Admiral Group Plc (ADM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Admiral Group Plc

Sabre Insurance Group Plc

Lancashire Holdings Ltd.

Direct Line Insurance Group Plc

Saga Plc

CPP Group Plc

Why is Admiral Group Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 40.16%

With ROE of 85.89%, it has a very attractive valuation with a 7.20 Price to Book Value

Over the past year, while the stock has generated a return of 19.16%, its profits have risen by 107.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Admiral Group Plc should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Insurance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Admiral Group Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Admiral Group Plc

19.16%

0.97

19.55%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.85%

EBIT Growth (5y)

-19.73%

EBIT to Interest (avg)

0.05

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

21.01%

Dividend Payout Ratio

88.66%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

0.18%

ROE (avg)

40.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.20

EV to EBIT

EV to EBITDA

117.31

EV to Capital Employed

10.16

EV to Sales

1.77

PEG Ratio

0.08

Dividend Yield

0.00%

ROCE (Latest)

ROE (Latest)

85.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 2,026.9 MM

ROCE(HY)

Highest at 65.36%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 20.28 %

PRE-TAX PROFIT(Q)

At GBP 521 MM has Grown at 69.38%

NET PROFIT(Q)

At GBP 406 MM has Grown at 72.33%

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 104.21

DIVIDEND PAYOUT RATIO(Y)

Lowest at 87.84%

DEBT-EQUITY RATIO (HY)

Highest at 88.23 %

INTEREST(Q)

Highest at GBP 38 MM

Here's what is working for Admiral Group Plc

Operating Cash Flow

Highest at GBP 2,026.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit Margin

Highest at 20.28 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At GBP 521 MM has Grown at 69.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 406 MM has Grown at 72.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Admiral Group Plc

Interest Coverage Ratio

Lowest at 104.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at GBP 38 MM

in the last five periods and Increased by 12.43% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 88.23 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Dividend Payout Ratio

Lowest at 87.84%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)