Beazley (BEZ) AI Stock Analysis

• Market Cap: £5.45B
• Dividend Yield: 2.81%
• Average Volume (3M): 1.98M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.85
• Revenue Growth: 7.79%
• EPS Growth: 9.99%
• Country: UK
• Employees: 2,419
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.60
• Shares Outstanding: 620,464,600
• 10 Day Avg. Volume: 2,034,297
• 30 Day Avg. Volume: 1,980,856
• PEG Ratio: -0.64
• Price to Book (P/B): 1.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: -3.54
• 1Y Price Target: £1,062.50
• Price Target Upside: 18.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: 1,000.00p ▲(11.30%Upside)

Beazley's overall stock score is driven by strong financial performance and attractive valuation. The company has shown significant revenue growth and effective cash management, complemented by a low P/E ratio and high dividend yield. Despite these strengths, bearish technical indicators and market challenges highlighted in the earnings call slightly temper the outlook.

Beazley Business Overview & Revenue Model

Company Description

Beazley plc is a specialist insurance company headquartered in London, United Kingdom. It operates within the insurance sector, focusing on providing a range of insurance products including professional indemnity, cyber liability, property, marine, reinsurance, and specialty lines. Beazley is known for its expertise in managing complex risks and offering tailored solutions to meet the unique needs of its clients across the globe.

How the Company Makes Money

Beazley makes money primarily through underwriting insurance policies and collecting premiums from clients. Its revenue streams include premiums earned from underwriting activities across various lines such as cyber insurance, healthcare liability, and specialty lines. The company also generates income through investment returns on the premiums it holds before paying out claims. Beazley partners with brokers and other intermediaries to distribute its insurance products, which helps it reach a broad client base. The company's profitability is influenced by its ability to accurately assess risk, manage claims efficiently, and maintain a balanced investment portfolio.

Beazley Financial Statement Overview

Summary

Beazley exhibits strong revenue growth and a solid financial position, marked by significantly increased equity and well-managed debt levels. While profitability metrics have shown some fluctuations, cash flows have remained robust, underpinning the company's financial health. The consistent growth trajectory and effective cash management position Beazley well for future stability and potential expansion.

Income Statement

Beazley has demonstrated strong revenue growth over the past years, with a notable increase from 2019 to 2023, peaking at 5,099.5 million in 2023. The gross profit margins are robust given that gross profit equals total revenue. However, the net profit margin showed fluctuation, particularly with a negative margin in 2020. The EBIT and EBITDA margins indicate some operational challenges, as seen in 2024 with both at zero. Overall, the company is showing strong top-line growth, but profitability metrics display some volatility.

Balance Sheet

Beazley's balance sheet reflects a stable financial position with a healthy increase in stockholders' equity from 1,625.3 million in 2019 to 4,606.8 million in 2024. The debt-to-equity ratio has been well-managed, staying relatively low over the years, indicating prudent use of leverage. The equity ratio has improved significantly, suggesting a stronger capital base and reduced financial risk.

Cash Flow

The company's cash flow performance is impressive, with consistent free cash flow generation and growth over the years. The operating cash flow to net income ratio is strong, reflecting effective conversion of earnings into cash. Despite fluctuations in net income, the company has maintained positive free cash flows, highlighting operational efficiency and strong cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	5.10B	3.47B	3.29B	2.91B
Gross Profit	1.01B	584.70M	3.47B	3.29B	2.91B
EBITDA	1.42B	-374.60M	613.90M	409.60M	0.00
Net Income	1.13B	1.03B	483.30M	308.70M	-46.10M
Balance Sheet
Total Assets	15.42B	13.67B	15.10B	12.81B	10.59B
Cash, Cash Equivalents and Short-Term Investments	882.10M	593.30M	652.50M	591.80M	309.50M
Total Debt	615.60M	624.90M	620.70M	631.90M	637.20M
Total Liabilities	10.81B	9.78B	12.53B	10.68B	8.78B
Stockholders Equity	4.61B	3.88B	2.57B	2.13B	1.81B
Cash Flow
Free Cash Flow	572.10M	338.00M	1.10B	1.17B	463.90M
Operating Cash Flow	634.90M	393.20M	1.10B	1.17B	476.80M
Investing Cash Flow	-62.80M	-55.20M	-1.25B	-839.20M	-611.90M
Financing Cash Flow	-515.60M	-190.80M	235.70M	-48.00M	177.80M

Beazley Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 898.50
• 50DMA: Negative
• 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:BEZ, the sentiment is Neutral. The current price of 898.5 is below the 20-day moving average (MA) of 916.25, below the 50-day MA of 919.87, and above the 200-day MA of 836.13, indicating a neutral trend. The MACD of -9.72 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BEZ.

Beazley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADM	78 Outperform	£10.02B	15.10	56.17%	8.69%	34.86%	95.18%
LRE	77 Outperform	£1.47B	5.75	21.23%	5.98%	14.46%	-2.98%
BEZ	75 Outperform	£5.45B	6.50	26.32%	2.81%	7.79%	9.99%
HSX	73 Outperform	£4.15B	8.60	17.96%	2.52%	3.60%	-13.17%
Sector *	68 Neutral	¥722.98B	10.78	7.55%	3.29%	7.93%	15.81%
SBRE	65 Neutral	£367.72M	10.28	14.37%	4.57%	32.88%	99.17%