LSE:SBRE

Stock Analysis Report

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Executive Summary

Sabre Insurance Group Plc, through its subsidiaries, engages in writing general insurance for motor vehicles in the United Kingdom.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Sabre Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

SBRE

4.9%

GB Insurance

2.8%

GB Market


1 Year Return

2.5%

SBRE

-25.9%

GB Insurance

-11.0%

GB Market

Return vs Industry: SBRE exceeded the UK Insurance industry which returned -25.7% over the past year.

Return vs Market: SBRE exceeded the UK Market which returned -11.7% over the past year.


Shareholder returns

SBREIndustryMarket
7 Day-5.4%4.9%2.8%
30 Day-6.9%5.6%8.4%
90 Day-8.9%-16.8%-7.9%
1 Year7.4%2.5%-18.2%-25.9%-6.7%-11.0%
3 Yearn/a-18.4%-32.5%-3.7%-15.4%
5 Yearn/a-1.3%-26.4%15.4%-10.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sabre Insurance Group undervalued compared to its fair value and its price relative to the market?

20.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBRE (£2.62) is trading below our estimate of fair value (£3.3)

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


Price To Earnings Ratio

PE vs Industry: SBRE is poor value based on its PE Ratio (14.3x) compared to the Insurance industry average (10.9x).

PE vs Market: SBRE is good value based on its PE Ratio (14.3x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SBRE is overvalued based on its PB Ratio (2.4x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

How is Sabre Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBRE's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: SBRE's earnings are forecast to decline over the next 3 years (-2.6% per year).

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

Revenue vs Market: SBRE's revenue (4.3% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: SBRE's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SBRE's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Sabre Insurance Group performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBRE has high quality earnings.

Growing Profit Margin: SBRE's current net profit margins (23.9%) are lower than last year (25.4%).


Past Earnings Growth Analysis

Earnings Trend: SBRE's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: SBRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBRE had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Insurance industry average (4.2%).


Return on Equity

High ROE: SBRE's Return on Equity (17.1%) is considered low.


Next Steps

Financial Health

How is Sabre Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: SBRE's short term assets (£420.8M) exceed its short term liabilities (£330.8M).

Long Term Liabilities: SBRE has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SBRE is debt free.

Reducing Debt: SBRE has not had any debt for past 5 years.

Debt Coverage: SBRE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SBRE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Sabre Insurance Group's current dividend yield, its reliability and sustainability?

4.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SBRE's dividend (4.89%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: SBRE's dividend (4.89%) is low compared to the top 25% of dividend payers in the UK market (5.69%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SBRE has been paying a dividend for less than 10 years.

Growing Dividend: SBRE has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.7%), SBRE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SBRE's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Geoff Carter (48yo)

2.75yrs

Tenure

UK£820,000

Compensation

Mr. Geoffrey Richard Carter has been Chief Executive Officer of Sabre Insurance Group plc since May 2017. Mr. Carter served as Chief Operating Officer of Sabre Insurance Group plc since November 2015. He s ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD1.03M) is about average for companies of similar size in the UK market ($USD1.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Carter
CEO & Executive Director2.75yrsUK£820.00k0.62% £4.1m
Adam Westwood
CFO & Executive Director2.75yrsUK£461.00k0.26% £1.7m
James Ockenden
Chief Actuary4.75yrsno data0.38% £2.5m
Anneka Kingan
Chief Risk Officer2.08yrsno datano data
Trevor Webb
Claims Directorno datano data0.62% £4.0m

2.8yrs

Average Tenure

43.5yo

Average Age

Experienced Management: SBRE's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Carter
CEO & Executive Director2.75yrsUK£820.00k0.62% £4.1m
Adam Westwood
CFO & Executive Director2.75yrsUK£461.00k0.26% £1.7m
Patrick Joseph Snowball
Independent Non-Executive Chairman2.58yrsUK£150.00k0.042% £275.8k
Andrew Pomfret
Senior Independent Director2.33yrsUK£70.00k0.017% £113.9k
Rebecca Shelley
Independent Non-Executive Director2.67yrsUK£70.00k0.0029% £19.1k
Catherine Barton
Independent Non-Executive Director2.67yrsUK£70.00k0.0030% £19.7k
Ian Clark
Independent Non-Executive Director2.75yrsUK£80.00k0.11% £696.3k

2.7yrs

Average Tenure

54yo

Average Age

Experienced Board: SBRE's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Sabre Insurance Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sabre Insurance Group Plc
  • Ticker: SBRE
  • Exchange: LSE
  • Founded: 1982
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£652.540m
  • Shares outstanding: 249.06m
  • Website: https://www.sabreplc.co.uk

Number of Employees


Location

  • Sabre Insurance Group Plc
  • Sabre House
  • 150 South Street
  • Dorking
  • Surrey
  • RH4 2YY
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBRELSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2017
18MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2017
SBRELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2017

Biography

Sabre Insurance Group Plc, through its subsidiaries, engages in writing general insurance for motor vehicles in the United Kingdom. It offers its products through a network of insurance brokers, as well as through its own direct brands, including Go Girl and Insure 2 Drive. The company was founded in 1982 and is based in Dorking, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 01:15
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
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.