Admiral Group (ADM.L)

Financials · LSE · UK

£35.72+3.78% today

Fundamentals

Market cap£10.86B

P/E ratio15.0

Dividend yield4.37%

Revenue growth (YoY)-4.1%

Profit margin14.8%

Return on equity53.0%

Valuation and ratings

DCF fair value£20.66

Upside to fair value-42.2%

Analyst target (mean)£34.35

Analyst range£23.50 to £38.60

Analysts covering14

Consensus viewbuy

Moat score59/100

Overall rating42/100, Reduce

Admiral Group trades at £35.72, which is 42% above the £20.66 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 15.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Admiral Group

Admiral Group plc, a financial services company, provides insurance and personal lending products in the United Kingdom, France, Italy, and Spain. It operates through four segments: UK Insurance, European Insurance, Admiral Money, and Other. The company offers underwriting services that include motor, household, pet, travel, and other insurance, as well as car and home insurance; and distributes and underwrites unsecured personal loans, car finance products, and secured homeowner loans. It provides its insurance products and services under the Admiral, Admiral Business, Admiral Money, Admiral Pioneer, Balumba, Bell, Connect by Admiral, ConTe.it Assicurazioni, ConTe.it Prestiti, Diamond, Gladiator, L'olivier assurance, More Than, Qualitas Auto, and Veygo brand names. The company was formerly known as Admiral Group Limited and changed its name to Admiral Group plc in September 2004. Admiral Group plc was founded in 1993 and is headquartered in Cardiff, the United Kingdom.

Industry: Insurance - Property & CasualtyEmployees: 14,805HQ: United Kingdom

ADM.L passes 5 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Banks and financials

Almost everything you know about valuation breaks on a bank. Debt is the raw material, and the loan book is where they die.

UK stocks worth a look

The FTSE is a basket of multinationals that happen to be listed in London. That distinction changes everything about what you are buying.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is Admiral Group (ADM.L) undervalued?

Against our discounted cash flow estimate of £20.66, ADM.L at £35.72 is 42% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is ADM.L's P/E ratio?

ADM.L trades at 15.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.