BEZ:LSEBeazley Plc Analysis
Data as of 2026-06-09 - not real-time
£1,282.50
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
Beazley plc trades at 1,282.5 GBp, comfortably above its 20‑day (1,281.3) and 50‑day (1,276.5) simple moving averages, confirming a short‑term bullish bias. The RSI sits at 63.8, indicating solid momentum, while the MACD histogram has turned negative, hinting at a possible near‑term correction. The stock is sandwiched between a clear support level at 1,278 and resistance at 1,285, with volume trending upward.
Fundamentally, the company appears undervalued: its trailing PE of 11.9 is well below the industry average of 16.9, and a DCF model suggests a fair value near 2,485 GBp, implying a sizable upside. Strong profitability (operating margin 27.9%, ROE 19.3%), a robust balance sheet (cash > £11 bn, debt‑to‑equity 13%), and a sustainable dividend yield of 1.95% (payout 22%) support a long‑run buy case. No material news items were identified, limiting short‑term catalysts.
Fundamentally, the company appears undervalued: its trailing PE of 11.9 is well below the industry average of 16.9, and a DCF model suggests a fair value near 2,485 GBp, implying a sizable upside. Strong profitability (operating margin 27.9%, ROE 19.3%), a robust balance sheet (cash > £11 bn, debt‑to‑equity 13%), and a sustainable dividend yield of 1.95% (payout 22%) support a long‑run buy case. No material news items were identified, limiting short‑term catalysts.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price near resistance at 1,285 GBp
- Negative MACD histogram suggesting a pull‑back
- Strong underlying fundamentals keep downside limited
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Valuation gap (PE well below industry, DCF upside)
- Robust cash generation and low debt
- Sustainable dividend provides income cushion
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- High ROE and stable profitability in specialty insurance
- Low market beta reduces systematic risk
- Long‑term growth potential in cyber and digital risk segments
Key Metrics & Analysis
Financial Health
Revenue Growth1.10%
Profit Margin15.37%
P/E Ratio11.9
ROE19.27%
ROA6.04%
Debt/Equity13.08
P/B Ratio2.1
Op. Cash Flow£1.3B
Free Cash Flow£263.9M
Industry P/E16.9
Technical Analysis
TrendBullish
RSI63.8
Support£1,278.00
Resistance£1,285.00
MA 20£1,281.30
MA 50£1,276.49
MA 200£1,043.62
MACDBearish
VolumeIncreasing
Fear & Greed Index87.64
Valuation
Fair Value£2,485.18
Target Price£1,297.17
Upside/Downside1.14%
GradeUndervalued
TypeBlend
Dividend Yield1.95%
Risk Assessment
Beta-0.08
Volatility1.14%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.