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Admiral Group Plc Unsponsored ADR (AMIGY)
:AMIGY
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Admiral Group
(OTC:AMIGY)
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Rating:75Outperform
Price Target:
$49.00
▲(16.28% Upside)
Admiral Group's strong financial performance, highlighted by robust revenue growth and improved profitability, is the most significant factor driving the score. The positive sentiment from the earnings call, with record profits and customer growth, further supports the stock's outlook. While technical indicators suggest short-term challenges, the attractive valuation with a low P/E ratio and high dividend yield enhances the stock's appeal.
Positive Factors
Revenue Growth
Admiral Group's robust revenue growth indicates a strong market position and effective business strategies, enhancing long-term financial stability.
Profitability Improvement
Improved profitability through enhanced operational efficiency strengthens Admiral's financial health and supports sustainable growth.
Cash Flow Management
Strong cash flow management ensures Admiral can meet obligations, invest in growth opportunities, and maintain financial flexibility.
Negative Factors
Debt Levels
While leverage management has improved, continued reliance on debt could pose risks to financial stability if not carefully managed.
Market Pricing Pressure
Pricing pressures in the motor insurance market could impact Admiral's margins and competitive positioning over the long term.
Challenges in Italian Market
Strategic adjustments in Italy may limit growth potential and require careful management to avoid negative impacts on overall performance.
Admiral Group (AMIGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.97B
Dividend Yield7.15%
Average Volume (3M)3.81K
Price to Earnings (P/E)12.2
Beta (1Y)0.17
Revenue Growth25.96%
EPS Growth111.78%
CountryUS
Employees15,432
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.80
Shares Outstanding306,304,700
10 Day Avg. Volume0
30 Day Avg. Volume3,813
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)5.88
Price to Sales (P/S)1.66
P/FCF Ratio35.87
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda12.45
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.2
Revenue Forecast (FY)$6.90B
Admiral Group Business Overview & Revenue Model
Company DescriptionAdmiral Group plc is a UK-based financial services company that primarily operates in the insurance sector. Founded in 1993, Admiral is best known for its car insurance products, but it also provides home insurance, travel insurance, and other financial services. The company operates through various brands and subsidiaries, offering a range of insurance products tailored to meet the diverse needs of its customers, while also engaging in price comparison services and vehicle leasing.
How the Company Makes MoneyAdmiral Group generates revenue primarily through the underwriting of insurance policies. The company collects premiums from its customers when they purchase insurance coverage, which forms the core of its revenue stream. Additionally, Admiral benefits from investment income generated from the premiums it holds before claims are paid out. The company also earns money through ancillary services, such as financial products related to insurance, and through its price comparison website, Confused.com, which earns revenue from referrals and advertising. Strategic partnerships with other financial institutions and service providers further enhance its revenue, allowing Admiral to diversify its offerings and tap into additional markets.
Admiral Group Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial performance with record profits, robust growth in customer numbers, and significant achievements in U.K. Motor and Household segments. However, challenges remain in the Italian market and market pricing pressures in motor insurance. Overall, the positive aspects significantly outweigh the challenges.Q2-2025 Updates
Positive Updates
Record Profit and Customer Growth
Admiral Group delivered a record profit of GBP 521 million, marking almost a 70% increase year-on-year, and added 1 million customers, a 10% increase versus last year.
Strong Performance in U.K. Motor Insurance
U.K. Motor insurance was a key driver of profit with a 3-point improvement in combined ratio and 5% customer growth year-on-year.
U.K. Household and Admiral Money Performance
U.K. Household and Admiral Money both doubled their profits, contributing significantly to the overall growth of the group.
Expansion in Europe
Successful turnaround of the Italian business and continued profitable growth in France.
High Return on Equity
The group achieved a return on equity close to 60%, significantly influenced by the profit increase.
Increased Interim Dividend
The interim dividend increased by over 60% to 115p a share, reflecting the strong financial performance.
Growth in Admiral Money
Admiral Money's on-balance sheet loans increased by 25% to GBP 1.3 billion, with profit more than doubling from GBP 7 million to GBP 16 million.
Strong Net Promoter Score
The group achieved a strong Net Promoter Score above 50%, reflecting improved customer experience.
Negative Updates
Decline in Turnover for U.K. Motor and Italy
Turnover was flat against the first half of last year, with reductions in turnover in Italy and U.K. Motor, although offset by an increase in U.K. Household.
Challenges in Italian Market
The Italian business saw a planned reduction in policy count due to strategic adjustments, impacting growth.
Market Pricing Pressure
Continued reductions in market prices for motor insurance due to better-than-expected claims trends, putting pressure on pricing strategies.
Provision for Total Loss Valuations
A provision of GBP 50 million was made to rectify historic cases of total loss valuations, accounting for around 3% of the total loss claims costs over the relevant period.
Company Guidance
In the first half of 2025, Admiral Group reported a record profit of GBP 521 million, marking a nearly 70% increase year-on-year, alongside a 10% rise in customer numbers, adding 1 million customers. The UK Motor insurance segment was a significant contributor to this profit growth, supported by positive claims trends. Additionally, UK Household and Admiral Money both doubled their profits. The group's focus on maintaining pricing discipline in a softening market and the successful integration of More Than contributed to this robust performance. The company also made strides in enhancing its data and technology capabilities, reflected in a strong Net Promoter Score above 50%. The interim dividend saw a substantial increase of over 60% to 115p per share, emphasizing Admiral's solid capital position and strategic execution. Despite the sale of its U.S. business, Elephant, Admiral continues to show strong financial and strategic progress across its operations in the UK and Europe, setting a strong foundation for future growth.Admiral Group Financial Statement Overview
Summary
Admiral Group exhibits robust revenue growth and improved profitability, with a solid increase in net profit margins. The balance sheet shows improved leverage management, although reliance on debt remains a concern. Cash flow management is strong, with consistent free cash flow growth. Overall, the company is on a positive trajectory with notable growth and stability, yet potential risks from leverage should be monitored.Income Statement
The company has shown strong revenue growth with a significant increase from $3.55 billion in 2023 to $4.87 billion in 2024, indicating a robust expansion trajectory. Net profit margin has also improved from 9.5% in 2023 to 13.6% in 2024, reflecting enhanced operational efficiency. However, EBIT has not been consistent over the years, affecting the overall profitability stability.75
Positive
Balance Sheet
The debt-to-equity ratio has improved from 1.22 in 2023 to 1.02 in 2024, showing better leverage management. The equity ratio remains relatively stable at around 17.3%, suggesting moderate financial stability. However, the return on equity is high at 48.4% in 2024, which is positive but may indicate potential risks of over-leverage.68
Positive
Cash Flow
Free cash flow increased from $203 million in 2023 to $224.8 million in 2024, demonstrating a healthy cash generation capability. The operating cash flow to net income ratio is 0.56, indicating strong cash flow relative to net income. The company has effectively managed its capital expenditures and financing activities, contributing to a stable cash flow position.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.18B | 4.87B | 3.51B | 3.02B | 1.55B | 1.31B |
| Gross Profit | 4.87B | 4.62B | 3.37B | 2.87B | 1.55B | 1.31B |
| EBITDA | 915.80M | 951.80M | 521.80M | 416.60M | 781.80M | 527.10M |
| Net Income | 826.90M | 663.30M | 338.00M | 286.50M | 997.90M | 528.80M |
Balance Sheet | ||||||
| Total Assets | 8.63B | 7.94B | 7.10B | 8.94B | 8.36B | 7.84B |
| Cash, Cash Equivalents and Short-Term Investments | 3.73B | 3.60B | 3.14B | 2.67B | 458.00M | 363.60M |
| Total Debt | 1.58B | 1.39B | 1.21B | 1.03B | 776.20M | 607.80M |
| Total Liabilities | 7.20B | 6.57B | 6.10B | 7.98B | 6.95B | 6.72B |
| Stockholders Equity | 1.44B | 1.37B | 991.80M | 885.80M | 1.41B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 205.80M | 224.80M | 203.10M | 366.50M | 175.40M | 565.70M |
| Operating Cash Flow | 349.70M | 369.00M | 279.00M | 465.10M | 244.60M | 608.80M |
| Investing Cash Flow | -58.70M | -144.20M | -75.90M | -101.00M | 387.80M | -43.10M |
| Financing Cash Flow | -353.20M | -257.90M | -171.80M | -425.00M | -564.80M | -498.10M |
Admiral Group Technical Analysis
Positive
42.14
Price Trends
42.48
Positive
43.83
Negative
42.25
Positive
Market Momentum
-0.07
Negative
58.72
Neutral
93.17
Negative
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 42.14 is above the 20-day moving average (MA) of 41.62, below the 50-day MA of 42.48, and below the 200-day MA of 42.25, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 93.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMIGY.
Admiral Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $6.03B | 17.19 | 19.49% | 4.01% | 3.72% | -16.23% | |
77 Outperform | $6.57B | 10.68 | 20.02% | 1.98% | 5.26% | 72.46% | |
76 Outperform | $26.10B | 12.45 | 14.53% | 2.04% | -0.63% | -30.68% | |
75 Outperform | $12.97B | 12.19 | 63.86% | 7.15% | 25.96% | 111.78% | |
70 Neutral | $8.32B | 8.79 | 16.27% | 1.80% | 6.37% | 68.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.46B | 14.42 | 16.91% | 6.75% | ― | -10.75% |
* Financial Sector Average
AMIGY
Admiral Group
42.57
11.98
39.16%
AFG
American Financial Group
137.46
5.65
4.29%
AXS
Axis Capital
107.94
19.71
22.34%
CINF
Cincinnati Financial
167.29
26.88
19.14%
RLI
RLI
65.64
-13.57
-17.13%
THG
Hanover Insurance
184.77
34.09
22.62%
Admiral Group Corporate Events
Admiral Group Reports Strong H1 2025 Results
Aug 15, 2025
Admiral Group Plc, a prominent player in the insurance sector, specializes in providing car, household, and travel insurance, with a strong presence in the UK and Europe. The company is known for its customer-centric approach and commitment to sustainability.
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.