Askari General Insurance (KASE:AGIC) - Share price, News & Analysis

AGIC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	3/6

AGIC Stock Overview

Askari General Insurance Company Limited engages in non-life insurance business in Pakistan.

Rewards

Trading at 16.7% below our estimate of its fair value

Risk Analysis

Does not have a meaningful market cap (PKR1B)

Dividend of 13.83% is not well covered by earnings

Latest financial reports are more than 6 months old

Askari General Insurance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Askari General Insurance
Historical stock prices
Current Share Price	PK₨19.89
52 Week High	PK₨23.40
52 Week Low	PK₨18.40
Beta	0.19
1 Month Change	-0.55%
3 Month Change	-1.05%
1 Year Change	-1.44%
3 Year Change	-5.29%
5 Year Change	-23.11%
Change since IPO	486.89%

Shareholder Returns

	AGIC	PK Insurance	PK Market
7D	-0.5%	-3.0%	-3.3%
1Y	-1.4%	-22.3%	-9.9%

Return vs Industry: AGIC exceeded the PK Insurance industry which returned -22.3% over the past year.

Return vs Market: AGIC exceeded the PK Market which returned -9.9% over the past year.

Price Volatility

Is AGIC's price volatile compared to industry and market?
AGIC volatility
AGIC Average Weekly Movement	5.5%
Insurance Industry Average Movement	6.0%
Market Average Movement	5.7%
10% most volatile stocks in PK Market	8.8%
10% least volatile stocks in PK Market	3.6%

Stable Share Price: AGIC is not significantly more volatile than the rest of PK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AGIC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	384	Abdul Waheed	https://www.agico.com.pk

Askari General Insurance Company Limited engages in non-life insurance business in Pakistan. The company operates through Fire Insurance; Marine Insurance; Motor Insurance; Accident and Health; and Miscellaneous Insurance segments. It offers motor, marine, health, fire, aviation, agriculture, travel, and engineering insurance products; and miscellaneous insurance products, including fidelity guarantee, plate glass, workmen compensation, and liability insurance products, as well as cover against burglary, loss of cash in safe and cash in transit, personal accident, money, and engineering losses.

Askari General Insurance Fundamentals Summary

How do Askari General Insurance's earnings and revenue compare to its market cap?
AGIC fundamental statistics
Market Cap	PK₨1.43b
Earnings (TTM)	PK₨381.22m
Revenue (TTM)	PK₨2.46b

3.8x

P/E Ratio

0.6x

P/S Ratio

Is AGIC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AGIC income statement (TTM)
Revenue	PK₨2.46b
Cost of Revenue	PK₨1.65b
Gross Profit	PK₨807.10m
Other Expenses	PK₨425.88m
Earnings	PK₨381.22m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	5.30
Gross Margin	32.84%
Net Profit Margin	15.51%
Debt/Equity Ratio	0%

How did AGIC perform over the long term?

See historical performance and comparison

Dividends

13.8%

Current Dividend Yield

52%

Payout Ratio

Does AGIC pay a reliable dividends?

See AGIC dividend history and benchmarks

When do you need to buy AGIC by to receive an upcoming dividend?
Askari General Insurance dividend dates
Ex Dividend Date	May 20 2022
Dividend Pay Date	Jun 20 2022
Days until Ex dividend	3 days
Days until Dividend pay date	34 days

Does AGIC pay a reliable dividends?

See AGIC dividend history and benchmarks

Valuation

Is Askari General Insurance undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

16.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AGIC (PKR19.89) is trading below our estimate of fair value (PKR23.87)

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

Price To Earnings Ratio

PE vs Industry: AGIC is good value based on its PE Ratio (3.8x) compared to the PK Insurance industry average (6.6x).

PE vs Market: AGIC is good value based on its PE Ratio (3.8x) compared to the PK market (5.7x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: AGIC's PB Ratio (0.6x) is in line with the PK Insurance industry average.

Future Growth

How is Askari General Insurance 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

10.4%

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 Askari General Insurance 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.

Past Performance

How has Askari General Insurance performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

11.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AGIC has high quality earnings.

Growing Profit Margin: AGIC's current net profit margins (15.5%) are lower than last year (18.2%).

Past Earnings Growth Analysis

Earnings Trend: AGIC's earnings have grown by 11.8% per year over the past 5 years.

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

Earnings vs Industry: AGIC had negative earnings growth (-4.3%) over the past year, making it difficult to compare to the Insurance industry average (-1.4%).

Return on Equity

High ROE: AGIC's Return on Equity (17%) is considered low.

Financial Health

How is Askari General Insurance'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: AGIC's short term assets (PKR2.1B) do not cover its short term liabilities (PKR3.2B).

Long Term Liabilities: AGIC's short term assets (PKR2.1B) exceed its long term liabilities (PKR369.3M).

Debt to Equity History and Analysis

Debt Level: AGIC is debt free.

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

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

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

Balance Sheet

Dividend

What is Askari General Insurance 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
Future Dividend Coverage

13.83%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: AGIC's dividend (13.83%) is higher than the bottom 25% of dividend payers in the PK market (3.66%).

High Dividend: AGIC's dividend (13.83%) is in the top 25% of dividend payers in the PK market (10.86%)

Stability and Growth of Payments

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

Growing Dividend: AGIC's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (51.9%), AGIC's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (414.5%), AGIC's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Insurance industry.

Management

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

1.6yrs

Average board tenure

CEO

Abdul Waheed

12.33yrs

Tenure

Mr. Abdul Waheed has been the Chief Executive Officer and President of Askari General Insurance Company Limited since 2010. Mr. Waheed served as the Chief Executive Officer of Askari Leasing Ltd. He served...

Board Members

Experienced Board: AGIC's board of directors are not considered experienced ( 1.6 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/09/30
Annual Earnings	2020/12/31