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AHL Aspen Insurance Holdings Limite - Fundamental Analysis

BEARISH
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AHL Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Property & Casualty
Current Price Live
$37.26
Analyst Target
$38.25
+2.7% Upside
52W High
$37.38
52W Low
$27.05

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AI Analysis

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Confidence Score
68%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals a weak financial health profile with a Piotroski F-Score of just 3/9, indicating significant operational and balance sheet concerns. Despite a low P/E of 5.48 and a Graham Number of $67.98—suggesting substantial undervaluation—the company's deteriorating liquidity (Current Ratio: 0.78, Quick Ratio: 0.35) and poor technical trend (10/100) raise red flags. Earnings growth is volatile, with recent Q/Q EPS contraction of -11.5% despite strong YoY gains, while insider sentiment is tepid at 40/100. The absence of a dividend and lack of Altman Z-Score further undermine confidence in stability.

Key Strengths

Low P/E ratio of 5.48 well below sector average of 22.56, indicating potential undervaluation
High profitability margins: 14.22% net margin and 17.55% operating margin
Strong ROE of 13.97%, outperforming sector average of -15.97%
Very low Debt/Equity ratio of 0.10, signaling conservative capital structure
Recent earnings surprises have been positive, averaging +3.54% over last 3 quarters

Key Risks

Piotroski F-Score of 3/9 indicates weak financial health and high risk of value trap
Critically low liquidity: Current Ratio of 0.78 and Quick Ratio of 0.35 suggest potential solvency concerns
Missing Altman Z-Score prevents distress risk assessment but low liquidity implies possible danger
Negative Q/Q EPS growth of -11.5% shows recent earnings deterioration despite strong YoY numbers
Technical trend score of 10/100 indicates strong bearish momentum near 52-week high
AI Fair Value Estimate
Based on comprehensive analysis
$67.98
+82.4% above current price

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