Hiscox (HSX.L)
Financials · LSE · UK
Fundamentals
Valuation and ratings
Hiscox trades at £18.70, which is 21% above the £14.84 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 48 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 14.0 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 Hiscox
Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. It operates through Hiscox Retail, Hiscox London Market, and Hiscox Re segments. The company offers commercial insurance, such as emerging professions, media and tech, and small business insurance; and personal lines, including high-value homes and fine art, as well as artwork, antiques, classic cars, jewelry, collectables, and other assets through brokers, partners, and direct-to-consumers. It also provides property insurance; marine, specialty, cyber, and energy insurance; casualty insurance; terrorism, kidnap, and ransom insurance; and other specialty insurance products. In addition, the company offers property and casualty reinsurance services, as well as investment services. Hiscox Ltd was founded in 1901 and is headquartered in Pembroke, Bermuda.
HSX.L passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Hiscox (HSX.L) undervalued?
Against our discounted cash flow estimate of £14.84, HSX.L at £18.70 is 21% 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 HSX.L's P/E ratio?
HSX.L trades at 14.0 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.
The full research page for HSX.L, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.