Aviva plc
Aviva plc Fundamental Analysis
Aviva plc (AVVIY) shows weak financial fundamentals with a PE ratio of 28.91, profit margin of 2.22%, and ROE of 8.83%. The company generates $27.3B in annual revenue with weak year-over-year growth of -3.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVVIY's fundamental strength across five key dimensions:
Efficiency Score
WeakAVVIY struggles to generate sufficient returns from assets.
Valuation Score
ModerateAVVIY shows balanced valuation metrics.
Growth Score
WeakAVVIY faces weak or negative growth trends.
Financial Health Score
ModerateAVVIY shows balanced financial health with some risks.
Profitability Score
WeakAVVIY struggles to sustain strong margins.
Key Financial Metrics
Is AVVIY Expensive or Cheap?
P/E Ratio
AVVIY trades at 28.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AVVIY's PEG of -9.36 indicates potential undervaluation.
Price to Book
The market values Aviva plc at 2.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.99 times EBITDA. This signals the market has high growth expectations.
How Well Does AVVIY Make Money?
Net Profit Margin
For every $100 in sales, Aviva plc keeps $2.22 as profit after all expenses.
Operating Margin
Core operations generate 4.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.83 in profit for every $100 of shareholder equity.
ROA
Aviva plc generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aviva plc produces operating cash flow of $3.78B, showing steady but balanced cash generation.
Free Cash Flow
Aviva plc generates strong free cash flow of $3.64B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.74 in free cash annually.
FCF Yield
AVVIY converts 25.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-9.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How AVVIY Stacks Against Its Sector Peers
| Metric | AVVIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.91 | 18.73 | Worse (Expensive) |
| ROE | 8.83% | 847.00% | Weak |
| Net Margin | 2.22% | 2562.00% | Weak |
| Debt/Equity | 0.73 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.20% | -21692.00% (disorted) | Weak |
AVVIY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aviva plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.34%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-65.32%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
3.59%
Industry Style: Value, Dividend, Cyclical
Growing