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AXA SA CS

Morningstar Rating
€30.90 +0.34 (1.11%)
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Company Report

AXA’s Tilt to Commercial Insurance and Technical Income Shows Nascent Positive Signs

AXA is a large European multiline insurer that has been on a path of renewed focus and transformation. While its renewed focus may still be a little elusive and it will always be hard for such a large insurer to achieve, given the nature of this business, the company has clearly made strong inroads in transforming its business model to one that is less focused on life and savings. Historically, these lines of business have contributed over half of AXA’s revenue and earnings. Yet, as the company took some deliberate actions to sell its North American savings business, shift its products to more technical-based income in Switzerland, and purchase a more North American-focused commercial property and casualty insurer with the proceeds, this is by and large a technical income-based, albeit large and diversified, insurance business. Alongside the developed markets of France, the US, and Northern Europe, we think the company holds solid property and casualty insurance businesses and relationships in developed as well as emerging markets in Asia.

Price vs Fair Value

CS is trading at a 348% premium.
Price
€30.56
Fair Value
€67.00
Uncertainty
Medium
1-Star Price
€63.59
5-Star Price
€98.50
Economic Moat
Cvwf
Capital Allocation
Kbrpsqbch

Bulls Say, Bears Say

Bulls

We think AXA has carved out a leading micro business and SMB European commercial insurance offering.

Bears

AXA has not generated historical economic profits and returns.

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News

Trading Information

Previous Close Price
€30.56
Day Range
€30.4230.94
52-Week Range
€25.2135.19
Bid/Ask
€30.78 / €30.94
Market Cap
€69.59 Bil
Volume/Avg
3.6 Mil / 4.3 Mil

Key Statistics

Price/Earnings (Normalized)
9.19
Price/Sales
0.80
Dividend Yield (Trailing)
6.48%
Dividend Yield (Forward)
6.48%
Total Yield
9.11%

Company Profile

AXA’s origins date back to Ancienne Mutuelle, which was one of the few insurers that remained after the creation of the French security system. With the threat of nationalization, a merger took place between three insurance groups The Drouot Group, AXA (still known as Mutuelles Unies in 1982), and Presence Group. Ten years later AXA acquired North American life insurer Equitable Holdings. This was a time of expansion as AXA also bought UAP, a large French insurer. Yet, as markets crashed at the turn of the millennium, AXA decided to refocus its business and exited its stake in US investment bank Donaldson, Lufkin & Jenrette. A few years later the firm expanded again with the acquisition of Swiss insurer Winterthur. About 5 years ago AXA began reshaping its portfolio to technical risks.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Large Value
Total Number of Employees
147,000

Competitors

Valuation

Metric
CS
AV.
ZURN
Price/Earnings (Normalized)
9.198.8914.57
Price/Book Value
1.371.453.33
Price/Sales
0.800.401.12
Price/Cash Flow
89.64
Price/Earnings
CS
AV.
ZURN

Financial Strength

Metric
CS
AV.
ZURN
Quick Ratio
Current Ratio
Interest Coverage
15.594.5915.16
Quick Ratio
No chart available

Profitability

Metric
CS
AV.
ZURN
Return on Assets (Normalized)
1.19%0.46%1.37%
Return on Equity (Normalized)
16.11%15.72%19.33%
Return on Invested Capital (Normalized)
6.80%10.33%11.85%
Return on Assets
CS
AV.
ZURN
See how this stock stacks up to its competitors with Morningstar Investor

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Economic Moat
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