XL  Xl Capital Limited

Exchange

NYSE

Sector

Finance

Industry

Property-Casualty Insurers

Market Cap.

11.30B

Current Price

$43.79
-0.17 (-0.39%)

Book Price

$28.77
Overvalued by 34.31%
Financial Institution

Company Metrics

  • P/E 14.32
  • P/S 1.03
  • P/B 1.03
  • EPS 3.06
  • Dividend 0.88 / 2%
  • Avg. Vol. 1.48M
  • Shares 258.05M
  • Market Cap. 11.30B

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

XL Group (XL) & Subsidiaries Rated by AM Best
Nasdaq - Aug 14, 2017
XL Group LtdXL and its units recently received rating action from credit rating giant, A.M. Best. The rating agency has affirmed the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a+" and the existing Long-Term Issue Credit Ratings (Long-Term IR ...
XL Group Ltd. A Clever Put Spread
CML News - Aug 17, 2017
Selling puts is a common option strategy during a bull market, but it turns out that looking at a lower risk put spread, and being rather clever in how we treat earnings, yields powerful results in XL Group Ltd. (NYSE:XL) . More urgently, if we do not ...
XL Group (XL) Q2 2017 Results - Earnings Call Transcript
Seeking Alpha - Jul 27, 2017
Welcome to the XL Group Limited second quarter 2017 earnings conference call. Our call today is being simultaneously webcast at xlgroup.
XL Group Ltd Announces Second Quarter 2017 Results
PR Newswire (press release) - Jul 26, 2017
Integration costs related to the acquisition of Catlin Group Limited ("Catlin"), completed on May 1, 2015 ("Catlin Acquisition"), totaled approximately $39.1 million for the quarter compared to $52.1 million in the prior year quarter.
Agree To Buy XL Group At $38, Earn 3.6% Annualized Using Options
Nasdaq - Jul 28, 2017
Investors considering a purchase of XL Group Ltd (Symbol: XL) shares, but tentative about paying the going market price of $43.20/share, might benefit from considering selling puts among the alternative strategies at their disposal.
XL Group Ltd. sees net income soar in 2017 Q2 over prior-year quarter, focus ...
Canadian Underwriter - Jul 27, 2017
Both net income attributable to common shareholders and operating net income for Bermuda-based XL Group Ltd. skyrocketed in 2017 Q2 compared to 2016 Q2, with the former increasing six-fold to US$301.6 million.
XL Group (XL) Q2 Earnings: Is it Likely to Disappoint?
Zacks.com - Jul 24, 2017
XL Group Ltd (XL - Free Report) is slated to report second-quarter 2017 results on Jul 26, after the market closes. Last quarter, the company delivered a positive earnings surprise of 8.70%.
Trading Earnings Optimism With Options in XL Group Ltd.
CML News - Aug 15, 2017
There is a powerful pattern of optimism and momentum in XL Group Ltd. (NYSE:XL) stock right before of earnings, and we can capture that pattern by looking at returns in the option market.
XL Catlin's North America Construction team builds GL Only Plus Wrap Up ...
PR Newswire (press release) - Aug 8, 2017
XL Catlin is the global brand used by XL Group Ltd (NYSE: XL) insurance and reinsurance companies which provide property, casualty, professional and specialty products to industrial, commercial and professional firms, insurance companies and other ...
XL Group (XL) Q2 Earnings Beat, Revenues Miss Estimates
Zacks.com - Jul 27, 2017
XL Group Ltd's (XL - Free Report) second-quarter 2017 operating net income of 96 cents per share outpaced the Zacks Consensus Estimate by 7.9%.
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
20122013201420152016
Free Cash Flow - - - - -
divided by
Invested Capital 45.39B 45.65B 45.05B 58.68B 58.43B
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 $6.61 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 651.13M 1.06B 188.34M 1.21B 440.97M
divided by
Stockholders' Equity 10.51B 10.00B 10.03B 11.68B 10.94B
Return on Equity 6.20% 10.60% 1.88% 10.34% 4.03%

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
2007200820092010201120122013201420152016
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
2007200820092010201120122013201420152016
Retained Earnings 2.58B -315.53M 94.46M 513.78M -99.96M 402.32M 1.26B 1.19B 2.08B 2.15B
Retained Earnings Growth - -112.24% 129.94% 443.91% -119.46% 502.48% 214.20% -6.05% 74.91% 3.58%

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
2007200820092010201120122013201420152016
Net Income 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B 440.97M
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
2007200820092010201120122013201420152016
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
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 275.89M -2.55B 74.99M 643.38M -474.76M 651.13M 1.06B 188.34M 1.21B 440.97M
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
2007200820092010201120122013201420152016
Dividend Paid 274.04M 326.37M 225.01M 211.53M 209.53M 212.29M 237.83M 248.09M 326.20M 222.76M
divided by
Shares Outstanding 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M 282.76M
Dividend Paid Per Share 1.53 1.37 0.66 0.63 0.67 0.68 0.81 0.91 1.12 0.79
Price at Year End 42.77 3.25 17.65 21.46 19.77 24.69 31.89 34.75 39.82 37.26
Dividend Yield 3.57% 42.04% 3.74% 2.92% 3.39% 2.77% 2.55% 2.63% 2.82% 2.11%

Strong History of Stock Buybacks over the past 10 years

XL has a strong 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
2007200820092010201120122013201420152016
Shares Outstanding 179.69M 238.86M 340.97M 337.71M 312.90M 310.28M 292.07M 271.53M 291.00M 282.76M
Stock Bought Back - -24.77% -29.95% 0.96% 7.93% 0.84% 6.24% 7.57% -6.69% 2.91%
Share your thoughts about XL

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!