# Hiscox Ltd (HSX.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Financial Services / Insurance. Price 1853p, market value 5.9 billionp.

## Valuation
- **P/E (trailing): 13.2×** (5-yr avg 992.9×, 3-yr avg 643.5×). Hiscox Ltd trades at 13.2× trailing earnings, well below its own five-year average of 992.9×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 12.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 10.85**. A PEG of 10.85 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 1.9×**. Enterprise value is 1.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 2.2%** (5-yr avg 0.0%). Free cash flow equals 2.2% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 7.6%**. The inverse of the P/E: 7.6% of the price is earned each year.

## Profitability
- **Gross margin: 100.0%**. Hiscox Ltd keeps 100.0% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 68.3%**. 68.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 11.2%**. 11.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.6%**. 15.6% on shareholders' equity is solid.
- **Return on invested capital: 130.1%**. Return on all capital, debt included, is 130.1%: comfortably above what that capital costs.
- **Return on assets: 10.1%**. Each dollar of assets produces 10.1% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 44.0%** (3-yr 22.6%/yr, 5-yr 11.0%/yr). Revenue grew 44.0% over the last year, against 11.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 1.1%** (3-yr 34.2%/yr). Earnings per share rose 1.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -40.8%/yr**. Free cash flow has compounded at -40.8% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.
- **Cash and short-term investments: 649 millionp**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.09%** (0p per share, trailing). Hiscox Ltd yields 2.09%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 24%** (152% of free cash flow). 24% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 8.0%**. Dividends plus net buybacks return 8.0% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (14 analysts). 14 analysts cover Hiscox Ltd; the consensus is buy, with an average price target of 1940p (+5% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 45.7%** (YTD 31.5%, 3-mo 8.0%). The shares are up 45.7% over twelve months including dividends.
- **From 52-week high: -2.7%** (44.9% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 62**. An RSI of 62 is neutral.
- **Beta (1 yr): 0.50** (volatility 24%). Beta of 0.50 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HSX.L · Page: https://foliofundamentals.com/stocks/hsx.l

Not investment advice.