SiriusPoint Ltd (NYSE: SPNT)

Sector: Financial Services Industry: Insurance - Reinsurance CIK: 0001576018
Market Cap 2.31 Bn
P/B 1.04
P/E 12.64
P/S 0.81
ROIC (Qtr) 9.58
Div Yield % 0.00
Rev 1y % (Qtr) 34.45
Total Debt (Qtr) 682.50 Mn
Debt/Equity (Qtr) 0.31
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About

SiriusPoint Ltd, a global underwriter of insurance and reinsurance, trades on the New York Stock Exchange under the symbol SPNT. With a market capitalization of $2.3 billion as of December 31, 2023, the company operates in the insurance and reinsurance industry, providing a range of products and services to clients worldwide. SiriusPoint's business model is unique and diversified, generating revenue from underwriting results, service fee income from consolidated Managing General Agents (MGAs), and investment results. The company operates two main...

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Investment thesis

Bull case

  • Operating cash flow of 236.50M provides exceptional 337.86x coverage of minority interest expenses 700000, showing strong core operations.
  • Strong tangible asset base of 12.34B provides 18.08x coverage of total debt 682.50M, indicating robust asset backing and low credit risk.
  • Cash position of 717.70M provides exceptional 1025.29x coverage of minority interest expenses 700000, indicating strong liquidity.
  • Operating cash flow of 236.50M provides strong 3.01x coverage of tax liabilities 78.50M, showing excellent fiscal position.
  • Cash reserves of 717.70M provide comfortable 9.14x coverage of tax obligations 78.50M, showing strong fiscal management.

Bear case

  • Operating cash flow of 236.50M barely covers its investment activities of 438.10M, with a coverage ratio of 0.54, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of 236.50M represents just -4.05x of debt issuance (58.40M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 236.50M barely covers operating expenses of 556.50M with a 0.42 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of 236.50M is outpaced by equity issuance of (660.10M) (-0.36 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 439M, indicating potential underinvestment in innovation relative to administrative overhead.

Segments Breakdown of Revenue (2022)

Segments Breakdown of Revenue (2022)

Peer comparison

Companies in the Insurance - Reinsurance
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 RGA Reinsurance Group Of America Inc 16.26 Bn 28.93 1.93 5.73 Bn
2 RNR Renaissancere Holdings Ltd 14.46 Bn 5.46 1.13 2.33 Bn
3 EG Everest Group, Ltd. 14.18 Bn 25.69 0.80 3.59 Bn
4 HG Hamilton Insurance Group, Ltd. 3.15 Bn 7.19 1.15 0.15 Bn
5 SPNT SiriusPoint Ltd 2.31 Bn 12.64 0.81 0.68 Bn
6 GLRE Greenlight Capital Re, Ltd. 0.67 Bn -359.00 1.01 0.03 Bn
7 OXBR OXBRIDGE RE HOLDINGS Ltd 0.01 Bn -3.11 1.75 0.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.17 0.19
EV to Cash from Ops. EV/CFO 8.71 4.67
EV to Debt EV to Debt 3.02 6.23
EV to EBIT EV/EBIT 6.29 10.21
EV to EBITDA EV/EBITDA 5.99 9.47
EV to Free Cash Flow [EV/FCF] EV/FCF 8.71 4.67
EV to Market Cap EV to Market Cap 0.89 0.74
EV to Revenue EV/Rev 0.72 0.89
Price to Book Value [P/B] P/B 1.04 1.44
Price to Earnings [P/E] P/E 12.64 -40.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 11.39 5.81
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.57
Dividend per Basic Share Div per Share (Qtr) 0.00 1.54
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.76
Interest Coverage Int. cover (Qtr) 4.11 9.07
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 0.00
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -11.96 4.59
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -5.49
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -35.50 -15.00
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.06 -4.52
EBIT Growth (1y) % EBIT 1y % (Qtr) 5.95 -3.67
EBT Growth (1y) % EBT 1y % (Qtr) 3.51 -4.69
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -7.41
FCF Growth (1y) % FCF 1y % (Qtr) 31.10 -593.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.39 49.82
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.29
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 0.19
Interest Cover Ratio Int Coverage (Qtr) 4.11 9.07
Times Interest Earned Times Interest Earned (Qtr) 4.11 9.07
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.90 1.49
EBIT Margin % EBIT Margin % (Qtr) 11.52 1.33
EBT Margin % EBT Margin % (Qtr) 8.71 0.23
Gross Margin % Gross Margin % (Qtr) 46.70 38.56
Net Profit Margin % Net Margin % (Qtr) 6.40 -0.94