Hiscox (HSX) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: 2.08%
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.15
• Revenue Growth: 1.12%
• EPS Growth: -18.14%
• Country: UK
• Employees: 3,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.47
• Shares Outstanding: 333,802,600
• 10 Day Avg. Volume: 1,588,896
• 30 Day Avg. Volume: 1,291,167
• PEG Ratio: -0.62
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 63.70
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 1.27
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1,516.52
• Price Target Upside: 14.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: 1,421.00p ▲(7.57% Upside)

Hiscox's overall stock score is driven by strong earnings call performance and solid valuation metrics. Financial performance is stable but challenged by cash flow issues. Technical analysis indicates a neutral trend, with no strong momentum signals.

Positive Factors

Negative Factors

Hiscox Business Overview & Revenue Model

Company Description

Hiscox Ltd, through its subsidiaries, provides insurance and reinsurance services in the United Kingdom, Europe, the United States, and internationally. The company operates through four segments: Hiscox Retail, Hiscox London Market, Hiscox Re & ILS, and Corporate Centre. It provides commercial insurance for small-and medium-sized businesses, personal lines cover, including high-value household, fine art, luxury motor, and classic car through brokers, partners and direct-to-consumer using both traditional and digital trading models. The company also offers property insurance; marine and energy insurance; aviation insurance; casualty insurance; specialty insurance; kidnap and ransom insurance; and other specialty insurance, such as contingency, terrorism, personal accident, and product recall. In addition, it provides healthcare and casualty reinsurance services, as well as investment services. Hiscox Ltd was founded in 1901 and is based in Pembroke, Bermuda.

How the Company Makes Money

Hiscox generates revenue primarily through the underwriting of insurance policies. The key revenue streams include premiums collected from policyholders for various insurance products, such as personal and commercial lines, as well as reinsurance. The company also earns investment income from the premiums it receives before they are paid out in claims. Hiscox's success is bolstered by its strong brand reputation, expertise in underwriting, and a diversified portfolio that includes specialty lines. Additionally, strategic partnerships with brokers and agents help facilitate distribution and reach a broader customer base, contributing to its overall earnings.

Hiscox Financial Statement Overview

Summary

Hiscox shows stable revenue growth and improved operational efficiency, but faces challenges in profit margins and cash flow generation. The balance sheet reflects solid equity growth and better leverage management, though profitability on equity has declined.

Income Statement

Hiscox's income statement reveals a moderate revenue growth rate with a 2.66% increase from 2023 to 2024. The gross profit margin holds steady at 100% due to the nature of the insurance industry. However, the net profit margin slightly declined to 17.06% from 19.89% the previous year. The EBIT margin is not applicable for 2024, indicating potential volatility in operating income. The EBITDA margin improved, reflecting better operational efficiency.

Balance Sheet

The balance sheet shows strong equity growth, with the equity ratio improving to 32.81% in 2024 from 29.79% in 2023, indicating enhanced financial stability. The debt-to-equity ratio decreased, reflecting improved leverage management, though still slightly high at 0.20. ROE decreased to 17.01% from 21.61%, pointing to reduced profitability on equity.

Cash Flow

Cash flow analysis shows a significant decrease in free cash flow from 188.4M in 2023 to 75.3M in 2024, indicating cash generation challenges. The operating cash flow to net income ratio dropped to 0.18 from 0.33, suggesting potential cash flow issues relative to net income, while free cash flow to net income ratio also declined, raising concerns about cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.93B	3.81B	3.70B	2.98B	3.29B	3.25B
Gross Profit	3.93B	3.81B	3.58B	2.98B	3.29B	3.25B
EBITDA	0.00	799.20M	730.00M	335.60M	248.20M	-199.70M
Net Income	595.40M	627.20M	712.00M	253.90M	189.50M	-293.70M
Balance Sheet
Total Assets	12.34B	11.24B	11.06B	13.72B	13.85B	13.86B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.23B	1.47B	1.40B	1.35B	1.64B
Total Debt	856.60M	743.00M	754.20M	635.90M	746.50M	946.10M
Total Liabilities	8.53B	7.55B	7.76B	11.31B	11.31B	11.50B
Stockholders Equity	3.81B	3.69B	3.30B	2.42B	2.54B	2.35B
Cash Flow
Free Cash Flow	55.00M	75.30M	188.40M	290.60M	-42.30M	-188.60M
Operating Cash Flow	59.30M	114.40M	232.10M	373.40M	16.60M	-117.10M
Investing Cash Flow	-43.90M	-38.50M	-34.20M	-81.90M	-36.60M	-52.70M
Financing Cash Flow	-123.20M	-282.60M	-128.90M	-190.90M	-246.20M	592.80M

Hiscox Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1321.00
• 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:HSX, the sentiment is Positive. The current price of 1321 is above the 20-day moving average (MA) of 1301.25, above the 50-day MA of 1300.60, and above the 200-day MA of 1175.52, indicating a bullish trend. The MACD of 3.98 indicates Negative momentum. The RSI at 56.59 is Neutral, neither overbought nor oversold. The STOCH value of 82.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HSX.

Hiscox Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRE	79 Outperform	1.61B	8.93	21.52%	11.51%	8.78%	-38.83%
BEZ	78 Outperform	5.02B	7.04	24.54%	2.97%	6.00%	-24.29%
ADM	78 Outperform	10.08B	12.19	48.41%	5.84%	22.62%	106.27%
HSX	71 Outperform	$4.42B	9.76	16.60%	2.08%	1.12%	-18.14%
SBRE	65 Neutral	344.80M	8.80	0.00%	4.42%	7.77%	35.65%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Hiscox Corporate Events

Hiscox Executes Share Buyback Program

Hiscox Ltd has executed a share buyback program, purchasing 120,000 of its own ordinary shares at a volume-weighted average price of 1,292.99 GBp per share. This buyback, conducted through Peel Hunt LLP, is part of a previously announced program and reflects the company’s strategic decision to manage its capital structure, potentially enhancing shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1421.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Ltd Advances Share Buyback Programme with New Purchase

Hiscox Ltd has announced the purchase of 120,000 of its own ordinary shares as part of its ongoing share buyback programme. The shares were acquired at a volume-weighted average price of 1,294.88 GBp and will be cancelled, which is expected to enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1421.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Executes Share Buyback Programme

Hiscox Ltd, under its share buyback programme, has repurchased 120,000 of its Ordinary Shares through Peel Hunt LLP, with prices ranging from 1,286.00 GBp to 1,303.00 GBp. This move is part of the company’s ongoing strategy to manage its capital structure and potentially enhance shareholder value by reducing the number of shares in circulation.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1434.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Announces Scrip Dividend Reference Price

Hiscox Ltd has announced the Scrip Reference Share Price for its scrip dividend alternative, set at 1,286p. This price will determine the entitlement for shareholders who opted for the scrip dividend instead of the cash dividend for the interim dividend of 14.4 cents per share, payable on 23 September 2025. The reference price is calculated based on the average closing market quotations from the London Stock Exchange over a specified period. The GBP equivalent of the dividend is 10.70p per share, based on the average USD/GBP exchange rate provided by the Bank of England. This announcement reflects Hiscox’s strategic financial management and offers shareholders flexibility in dividend options, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1419.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Ltd Executes Share Buyback Program

Hiscox Ltd has executed a share buyback program, purchasing 120,000 of its own ordinary shares at prices ranging from 1,281.00 GBp to 1,294.00 GBp. This move is part of a strategic effort to manage the company’s capital structure and potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1419.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Executes Share Buyback to Enhance Shareholder Value

Hiscox Ltd has executed a share buyback transaction as part of its ongoing Buyback Programme, purchasing 100,000 Ordinary Shares at a volume-weighted average price of 1,297.34 GBp per share. This move is part of the company’s strategy to enhance shareholder value by reducing the number of shares in circulation, potentially increasing the value of remaining shares and demonstrating confidence in the company’s financial health.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £1419.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Executes Share Buyback to Enhance Shareholder Value

Hiscox Ltd has executed a share buyback transaction as part of its ongoing Buyback Programme, purchasing 100,000 Ordinary Shares at an average price of 1,298.00 GBp per share. The acquired shares will be cancelled, which may positively impact the company’s earnings per share and provide value to shareholders.

The most recent analyst rating on (GB:HSX) stock is a Buy with a £15.10 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Ltd Executes Share Buyback to Enhance Shareholder Value

Hiscox Ltd has announced the purchase of 70,000 of its own ordinary shares as part of its share buyback programme initiated earlier in the year. The shares were bought at prices ranging from 1,264.00 GBp to 1,277.00 GBp and will be cancelled, which is expected to enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:HSX) stock is a Hold with a £1400.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.

Hiscox Executes Share Buyback Program

Hiscox Ltd has executed a share buyback program, purchasing 65,000 of its own ordinary shares at an average price of 1,284.04 GBp per share. This move is part of a previously announced buyback initiative and is expected to impact the company’s share capital structure by reducing the number of shares in circulation, potentially enhancing shareholder value.

The most recent analyst rating on (GB:HSX) stock is a Hold with a £1400.00 price target. To see the full list of analyst forecasts on Hiscox stock, see the GB:HSX Stock Forecast page.