ageas SA/NV
🇧🇪 AGS.BR · Brussels · BE0974264930
Insurance
EUR 64.85 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
7.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 64.85 ÷ 9.11 = 7.1
TTM period through: 2025-06-30
Forward P/E (estimated): 6.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 10.4
Yield (Fwd)
5.40%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 5.44%
Payout (Fwd)
38.4%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 36.6%
Cash Flow Payout (TTM): 34.3%
FCF Coverage (TTM): 2.52x
ROE
19.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
Summary
Ageas is a high-quality international insurance provider offering essential life and non-life products with robust cash flow generation and strong solvency metrics. Trading at €64.85, the stock sits well below our fair value estimate of €80-95 (implied P/E of 9-10.5), representing substantial upside potential. This represents a highly attractive entry point for dividend investors seeking secure income and value, with a well-covered 5.4% yield.
Sector Context
Ageas is a multinational insurance company that provides life and non-life (property and casualty) insurance products across Europe and Asia, generating revenue through premium collection and investment income from float. In the insurance sector, companies benefit from steady, recurring premium income; however, they are highly sensitive to interest rate fluctuations, underwriting risks, and strict regulatory capital requirements. A strong balance sheet and robust cash flow coverage are crucial to weather varying economic cycles.
Temporary Opportunity Identified
Margin contraction and broader macroeconomic uncertainties are currently weighing on the valuation, compounded by temporary execution risks associated with integrating the recent esure acquisition.
📊 Strategy Analysis
- • Trading at an exceptionally attractive P/E of 7.1, well below our fair value estimate range of €80-95, offering significant upside alongside a 5.4% dividend yield.
- • The dividend is highly secure, supported by a strong Free Cash Flow coverage ratio of 2.52x and a conservative cash flow payout ratio of 34%.
- • Strong underlying business fundamentals demonstrated by an impressive Return on Equity (ROE) of 19.3% and a solid balance sheet (Debt/Equity of 0.51).
- • Revenue and earnings have shown consistent long-term growth, proving that the 2023 dividend reduction was a prudent strategic reset rather than a sign of structural decline.
⚠ What to Watch
- • Net profit margins have contracted to 8.7% compared to the 5-year average of 12.6%, warranting close monitoring of ongoing underwriting profitability.
- • The recently completed acquisition of esure introduces short-to-medium-term execution and integration risks within a highly competitive market.
- • Broader macroeconomic volatility and geopolitical tensions could negatively impact the valuation of the company's fixed-income investment portfolio.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.