Investment Thesis
Aspen Insurance is experiencing severe operational distress with negative net income of -$146.8M and significantly negative operating cash flow of -$179.5M, indicating the company is burning cash despite positive operating margins. The combination of deteriorating profitability, negative returns on equity and assets, and lack of insider confidence (zero Form 4 filings) suggests fundamental business challenges that undermine financial stability.
Strengths
- Strong interest coverage ratio of 53.4x indicating minimal debt servicing risk
- Conservative leverage with debt-to-equity of 0.16x providing balance sheet cushion
- Adequate liquidity with $975.9M in cash and equivalents representing 7.5% of total assets
Risks
- Negative net income of -$146.8M with -24.2% net margin indicating unprofitable core operations
- Operating cash flow of -$179.5M demonstrates cash burn despite positive operating income, suggesting quality of earnings concerns
- Negative ROE of -5.4% and ROA of -1.1% indicate shareholder capital is being destroyed
- Zero insider purchases in last 90 days suggests lack of management confidence in company trajectory
- Data freshness limited to March 31, 2019, making current assessment potentially outdated
Key Metrics to Watch
- Operating cash flow trend - critical to distinguish between accounting profits and actual cash generation
- Loss ratio and combined ratio - insurance-specific metrics showing underwriting profitability
- Cash balance depletion rate - to assess runway before liquidity concerns emerge
- Return to profitability timeline - need positive net income to validate operational turnaround
Financial Metrics
Revenue
605.8M
Net Income
-146.8M
EPS (Diluted)
$-2.97
Free Cash Flow
-179.5M
Total Assets
13.0B
Cash
975.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
48.5%
Net Margin
-24.2%
ROE
-5.4%
ROA
-1.1%
FCF Margin
-29.6%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.16x
Debt/Assets
79.1%
Interest Coverage
53.38x
Long-term Debt
424.7M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-19T17:41:21.155201 |
Data as of: 2019-03-31 |
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