General Accident Insurance Company Jamaica (JMSE:GENAC) - Share price, News & Analysis

Q: What is the Fair Price of GENAC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GENAC (JMD6) is trading above our estimate of [[fair value]] (JMD0.85)

GENAC fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	1/6
Financial Health	5/6
Dividends	3/6

GENAC Stock Overview

General Accident Insurance Company Jamaica Limited, a general insurance company, provides underwriting services for commercial, personal property, and casualty insurance products in Jamaica.

Rewards

Price-To-Earnings ratio (12.5x) is below the JM market (15.6x)

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Latest financial reports are more than 6 months old

Does not have a meaningful market cap (JMD6B)

General Accident Insurance Company Jamaica Competitors

Key Insurance

JMSE:KEY

JA$2.2b

Ironrock Insurance

JMSE:ROC

JA$704.1m

AXA Mansard Insurance

NGSE:MANSARD

₦17.8b

Bangladesh National Insurance

DSE:BNICL

৳3.0b

Price History & Performance

Summary of all time highs, changes and price drops for General Accident Insurance Company Jamaica
Historical stock prices
Current Share Price	JA$6.00
52 Week High	JA$8.00
52 Week Low	JA$5.00
Beta	0.065
1 Month Change	2.56%
3 Month Change	1.87%
1 Year Change	14.07%
3 Year Change	42.86%
5 Year Change	106.90%
Change since IPO	130.77%

Shareholder Returns

	GENAC	JM Insurance	JM Market
7D	0%	0.8%	-0.6%
1Y	14.1%	-1.6%	-2.7%

Return vs Industry: GENAC exceeded the JM Insurance industry which returned -0.9% over the past year.

Return vs Market: GENAC exceeded the JM Market which returned -0.9% over the past year.

Price Volatility

Is GENAC's price volatile compared to industry and market?
GENAC volatility
GENAC Average Weekly Movement	4.3%
Insurance Industry Average Movement	4.2%
Market Average Movement	9.5%
10% most volatile stocks in JM Market	16.5%
10% least volatile stocks in JM Market	5.2%

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

Volatility Over Time: GENAC's weekly volatility has decreased from 10% to 4% over the past year.

About the Company

Founded	Employees	CEO	Website
1920	n/a	Sharon Donaldson-Levine	https://www.genac.com

General Accident Insurance Company Jamaica Limited, a general insurance company, provides underwriting services for commercial, personal property, and casualty insurance products in Jamaica. It operates through six segments: Motor, Fire and Allied Perils, Marine, Liability, Homeowners and Burglary, and Miscellaneous Accidents. The Motor segment covers loss of motor vehicle, including liabilities to third parties.

General Accident Insurance Company Jamaica Fundamentals Summary

How do General Accident Insurance Company Jamaica's earnings and revenue compare to its market cap?
GENAC fundamental statistics
Market Cap	JA$6.19b
Earnings (TTM)	JA$494.47m
Revenue (TTM)	JA$4.20b

12.5x

P/E Ratio

1.5x

P/S Ratio

Is GENAC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GENAC income statement (TTM)
Revenue	JA$4.20b
Cost of Revenue	JA$2.12b
Gross Profit	JA$2.08b
Other Expenses	JA$1.58b
Earnings	JA$494.47m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.48
Gross Margin	49.44%
Net Profit Margin	11.78%
Debt/Equity Ratio	0%

How did GENAC perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

39%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GENAC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GENAC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GENAC. This is calculated by dividing GENAC's market cap by their current preferred multiple.
What is GENAC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	JA$6.19b

GENAC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	10x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does GENAC's PE Ratio compare to its peers?

GENAC PE Ratio vs Peers

The above table shows the PE ratio for GENAC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.3x
KEY Key Insurance	13.5x	n/a	JA$2.2b
ROC Ironrock Insurance	13.5x	n/a	JA$704.1m
MANSARD AXA Mansard Insurance	18.3x	n/a	₦17.8b
BNICL Bangladesh National Insurance	19.9x	n/a	৳3.0b
GENAC General Accident Insurance Company Jamaica	12.5x	n/a	JA$6.2b

Forward PE

Price-To-Earnings vs Peers: GENAC is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does GENAC's PE Ratio compare vs other companies in the South American Insurance Industry?

Price-To-Earnings vs Industry: GENAC is expensive based on its Price-To-Earnings Ratio (12.5x) compared to the JM Insurance industry average (11.8x)

Price to Earnings Ratio vs Fair Ratio

What is GENAC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GENAC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate GENAC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of GENAC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GENAC (JMD6) is trading above our estimate of fair value (JMD0.85)

Significantly Below Fair Value: GENAC is trading above our estimate of fair value.

Price to Earnings Growth Ratio

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

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Future Growth

How is General Accident Insurance Company Jamaica forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.7%

Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as General Accident Insurance Company Jamaica has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine General Accident Insurance Company Jamaica's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has General Accident Insurance Company Jamaica performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GENAC has a high level of non-cash earnings.

Growing Profit Margin: GENAC's current net profit margins (11.8%) are lower than last year (13.6%).

Past Earnings Growth Analysis

Earnings Trend: GENAC's earnings have grown by 5.1% per year over the past 5 years.

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

Earnings vs Industry: GENAC had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Insurance industry average (132.5%).

Return on Equity

High ROE: GENAC's Return on Equity (12.3%) is considered low.

Discover strong past performing companies

Financial Health

How is General Accident Insurance Company Jamaica's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GENAC's short term assets (JMD4.9B) exceed its short term liabilities (JMD980.8M).

Long Term Liabilities: GENAC's short term assets (JMD4.9B) do not cover its long term liabilities (JMD6.8B).

Debt to Equity History and Analysis

Debt Level: GENAC is debt free.

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

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

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

Balance Sheet

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Dividend

What is General Accident Insurance Company Jamaica current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GENAC's dividend (3.18%) is higher than the bottom 25% of dividend payers in the JM market (1.27%).

High Dividend: GENAC's dividend (3.18%) is in the top 25% of dividend payers in the JM market (3.15%)

Stability and Growth of Payments

Stable Dividend: GENAC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GENAC has only been paying a dividend for 7 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39%), GENAC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.

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Management

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

4.5yrs

Average management tenure

CEO

Sharon Donaldson-Levine

14.5yrs

Tenure

Ms. Sharon E. Donaldson-Levine, ACCA, MBA, LLB, CA, serves as Director at Eppley Caribbean Property Fund Limited SCC. She serves as Chief Executive Officer and Managing Director at General Accident Insuran...

Leadership Team

Experienced Management: GENAC's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: GENAC's board of directors are seasoned and experienced ( 11 years average tenure).

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.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31