Aviva plc (AV) AI Stock Analysis

• Market Cap: £20.21B
• Dividend Yield: 6.18%
• Average Volume (3M): 6.35M
• Price to Earnings (P/E): 29.8
• Beta (1Y): 1.12
• Revenue Growth: -19.71%
• EPS Growth: -53.86%
• Country: UK
• Employees: 29,091
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 0.29
• Shares Outstanding: 3,057,053,500
• 10 Day Avg. Volume: 6,507,486
• 30 Day Avg. Volume: 6,354,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £701.17
• Price Target Upside: 5.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 80 Outperform
• Price Target: 702.00p ▲(5.56% Upside)

Aviva plc's strong cash flow and technical performance are key strengths, supported by a positive earnings call that highlights strategic growth and acquisitions. Despite a high P/E ratio, the attractive dividend yield enhances the stock's appeal.

Positive Factors

Strong Cash Flow Management

Strong cash flow management ensures Aviva can invest strategically and manage debt effectively, supporting long-term financial stability.

Strategic Acquisitions

The acquisition of Direct Line is set to enhance Aviva's market position in the U.K., providing cost synergies and boosting competitive advantage.

Growth in Key Segments

Strong growth in key segments like U.K. and Ireland General Insurance indicates robust demand and strengthens Aviva's market leadership.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in maintaining market share and could impact long-term profitability if not addressed.

Decreased Net Profit Margin

A declining net profit margin suggests pressure on profitability, which could affect Aviva's ability to reinvest and grow sustainably.

Impact of Canadian Weather Events

Severe weather impacts in Canada highlight vulnerability to climate risks, potentially affecting future profitability and risk management strategies.

Aviva plc Business Overview & Revenue Model

Company Description

Aviva plc provides various insurance, retirement, investment, and savings products in the United Kingdom, Ireland, Canada, and internationally. The company offers life insurance, long-term health and accident insurance, savings, pension, and annuity products, as well as pension fund business and lifetime mortgage products. It also provides insurance cover to individuals, small and medium-sized businesses for risks associated with motor vehicles and medical expenses, as well as property and liability, such as employers' and professional indemnity liabilities. In addition, the company provides investment management services for institutional pension fund mandates; and manages various retail investment products, including investment funds, unit trusts, open-ended investment companies, and individual savings accounts for third-party financial institutions, pension funds, public sector organizations, investment professionals, and private investors. It markets its products through a network of insurance brokers, as well as MyAviva platform. The company was formerly known as CGNU plc and changed its name to Aviva plc in July 2002. Aviva plc was founded in 1696 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Aviva generates revenue primarily through its insurance and investment operations. The company earns money from premiums collected on life and general insurance policies, which are a significant portion of its revenue. Additionally, Aviva derives income from investment management fees related to the assets it manages on behalf of policyholders and institutional clients. The company also benefits from investment income generated from its portfolio of assets, which includes bonds, equities, and real estate. Key partnerships with financial advisors, distribution networks, and technology firms further enhance its reach and efficiency, contributing to its earnings. Furthermore, Aviva has been focusing on digital transformation and enhancing customer experience, which are expected to drive growth in its revenue streams.

Aviva plc Financial Statement Overview

Summary

Aviva plc shows strong cash flow management and a stable leverage position. Despite challenges in net income and profitability, the firm maintains a solid equity base and cash reserves, enabling it to navigate industry fluctuations effectively.

Income Statement

Aviva plc has shown a fluctuating revenue trend with a slight decline in 2024. The gross profit margin remains stable due to consistent revenue recognition policies. However, the net profit margin has decreased significantly compared to 2023 due to lower net income. The company had positive EBIT and EBITDA margins in 2023 but faced challenges in 2024 due to a lack of EBIT, impacting overall profitability.

Balance Sheet

The balance sheet indicates moderate leverage with a relatively stable debt-to-equity ratio. The company maintains a strong equity position, although it has decreased over the years. Aviva's equity ratio reflects a healthy portion of assets financed by shareholders. Despite the slight increase in total debt, the company's overall financial position remains stable with sufficient equity backing.

Cash Flow

Aviva plc's cash flow statement exhibits a strong free cash flow position in 2024, recovering significantly from negative cash flows in 2023. The company demonstrates effective cash management with a high operating cash flow to net income ratio. This robust cash flow generation provides flexibility for strategic investments and debt management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.76B	32.92B	-26.79B	32.99B	30.56B
Gross Profit	31.76B	33.95B	16.20B	32.99B	31.08B
EBITDA	1.58B	2.43B	-887.00M	1.33B	2.61B
Net Income	683.00M	1.08B	-1.07B	416.00M	2.06B
Balance Sheet
Total Assets	353.88B	328.84B	302.26B	343.44B	466.52B
Cash, Cash Equivalents and Short-Term Investments	23.48B	17.27B	22.50B	12.48B	16.90B
Total Debt	6.89B	7.37B	8.57B	8.42B	11.13B
Total Liabilities	345.26B	319.24B	289.86B	323.99B	445.96B
Stockholders Equity	8.30B	8.79B	12.09B	19.20B	19.55B
Cash Flow
Free Cash Flow	8.27B	-3.08B	3.85B	3.19B	8.91B
Operating Cash Flow	8.45B	-2.73B	3.95B	3.30B	9.05B
Investing Cash Flow	162.00M	-350.00M	11.13B	-6.58B	-12.70B
Financing Cash Flow	-2.49B	-1.82B	-5.47B	-3.91B	-339.00M

Aviva plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 665.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AV, the sentiment is Positive. The current price of 665 is above the 20-day moving average (MA) of 654.55, above the 50-day MA of 636.20, and above the 200-day MA of 542.76, indicating a bullish trend. The MACD of 6.28 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 91.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AV.

Aviva plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADM	81 Outperform	£10.11B	12.23	65.36%	5.81%	22.62%	106.27%
AV	80 Outperform	£20.21B	29.82	10.13%	6.18%	-19.71%	-53.86%
PRU	70 Outperform	£26.24B	10.29	20.51%	1.74%	37.94%	291.37%
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
DLG	66 Neutral		―		―	26.11%	-29.43%
PHNX	53 Neutral	£6.36B	―	-48.62%	8.44%	-36.05%	―
LGEN	44 Neutral	£13.15B	58.69	6.81%	9.15%	-38.98%	-31.14%