ageas (AGESY) AI Stock Analysis

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ageas

(OTC:AGESY)

Rating:80Outperform

Price Target:

$74.00

▲(13.36%Upside)

Ageas's overall stock score is driven by its strong earnings call performance and attractive valuation, indicating robust financial health and strategic execution. While technical indicators support a positive market outlook, improvements in operational efficiency and cash flow conversion could further enhance the company's appeal.

ageas (AGESY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$12.83B

Dividend Yield4.87%

Average Volume (3M)3.12K

Price to Earnings (P/E)9.9

Beta (1Y)0.39

Revenue Growth10.25%

EPS Growth17.52%

CountryUS

Employees16,797

SectorFinancial

Sector Strength73

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)3.57

Shares Outstanding198,938,300

10 Day Avg. Volume2,643

30 Day Avg. Volume3,116

Financial Highlights & Ratios

PEG Ratio0.33

Price to Book (P/B)1.01

Price to Sales (P/S)0.00

P/FCF Ratio-10.19

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ageas Business Overview & Revenue Model

Company Descriptionageas SA/NV, together with its subsidiaries, engages in insurance business in Europe and Asia. The company primarily offers property, casualty, and life insurance products, as well as pension products; and reinsurance products. Its life insurance products include risks related to the life and death of individuals; and non-life insurance products comprise accident and health, motor, fire, and other insurance products, as well as other damages to property covering the risk of property losses or claims liabilities. The company serves private individuals, as well as small, medium-sized, and large companies through independent brokers and the bank channels. ageas SA/NV was founded in 1824 and is headquartered in Brussels, Belgium.

How the Company Makes MoneyAgeas makes money primarily through the underwriting of insurance policies and investment income. Its revenue model includes collecting premiums from policyholders in exchange for providing coverage against specified risks. In the Life insurance segment, Ageas generates revenue from premiums on life and health insurance products, while in the Non-Life segment, it earns from property, casualty, and other general insurance policies. The company also invests the premiums it collects in various financial instruments, earning returns that contribute to its overall income. Key factors contributing to Ageas's earnings include its strategic partnerships and joint ventures in Asia and Europe, which enhance its market reach and product offerings. Additionally, effective risk management and cost control are crucial to maintaining profitability in its insurance operations.

ageas Earnings Call Summary

Earnings Call Date:Feb 27, 2025

(Q4-2024)

% Change Since: 20.18%|

Next Earnings Date:Aug 27, 2025

Earnings Call Sentiment Positive

The earnings call revealed strong financial performance and successful completion of strategic goals, marked by significant growth in various segments and a robust cash position, although some challenges remain, particularly with tax rates in Asia and P&C attritional losses in Belgium.

Q4-2024 Updates

Positive Updates

Impact24 Growth Strategy Success

Ageas successfully completed its Impact24 growth strategy with 2024 inflows up 10% at constant FX. Non-life inflows were up 14% driven by business growth in all segments and product lines, and the Reinsurance Protection business saw inflows increase by more than 50%.

Strong Financial Performance

Ageas achieved a net operating result of EUR1.24 billion, at the upper half of the guided range, and a strong operational capital generation of EUR2.2 billion, exceeding the EUR2 billion mark for the first time.

Cash Position and Dividend Growth

The cash position exceeded EUR1 billion, and the board proposed a total gross cash dividend of EUR3.50 per share, an 8% growth over 2024.

Life and Non-Life Segment Success

Life insurance results increased, with a group Life net operating result of EUR909 million, and Non-life saw a 17% increase in net operating result to EUR454 million, with an excellent combined ratio of 93.3%.

Reinsurance Segment Performance

Reinsurance Protection business contributed strong growth with an improved combined ratio at a strong level of 80.6%.

Negative Updates

Elevated Tax Rate in Asia

Asia recorded an elevated deferred tax in China, impacting the net operating result. The tax rate is expected to normalize, but remains a challenge in the short term.

Challenges in Belgium P&C Segment

The P&C segment in Belgium saw a deterioration in the attritional loss ratio in the second half of 2024, partially due to updated indicative tables for Motor business settlements.

Company Guidance

During the call, Ageas provided guidance for the 2024 fiscal year, highlighting several key metrics. The company reported a net operating result of EUR1.24 billion, which met the upper half of its guidance range despite facing a higher effective tax rate. Ageas achieved a strong combined ratio of 91.8% in Belgium and an impressive guaranteed margin of 98 basis points. The group-wide combined ratio stood at 93.3%, with a significant improvement in non-life segments, particularly in Europe and reinsurance. The operational capital generation reached an exceptional EUR2.2 billion, surpassing the EUR2 billion mark for the first time. Additionally, Ageas announced a proposed total gross cash dividend of EUR3.50 per share, an 8% increase over the previous year. The company also expects increased cash upstream from its insurance entities, projected between EUR850 million and EUR900 million in 2025.

ageas Financial Statement Overview

Summary

Ageas has demonstrated solid revenue growth and improved profitability, particularly with an increase in net profit margin and operating cash flow. However, fluctuations in EBIT and EBITDA margins and a slight decrease in the equity ratio indicate some areas for improvement. Overall, financial performance is positive with strong foundations for future growth.

Income Statement

Positive

The company demonstrated solid revenue growth of 12.62% from 2023 to 2024, reversing a prior declining trend. Gross profit margin remained high at 100%, indicating efficiency in cost management. Net profit margin improved to 13.19% in 2024 from 12.66% in 2023, showcasing enhanced profitability. However, the company experienced fluctuations in EBIT and EBITDA margins, with the latter increasing significantly to 25.61% in 2024 from 7.40% in 2023. Overall, the income statement reflects a positive trajectory in revenue and profitability with some volatility in operational efficiency.

Balance Sheet

Positive

The company's balance sheet shows a moderate debt-to-equity ratio of 0.61 for 2024, indicating manageable leverage levels. Return on equity increased to 14.42% in 2024, reflecting improved returns for shareholders. However, the equity ratio decreased slightly to 7.87%, suggesting a marginally higher reliance on debt financing. While the balance sheet is stable, there is a cautious note on the declining equity base relative to total assets.

Cash Flow

Positive

The company reported a substantial improvement in free cash flow, turning positive to 642 million in 2024 from negative in 2023, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio increased to 0.93, reflecting better cash conversion. However, the free cash flow to net income ratio of 0.57 suggests room for improvement in translating earnings into free cash flow. The overall cash flow position has strengthened, but the company should focus on sustaining this positive trend.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
7.62B	8.48B	7.88B	9.58B	13.04B	11.63B
	Gross Profit
7.62B	8.48B	7.88B	9.58B	13.04B	11.63B
	EBIT
5.91B	1.57B	1.43B	1.41B	503.00M	866.00M
	EBITDA
11.21B	2.17B	2.04B	2.28B	1.34B	1.72B
	Net Income Common Stockholders
1.06B	1.12B	953.00M	1.10B	845.00M	1.14B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	58.96B	58.78B	42.14B	57.19B	61.22B
	Total Assets
0.00	98.45B	96.69B	100.30B	111.14B	111.42B
	Total Debt
0.00	4.75B	4.58B	4.44B	4.73B	4.71B
	Net Debt
0.00	2.67B	2.71B	3.29B	2.79B	2.47B
	Total Liabilities
0.00	89.66B	88.19B	91.67B	96.97B	97.64B
	Stockholders Equity
11.52B	7.75B	7.42B	7.58B	11.91B	11.55B
Cash Flow		Free Cash Flow
563.00M	642.00M	-115.00M	-752.00M	-1.21B	-1.69B
	Operating Cash Flow
736.00M	1.04B	124.00M	-588.00M	-1.06B	-1.33B
	Investing Cash Flow
822.00M	93.00M	1.35B	1.03B	1.44B	635.00M
	Financing Cash Flow
-902.00M	-952.00M	-868.00M	-1.13B	-684.00M	-804.00M

ageas Technical Analysis

Technical Analysis Sentiment

Positive

Last Price65.28

Price Trends

50DMA

61.18

Positive

100DMA

57.71

Positive

200DMA

53.39

Positive

Market Momentum

MACD

1.22

Negative

RSI

59.29

Neutral

STOCH

57.60

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGESY, the sentiment is Positive. The current price of 65.28 is above the 20-day moving average (MA) of 63.98, above the 50-day MA of 61.18, and above the 200-day MA of 53.39, indicating a bullish trend. The MACD of 1.22 indicates Negative momentum. The RSI at 59.29 is Neutral, neither overbought nor oversold. The STOCH value of 57.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGESY.

ageas Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGESY	80 Outperform	$12.83B	9.90	14.90%	4.87%	10.25%	17.52%
HIG	79 Outperform	$35.58B	12.48	18.49%	1.66%	7.55%	14.16%
PFG	73 Outperform	$17.02B	16.27	9.70%	4.00%	5.84%	-10.64%
EQH	71 Outperform	$16.13B	14.03	56.67%	2.03%	12.41%	14.76%
AEG	70 Neutral	$10.99B	15.29	9.36%	4.99%	-5.03%	―
AIG	68 Neutral	$49.45B	18.90	6.13%	2.13%	-44.30%	-33.09%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

* Financial Sector Average

Performance Comparison

AGESY

ageas

65.28

22.06

51.04%

AEG

Aegon

6.94

0.94

15.67%

AIG

American International Group

84.61

12.17

16.80%

HIG

Hartford Financial

125.23

25.67

25.78%

PFG

Principal Financial

75.90

0.80

1.07%

EQH

Equitable Holdings

51.61

12.42

31.69%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.