Hiscox Ltd
Hiscox Ltd Fundamental Analysis
Hiscox Ltd (HCXLY) shows moderate financial fundamentals with a PE ratio of 11.79, profit margin of 12.36%, and ROE of 15.55%. The company generates $4.8B in annual revenue with weak year-over-year growth of 2.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HCXLY's fundamental strength across five key dimensions:
Efficiency Score
WeakHCXLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHCXLY trades at attractive valuation levels.
Growth Score
WeakHCXLY faces weak or negative growth trends.
Financial Health Score
ModerateHCXLY shows balanced financial health with some risks.
Profitability Score
ModerateHCXLY maintains healthy but balanced margins.
Key Financial Metrics
Is HCXLY Expensive or Cheap?
P/E Ratio
HCXLY trades at 11.79 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HCXLY's PEG of 0.24 indicates potential undervaluation.
Price to Book
The market values Hiscox Ltd at 1.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.10 times EBITDA. This is generally considered low.
How Well Does HCXLY Make Money?
Net Profit Margin
For every $100 in sales, Hiscox Ltd keeps $12.36 as profit after all expenses.
Operating Margin
Core operations generate 45.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.55 in profit for every $100 of shareholder equity.
ROA
Hiscox Ltd generates $4.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hiscox Ltd generates limited operating cash flow of $69.75M, signaling weaker underlying cash strength.
Free Cash Flow
Hiscox Ltd generates weak or negative free cash flow of $68.49M, restricting financial flexibility.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
HCXLY converts 1.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.79
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.42
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How HCXLY Stacks Against Its Sector Peers
| Metric | HCXLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.79 | 18.50 | Better (Cheaper) |
| ROE | 15.55% | 809.00% | Weak |
| Net Margin | 12.36% | 2211.00% | Weak |
| Debt/Equity | 0.21 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.04 | Weak Liquidity |
| ROA | 4.94% | -24328.00% (disorted) | Weak |
HCXLY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hiscox Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-7.44%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
928.55%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
132.25%
Industry Style: Value, Dividend, Cyclical
High Growth