NasdaqGS:WTRE

Stock Analysis Report

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Executive Summary

Watford Holdings Ltd., together with its subsidiaries, operates as a property, casualty, and mortgage insurance and reinsurance company worldwide. More Details


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Watford Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WTRE is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: WTRE's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-0.3%

WTRE

-1.8%

US Insurance

0.6%

US Market


1 Year Return

33.3%

WTRE

-3.4%

US Insurance

22.7%

US Market

Return vs Industry: WTRE exceeded the US Insurance industry which returned -6.7% over the past year.

Return vs Market: WTRE exceeded the US Market which returned 21% over the past year.


Shareholder returns

WTREIndustryMarket
7 Day-0.3%-1.8%0.6%
30 Day-3.8%14.5%13.1%
90 Day107.3%8.1%4.5%
1 Year33.3%33.3%-0.8%-3.4%25.5%22.7%
3 Yearn/a10.3%2.2%49.0%39.1%
5 Yearn/a49.3%30.7%98.3%76.5%

Long-Term Price Volatility Vs. Market

How volatile is Watford Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Watford Holdings undervalued compared to its fair value and its price relative to the market?

0.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate WTRE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate WTRE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: WTRE is unprofitable, so we can't compare its PE Ratio to the US Insurance industry average.

PE vs Market: WTRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WTRE is good value based on its PB Ratio (0.8x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Watford Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

98.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WTRE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: WTRE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WTRE's is expected to become profitable in the next 3 years.

Revenue vs Market: WTRE's revenue (9.3% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: WTRE's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if WTRE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Watford Holdings performed over the past 5 years?

-56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WTRE is currently unprofitable.

Growing Profit Margin: WTRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WTRE is unprofitable, and losses have increased over the past 5 years at a rate of 56.8% per year.

Accelerating Growth: Unable to compare WTRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WTRE is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (6%).


Return on Equity

High ROE: WTRE has a negative Return on Equity (-1.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Watford Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WTRE's short term assets ($1.3B) do not cover its short term liabilities ($1.4B).

Long Term Liabilities: WTRE's short term assets ($1.3B) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: WTRE's debt to equity ratio (61.2%) is considered high.

Reducing Debt: WTRE's debt to equity ratio has increased from 32.2% to 61.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable WTRE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WTRE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 1.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WTRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WTRE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WTRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WTRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WTRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Jon Levy (44 yo)

0.58

Tenure

US$2,150,207

Compensation

Mr. Jonathan D. Levy, also known as Jon, serves as President at Watford Re Ltd. He serves as President Watford Holdings Ltd since February 2018. He serves as Chief Executive Officer at Watford Re Ltd since...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD2.15M) is about average for companies of similar size in the US market ($USD2.59M).

Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Levy
President & CEO0.58yrUS$2.15m0.12%
$ 847.1k
Robert Hawley
Chief Financial Officer5.33yrsUS$1.27m0.11%
$ 730.1k
Laurence Richardson
Chief Operating Officer3.83yrsno data0.098%
$ 674.1k
Roderick Romeo
Chief Accounting Officer3.83yrsno datano data
Alexandre Jean Scherer
Head of U.S Insurance Operations5.17yrsno data0.065%
$ 447.3k
Liz Cunningham
Chief Risk Officer0.83yrno datano data

3.8yrs

Average Tenure

50yo

Average Age

Experienced Management: WTRE's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deborah DeCotis
Independent Director3.67yrsUS$140.00k0.020%
$ 140.6k
Walter Harris
Independent Chairman of the Board6.67yrsUS$175.00k0.23%
$ 1.6m
Nicolas Alain Papadopoulo
Director6.67yrsno data0.55%
$ 3.8m
Elizabeth Gile
Independent Director3.17yrsUS$140.00k0.020%
$ 140.6k
Garth Turner
Independent Director6.67yrsUS$140.00k0.020%
$ 140.6k
Maamoun Rajeh
Director2.67yrsno data0.30%
$ 2.1m
Thomas Miller
Independent Director3.5yrsUS$140.00k0.041%
$ 279.1k

3.7yrs

Average Tenure

63yo

Average Age

Experienced Board: WTRE's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Watford Holdings Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Watford Holdings Ltd.
  • Ticker: WTRE
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$688.885m
  • Shares outstanding: 19.89m
  • Website: https://www.watfordre.com

Number of Employees


Location

  • Watford Holdings Ltd.
  • Waterloo House
  • 1st Floor
  • Pembroke
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WTRENasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMar 2019
2WHDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2019
WTRE.PNasdaqGS (Nasdaq Global Select)8.5% CUM RED PFDUSUSDJun 2019

Biography

Watford Holdings Ltd., together with its subsidiaries, operates as a property, casualty, and mortgage insurance and reinsurance company worldwide. The company offers casualty reinsurance products, such as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:20
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
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.