Fact based stock research
Lancashire (LSE:LRE)

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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.

Lancashire stock research in summary

lancashiregroup.com

ANALYSIS: With an Obermatt Combined Rank of 94 (better than 94% compared with investment alternatives), Lancashire (Property & Casualty Insurance, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Lancashire are a good value (attractively priced) with a consolidated Value Rank of 79 (better than 79% of alternatives), show above-average growth (Growth Rank of 67), and are safely financed (Safety Rank of 70), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 94, is a strong buy recommendation based on Lancashire's financial characteristics. As the company Lancashire's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 79), above-average growth (Obermatt Growth Rank of 67), and indicate that the company is safely financed (Obermatt Safety Rank of 70), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Lancashire. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. 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	79
Growth Rank	67
Safety Rank	70
Combined Rank	94

Country	United Kingdom
Industry	Property & Casualty Insurance
Index	FTSE All Shares, FTSE 250, FTSE 350
Size class	Medium

This stock has achievements: Top 10 Stock.

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: Lancashire

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	25	35	71	79
GROWTH
GROWTH	19	41	95	67
SAFETY
SAFETY	76	70	70	70
SENTIMENT
SENTIMENT	n/a	97	71	^new
360° VIEW
360° VIEW	n/a	65	100	^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 Lancashire is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	25	35	71	79
GROWTH
GROWTH	19	41	95	67
SAFETY
SAFETY	76	70	70	70
COMBINED
COMBINED	58	94	94	94

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

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 79 (better than 79% compared with alternatives) for 2022, Lancashire shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Lancashire. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 85 which means that the stock price compared with what market professionals expect for future profits is lower than for 85% of comparable companies, indicating a good value concerning Lancashire's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 54, and for Dividend Yield with a Dividend Yield Rank of 99. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 62% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 38). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 79, is a buy recommendation based on Lancashire's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Lancashire has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Lancashire shares. 9. 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)	13	28	38	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	57	83	85
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	59	39	48	54
DIVIDEND YIELD
DIVIDEND YIELD	40	47	96	99
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	25	35	71	79

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), Lancashire shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Lancashire. Sales Growth has a rank of 70 which means that currently, professionals expect the company to grow more than 70% of its competitors. Capital Growth is also above 40% of competitors with a rank of 73. But Profit Growth only has a rank of 40, which means that currently professionals expect the company to grow its profits less than 60% of its competitors. And Stock Returns have also been below average with a rank of only 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. 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 mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	58	88	76	70
PROFIT GROWTH
PROFIT GROWTH	4	1	100	40
CAPITAL GROWTH
CAPITAL GROWTH	n/a	91	81	73
STOCK RETURNS
STOCK RETURNS	12	3	43	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	19	41	95	67

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 70 (better than 70% compared with alternatives), the company Lancashire has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Lancashire 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 Lancashire. Leverage is at a rank of 68, meaning the company has a below-average debt-to-equity ratio. It has less debt than 68% of its competitors. Liquidity is also good at a rank of 64, meaning the company generates more profit to service its debt than 64% 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 38, 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 62% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 70 (better than 70% compared with alternatives), Lancashire has a financing structure that is 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 Lancashire. 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 Lancashire 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	82	82	64	68
REFINANCING
REFINANCING	47	38	38	38
LIQUIDITY
LIQUIDITY	13	38	44	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	76	70	70	70

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Lancashire 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	34	40	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	72	24	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	83	69	^new
MARKET PULSE
MARKET PULSE	n/a	96	100	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	97	71	^new

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