Every cloud has a silver lining, and for SiriusPoint (NYSE: SPNT), that lining might just be a strategic rebound. As a player in the Insurance - Reinsurance industry, SiriusPoint is navigating through a dynamic landscape with promising fundamentals. With a robust net asset base of $12.52 billion and an enterprise value of $2.4 billion, the company is positioned to leverage its strengths effectively.
Despite a recent loss, SiriusPoint's solid current ratio of 3.31X indicates a strong ability to cover its short-term obligations, a reassuring sign for investors. The company's free cash flow of $74.7 million further underscores its capacity to fund operations and potential growth initiatives without immediate financial strain. As SiriusPoint refines its strategic focus, it presents a compelling opportunity for investors looking for a rebound story with solid underpinnings. Currently, SiriusPoint's payout ratio remains steady compared to last year. By 2025, the return on equity (ROE) is expected to rise to 0.11, while the price-to-book (P/B) ratio might decrease to 1.09. With earnings announcements due today, it's worth considering whether SiriusPoint is signaling a positive trend, especially as the insurance sector draws interest from private investors. We'll assess if SiriusPoint's shares are fairly valued as we approach June. The company is closely aligned with market movements, making it a potential candidate for your investment portfolio.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Siriuspoint income statement, its balance sheet, and the statement of cash flows. Potential Siriuspoint investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Siriuspoint investors may use each financial statement separately, they are all related. The changes in Siriuspoint's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Siriuspoint's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Siriuspoint
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Siriuspoint performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Siriuspoint shares is the value that is considered the true value of the share. If
the intrinsic value of Siriuspoint is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Siriuspoint. Please read more on our
fundamental analysis page.
How important is Siriuspoint's Liquidity
Siriuspoint
financial leverage refers to using borrowed capital as a funding source to finance Siriuspoint ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Siriuspoint financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Siriuspoint's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Siriuspoint's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Siriuspoint's total debt and its cash.
Breaking it down a bit more
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Siriuspoint is not uncomon. Institutional investors typically avoid acquiring a high percentage of Siriuspoint stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Siriuspoint is distributed among investors.
Ownership Allocation
Siriuspoint shows a total of 116.59 Million
outstanding shares. The majority of Siriuspoint
outstanding shares are owned by
institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Siriuspoint to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Siriuspoint. Please pay attention to any change in the institutional holdings of Siriuspoint as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Insiders11.41% | Institutions88.4% |
| Retail Investors | 0.19 |
| Insiders | 11.41 |
| Institutions | 88.4 |
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Siriuspoint's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Siriuspoint's decisions due to their larger holdings.
| 2010 | 2024 | 2025 (projected) |
Change To Inventory | 628.2M | 258.1M | 366M | Net Borrowings | 17.6M | 15.8M | 14.1M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Siriuspoint has an asset utilization ratio of 20.79 percent. This implies that the Company is making $0.21 for each dollar of assets. An increasing asset utilization means that Siriuspoint is more efficient with each dollar of assets it utilizes for everyday operations.
| | Total Current Assets8.5 B | | | | |
| Other Assets | 2.11 Billion | 14.24 |
| Other Current Assets | 2.11 Billion | 14.23 |
| Total Current Assets | 8.53 Billion | 57.56 |
| Non Current Assets Total | 415.91 Million | 2.81 |
| Non Currrent Assets Other | (291.38 Million) | -1.97 |
| Intangible Assets | 171.46 Million | 1.16 |
| Net Tangible Assets | 1.77 Billion | 11.98 |
Warren Buffett once said, "Price is what you pay. Value is what you get." This sentiment rings true for SiriusPoint (NYSE: SPNT), which appears to be on the cusp of a strategic rebound. With a robust net asset base of $12.52 billion and a price-to-earnings ratio of just 3.25x, the company presents a compelling value proposition. Despite a recent cash flow decrease of $206.7 million, SiriusPoint's strong cash position of $894.6 million and a revenue per share of $17.50 suggest resilience and potential for growth. As institutions hold 88.40% of shares, confidence in the company's strategic direction seems well-placed, making it an intriguing opportunity for investors seeking value in the financial services sector.
Siriuspoint has 94 percent likelihood to drop below $19.14 in June
SiriusPoint's stock is currently exhibiting potential for volatility, with a kurtosis of 3.5, indicating sharper peaks in return distribution. This suggests the stock might experience significant price swings, with a 94% chance of falling below $19.14 in June. Investors should be mindful of this risk when making decisions, as market conditions could lead to notable price changes. Despite this, SiriusPoint shows below-average downside deviation, with an Information Ratio of 0.24 and a Jensen Alpha of 0.55. Understanding these volatility trends can help investors better time their trades.
During bear markets, increased volatility can affect SiriusPoint's stock price, prompting investors to adjust their portfolios by diversifying their holdings as prices decline.As SiriusPoint embarks on its strategic reset, investors should weigh the potential risks and rewards carefully. With the stock currently hovering around a Valuation Hype Value of 19.62, it presents a mixed bag of opportunities. Analysts have set a range of target prices, with the highest estimated at 18.87, suggesting a cautious optimism. However, the overall consensus remains a "Hold," indicating that while there might be room for growth, the path forward could be bumpy. For those considering an investment, it's crucial to stay informed and be prepared for potential fluctuations, especially with a possible upside price of 21.61 on the horizon..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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