Fact based stock research
Hiscox (LSE:HSX)

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How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Hiscox stock research in summary

hiscoxgroup.com

ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Hiscox (Property & Casualty Insurance, Bermuda) shares have much better financial characteristics than comparable stocks. Shares of Hiscox are a good value (attractively priced) with a consolidated Value Rank of 87 (better than 87% of alternatives), are safely financed (Safety Rank of 85, which means low debt burdens), but show below-average growth (Growth Rank of 7). ...read more

RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Hiscox's financial characteristics. As the company Hiscox's key financial metrics exhibit good value (Obermatt Value Rank of 87) but low growth (Obermatt Growth Rank of 7) while being safely financed (Obermatt Safety Rank of 85), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 87% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	87
Growth Rank	7
Safety Rank	85
Combined Rank	75

Country	Bermuda
Industry	Property & Casualty Insurance
Index	FTSE All Shares, FTSE 250, FTSE 350, Good Governace Growth Markets
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Hiscox

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	8	69	74	87
GROWTH
GROWTH	23	49	47	7
SAFETY
SAFETY	42	85	85	85
SENTIMENT
SENTIMENT	n/a	46	50	^new
360° VIEW
360° VIEW	n/a	63	81	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Hiscox is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	8	69	74	87
GROWTH
GROWTH	23	49	47	7
SAFETY
SAFETY	42	85	85	85
COMBINED
COMBINED	3	75	75	75

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Hiscox the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 87 (better than 87% compared with alternatives) for 2022, Hiscox shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Hiscox. Price-to-Sales is 89 which means that the stock price compared with what market professionals expect for future sales is lower than for 89% of comparable companies, indicating a good value for Hiscox's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 61% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Hiscox are expected to be higher than for 66% of all competitors (a Dividend Yield rank of 66). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 87, is a buy recommendation based on Hiscox's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Hiscox based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	45	84	76	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	5	32	51	61
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	35	44	46	61
DIVIDEND YIELD
DIVIDEND YIELD	38	61	60	66
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	8	69	74	87

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Hiscox; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), Hiscox shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Hiscox. Only Capital Growth has a good rank of 69, which means that currently professionals expect the company to grow its invested capital more than 8% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 15 which means that currently professionals expect the company to grow less than 85% of its competitors. Profit Growth with a rank of 8 and Stock Returns with a rank of 31 are also low (below 69% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Hiscox is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	9	32	36	15
PROFIT GROWTH
PROFIT GROWTH	74	88	100	8
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	59	69
STOCK RETURNS
STOCK RETURNS	26	37	13	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	23	49	47	7

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Hiscox.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 85 (better than 85% compared with alternatives) for 2022, the company Hiscox has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Hiscox is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Hiscox. Leverage is at a rank of 64, meaning the company has a below-average debt-to-equity ratio. It has less debt than 64% of its competitors. Liquidity is also good at a rank of 69, meaning the company generates more profit to service its debt than 69% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 6, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 85 (better than 85% compared with alternatives), Hiscox has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Hiscox. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Hiscox and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	88	46	64	64
REFINANCING
REFINANCING	59	6	6	6
LIQUIDITY
LIQUIDITY	40	51	58	69
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42	85	85	85

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Hiscox and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	1	34	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	58	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	64	34	^new
MARKET PULSE
MARKET PULSE	n/a	85	91	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	46	50	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Hiscox.
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