Admiral Group (AMIGY) AI Stock Analysis

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Admiral Group

(OTC:AMIGY)

Rating:78Outperform

Price Target:

$51.00

▲(11.65%Upside)

Admiral Group's strong financial performance and positive earnings call sentiment are the main contributors to its high score. The company's robust revenue growth, improved profitability, and strategic focus on technology support its leading position. Technical analysis shows a strong upward trend, while valuation metrics suggest fair pricing with an attractive dividend yield.

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

Market Cap

$13.98B

Dividend Yield7.05%

Average Volume (3M)177.00

Price to Earnings (P/E)16.8

Beta (1Y)0.22

Revenue Growth38.65%

EPS Growth101.27%

CountryUS

Employees15,432

SectorFinancial

Sector Strength81

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)1.80

Shares Outstanding306,304,700

10 Day Avg. Volume532

30 Day Avg. Volume177

Financial Highlights & Ratios

PEG Ratio1.96

Price to Book (P/B)7.49

Price to Sales (P/S)0.00

P/FCF Ratio33.57

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

Admiral Group Business Overview & Revenue Model

Company DescriptionAdmiral Group plc (AMIGY) is a leading British financial services company primarily focused on the insurance sector. Founded in 1993 and headquartered in Cardiff, Wales, Admiral Group specializes in offering a variety of insurance products, including motor, home, travel, and pet insurance. The company operates across several countries, including the UK, Spain, Italy, France, and the United States, leveraging a direct-to-consumer model to provide competitive insurance solutions to millions of customers.

How the Company Makes MoneyAdmiral Group makes money primarily through the premiums collected from its insurance products, which include motor, home, travel, and pet insurance. The company's revenue model is based on underwriting profits and investment income. Underwriting profits are generated when the premiums collected exceed the claims paid out and the operating expenses associated with managing these policies. Additionally, the company earns interest and investment returns on the premiums held before claims are paid. Admiral Group also benefits from ancillary revenue streams, including fees from add-on insurance products and services. Significant partnerships with automobile manufacturers, banks, and financial institutions also contribute to its earnings by expanding its distribution channels and customer base.

Admiral Group Earnings Call Summary

Earnings Call Date:Mar 06, 2025

(Q4-2024)

% Change Since: 26.89%|

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.

Q4-2024 Updates

Positive Updates

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%.

Negative Updates

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.

Admiral Group Financial Statement Overview

Summary

Admiral Group shows robust revenue growth and improved profitability with an increased net profit margin. The balance sheet indicates improved leverage management, though debt reliance remains a concern. Cash flow management is strong with consistent free cash flow growth, supporting the company's positive trajectory and stability.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87B	3.55B	1.49B	1.55B	1.31B
Gross Profit	4.81B	3.51B	1.49B	1.55B	1.31B
EBITDA	951.80M	501.50M	403.10M	781.80M	527.10M
Net Income	663.30M	338.00M	286.50M	583.30M	528.80M
Balance Sheet
Total Assets	7.94B	7.10B	8.94B	8.36B	7.84B
Cash, Cash Equivalents and Short-Term Investments	3.60B	3.14B	2.67B	458.00M	363.60M
Total Debt	1.39B	1.21B	1.03B	776.20M	607.80M
Total Liabilities	6.57B	6.10B	7.98B	6.95B	6.72B
Stockholders Equity	1.37B	991.80M	954.20M	1.41B	1.11B
Cash Flow
Free Cash Flow	224.80M	203.10M	366.50M	175.40M	565.70M
Operating Cash Flow	369.00M	279.00M	465.10M	244.60M	608.80M
Investing Cash Flow	-144.20M	-438.20M	-101.00M	387.80M	-43.10M
Financing Cash Flow	-257.90M	-171.80M	-425.00M	-564.80M	-498.10M

Admiral Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price45.68

Price Trends

50DMA

44.12

Positive

100DMA

40.40

Positive

200DMA

36.52

Positive

Market Momentum

MACD

0.34

Positive

RSI

59.92

Neutral

STOCH

72.73

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 45.68 is above the 20-day moving average (MA) of 45.11, above the 50-day MA of 44.12, and above the 200-day MA of 36.52, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 59.92 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMIGY	78 Outperform	$13.98B	16.77	57.04%	7.05%	38.65%	101.27%
AXS	75 Outperform	$7.76B	9.66	15.43%	1.77%	6.76%	54.56%
AXS	75 Outperform	$7.76B	9.66	15.43%	1.77%	6.76%	54.56%
RLI	69 Neutral	$6.53B	23.42	17.99%	0.89%	9.18%	-16.06%
RLI	69 Neutral	$6.53B	23.42	17.99%	0.89%	9.18%	-16.06%
Sector *	67 Neutral	$16.89B	11.79	9.73%	3.75%	11.97%	-8.33%
AFG	66 Neutral	$10.56B	13.28	18.51%	7.53%	3.76%	-9.12%
CNA	65 Neutral	$12.36B	13.92	8.98%	4.03%	6.34%	-28.19%
CNA	65 Neutral	$12.36B	13.92	8.98%	4.03%	6.34%	-28.19%
THG	65 Neutral	$5.83B	13.53	15.74%	2.19%	3.09%	168.29%
THG	65 Neutral	$5.83B	13.53	15.74%	2.19%	3.09%	168.29%

* Financial Sector Average

Performance Comparison

AMIGY

Admiral Group

45.68

14.16

44.92%

AFG

American Financial Group

126.41

13.49

11.95%

AXS

Axis Capital

98.61

30.23

44.21%

AXS

Axis Capital

98.61

30.23

44.21%

CNA

CNA Financial

45.18

3.61

8.68%

CNA

CNA Financial

45.18

3.61

8.68%

RLI

71.19

3.83

5.69%

RLI

71.19

3.83

5.69%

THG

Hanover Insurance

162.42

39.64

32.29%

THG

Hanover Insurance

162.42

39.64

32.29%

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.Date of analysis: Jun 05, 2025