Conduit Holdings Ltd (CRE) AI Stock Analysis

• Market Cap: £651.05M
• Dividend Yield: 7.16%
• Average Volume (3M): 573.23K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.86
• Revenue Growth: 27.08%
• EPS Growth: -34.38%
• Country: UK
• Employees: 59
• Sector: Financial
• Sector Strength: 93
• Industry: Insurance
• EPS (TTM): 0.63
• Shares Outstanding: 165,239,990
• 10 Day Avg. Volume: 987,920
• 30 Day Avg. Volume: 573,231
• PEG Ratio: 0.01
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.00
• Price to Cash Flow (P/CF): 2.60
• P/FCF Ratio: 2.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 575.00p
• Price Target Upside: 45.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Conduit Holdings Ltd scores 67, driven by robust financial performance and attractive valuation. However, technical analysis indicates bearish trends, suggesting caution. Despite this, recent positive corporate events hint at potential growth opportunities, making this stock appealing to investors seeking value and income.

Conduit Holdings Ltd Business Overview & Revenue Model

Company Description

Conduit Holdings Ltd (CRE) operates as a reinsurance company, primarily focusing on property and casualty reinsurance. The company underwrites various reinsurance products, providing insurance coverage to insurance companies that transfer risk from their portfolios. Operating in the global reinsurance market, Conduit Holdings Ltd aims to offer tailored solutions to its clients, leveraging its expertise in risk assessment and management.

How the Company Makes Money

Conduit Holdings Ltd generates revenue primarily through the collection of premiums from its reinsurance contracts. These contracts are agreements where Conduit takes on specified risks from other insurance companies in exchange for premium payments. The company's earnings are driven by the volume and pricing of these reinsurance policies, as well as its ability to accurately assess and manage risk to minimize claims payouts. Investment income from the premiums collected, which are invested in various financial instruments, also contributes to the company's revenue. Key factors influencing its earnings include the occurrence of insured events, market conditions in the reinsurance industry, and regulatory changes impacting the sector.

Conduit Holdings Ltd Financial Statement Overview

Summary

Conduit Holdings Ltd has demonstrated substantial revenue growth and improved profitability, transitioning from a net loss to a net profit. The balance sheet indicates strong stability with low leverage, though there are liquidity challenges. Cash flow management is robust, despite variable investment activities.

Income Statement

Conduit Holdings Ltd has shown impressive revenue growth, with a significant increase from $200,000 in 2020 to $746.3 million in 2024. The gross profit margin remains strong, and the company has turned from a net loss to a net profit of $125.6 million in 2024, indicating robust financial health and improving profitability. The absence of EBIT in 2024 is offset by a healthy EBITDA margin, reflecting strong operational performance. However, the drop in net income from 2023 to 2024 is a concern.

Balance Sheet

The company maintains a solid equity base with a high equity ratio and low debt-to-equity ratio, indicating strong financial stability. The increase in total assets and stockholders' equity over the years demonstrates growth and resilience. However, the slight increase in total liabilities and a decrease in cash equivalents suggest potential liquidity management challenges.

Cash Flow

Conduit Holdings Ltd has exhibited strong cash flow management, with consistent free cash flow generation and substantial growth in operating cash flow. The free cash flow to net income ratio remains healthy, underscoring efficient cash conversion. However, fluctuations in investing cash flow could indicate variable investment activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
251.60M	746.30M	602.30M	429.50M	190.60M	200.00K
	Gross Profit
251.60M	746.30M	594.10M	429.50M	190.60M	200.00K
	EBIT
-69.00M	0.00	192.00M	-88.90M	-41.50M	-4.70M
	EBITDA
0.00	127.90M	190.10M	-36.10M	-41.40M	-4.70M
	Net Income Common Stockholders
-69.00M	125.60M	190.80M	-90.50M	-42.00M	-4.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
313.20M	313.20M	199.80M	112.90M	67.50M	1.05B
	Total Assets
1.91B	1.91B	1.50B	1.57B	1.33B	1.06B
	Total Debt
1.60M	1.60M	2.30M	2.40M	2.90M	11.00K
	Net Debt
-311.60M	-311.60M	-197.50M	-110.50M	-64.60M	-1.05B
	Total Liabilities
855.00M	855.00M	508.80M	754.00M	353.60M	11.00K
	Stockholders Equity
1.05B	1.05B	987.40M	814.40M	981.20M	1.05B
Cash Flow		Free Cash Flow
116.00M	406.60M	308.70M	202.90M	47.30M	-3.30M
	Operating Cash Flow
116.50M	407.30M	309.40M	203.20M	48.70M	-3.10M
	Investing Cash Flow
-91.90M	-219.70M	-148.70M	-77.90M	-1.01B	-100.00K
	Financing Cash Flow
-63.00M	-69.70M	-73.80M	-79.80M	-30.00M	1.06B

Conduit Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 394.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CRE, the sentiment is Negative. The current price of 394 is below the 20-day moving average (MA) of 418.63, below the 50-day MA of 444.14, and below the 200-day MA of 491.61, indicating a bearish trend. The MACD of -17.39 indicates Positive momentum. The RSI at 28.17 is Positive, neither overbought nor oversold. The STOCH value of 40.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CRE.

Conduit Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRE	67 Neutral	£651.05M	6.30	11.95%	7.16%	27.08%	-34.38%
Sector *	64 Neutral	$14.34B	10.61	9.28%	4.07%	18.04%	-9.54%

Conduit Holdings Ltd Corporate Events

Conduit Holdings Releases 2024 Annual Report and ESG Insights

Conduit Holdings Limited has published its 2024 Annual Report and Accounts, along with its ESG and ClimateWise Reports, following the release of its preliminary results for the same year. This publication is a significant step for the company, reinforcing its commitment to transparency and sustainability, and is likely to impact its stakeholders positively by providing insights into its financial and environmental performance.

Conduit Holdings’ Executive Chairman Executes Strategic Share Transaction

Conduit Holdings Limited announced that Neil Eckert, its Executive Chairman, conducted a ‘Bed and SIPP’ transaction involving the sale and repurchase of 50,993 common shares. This transaction, executed on the London Stock Exchange, resulted in a slight increase in the share price upon repurchase. The transaction reflects a strategic financial maneuver by Eckert, maintaining his beneficial ownership interest at 744,676 common shares, which may signal confidence in the company’s future prospects.

Conduit Holdings CEO Increases Stake with Significant Share Acquisition

Conduit Holdings Limited announced that its CEO, Trevor Carvey, acquired 30,000 common shares on 20 and 21 February 2025, increasing his total shareholding to 635,557 shares. This acquisition reflects a notable increase in insider investment, potentially signaling confidence in the company’s financial health and strategic direction, which may positively influence stakeholder perceptions.

Conduit Holdings Announces Strong 2024 Growth Amid Challenges

Conduit Holdings Limited announced strong 2024 financial results, with a 24.8% increase in gross premiums written, amounting to $1.16 billion, despite significant industry losses due to events such as California wildfires. The company achieved a 12.7% return on equity and continues to capitalize on a robust balance sheet and favorable market conditions, positioning itself for future growth opportunities. Notably, the company anticipates improved underwriting conditions following recent catastrophic events, which could enhance their market positioning and offer attractive growth opportunities.

Conduit Holdings to Announce 2024 Financial Results

Conduit Holdings Ltd announced it will release its 2024 full-year financial results on February 19, 2025. The company will host a virtual presentation for analysts and investors on the same day, followed by a session for retail investors on February 20, 2025. The announcement highlights Conduit’s commitment to transparency and engagement with its stakeholders, providing opportunities for investors to ask questions and gain insights into the company’s financial performance.

Conduit Re Gains Positive Outlook from AM Best

Conduit Holdings Limited announced that AM Best has affirmed its subsidiary, Conduit Re’s, Financial Strength Rating of “A-” and Long-Term Issuer Credit Rating of “a-“, while upgrading its outlook from “stable” to “positive”. AM Best’s decision reflects the company’s successful adaptation to market conditions and achievement of key objectives, projecting continued growth and diversification of its underwriting profile. This recognition underscores Conduit Re’s significant achievements over the past four years and its positive reception in the market.