Aviva plc (AV.L) stock analysis

In our weekly check, Aviva plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 7.

About Aviva plc

Aviva plc is a Financial Services company (Insurance - Diversified) based in the United Kingdom, listed on LSE as AV.L.

What our checks show for AV.L

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 6.3% a year.
• The net margin is only 1.8%: little room if costs rise.
• Free cash flow is negative (-5.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.6%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Earnings per share fell 8.3% a year over the last 3 years.
• The dividend takes 90% of profit: little cushion if profit falls.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 0.5 points over 5 years, to 1.8%.
• The gross margin is 62.1% and has risen by 1.1 points: pricing power is holding.
• Analysts expect earnings per share to grow about 40.4% a year over the next years.
• Analysts expect the net margin to improve by 2.7 points from today's 1.8%.
• Revenue grew 119% a year over the last 3 years.
• A large company: market value $28.44 billion.

Similar companies

HBAN.SW · NN.AS · SAMPO.HE · IAG.TO · UNI.MI · SLHN.SW

Questions

What grade does Aviva plc (AV.L) have?

In our weekly check, Aviva plc is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of AV.L stock?

This week's biggest flags for Aviva plc: Profits not backed by cash, Weak revenue forecast, Thin margins. In total 10 of 24 checks show a warning or a red flag.

What does Aviva plc do?

Aviva plc is a Financial Services company (Insurance - Diversified) based in the United Kingdom, listed on LSE as AV.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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