Hiscox Ltd (HSX.L) stock analysis
In our weekly check, Hiscox Ltd is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4.
About Hiscox Ltd
Hiscox Ltd is a Financial Services company (Insurance - Property & Casualty) based in Bermuda, listed on LSE as HSX.L.
What our checks show for HSX.L
Red flags
- Operating cash flow is only 0.12x net profit: part of the reported profit does not arrive as cash.
- The stock has fallen as much as 62% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 5.9 years.
- Pay in shares equals 66.8% of free cash flow: it dilutes shareholders.
Warning signs
- Analysts expect only about 2.3% a year of growth in revenue.
- Free cash flow is only 1.3% of revenue.
- Free cash flow covers the dividend only 0.5 times.
- Return on capital (ROCE) is only 5.6%.
Strengths
- The net margin rose by 5 points over 5 years, to 11.2%.
- The gross margin is 100% and has risen by 45 points: pricing power is holding.
- Analysts expect earnings per share to grow about 10.7% a year over the next years.
- Analysts expect the net margin to improve by 3.4 points from today's 11.2%.
- Earnings per share grew 36.1% a year over the last 3 years.
- Net profit grew 34.4% a year over the last 3 years.
Similar companies
MCY · SIGI · RLI · HGTY · ARX · THG
Questions
What grade does Hiscox Ltd (HSX.L) have?
In our weekly check, Hiscox Ltd is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 4, red flags: 4. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of HSX.L stock?
This week's biggest flags for Hiscox Ltd: Profits not backed by cash, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.
What does Hiscox Ltd do?
Hiscox Ltd is a Financial Services company (Insurance - Property & Casualty) based in Bermuda, listed on LSE as HSX.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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