend

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

1.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LRE's dividend (1.98%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: LRE's dividend (1.98%) is low compared to the top 25% of dividend payers in the UK market (4.04%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), LRE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LRE's dividends in 3 years are forecast to be covered by earnings (75.3% payout ratio).


Next Steps

Management

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

7.7yrs

Average management tenure


CEO

Alex Maloney (47 yo)

7.75yrs

Tenure

US$4,136,907

Compensation

Mr. Alexander Terence Maloney, also known as Alex, serves as the Group Chief Executive Officer at Cathedral Capital Holdings Limited. Mr. Maloney has been the Group Chief Executive Officer of Lancashire Ho...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD4.14M) is above average for companies of similar size in the UK market ($USD1.55M).

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


Leadership Team

Experienced Management: LRE's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: LRE's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LRE 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

Lancashire Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lancashire Holdings Limited
  • Ticker: LRE
  • Exchange: LSE
  • Founded: 2005
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: UK£1.274b
  • Shares outstanding: 240.81m
  • Website: https://www.lancashiregroup.com

Number of Employees


Location

  • Lancashire Holdings Limited
  • Power House
  • 7 Par-la-Ville Road
  • Hamilton
  • HM 11
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:22
End of Day Share Price2022/01/21 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.