Century Insurance (KASE:CENI) - Share price, News & Analysis

CENI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	4/6

CENI Stock Overview

Century Insurance Company Limited provides general insurance products and services to individuals, and local and multinational companies in Pakistan.

Rewards

PE ratio (3.8x) is below the PK market (5.7x)

Risk Analysis

Does not have a meaningful market cap (PKR1B)

Dividend of 11.18% is not well covered by earnings

Volatile share price over the past 3 months

Century Insurance Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Century Insurance
Historical stock prices
Current Share Price	PK₨18.30
52 Week High	PK₨24.45
52 Week Low	PK₨15.50
Beta	0.79
1 Month Change	-20.75%
3 Month Change	6.23%
1 Year Change	4.35%
3 Year Change	5.95%
5 Year Change	-27.98%
Change since IPO	395.09%

Shareholder Returns

	CENI	PK Insurance	PK Market
7D	-3.4%	-3.2%	-1.8%
1Y	4.4%	-23.1%	-12.1%

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

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

Price Volatility

Is CENI's price volatile compared to industry and market?
CENI volatility
CENI Average Weekly Movement	8.5%
Insurance Industry Average Movement	6.1%
Market Average Movement	5.8%
10% most volatile stocks in PK Market	8.8%
10% least volatile stocks in PK Market	3.6%

Stable Share Price: CENI is more volatile than 75% of PK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CENI's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of PK stocks.

About the Company

Founded	Employees	CEO	Website
1985	158	Mohammad Hirji	https://cicl.com.pk

Century Insurance Company Limited provides general insurance products and services to individuals, and local and multinational companies in Pakistan. It operates through five segments: Fire, Marine, Motor, Accident and Health, and Miscellaneous. The Fire segment covers damages caused by fire, riot and strike, explosion, earthquake, atmospheric damage, flood, electric fluctuation, and terrorism.

Century Insurance Fundamentals Summary

How do Century Insurance's earnings and revenue compare to its market cap?
CENI fundamental statistics
Market Cap	PK₨1.01b
Earnings (TTM)	PK₨263.13m
Revenue (TTM)	PK₨1.11b

3.8x

P/E Ratio

0.9x

P/S Ratio

Is CENI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CENI income statement (TTM)
Revenue	PK₨1.11b
Cost of Revenue	PK₨520.28m
Gross Profit	PK₨587.84m
Other Expenses	PK₨324.71m
Earnings	PK₨263.13m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.76
Gross Margin	53.05%
Net Profit Margin	23.75%
Debt/Equity Ratio	0.0%

How did CENI perform over the long term?

See historical performance and comparison

Dividends

11.2%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Century 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

3.85x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: CENI (PKR18.3) is trading above our estimate of fair value (PKR8.88)

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

Price To Earnings Ratio

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

PE vs Market: CENI 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 CENI's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CENI is good value based on its PB Ratio (0.4x) compared to the PK Insurance industry average (0.6x).

Future Growth

How is Century 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 Century 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 Century 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

18.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CENI has high quality earnings.

Growing Profit Margin: CENI's current net profit margins (23.7%) are lower than last year (27.3%).

Past Earnings Growth Analysis

Earnings Trend: CENI's earnings have grown by 18.1% per year over the past 5 years.

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

Earnings vs Industry: CENI had negative earnings growth (-4.8%) over the past year, making it difficult to compare to the Insurance industry average (-1.4%).

Return on Equity

High ROE: CENI's Return on Equity (11.3%) is considered low.

Financial Health

How is Century Insurance's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: CENI's short term assets (PKR1.8B) exceed its short term liabilities (PKR1.6B).

Long Term Liabilities: CENI's short term assets (PKR1.8B) exceed its long term liabilities (PKR151.2M).

Debt to Equity History and Analysis

Debt Level: CENI is debt free.

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

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

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

Balance Sheet

Dividend

What is Century Insurance current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

11.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CENI's dividend (11.18%) is higher than the bottom 25% of dividend payers in the PK market (3.66%).

High Dividend: CENI's dividend (11.18%) is in the top 25% of dividend payers in the PK market (10.86%)

Stability and Growth of Payments

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

Growing Dividend: CENI's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43%), CENI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (95.6%), CENI'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?

5.7yrs

Average management tenure

CEO

Mohammad Hirji

11.67yrs

Tenure

PK₨20,900,000

Compensation

Mr. Mohammad Hussain Hirji has been the Chief Executive Officer at Century Insurance Co. Ltd. since September 14, 2010 and its Executive Director since September 14, 2010. Mr. Hijri serves as Head of Opera...

CEO Compensation Analysis

Compensation vs Market: Mohammad's total compensation ($USD109.13K) is below average for companies of similar size in the PK market ($USD220.09K).

Compensation vs Earnings: Insufficient data to compare Mohammad's compensation with company performance.

Leadership Team

Experienced Management: CENI's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: CENI's board of directors are considered experienced (5.3 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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31