Phoenix Group Holdings PLC
🇬🇧 PHNX.LSE · London · GB00BGXQNP29
Insurance
GBX 767.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
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.
TTM period through: 2025-12-31
Why N/A?
EPS (TTM) = -44.26 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 11.0
Based on analyst estimates
Reference: Provider P/E (Forward): 11.0
Yield (Fwd)
7.17%
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): 7.14%
Net Debt/EBITDA (TTM)
-11.2x
Latest quarter: -22.5x
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): -22.5x
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 (TTM)
111.7%
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.
Cash Flow Payout (TTM): 14.2%
FCF Coverage (TTM): 7.02x
ROE
-25.4%
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
Phoenix Group is a major UK life insurance and pension consolidator with highly predictable cash flows and a flawless 10-year dividend growth history. The recurring statutory net losses represent a classic temporary problem driven by complex IFRS accounting mismatches from hedging strategies, which masks the company's robust £3.77 billion free cash flow that covers the dividend over 7x. Trading at an attractive forward P/E of 11 with a secure 7.1% yield, this represents a compelling entry point for dividend investors seeking quality financial sector exposure.
Sector Context
Phoenix Group Holdings is a major UK life insurance and pension consolidator, acquiring and managing closed life and pension funds to generate predictable, long-term cash flows. In the insurance and financial sector, statutory accounting metrics like EPS and Debt/Equity often look severely distorted due to massive policyholder liabilities and complex interest rate hedging strategies; evaluating free cash flow generation is the primary metric for assessing dividend sustainability.
Temporary Opportunity Identified
Headline statutory net losses are driven by non-cash IFRS accounting mismatches related to the company's interest rate and equity hedging strategies, temporarily masking the business's massive underlying cash generation.
📊 Strategy Analysis
- • Flawless 10-year dividend history with an 18.7% CAGR and zero cuts, backed by a highly attractive 7.14% yield.
- • Robust free cash flow generation of £3.77 billion provides exceptional dividend coverage (FCF covers dividend 7x), demonstrating that the >100% earnings payout ratio is merely an accounting artifact.
- • Forward P/E of 10.96 represents an attractive valuation for a market-leading UK life and pension consolidator.
- • Underlying operating profit and revenues continue to grow steadily despite headline statutory losses driven by IFRS hedging mismatches.
⚠ What to Watch
- • Frequent statutory net losses due to complex IFRS accounting and Solvency II hedging strategies cause significant headline earnings volatility.
- • Elevated Debt-to-Equity ratio of 15.52x, while typical for life insurers managing substantial policyholder liabilities, requires continuous monitoring amid global interest rate stress.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.