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Ageas SA/ NV ADR AGESY

Morningstar Rating
$42.68 −0.31 (0.73%)
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Company Report

Ageas Earnings: A Little Light Versus Our Estimates, but Ahead of Consensus

Ageas reported net income of EUR 953 million for 2023, below our EUR 1.031 billion forecast. These earnings equate to around EUR 5.17 per share, lower than the EUR 5.60 we estimated. The board is proposing a dividend of EUR 3.25 per share, ahead of the EUR 3.21 we forecast. Solvency has come in at 217%, slightly below company-compiled consensus of 221%, and Ageas holds liquid assets of EUR 959 million, slightly better than the EUR 954 million consensus penciled in. The group net operating result is also better than consensus estimates, within the targeted range of EUR 1.1 billion to EUR 1.2 billion, at EUR 1.17 billion, with Europe delivering better performance. The operational free capital generation of EUR 1.2 billion more than covers the nearly EUR 600 million dividend.

Price vs Fair Value

AGESY is trading at a 39% discount.
Price
$42.68
Fair Value
$53.00
Uncertainty
Medium
1-Star Price
$45.20
5-Star Price
$25.00
Economic Moat
Qpkl
Capital Allocation
Zljc

Bulls Say, Bears Say

Bulls

Ageas has continued to gain market share in both core domestic life and savings and nonlife insurance business.

Bears

Ageas still has quite a lot of legacy finance issues that have the potential to weigh on and dilute earnings.

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Trading Information

Previous Close Price
$42.99
Day Range
$42.4442.82
52-Week Range
$37.9147.79
Bid/Ask
$41.05 / $43.75
Market Cap
$7.84 Bil
Volume/Avg
1,715 / 5,682

Key Statistics

Price/Earnings (Normalized)
9.14
Price/Sales
0.70
Dividend Yield (Trailing)
7.48%
Dividend Yield (Forward)
7.48%
Total Yield
7.61%

Company Profile

Ageas was spun out of Fortis during the financial crisis after a consortium including Banco Santander and Royal Bank of Scotland launched a failed bid for ABN Amro. The takeover was badly timed and ambitious, and to fund it Fortis started selling noncore divisions while writing down collateralised debt. As Fortis’ capital began to decline, the company initiated a rights issue and the long-held promised dividend was suspended. As Fortis’ share price began to decline and financial market conditions continued to worsen, with a series of leadership changes customers began to withdraw deposits. Fortis was approached by the government and sold its domestic banking operations to the Belgium government, and BNP Paribas and was asked to spin off its insurance and asset management divisions.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Mid Value
Total Number of Employees
14,673

Competitors

Valuation

Metric
AGESY
NN
KBC
Price/Earnings (Normalized)
9.1444.167.07
Price/Book Value
1.000.501.21
Price/Sales
0.700.862.51
Price/Cash Flow
52.7914.756.65
Price/Earnings
AGESY
NN
KBC

Financial Strength

Metric
AGESY
NN
KBC
Quick Ratio
Current Ratio
Interest Coverage
7.28
Quick Ratio
No chart available

Profitability

Metric
AGESY
NN
KBC
Return on Assets (Normalized)
1.22%0.17%0.92%
Return on Equity (Normalized)
15.42%1.79%15.41%
Return on Invested Capital (Normalized)
8.53%0.71%
Return on Assets
AGESY
NN
KBC
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