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Admiral Group (AMIGY)
OTHER OTC:AMIGY
US Market

Admiral Group (AMIGY) AI Stock Analysis

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Admiral Group

(OTC:AMIGY)

62Neutral
Admiral Group's stock is supported by strong technical indicators and a reasonable valuation, with a notable dividend yield. However, financial performance shows areas for improvement, particularly in profitability and cash flow management. Addressing these challenges will be vital for long-term value creation.

Admiral Group (AMIGY) vs. S&P 500 (SPY)

Admiral Group Business Overview & Revenue Model

Company DescriptionAdmiral Group (AMIGY) is a leading insurance company headquartered in Cardiff, Wales, specializing in providing a range of insurance products and services. The company operates primarily in the United Kingdom and internationally, offering services such as car insurance, home insurance, travel insurance, and personal loans. Admiral Group is well-regarded for its customer-centric approach and innovative solutions in the insurance sector.
How the Company Makes MoneyAdmiral Group makes money primarily through underwriting insurance policies and managing associated risks. The company's revenue model is based on collecting premiums from policyholders in exchange for coverage against various risks. Admiral Group earns a significant portion of its income from car insurance policies, which is its largest segment. Additionally, the company generates revenue through investment income, leveraging the premiums collected to invest in various financial instruments. Admiral Group also benefits from its ancillary products and services, such as personal loans and household insurance, which diversify its revenue streams. Strategic partnerships and a robust digital presence contribute to Admiral's earnings, enhancing customer acquisition and retention efforts.

Admiral Group Financial Statement Overview

Summary
Admiral Group shows strong revenue growth but faces challenges in profitability and cash flow management. The balance sheet indicates moderate leverage but a need for equity ratio improvement. Operational efficiency, debt management, and cash flow optimization are crucial areas for enhancement.
Income Statement
42
Neutral
Admiral Group's income statement shows significant revenue growth from the previous year, but the company faced a negative EBIT, impacting profitability. The gross profit margin improved, indicating cost management, but the net profit margin remains modest due to the negative EBIT. The company should focus on improving operational efficiency to enhance profitability.
Balance Sheet
55
Neutral
The balance sheet reveals a mixed picture. While the company maintains a reasonable debt-to-equity ratio, indicating moderate leverage, the return on equity has decreased due to lower net income. The equity ratio is relatively low, suggesting a higher reliance on liabilities. Strengthening equity and managing debt could improve financial stability.
Cash Flow
48
Neutral
Admiral Group's cash flow statement reflects a decline in free cash flow growth, impacted by decreased operating cash flow. The operating cash flow to net income ratio shows a healthy conversion, but the free cash flow to net income ratio indicates potential challenges in sustaining free cash flow. Improving cash flow efficiency will be crucial for future growth.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
4.49B3.55B1.49B1.55B1.31B1.35B
Gross Profit
4.50B3.91B1.49B1.55B1.31B1.35B
EBIT
561.30M-800.00K483.60M979.80M484.30M56.70M
EBITDA
7.50M57.90M525.50M1.05B527.10M99.20M
Net Income Common Stockholders
400.90M338.00M286.50M583.30M528.80M432.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
476.80M3.14B2.67B458.00M363.60M398.20M
Total Assets
6.80B7.10B8.94B8.36B7.84B7.59B
Total Debt
444.20M1.21B1.03B776.20M607.80M665.80M
Net Debt
-32.60M896.80M730.60M318.20M244.20M267.60M
Total Liabilities
6.03B6.10B7.98B6.95B6.72B6.67B
Stockholders Equity
758.30M991.80M954.20M1.41B1.11B909.40M
Cash FlowFree Cash Flow
536.40M203.10M366.50M175.40M565.70M203.00M
Operating Cash Flow
599.40M279.00M465.10M244.60M608.80M236.60M
Investing Cash Flow
-328.60M-438.20M-101.00M387.80M-43.10M-33.60M
Financing Cash Flow
-353.50M-171.80M-425.00M-564.80M-498.10M-304.90M

Admiral Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.96
Price Trends
50DMA
36.17
Positive
100DMA
34.33
Positive
200DMA
34.61
Positive
Market Momentum
MACD
0.18
Positive
RSI
52.96
Neutral
STOCH
32.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMIGY, the sentiment is Positive. The current price of 37.96 is below the 20-day moving average (MA) of 38.12, above the 50-day MA of 36.17, and above the 200-day MA of 34.61, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 32.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMIGY.

Admiral Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$23.09B10.1517.61%2.24%13.22%24.83%
PGPGR
80
Outperform
$166.65B19.7436.98%1.72%21.36%118.77%
HIHIG
79
Outperform
$35.50B12.0219.58%1.59%8.19%29.77%
TRTRV
75
Outperform
$59.98B12.3218.94%1.59%12.23%68.50%
ALALL
72
Outperform
$54.99B12.2123.80%1.81%12.28%
63
Neutral
$14.39B9.818.95%4.37%16.38%-11.64%
62
Neutral
$11.60B13.5457.04%4.00%79.99%19.33%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AMIGY
Admiral Group
37.96
5.92
18.48%
ALL
Allstate
205.32
37.47
22.32%
CINF
Cincinnati Financial
144.70
27.36
23.32%
HIG
Hartford Financial
123.44
23.36
23.34%
PGR
Progressive
281.23
76.12
37.11%
TRV
Travelers Companies
263.10
38.58
17.18%

Admiral Group Earnings Call Summary

Earnings Call Date: Mar 6, 2025 | % Change Since: 1.71% | Next Earnings Date: Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a very strong performance overall, with record profitability and growth driven by UK Motor insurance. While there were challenges in Italy and a contraction in the U.S. market, the positive aspects significantly outweighed the negatives.
Highlights
Record Group Profitability
Group profitability reached GBP 839 million, an all-time high, driven by UK Motor insurance delivering close to GBP 1 billion of profits.
Strong Turnover Growth
Reported 28% turnover growth with a 14% increase in customer base and higher average premiums than 2023 across the board.
International Profits
France and U.S. reported double-digit profits, and Admiral Money and UK Household also posted strong results.
Strong Solvency and Dividend Increase
Solvency ratio over 200% and full year dividend up 90% to 192p a share.
Admiral Money Growth
Admiral Money's outstanding balances increased by 23%, with profit up 30%.
Lowlights
Challenges in Italy
ConTe reported a GBP 23 million loss due to challenging market conditions with high bodily injury inflation.
U.S. Market Contraction
U.S. turnaround required shrinking the customer base, though profitability improved.
Company Guidance
In the call, Admiral Group provided detailed guidance on their 2024 performance and future outlook. The company reported a 28% turnover growth, driven by a 14% increase in their customer base and higher average premiums compared to 2023. Group profitability reached an all-time high of GBP 839 million, with UK Motor insurance contributing nearly GBP 1 billion in profits. Admiral also highlighted the success of their international operations, with France and the U.S. achieving double-digit profits. They maintained a strong solvency ratio of over 200% and emphasized their strategic focus on data, AI, and technology to enhance capabilities. The company also announced a dividend increase of 90% year-on-year, reflecting their robust financial position. For 2025, Admiral expects softer market conditions but remains confident in their disciplined approach and agility to adapt to changes, with anticipated continued growth and profitability across their diversified insurance lines.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.