Helios Underwriting (HUW) AI Stock Analysis

• Market Cap: £155.95M
• Dividend Yield: 2.75%
• Average Volume (3M): 45.38K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 11
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.06
• Shares Outstanding: 72,637,930
• 10 Day Avg. Volume: 54,392
• 30 Day Avg. Volume: 45,384
• PEG Ratio: 0.61
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 5.71
• P/FCF Ratio: -55.88
• 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: £225.00
• Price Target Upside: 3.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 225.00p ▲(3.21% Upside)

The overall stock score of 60 reflects a balance between the company's undervalued position and its operational challenges. The strong valuation metrics are offset by significant risks in financial performance, particularly in cash flow management. Technical indicators suggest moderate bullish momentum, but the company's ability to address its financial challenges will be critical for future performance.

Helios Underwriting Business Overview & Revenue Model

Company Description

Helios Underwriting plc, together with its subsidiaries, provides a limited liability investment for its shareholders in the Lloyd's insurance market in the United Kingdom. It operates through three segments: Syndicate Participation, Investment Management, and Other Corporate Activities. The company participates in the Lloyd's insurance market through a portfolio of Lloyd's syndicates. Its portfolio provides property insurance and reinsurance products. The company was formerly known as Hampden Underwriting Plc and changed its name to Helios Underwriting Plc in January 2014. Helios Underwriting plc was incorporated in 2006 and is based in London, the United Kingdom.

How the Company Makes Money

Helios Underwriting generates revenue primarily through underwriting profits from the insurance and reinsurance policies it writes. The company earns money by collecting premiums from policyholders, which are then invested to generate further income. Key revenue streams include the underwriting of specialty insurance products, fees from managing syndicates within the Lloyd's market, and investment income from the premiums collected. Strategic partnerships with other insurers and brokers also enhance HUW's market reach and profitability, allowing the company to diversify its risk portfolio and access new customer segments.

Helios Underwriting Financial Statement Overview

Summary

Helios Underwriting shows strengths in operational efficiency and a stable capital structure, but faces significant challenges with revenue volatility and cash flow management. The company's ability to maintain profitability amidst declining revenues and negative cash flows will be crucial for future stability.

Income Statement

Helios Underwriting has experienced significant revenue volatility, with a sharp decline in revenue growth rate of -85.85% in the latest year. Despite high gross profit margins, the net profit margin has fluctuated, peaking at 51.60% recently due to reduced revenue. The EBIT and EBITDA margins have improved significantly, indicating better operational efficiency, but the overall revenue decline poses a risk.

Balance Sheet

The company's debt-to-equity ratio has improved over time, indicating a stronger equity position relative to debt. However, the return on equity has been inconsistent, with a recent improvement to 10.73%. The equity ratio remains stable, suggesting a solid capital structure, but the fluctuating ROE highlights potential profitability challenges.

Cash Flow

Helios Underwriting's cash flow situation is concerning, with negative operating and free cash flows in the latest period. The free cash flow growth rate has been negative, and the operating cash flow to net income ratio is zero, indicating cash flow issues despite reported net income. This poses a risk to liquidity and operational sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.00M	209.36M	149.39M	70.58M	52.30M
Gross Profit	36.00M	214.75M	111.65M	52.64M	52.59M
EBITDA	26.99M	24.30M	-4.21M	868.00K	-746.00K
Net Income	18.57M	16.37M	-2.10M	-434.00K	301.00K
Balance Sheet
Total Assets	243.01M	756.60M	490.49M	341.63M	192.62M
Cash, Cash Equivalents and Short-Term Investments	28.93M	40.91M	25.30M	24.62M	8.49M
Total Debt	58.46M	59.05M	15.00M	0.00	4.00M
Total Liabilities	69.89M	616.50M	373.31M	233.88M	142.07M
Stockholders Equity	173.12M	140.10M	117.18M	107.75M	50.55M
Cash Flow
Free Cash Flow	-3.68M	2.70M	-25.66M	-20.01M	-12.13M
Operating Cash Flow	-3.68M	3.20M	-24.96M	-17.02M	-11.94M
Investing Cash Flow	-1.52M	1.06M	-107.00K	-14.43M	1.23M
Financing Cash Flow	-7.98M	37.25M	25.75M	47.58M	13.17M

Helios Underwriting Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 218.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HUW, the sentiment is Positive. The current price of 218 is above the 20-day moving average (MA) of 208.80, above the 50-day MA of 210.46, and above the 200-day MA of 213.93, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 56.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HUW.

Helios Underwriting Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LRE	79 Outperform	£1.64B	9.10	15.18%	11.32%	8.78%	-38.83%
BEZ	78 Outperform	£5.32B	7.49	22.59%	2.79%	6.00%	-24.29%
ADM	78 Outperform	£10.01B	12.11	65.36%	7.22%	22.62%	106.27%
CRE	69 Neutral	£548.48M	50.50	1.39%	7.75%	15.83%	-93.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HUW	60 Neutral	£155.95M	8.53	13.74%	2.75%	―	―