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Admiral Group PLC (GB:ADM)
LSE:ADM

Admiral (ADM) AI Stock Analysis

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GB

Admiral

(LSE:ADM)

Rating:79Outperform
Price Target:
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 (ADM) vs. iShares MSCI United Kingdom ETF (EWC)

Admiral Business Overview & Revenue Model

Company DescriptionAdmiral 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 MoneyAdmiral 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's financial performance is solid, with strong revenue growth and a robust profit margin, although the zero EBIT margin is a concern. The balance sheet shows improved leverage and strong return on equity, while cash flow statements reflect positive cash generation with room for efficiency improvements.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.87B3.55B1.52B1.56B1.30B
Gross Profit
4.87B3.91B1.52B1.56B1.30B
EBIT
839.20M489.70M493.50M731.50M627.70M
EBITDA
903.50M548.60M429.20M776.20M837.20M
Net Income Common Stockholders
663.30M338.00M286.50M593.50M528.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.60B3.14B297.00M372.70M272.50M
Total Assets
7.94B7.10B6.22B6.18B5.76B
Total Debt
1.39B1.21B1.03B776.20M611.40M
Net Debt
1.13B857.90M730.60M403.50M313.20M
Total Liabilities
6.57B6.10B5.27B4.78B4.64B
Stockholders Equity
1.37B991.80M954.20M1.41B1.11B
Cash FlowFree Cash Flow
224.80M203.10M210.90M468.30M732.60M
Operating Cash Flow
369.00M279.00M309.50M537.50M775.70M
Investing Cash Flow
-144.20M-75.90M29.30M74.70M-226.80M
Financing Cash Flow
-257.90M-171.80M-399.70M-544.60M-481.30M

Admiral Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3320.00
Price Trends
50DMA
3005.70
Positive
100DMA
2820.90
Positive
200DMA
2707.27
Positive
Market Momentum
MACD
89.05
Negative
RSI
72.14
Negative
STOCH
56.01
Neutral
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 3320 is above the 20-day moving average (MA) of 3197.04, above the 50-day MA of 3005.70, and above the 200-day MA of 2707.27, indicating a bullish trend. The MACD of 89.05 indicates Negative momentum. The RSI at 72.14 is Negative, neither overbought nor oversold. The STOCH value of 56.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ADM.

Admiral Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBAV
81
Outperform
£16.16B25.765.48%5.88%-1.13%-38.11%
GBADM
79
Outperform
£10.16B15.3256.17%3.71%34.86%95.18%
GBBEZ
79
Outperform
£5.67B6.7026.32%2.72%7.79%9.99%
GBLRE
78
Outperform
£1.46B5.7121.23%2.97%14.46%-2.98%
64
Neutral
$12.78B9.877.67%17015.06%12.34%-5.99%
GBDLG
63
Neutral
£3.90B26.715.97%2.33%26.11%-29.43%
$5.38B8.7117.96%2.62%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ADM
Admiral
3,320.00
776.26
30.52%
GB:BEZ
Beazley
919.00
271.06
41.83%
GB:DLG
Direct Line Insurance
299.20
104.33
53.54%
GB:LRE
Lancashire Holdings
595.00
68.50
13.01%
GB:AV
Aviva plc
608.20
159.25
35.47%
HCXLF
Hiscox
15.90
1.73
12.21%

Admiral Earnings Call Summary

Earnings Call Date:Mar 06, 2025
(Q4-2024)
|
% Change Since: 18.75%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance for Admiral Group in 2024, marked by record profitability, growth in customer base, and successful technological advancements. However, challenges remain in specific international markets like Italy and regulatory pressures in the UK. Overall, the positive aspects significantly outweigh the challenges.
Q4-2024 Updates
Positive Updates
Record Turnover and Customer Growth
2024 reported a 28% turnover growth, with a 14% increase in customer base and higher average premiums than 2023.
All-Time High Group Profitability
Group profitability reached GBP 839 million, driven by UK Motor insurance which delivered close to GBP 1 billion in profits.
Successful Technological Advancements
Strengthened capabilities in data and AI with successful completion of relevant technology projects.
Strong Solvency Position
The solvency ratio is over 200%, showcasing strong capital positioning.
Admiral Money Growth
Admiral Money saw a 23% growth in outstanding balances and a 30% increase in profit.
International Success in France and Spain
L'olivier in France and Admiral Seguros in Spain showed robust performance with improved combined ratios.
Turnaround in U.S. Operations
Elephant in the U.S. achieved a profit of $80 million, a significant improvement from last year's $24 million loss.
Negative Updates
Challenges in ConTe, Italy
ConTe reported a GBP 23 million loss due to high BI inflation and adverse loss ratio development.
Profit Commission Constraints
Profit commission revenue for 2024 was lower than 2023 due to restricted recognition on profitable underwriting years.
Regulatory Challenges in the UK
New government task force set up to address rising average premiums in UK Motor insurance.
Company Guidance
The call provided comprehensive guidance on Admiral Group's performance and strategic direction for 2024. Key metrics highlighted include a 28% increase in turnover and a 14% growth in customer base, leading to a record group profitability of GBP 839 million, with UK Motor insurance contributing nearly GBP 1 billion in profits. The call also noted a 56% return on equity and a solvency ratio of over 200%. Admiral Money reported a 23% growth in outstanding balances and a profit increase of 30%. The company maintained a strong capital position with a full-year dividend of 192p per share, which is a 90% increase from 2023. Additionally, the call detailed a focus on expanding capabilities in data and AI, and a strategic move towards using third-party capital in Admiral Money to enhance growth and profitability. Looking forward, Admiral plans to continue disciplined underwriting and adapt to evolving market conditions, with expectations for softer market conditions in 2025 but sustained profitability.

Admiral Corporate Events

Executive/Board Changes
Admiral Group Announces Board Appointment of Karen Green
Neutral
May 20, 2025

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.

Spark’s Take on GB:ADM Stock

According to Spark, TipRanks’ AI Analyst, GB:ADM is a Outperform.

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.

To see Spark’s full report on GB:ADM stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Admiral Group Appoints Paola Bonomo as New Non-Executive Director
Positive
May 13, 2025

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.

Spark’s Take on GB:ADM Stock

According to Spark, TipRanks’ AI Analyst, GB:ADM is a Outperform.

Admiral Group’s stock score reflects its strong financial performance, attractive valuation, and positive earnings outlook. Significant strengths include robust revenue growth, profitability, and strategic advancements in data and AI. Positive momentum in stock price is tempered by overbought technical indicators, suggesting potential caution. While regulatory and international challenges exist, the overall sentiment remains favorable, supported by strategic initiatives and shareholder confidence.

To see Spark’s full report on GB:ADM stock, click here.

Shareholder MeetingsDividendsBusiness Operations and StrategyFinancial Disclosures
Admiral Group plc 2025 AGM: All Resolutions Passed
Positive
May 9, 2025

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.

Spark’s Take on GB:ADM Stock

According to Spark, TipRanks’ AI Analyst, GB:ADM is a Outperform.

Admiral Group shows a strong overall financial position with robust revenue growth and profitability. The technical analysis indicates positive momentum, while the valuation is attractive due to a reasonable P/E ratio and high dividend yield. The earnings call reinforces the company’s positive trajectory with record profitability and strategic growth, although regulatory challenges and international market issues present some risks.

To see Spark’s full report on GB:ADM stock, click here.

M&A TransactionsBusiness Operations and Strategy
Admiral Group Sells U.S. Motor Business to J.C. Flowers
Neutral
Apr 22, 2025

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.

Spark’s Take on GB:ADM Stock

According to Spark, TipRanks’ AI Analyst, GB:ADM is a Outperform.

Admiral Group shows a strong overall financial position with robust revenue growth and profitability. The technical analysis indicates positive momentum, while the valuation is attractive due to a reasonable P/E ratio and high dividend yield. The earnings call reinforces the company’s positive trajectory with record profitability and strategic growth, although regulatory challenges and international market issues present some risks.

To see Spark’s full report on GB:ADM stock, click here.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Admiral Group Announces AGM and Publishes Annual Report
Neutral
Mar 31, 2025

Admiral Group plc has announced its upcoming Annual General Meeting (AGM) scheduled for May 9, 2025, and has published its Annual Report and Accounts for the year ending December 31, 2024. The report, prepared in accordance with European Single Electronic Format (ESEF) reporting requirements, is available on the company’s website and the National Storage Mechanism, indicating the company’s commitment to transparency and regulatory compliance.

Executive/Board ChangesBusiness Operations and Strategy
Admiral Group Announces Board Changes with Retirement of Justine Roberts
Neutral
Mar 31, 2025

Admiral Group Plc announced the retirement of Justine Roberts, who has served as an independent Non-executive Director for nine years. Her departure will be effective from June 18, 2025, and she has been acknowledged for her significant contributions to the company. Andy Crossley will take over as the Senior Independent Director and join the Nomination and Governance Committee, while Fiona Muldoon will join the Group Risk Committee. The company is also in the process of recruiting a new Non-executive Director, indicating ongoing strategic adjustments within its governance structure.

Executive/Board ChangesBusiness Operations and Strategy
Admiral Group Awards Shares to Key Executives
Neutral
Mar 13, 2025

Admiral Group plc has announced the award of 59 ordinary shares each to several key executives under the Admiral Group Approved Share Incentive Plan. This move reflects the company’s commitment to aligning the interests of its leadership with those of its shareholders, potentially impacting the company’s operational focus and stakeholder confidence.

Business Operations and Strategy
Admiral Group Announces Share Vesting for International Manager
Neutral
Mar 12, 2025

Admiral Group plc announced the vesting of 72 ordinary shares awarded to Costantino Moretti, Head of International Insurance, under the Share Incentive Plan for international managers. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to incentivizing its managerial team, potentially impacting its operational dynamics and stakeholder interests.

Business Operations and StrategyFinancial Disclosures
Admiral Group Reports Robust 2024 Financial Performance Amid Strategic Growth
Positive
Mar 6, 2025

Admiral Group reported a strong financial performance for 2024, with a 90% increase in profit before tax and a 28% rise in turnover. The company’s success was largely driven by its UK Motor business, supported by favorable market conditions and strategic pricing adjustments. Admiral’s commitment to sustainability was highlighted by its upgraded MSCI ESG score and the publication of its Net Zero Transition Plan. Despite economic uncertainties, Admiral remains focused on leveraging its competitive advantages and digital capabilities to drive future growth and maintain its position as a leading insurer.

Business Operations and Strategy
Admiral Group Plc Embraces Digital Communication with Shareholders
Positive
Mar 3, 2025

Admiral Group Plc has announced a shift towards electronic communications for its shareholders, moving away from traditional hard copy mailings. This change is aimed at streamlining communication processes and enhancing efficiency, reflecting a broader industry trend towards digitalization. The initiative is expected to improve shareholder engagement and reduce environmental impact, aligning with modern corporate governance practices.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.