XL  Xl Capital Limited

Exchange

NYSE

Sector

Finance

Industry

Property-Casualty Insurers

Market Cap.

11.00B

Current Price

$40.95
+0.31 (+0.76%)

Book Price

$30.92
Overvalued by 24.49%
Financial Institution

Company Metrics

  • P/E 26.25
  • P/S 1.03
  • P/B 0.99
  • EPS 1.56
  • Dividend 0.80 / 1.97 %
  • Avg. Vol. 1.85M
  • Shares 268.62M
  • Market Cap. 11.00B

Company Description

XL Group plc, through its subsidiaries, provides insurance and reinsurance coverages to industrial, commercial, and professional firms, insurance companies, and other enterprises worldwide. The company operates in three segments: Insurance, Reinsurance, and Life Operations. The Insurance segment offers property, casualty, professional liability, environmental liability, aviation and satellite, mar... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

BRIEF-XL Group Ltd announces $1 bln share buyback program, increases quarterly ...
Reuters - Feb 17, 2017
NEW YORK, Feb 17 Speculators reduced bullish bets on the U.S. dollar to their lowest since the week ended Oct. 11, cutting net longs for a sixth straight week, according to Commodity Futures Trading Commission data released on Friday and calculations ...
XL Group (XL) Q4 Earnings and Revenues Beat Estimates
Yahoo Finance - Feb 2, 2017
XL Group Ltd's XL fourth-quarter 2016 operating net income of 47 cents per share surpassed the Zacks Consensus Estimate by 38.2%.
XL Group Ltd. Expected to Earn FY2016 Earnings of $1.42 Per Share (XL) - Sports Perspectives
XL Group Ltd. (XL) Announces Earnings Results - The Cerbat Gem
Option Trading: XL Group Ltd (NYSE:XL) Powerful Short Put Spreads to ...
CML News - 3 hours ago
We find a very powerful outcome examining short put spreads for XL Group Ltd when we use a clever earnings risk management approach.
Gulf International Bank (UK) Ltd Buys Fortis, XL Group, TransCanada, Sells ...
Nasdaq - Feb 9, 2017
Gulf International Bank (UK) Ltd initiated holdings in Fortis Inc. The purchase prices were between $29.4 and $33.25, with an estimated average price of $31.03.
Dividend Growth of XL Group Ltd.(XL)
Highland Mirror - Feb 17, 2017
XL Group Ltd.(XL) is having a Dividend Yield of 1.98% with the Annual cash Dividend per share of $0.8. The last quarter cash dividend per share pay out was $0.2.
The XL Group Ltd. (XL) to Release Earnings on Wednesday - DailyQuint
XL Group Ltd. (XL) Announces Quarterly Dividend of $0.22 - Community Financial News
The Research Analysts Offer Predictions for the XL Group Ltd.'s FY2016 ...
DailyQuint - 5 hours ago
XL Group Ltd. (NYSE:XL) - Langen Mcalenn reduced their FY2016 earnings per share (EPS) estimates for shares of XL Group in a note issued to investors on Monday.
XL Group Ltd. (XL) Receives $40.67 Consensus PT from Brokerages - Sports Perspectives
Cipher Capital LP Buys Shares of 39422 XL Group Ltd. (XL) - Community Financial News
XL Group Ltd. (XL) is Private Management Group Inc.'s 9th Largest Position
Sports Perspectives - Feb 9, 2017
XL Group logo Private Management Group Inc. cut its stake in XL Group Ltd. (NYSE:XL) by 1.2% during the third quarter, according to its most recent filing with the Securities and Exchange Commission.
The XL Group Ltd. (XL) Given Consensus Rating of “Hold” by Analysts - DailyQuint
Equities Analysts Issue Forecasts for XL Group Ltd.'s Q3 2017 Earnings (XL) - Community Financial News
Franklin Mutual Advisers Llc. is Buying Xl Group Ltd. (NYSE:XL) Shares
Small Cap Exclusive (press release) - Feb 6, 2017
For those not familiar with the company, Xl Group Ltd. (NYSE:XL) is a risk specialist company. With an incredible blend of people, products, services and technology, the company has the power to find innovative, creative solutions for risks - from the ...
The IBM Retirement Fund Has $866000 Position in XL Group Ltd. (XL)
DailyQuint - Feb 16, 2017
IBM Retirement Fund cut its stake in shares of XL Group Ltd. (NYSE:XL) by 21.6% during the third quarter, Holdings Channel reports.
XL Group Ltd. Forecasted to Earn FY2017 Earnings of $3.45 Per Share (XL) - The Cerbat Gem
XL Group Ltd. (XL) Expected to Earn FY2017 Earnings of $3.45 Per Share - Sports Perspectives
The Quantitative Systematic Strategies LLC Has $1829000 Position in XL Group ...
DailyQuint - Feb 18, 2017
Quantitative Systematic Strategies LLC boosted its stake in shares of XL Group Ltd. (NYSE:XL) by 691.8% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for XL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate XL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Poor Cash Return on Invested Capital over the past 5 years

XL has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

XL has only created $- of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow - - - - -
divided by
Invested Capital 44.63B 45.39B 45.65B 45.05B 58.68B
Cash ROIC - - - - -

Poor Return on Equity over the past 5 years

XL has shown an inability to deliver strong results for shareholders. This could be due to poor management, XL operating in a highly competitive industry, or having a weak business in general.

XL has only generated $4.79 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -474.76M 651.13M 1.06B 188.34M 1.21B
divided by
Stockholders' Equity 9.42B 10.51B 10.00B 10.03B 11.68B
Return on Equity -5.04% 6.20% 10.60% 1.88% 10.34%

Poor Business Performance over the past 10 years

XL's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

XL has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow - - - - - - - - - -

Consistent Reinvestment of Profits over the past 10 years

XL has consistently retained profits. This may put XL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, XL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 3.27B 2.58B -315.53M 94.46M 513.78M -99.96M 402.32M 1.26B 1.19B 2.08B
Retained Earnings Growth - -21.06% -112.24% 129.94% 443.91% -119.46% 502.48% 214.20% -6.05% 74.91%

Highly Competitive Industry over the past 10 years

It's likely that XL is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely XL invests heavily in R&D and Sales, General & Administrative expenses.

Only $- of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 1.76B 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B
divided by
Revenue - - - - - - - - - -
Net Profit Margin - - - - - - - - - -

Weak Pricing Power over the past 10 years

XL is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that XL has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - - -
divided by
Revenue - - - - - - - - - -
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

XL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that XL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure - - - - - - - - - -
divided by
Net Income 1.76B 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

XL has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests XL is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 318.00M 274.04M 326.37M 225.01M 211.53M 209.53M 212.29M 237.83M 248.09M 326.20M
divided by
Shares Outstanding 179.45M 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M
Dividend Paid Per Share 1.77 1.53 1.37 0.66 0.63 0.67 0.68 0.81 0.91 1.12
Price at Year End 60.24 42.77 3.25 17.65 21.46 19.77 24.69 31.89 34.75 39.82
Dividend Yield 2.94% 3.57% 42.04% 3.74% 2.92% 3.39% 2.77% 2.55% 2.63% 2.82%

History of Stock Buybacks over the past 10 years

XL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 179.45M 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M
Stock Bought Back - -0.14% -24.77% -29.95% 0.96% 7.93% 0.84% 6.24% 7.57% -6.69%
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