OTCPK:HCXL.F

Stock Analysis Report

Executive Summary

Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services.


Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HCXL.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

HCXL.F

-8.7%

US Insurance

-3.8%

US Market


1 Year Return

-50.4%

HCXL.F

-26.3%

US Insurance

-15.9%

US Market

Return vs Industry: HCXL.F underperformed the US Insurance industry which returned -26.3% over the past year.

Return vs Market: HCXL.F underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

HCXL.FIndustryMarket
7 Day-9.3%-8.7%-3.8%
30 Day-34.6%-26.6%-17.4%
90 Day-46.1%-33.9%-24.1%
1 Year-50.4%-50.4%-24.4%-26.3%-14.1%-15.9%
3 Year-27.8%-27.8%-12.9%-19.7%10.0%2.8%
5 Year-21.6%-21.6%8.9%-4.3%27.6%13.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

38.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HCXL.F ($10.1) is trading below our estimate of fair value ($16.4)

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


Price To Earnings Ratio

PE vs Industry: HCXL.F is poor value based on its PE Ratio (59.8x) compared to the Insurance industry average (8.1x).

PE vs Market: HCXL.F is poor value based on its PE Ratio (59.8x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: HCXL.F is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: HCXL.F is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Hiscox forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HCXL.F's forecast earnings growth (29.6% per year) is above the savings rate (1.7%).

Earnings vs Market: HCXL.F's earnings (29.6% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HCXL.F's revenue (11.4% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: HCXL.F's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HCXL.F's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Hiscox performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: HCXL.F's current net profit margins (1.7%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: HCXL.F's earnings have declined by -32.2% per year over the past 5 years.

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

Earnings vs Industry: HCXL.F had negative earnings growth (-58.5%) over the past year, making it difficult to compare to the Insurance industry average (43.7%).


Return on Equity

High ROE: HCXL.F's Return on Equity (2.2%) is considered low.


Next Steps

Financial Health

How is Hiscox's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HCXL.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: HCXL.F's debt is covered by short term assets (assets are 8.5x debt).


Financial Institutions Analysis

Asset Level: HCXL.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HCXL.F has a sufficient allowance for bad loans.

Low Risk Liabilities: HCXL.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HCXL.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HCXL.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HCXL.F has an appropriate level of bad loans.


Next Steps

Dividend

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

4.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HCXL.F's dividend (4.21%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: HCXL.F's dividend (4.21%) is low compared to the top 25% of dividend payers in the US market (5.82%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (251.8%), HCXL.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HCXL.F's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Bronek Masojada (58yo)

20.25s

Tenure

US$698,196

Compensation

Mr. Bronislaw Edmund Masojada, also known as Bronek, serves at Augmentum Capital LLP. He serves as the Group Chief Executive Officer of Hiscox, Ltd since 2000 and has been its Executive Director since Dece ...


CEO Compensation Analysis

Compensation vs Market: Bronek's total compensation ($USD854.88K) is below average for companies of similar size in the US market ($USD5.71M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bronislaw Masojada
Group CEO & Executive Director20.25yrsUS$698.20k1.04% $30.8m
Hamayou Hussain
Group CFO & Executive Director3.58yrsUS$539.09k0.025% $752.2k
Richard Watson
no dataUS$541.78k0.17% $5.1m
Craig Martindale
Group Head of Capital Management & Interim Chief Investment Officer1.25yrsno datano data
Ian Penny
Chief Information Officer3yrsno datano data
Jason Jones
Group Compliance & Audit Directorno datano datano data
Marc Wetherhill
Group General Counsel & Company Secretaryno datano datano data
Kylie O'Connor
Group Head of Communicationsno datano datano data
Steve Langan
CEO of Hiscox USA & Chief Marketing Officerno datano data0.033% $976.5k
Amanda Brown
Chief Human Resources Officer14.25yrsno data0.026% $758.5k

4.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HCXL.F's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bronislaw Masojada
Group CEO & Executive Director20.25yrsUS$698.20k1.04% $30.8m
Hamayou Hussain
Group CFO & Executive Director3.58yrsUS$539.09k0.025% $752.2k
Anne MacDonald
Independent Non Executive Director4.92yrsUS$96.40k0.013% $394.7k
Constantinos Miranthis
Independent Non-Executive Director2.42yrsUS$134.01k0.0016% $46.6k
Robert Childs
Non-Executive Chairman of the Board7.17yrsUS$301.86k0.42% $12.4m
Colin Keogh
Independent Non Executive Director4.42yrsUS$162.20k0.010% $302.6k
Lynn Pike
Independent Non Executive Director4.92yrsUS$163.66kno data
Michael Goodwin
Independent Non Executive Director2.42yrsUS$124.80k0.0017% $51.4k
Caroline Foulger
Independent Non Executive Director7.25yrsUS$193.70k0.0063% $187.7k
Thomas Hürlimann
Independent Non-Executive Director2.42yrsUS$146.40k0.0031% $91.2k

4.7yrs

Average Tenure

59yo

Average Age

Experienced Board: HCXL.F's board of directors are considered experienced (4.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HCXL.F 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

Hiscox Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hiscox Ltd
  • Ticker: HCXL.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£2.425b
  • Listing Market Cap: UK£2.970b
  • Shares outstanding: 288.61m
  • Website: https://www.hiscoxgroup.com

Number of Employees


Location

  • Hiscox Ltd
  • Wessex House
  • 4th Floor
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSXLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 1994
HCXL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1994
HSXLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 1994
H2X3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1994

Biography

Hiscox Ltd, together with its subsidiaries, provides insurance and reinsurance services. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It provides commercial insurance for small-and medium-sized businesses, including household, fine art and collectibles, and luxury motor via brokers, through a growing network of partnerships, and directly to consumers. The company also offers property insurance; marine and energy insurance; casualty insurance; specialty and international employees and officers’ insurance; kidnap and ransom insurance; auto physical damage insurance; and other specialty insurance, such as aviation, contingency, terrorism, personal accident, and product recall. In addition, it provides healthcare and casualty reinsurance services, as well as investment services. The company operates in Bermuda, the United Kingdom, Ireland, the United States, Guernsey, France, Germany, Belgium, the Netherlands, Spain, Portugal, Singapore, and Thailand. Hiscox Ltd was founded in 1993 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 01:17
End of Day Share Price2020/04/03 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.