Admiral (ADM) AI Stock Analysis

• Market Cap: £9.99B
• Dividend Yield: 8.71%
• Average Volume (3M): 715.91K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.44
• Revenue Growth: 34.86%
• EPS Growth: 95.18%
• Country: UK
• Employees: 15,432
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.39
• Shares Outstanding: 306,304,700
• 10 Day Avg. Volume: 890,522
• 30 Day Avg. Volume: 715,911
• PEG Ratio: 1.94
• Price to Book (P/B): 7.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.29
• 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: £3,536.50
• Price Target Upside: 6.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: 3,799.00p ▲(14.84%Upside)

Admiral's overall stock score reflects its robust financial performance marked by significant revenue growth and profitability, supported by strong balance sheet metrics. Technical indicators show positive momentum, albeit with caution due to overbought signals. The valuation is appealing with a reasonable P/E ratio and a high dividend yield. Positive earnings call sentiment further strengthens the outlook despite regulatory challenges.

Admiral Business Overview & Revenue Model

Company Description

Admiral Group plc provides car insurance products in the United Kingdom, Spain, Italy, France, India, and the United States. The company operates through UK Insurance, International Insurance, Admiral Loans, and Other segments. It underwrites car, van, household, and travel insurance, as well as offers unsecured personal and car loans, and legal services. It offers its insurance products under the Admiral, Apparent, Balumba, Bell, Diamond, Elephant, Elephant Auto, Gladiator, L'Olivier, Qualitas Auto, and WiYou Seguros brand names, as well as through Compare.com and ConTe.it. The company was founded in 1993 and is headquartered in Cardiff, the United Kingdom.

How the Company Makes Money

Admiral Group plc generates revenue primarily through the sale of insurance policies. The company's core revenue stream is its car insurance segment, which accounts for the majority of its earnings. Admiral earns money by collecting premiums from policyholders and investing these premiums to generate additional income. The company also benefits from underwriting profits, which occur when the premiums collected exceed the claims and expenses paid. Additionally, Admiral receives revenue from ancillary products and services, such as fees for policy adjustments and add-ons. The company leverages its strong data analytics capabilities to assess risk accurately, enabling competitive pricing and maintaining profitability. Strategic partnerships with reinsurers help Admiral manage risk and capital requirements effectively.

Admiral Financial Statement Overview

Summary

Admiral has displayed strong financial performance with notable revenue growth and robust profitability. Despite a zero EBIT margin in 2024, the company maintains a healthy EBITDA margin and improved net profit margin. The balance sheet shows improved leverage and strong return on equity, while cash flow statements reflect positive cash generation with room for enhanced efficiency.

Income Statement

Admiral has demonstrated strong revenue growth with a noticeable increase from £1.22 billion in 2019 to £4.87 billion in 2024. The gross profit margin remains robust at over 98% for 2024, indicating efficient cost management and strong profitability. However, the EBIT margin for 2024 is 0%, which is concerning, though the EBITDA margin remains healthy at 19.56%. The net profit margin has improved significantly to 13.63% in 2024, showing enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, standing at 1.02 in 2024, reflecting a balanced leverage. The equity ratio is at 17.24%, suggesting moderate stability with some room for improvement. Return on equity is strong at 48.41%, indicating effective use of shareholders' equity to generate profits.

Cash Flow

Admiral's free cash flow growth rate from 2023 to 2024 is 10.69%, reflecting positive cash generation. The operating cash flow to net income ratio is 0.56 for 2024, showing reasonable cash flow efficiency. The free cash flow to net income ratio stands at 0.34, which indicates decent free cash flow relative to net income but suggests potential for improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87B	3.55B	1.52B	1.56B	1.30B
Gross Profit	4.81B	3.51B	1.52B	1.56B	1.30B
EBITDA	924.70M	501.50M	429.20M	776.20M	837.20M
Net Income	663.30M	338.00M	286.50M	593.50M	528.80M
Balance Sheet
Total Assets	7.94B	7.10B	6.22B	6.18B	5.76B
Cash, Cash Equivalents and Short-Term Investments	3.60B	3.14B	297.00M	372.70M	272.50M
Total Debt	1.39B	1.21B	1.03B	776.20M	611.40M
Total Liabilities	6.57B	6.10B	5.27B	4.78B	4.64B
Stockholders Equity	1.37B	991.80M	954.20M	1.41B	1.11B
Cash Flow
Free Cash Flow	224.80M	203.10M	210.90M	468.30M	732.60M
Operating Cash Flow	369.00M	279.00M	309.50M	537.50M	775.70M
Investing Cash Flow	-144.20M	-75.90M	29.30M	74.70M	-226.80M
Financing Cash Flow	-257.90M	-171.80M	-399.70M	-544.60M	-481.30M

Admiral Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3308.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ADM, the sentiment is Positive. The current price of 3308 is below the 20-day moving average (MA) of 3322.90, above the 50-day MA of 3272.07, and above the 200-day MA of 2798.30, indicating a neutral trend. The MACD of 4.96 indicates Positive momentum. The RSI at 51.11 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ADM.

Admiral Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AV	80 Outperform	£16.34B	26.04	5.48%	5.77%	-1.13%	-38.11%
ADM	79 Outperform	£9.99B	15.06	56.17%	8.71%	34.86%	95.18%
BEZ	79 Outperform	£5.66B	6.73	26.32%	2.71%	7.79%	9.99%
LRE	78 Outperform	£1.42B	5.54	21.23%	6.21%	14.46%	-2.98%
Sector *	67 Neutral	¥713.20B	10.86	7.42%	3.37%	7.74%	16.12%
DLG	66 Neutral	£3.96B	27.16	5.97%	2.44%	26.11%	-29.43%
HCXLF		$5.73B	9.36	17.96%	3.49%	―	―

Admiral Corporate Events

Admiral CFO Acquires Shares Under Dividend Reinvestment Plan

Admiral Group plc announced that its Chief Financial Officer, Geraint Jones, has acquired ordinary shares under the company’s dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Admiral Group Director Acquires Shares in Strategic Transaction

Admiral Group plc announced a transaction involving William Roberts, a Non-Executive Director, who acquired ordinary shares through a dividend reinvestment trading plan. This transaction, conducted on the New York Stock Exchange, reflects the company’s ongoing financial strategies and could impact shareholder value and market perception.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Admiral Group Announces Board Appointment of Karen Green

Admiral Group Plc, a company in the insurance sector, has announced a significant board change. Karen Green, an Independent Non-Executive Director at Admiral, has been appointed to a similar role at Hamilton Insurance Group, Ltd., which is publicly traded on the New York Stock Exchange. This appointment may enhance the strategic insights and governance capabilities of both companies.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Admiral Group Appoints Paola Bonomo as New Non-Executive Director

Admiral Group plc has announced the appointment of Paola Bonomo as an Independent Non-Executive Director, effective from 12 May 2025. Paola brings extensive international leadership experience in strategy, digital technology, and transformation, having held senior roles at companies like eBay, Vodafone, and Facebook. Her appointment is expected to enhance Admiral’s strategic direction, particularly in digital transformation, as the company continues to focus on long-term sustainable growth in the UK and Mainland Europe.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Admiral Group plc 2025 AGM: All Resolutions Passed

Admiral Group plc successfully held its 2025 Annual General Meeting, where all proposed resolutions were passed. Key decisions included the approval of financial statements, directors’ remuneration report, and the declaration of a final dividend. The re-appointment of several directors and auditors, along with authorizations for share schemes and market purchases, were also confirmed. These outcomes reflect strong shareholder support and are likely to strengthen Admiral’s operational stability and strategic positioning.

Admiral Group Sells U.S. Motor Business to J.C. Flowers

Admiral Group plc has announced the sale of its U.S. motor insurance business, including Elephant Insurance Company, to J.C. Flowers & Co., a global private investment firm. This strategic move allows Admiral to focus on growth opportunities in the UK and Mainland Europe, while J.C. Flowers aims to leverage its expertise to foster Elephant Insurance’s development as a standalone entity.