ICICI Lombard General Insurance Company Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).

Cons

• Unable to calculate sustainability of dividends as ICICI Lombard General Insurance has not reported any payouts.
• Unable to evaluate ICICI Lombard General Insurance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate ICICI Lombard General Insurance's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• ICICI Lombard General Insurance's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• ICICI Lombard General Insurance's earnings are expected to exceed the low risk growth rate next year.
• ICICI Lombard General Insurance's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• ICICI Lombard General Insurance is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Insurance industry average.
• An improvement in ICICI Lombard General Insurance's performance (ROE) is expected over the next 3 years.
• ICICI Lombard General Insurance's revenue growth is expected to exceed the India market average.

Cons

• ICICI Lombard General Insurance's earnings are expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
• ICICI Lombard General Insurance's earnings growth is positive but not above the India market average.
• ICICI Lombard General Insurance's net income is expected to increase but not above the 50% threshold in 2 years time.
• ICICI Lombard General Insurance's revenue is expected to increase but not above the 50% threshold in 2 years time.
• ICICI Lombard General Insurance's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

health

Pros

• ICICI Lombard General Insurance is profitable, therefore cash runway is not a concern.
• ICICI Lombard General Insurance is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (707.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 20.1x debt.
• ICICI Lombard General Insurance's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 42x coverage).
• ICICI Lombard General Insurance's level of debt (8.5%) compared to net worth is satisfactory (less than 40%).
• Low level of unsold assets.

Cons

• ICICI Lombard General Insurance's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• The level of debt compared to net worth has increased over the past 5 years (5.9% vs 8.5% today).

management

Pros

• The tenure for the ICICI Lombard General Insurance board of directors is about average.
• Bhargav's remuneration is lower than average for companies of similar size in India.
• Bhargav's compensation has been consistent with company performance over the past year, both up more than 20%.
• The average tenure for the ICICI Lombard General Insurance management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• ICICI Lombard General Insurance individual insiders have only sold shares in the past 3 months.

misc

Pros

Cons

• ICICI Lombard General Insurance has significant price volatility in the past 3 months.

past

Pros

• ICICI Lombard General Insurance's year on year earnings growth rate has been positive over the past 5 years.
• ICICI Lombard General Insurance used its assets more efficiently than the IN Insurance industry average last year based on Return on Assets.
• ICICI Lombard General Insurance has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
• ICICI Lombard General Insurance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
• ICICI Lombard General Insurance's earnings growth has exceeded the IN Insurance industry average in the past year (13.7% vs 1.5%).

Cons

• ICICI Lombard General Insurance's 1-year earnings growth is less than its 5-year average (13.7% vs 18.1%)

value

Pros

• ICICI Lombard General Insurance is good value based on earnings compared to the IN Insurance industry average.
• ICICIGI outperformed the Insurance industry which returned -7.3% over the past year.
• ICICIGI outperformed the Market in India which returned -14.5% over the past year.
• NSEI:ICICIGI is up 10.5% outperforming the Insurance industry which returned 3.6% over the past month.
• NSEI:ICICIGI is up 10.5% outperforming the market in India which returned 8% over the past month.

Cons

• ICICI Lombard General Insurance's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• ICICI Lombard General Insurance's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• ICICI Lombard General Insurance is overvalued based on assets compared to the IN Insurance industry average.
• ICICI Lombard General Insurance is poor value based on expected growth next year.
• ICICI Lombard General Insurance is overvalued based on earnings compared to the India market.