Arab Insurance Group(Arig) Net Income surged on 132%
15 Feb 2020 • About Arab Insurance Group(Arig) (
$AGRD) • By InTwits
Arab Insurance Group(Arig) reported 2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Arab Insurance Group(Arig) is a company in decline: 2019 revenue growth was -12.2%, 5 years revenue CAGR was -6.6%
- Arab Insurance Group(Arig) has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has potentially unprofitable business model: ROIC is 2.1%
- It operates with high leverage: Net Debt/EBITDA is 8.9x while industry average is 3.9x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 12.2%. During 2015-2019 Revenue growth topped in 2018 at 10.3%.
Net Income margin surged on 32.8 pp from -24.1% to 8.7% in 2019.
Investments (CAPEX, working capital and M&A)
In 2019 the company had CAPEX/Revenue of 0.042%. The company's CAPEX/Revenue showed almost no change from 2016 to 2019. It's average CAPEX/Revenue for the last three years was 0.17%.
Return on investment
The company operates at low ROIC (2.1%) and ROE (8.3%). ROIC increased on 7.4 pp from -5.4% to 2.1% in 2019. ROE surged on 32.6 pp from -24.4% to 8.3% in 2019.
Leverage (Debt)
Debt didn't change in 2019 while cash dropped on 29.9%.
Arab Insurance Group(Arig) has no short term refinancing risk: cash is higher than short term debt (1,160.9%).
Financial and operational results
FY ended 31 Dec 2019
Arab Insurance Group(Arig) ($AGRD) key annual financial indicators| mln. $ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 240.2 | 205.3 | 207.8 | 229.2 | 201.2 | -12.2% |
| Net Income | -4.4 | 9.2 | 7.2 | -55.3 | 17.5 | |
Balance Sheet
|
|---|
| Cash | 198.8 | 180.5 | 82.7 | 115.9 | 81.3 | -29.9% |
| Short Term Debt | 44.0 | 41.0 | 34.0 | 7.0 | 7.0 | 0.0% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 0.6 | 0.4 | 0.7 | 0.3 | 0.1 | -73.2% |
Ratios
|
|---|
| Revenue growth | -14.9% | -14.5% | 1.2% | 10.3% | -12.2% | |
|
|---|
| Net Income Margin | -1.8% | 4.5% | 3.5% | -24.1% | 8.7% | 32.8% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.3% | 0.1% | 0.0% | -0.1% |
|
|---|
| ROIC | -0.7% | 1.1% | 0.9% | -5.4% | 2.1% | 7.4% |
| ROE | -1.7% | 3.7% | 2.8% | -24.4% | 8.3% | 32.6% |
Peers in Nonlife Insurance
Below you can find Arab Insurance Group(Arig) benchmarking vs. other companies in Nonlife Insurance industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Beazley ($BEZ) | | 6.0% | 7.9% | 5.7% | 22.1% |
| Marsh & Mclennan Cos Inc ($MHM) | | 2.5% | 6.2% | 6.6% | 11.4% |
| Lancashire Hldgs ($LRE) | | -11.4% | -10.5% | -7.1% | 8.1% |
| |
|---|
| Median (3 companies) | 5.4% | 4.3% | 6.0% | 5.7% | 11.4% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | | -14.5% | 1.2% | 10.3% | -12.2% |
Top companies by EBITDA margin, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 22.0% | 23.5% | 23.8% | 21.8% | 20.0% |
| |
|---|
| Median (1 company) | 22.0% | 23.5% | 23.8% | 21.8% | 20.0% |
|---|
Top companies by CAPEX/Revenue, %
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 2.5% | 1.9% | 2.2% | 2.1% | 2.5% |
| Beazley ($BEZ) | 0.1% | 0.2% | 0.1% | 0.1% | 0.2% |
| Lancashire Hldgs ($LRE) | 0.0% | 0.1% | 0.1% | 0.0% | 0.2% |
| |
|---|
| Median (3 companies) | 0.2% | 0.3% | 0.2% | 0.1% | 0.2% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | 0.3% | 0.2% | 0.3% | 0.1% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 22.0% | 23.6% | 23.3% | 20.5% | 14.9% |
| Lancashire Hldgs ($LRE) | 6.6% | 6.2% | -1.7% | 2.2% | 4.9% |
| Beazley ($BEZ) | 4.8% | 4.8% | 2.8% | 1.5% | 3.8% |
| General Accident ($GACB) | 0.6% | 0.4% | 0.7% | | |
| Rsa Insurance Group ($RSAB) | 1.2% | 2.7% | 2.8% | | |
| |
|---|
| Median (5 companies) | 1.2% | 2.2% | 2.2% | 2.2% | 4.9% |
|---|
| Arab Insurance Group(Arig) ($AGRD) | -0.7% | 1.1% | 0.9% | -5.4% | 2.1% |
Top companies by Net Debt / EBITDA
| Top | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Marsh & Mclennan Cos Inc ($MHM) | 1.1x | 1.2x | 1.3x | 1.5x | 3.9x |
| |
|---|
| Median (1 company) | 1.1x | 1.2x | 1.3x | 1.5x | 3.9x |
|---|
