Enstar Group Stock Fair Value – Fitch Affirms Enstar Group Limited’s Ratings with Stable Outlook
June 12, 2023
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Enstar Group ($NASDAQ:ESGR) Limited is a Bermuda-based company that provides risk management and financial solutions. Fitch Ratings has affirmed Enstar Group Limited’s long-term issuer default rating at ‘BBB+’, its senior unsecured notes at ‘BBB’, and its senior shelf registration at ‘BBB+’, all with a Stable Outlook. Fitch believes that the company’s solid capitalization, strong liquidity profile, and experienced management team have provided the company with a strong foundation on which to build. They also recognize the strength of Enstar’s reinsurance portfolio, which is well diversified and supported by experienced underwriting teams.
Additionally, Fitch has noted that the company has maintained a strong operating performance, with consistently positive returns over the past few years. Fitch believes that Enstar has the capacity to take on additional debt and continue to invest in its core operations without taking on undue risks or compromising its credit profile. Moreover, they believe that the company’s conservative approach to growth and risk management will help to ensure sustained financial health in the long-term. Overall, Fitch’s ratings reflect their confidence in the Enstar Group Limited’s business model and outlook for the future. The company’s financial standing is strong, and its operational performance has been consistent over time. With these ratings in place, investors can be assured that Enstar is well-positioned to continue providing excellent products and services to its customers.
Price History
On Thursday, Fitch affirmed the ratings of Enstar Group Limited (ENSTAR) with a stable outlook. ENSTAR’s stock opened at $255.3 and closed at $252.7, down by 1.9% from its prior closing price of $257.7. Fitch noted that the company’s ratings are supported by its strong capitalization, conservative management style, and strong competitive position in its core markets. The rating agency also highlighted ENSTAR’s disciplined underwriting and claims management practices, as well as its solid risk management framework.
Additionally, Fitch mentioned that ENSTAR’s cash flow generation abilities and consistent operating performance are also positive factors in their decision to affirm the ratings with a stable outlook. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Enstar Group. More…
| Total Revenues | Net Income | Net Margin |
| -413 | -215 | 44.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Enstar Group. More…
| Operations | Investing | Financing |
| 970 | -344 | -627 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Enstar Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.34k | 15.29k | 304.61 |
Key Ratios Snapshot
Some of the financial key ratios for Enstar Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.2% | – | 1.7% |
| FCF Margin | ROE | ROA |
| -234.9% | -0.1% | -0.0% |
Analysis – Enstar Group Stock Fair Value
At GoodWhale, we recently conducted an analysis of the fundamentals of ENSTAR GROUP. After considering the financial performance of the company, industry outlook and other factors, we have come to the conclusion that the fair value of ENSTAR GROUP share is roughly around $231.7. This figure was calculated by our proprietary Valuation Line, which determines the fair price of an asset by taking into account its intrinsic value. So far, the ENSTAR GROUP stock has been trading at $252.7. This is a fair price, but we believe that it is currently overvalued by around 9.1%. Although it may seem like a sensible investment right now, we recommend exercising caution if you are thinking of buying their shares. More…
Peers
It focuses on acquiring and managing insurance and reinsurance companies. The company operates in the United States, Europe, Asia, Australia, and South America. Enstar Group Ltd’s competitors include Zavarovalnica Triglav DD, American National Group Inc, UNIQA Insurance Group AG.
– Zavarovalnica Triglav DD ($LTS:0KFO)
Zavarovalnica Triglav DD is a Slovenian insurance company with a market cap of 794.88M as of 2022. The company has a ROE of 10.44%. Zavarovalnica Triglav DD offers a wide range of insurance products, including property and casualty, life, health, and reinsurance. The company has a strong presence in Slovenia and Croatia, and also operates in Bosnia and Herzegovina, Montenegro, and Macedonia.
– American National Group Inc ($LTS:0GDR)
UNIQA Insurance Group AG is an Austrian insurance company with a market cap of 2.19 billion as of 2022. The company has a return on equity of 10.93%. UNIQA provides a wide range of insurance products and services, including life, health, and property and casualty insurance. The company operates in Austria, Germany, Hungary, Poland, Romania, Slovakia, Slovenia, the Czech Republic, and Croatia.
Summary
Enstar Group Limited is a publicly listed insurance and reinsurance company with operations in Europe, the United States, and Bermuda. Recently, the Fitch Ratings agency affirmed Enstar’s Long-Term Issuer Default Rating at ‘BBB+’, senior unsecured notes at ‘BBB’, and senior shelf registration at ‘BBB+’. This positive endorsement from Fitch demonstrates the financial strength and stability of Enstar Group Limited.
Investors should find the company attractive due to its strong credit ratings, diverse product offerings, and experienced management team. With its focus on underwriting, investing, and management, Enstar Group Limited is well-positioned to deliver attractive returns to investors.
