Aviva PLC
🇬🇧 AV.LSE · London · GB00BPQY8M80
Insurance
GBX 628.85 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
17.6
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: 628.85 ÷ 35.71 = 17.6
TTM period through: 2025-12-31
Forward P/E (estimated): 9.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.3
Yield (Fwd)
6.20%
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): 6.23%
Net Debt/EBITDA (TTM)
-3.9x
Latest quarter: -12.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): -12.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
109.2%
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): 120.6%
FCF Coverage (TTM): -2.38x
ROE
10.7%
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
Aviva is a leading UK-based insurance provider offering essential financial services with a robust capital position. While the company boasts a highly attractive 6.23% dividend yield and resilient underlying operations despite temporary IFRS accounting noise, the current valuation offers limited upside. Existing shareholders should maintain positions to capture the yield, but new investors may want to monitor for a more attractive entry point.
Sector Context
Aviva PLC is a leading UK-based multinational insurance company offering life insurance, general insurance, and asset management services. In the insurance sector, statutory accounting (like IFRS) can significantly distort short-term earnings due to mark-to-market asset valuations, making underlying cash generation and regulatory capital ratios (like Solvency II) more critical metrics for assessing true dividend sustainability.
Temporary Opportunity Identified
Significant statutory net losses in recent periods due to IFRS accounting impacts from rising interest rates reducing the fair value of assets, which masks strong underlying business operations.
📊 Strategy Analysis
- • Attractive 6.23% dividend yield provides substantial income, supported by strong underlying trading performance and Solvency II capital generation.
- • Forward P/E of 9.42 indicates that recent statutory earnings compression is temporary and operational profitability is expected to normalize.
- • Operates in an essential financial services sector with a simplified, focused business model following its prudent 2020 strategic reset.
⚠ What to Watch
- • Current TTM P/E of 17.61 sits above the strategy's ideal 8-15x target range, suggesting a limited margin of safety for new capital.
- • Reported IFRS accounting losses highlight the business's high sensitivity to mark-to-market asset valuations amid shifting interest rates.
- • TTM Payout Ratio of 135.52% and negative free cash flow coverage metrics require monitoring, though they are heavily skewed by standard insurance sector investment accounting.
📊 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: 2026-04-11
Disclaimer: This information is for educational purposes only. Not financial advice.