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Helios Underwriting plc (HUW) Fair Value & Analysis

Financial Services · GB · Market cap 155M GBX

HU Helios Underwriting plc HUW · LSE
Price£2.24
Fair Value£3.87
Upside+72.8%
Quality54/100
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Mixed Growth
Highly profitable · 67.5% net margin
Low debt · generates free cash flow
3.14% dividend yield
Ranks above peers (9/15)
Wide moat 71/100
Evidence: High Range £2.90 – £4.84 Share as image

Fair value as of: Jul 18, 2026

From 6 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from £3.91 to £3.87 (−1.0%) since Jun 26, 2026. Share price +2.3% over the past month.

A solid business, screening 73% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£2.90). The market is more pessimistic than our downside scenario.
  • Solid quality (54/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

£2.50 £1.02 Fair Value £3.87 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £1.02 – £2.50 · fair‑value band £2.90 – £4.84 · the £2.24 price screens below the £3.87 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Helios Underwriting plc (HUW) currently trades at £2.24, while our model-based Fair Value estimate is £3.87, implying the stock looks roughly 72.8% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Helios Underwriting plc generated revenue of £30.4M at a net margin of 67.5%. Revenue declined 42.6% year over year. It earns a return on equity of 11.6%. Net debt stands at £25.3M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £2.90 (bear case) to £4.84 (bull case); at £2.24, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Financial Services peers we cover trades at -12% fair-value upside, at 73%, HUW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income £2.14 £2.34 £2.86 76
Gordon GGM £0.7200 £1.21 £1.57 70
P/E Multiple £2.90 £3.87 £4.84 63
All 6 models by family
Dividend Discount
Gordon GGM £0.7200 £1.21 £1.57 70
DDM Multi-Stage £0.7200 £1.04 £1.30 61
Multiples
P/E Multiple £2.90 £3.87 £4.84 63
P/B Multiple £2.74 £3.66 £4.57 55
Asset-Based
NCAV (Graham) £1.31 £1.75 £2.61 50
Economic Profit
Residual Income £2.14 £2.34 £2.86 76

Widest divergence: Multiples (£3.66) versus Dividend Discount (£1.04). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 30.4M GBX
Revenue growth (YoY) -42.6%
Net margin 67.5%
Return on equity 11.6%
Free cash flow 18.3M GBX FY2025
P/E ratio 8.0
More key figures
Operating margin 82.8%
EPS (TTM) £0.2800
Dividend yield 3.1%
EPS growth (YoY) +27.3%
Net debt 25.3M GBX FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 68

Profitability 41
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 62
Balance sheet, leverage, solvency risk
Investment 41
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 68
Distance to the 52-week high (market factor)
Net Issuance 77
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Helios Underwriting plc, together with its subsidiaries, provides a limited liability investment for its shareholders in the Lloyd's insurance market in the United Kingdom. The company participates in the Lloyd's insurance market through a portfolio of Lloyd's syndicates.

Full company description

Helios Underwriting plc, together with its subsidiaries, provides a limited liability investment for its shareholders in the Lloyd's insurance market in the United Kingdom. The company participates in the Lloyd's insurance market through a portfolio of Lloyd's syndicates. Its portfolio includes property, casualty, marine, cyber, and aviation, as well as reinsurance products. The company was formerly known as Hampden Underwriting Plc and changed its name to Helios Underwriting Plc in January 2014. Helios Underwriting plc was incorporated in 2006 and is based in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Helios Underwriting plc reported revenue of £1.3M in FY2025 versus £70.6M in FY2021, a compound −63.1%/yr. Reported net income was £20.5M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£1.3M
Latest YoY
−96.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−79.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−52.2%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.9%
Revenue −63.1%/yr
FY21 £70.6M
FY22 £148M
FY23 £209M
FY24 £36.0M
FY25 £1.3M
Net income
FY21 −£434K
FY22 −£3.3M
FY23 £16.4M
FY24 £18.6M
FY25 £20.5M
Character of growth · EPS growth decomposed (2013-2024) +5.6 % p.a.
Revenue per share +0.4 pp

of which total revenue +26.1 pp · buybacks/dilution −25.7 pp

EBIT margin +11.3 pp
Tax rate −2.0 pp
Residual (interest, one-offs) −4.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Helios Underwriting plc Fair Value". https://www.fairvalue-calculator.com/stock/HUW

Peer Group

Insurance - Diversified · 84 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +73% · Top 25%
Return on equity (TTM) 12% · Below median
Return on assets 6% · Top 25%
Net margin (TTM) 68% · Top 25%
Operating margin (TTM) 83% · Top 25%
Revenue growth -43% · Bottom 25%
Dividend yield (TTM) 3.1% · Above median
Debt / equity 0.30× · Higher than median

Valuation Multiples vs Insurance - Diversified median · lower = cheaper

P/E (TTM) 8.0× · Cheaper than 75% of peers
P/B 1.16× · Cheaper than median
P/S (TTM) 6.85× · Pricier than 75% of peers
P/FCF 11.4× · Pricier than 75% of peers
EV/EBITDA 8.7× · Pricier than median
PEG 1.38× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 45
FUTURE 0 · sector 31
PAST 47 · sector 49
HEALTH 85 · sector 89
DIVIDEND 63 · sector 45

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Insurance - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Berkshire Hathaway Inc BRKB 8,562 MXN 10,844 MXN +27%
Allianz SE ALV €421.00 €369.31 -12%
Zurich Insurance Group ZURN CHF 624.40 CHF 619.80 -1%
AXA SA AXAN 888.28 MXN 1,249 MXN +41%
Assicurazioni Generali S.p.A G €42.90 €12.18 -72%
Sun Life Financial Inc SLF C$114.20 C$87.83 -23%
BB Seguridade Participações S.A BBSE3 R$40.71 R$60.39 +48%
Tryg A/S TRYG kr 154.00 kr 116.45 -24%
PT Sinar Mas Multiartha Tbk SMMA 20,625 IDR 4,176 IDR -80%
Caixa Seguridade Participações S.A CXSE3 R$21.77 R$18.60 -15%

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Frequently asked questions

Is Helios Underwriting plc (HUW) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £3.87 versus a price of £2.24, about +73% (undervalued).
What is the fair value of HUW?
Our model-based fair value for Helios Underwriting plc is £3.87 (as of Jul 18, 2026), built from audited fundamentals. The current price is £2.24.
What is the quality score of HUW?
Helios Underwriting plc has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Helios Underwriting plc (HUW)?
Helios Underwriting plc reported trailing-twelve-month revenue of about £30.4M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of HUW?
The net profit margin of Helios Underwriting plc is about 67.5%, meaning it keeps roughly 67.5% of revenue as net income. Based on the latest reported figures.
Does Helios Underwriting plc pay a dividend?
Helios Underwriting plc currently shows a dividend yield of about 3.13% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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