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Admiral Group PLC ADM

Morningstar Rating
GBX 2,631.00 +2.00 (0.08%)
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Company Report

For European Insurance Dividends, Stick to Good-Quality Companies

For some, if not many investors, dividends are important. This is no less the case in European insurance. However, while investing for dividends can seem straightforward, we think there is more to it than just hunting for stocks that provide the highest yield. Within our European insurance list of 18 companies, we recommend Admiral, Allianz, Munich, and Zurich as the best options for investors looking for a solid, stable, reliable, and real yield. In establishing this list, we rule out companies that have had a track record of omitting dividends and those that have frequently made dividend cuts that we think are meaningful.

Price vs Fair Value

ADM is trading within a range we consider fairly valued.
Price
GBX 2,629.00
Fair Value
GBX 9,265.00
Uncertainty
Medium
1-Star Price
GBX 9,457.10
5-Star Price
GBX 9,536.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Admiral’s investments in data and proprietary technology have led to market-leading rates of underwriting for a maintained period of time.

Bears

Admiral's international car business has been underwriting loss making for quite some time.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
GBX 2,629.00
Day Range
GBX 2,613.692,632.00
52-Week Range
GBX 2,043.962,870.00
Bid/Ask
GBX 2,630.00 / GBX 2,632.00
Market Cap
GBX 779.85 Bil
Volume/Avg
9,052 / 642,117

Key Statistics

Price/Earnings (Normalized)
20.22
Price/Sales
2.26
Dividend Yield (Trailing)
2.79%
Dividend Yield (Forward)
2.79%
Total Yield
2.79%

Company Profile

Admiral is a personal lines insurer that operates predominantly in the United Kingdom. The business is primarily a motor insurer with UK and European auto insurance accounting for the majority of gross premium. The business also has nascent but growing UK home insurance. Admiral was established in 1993 to sell motor insurance to nonstandard risks. These nonstandard policyholders included younger drivers, female drivers, drivers wanting to pay by credit card, and drivers based in London. Over the years the company has continued to expand its perimeter of nonstandard risks.
Sector
Financial Services
Industry
Insurance - Property & Casualty
Stock Style Box
Mid Growth
Total Number of Employees
13,000

Competitors

Valuation

Metric
ADM
DLG
AV.
Price/Earnings (Normalized)
20.229.09
Price/Book Value
7.861.001.48
Price/Sales
2.260.640.41
Price/Cash Flow
159.44
Price/Earnings
ADM
DLG
AV.

Financial Strength

Metric
ADM
DLG
AV.
Quick Ratio
Current Ratio
Interest Coverage
22.5820.404.59
Quick Ratio
No chart available

Profitability

Metric
ADM
DLG
AV.
Return on Assets (Normalized)
5.70%−0.53%0.46%
Return on Equity (Normalized)
40.90%−1.81%15.72%
Return on Invested Capital (Normalized)
18.89%−1.11%10.33%
Return on Assets
ADM
DLG
AV.
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Property & Casualty Industry Comparables

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