Allianz

Allianz SE (ALIZY) | In-Depth Valuation – Buy or Avoid (2025)

Allianz SE (ALIZY) Stock Analysis: A Detailed Breakdown

Allianz SE (ALIZY) is a well-known German financial services company operating in the insurance and asset management sectors. Headquartered in Munich, Germany, it is a global leader in financial stability. Let’s analyze the key aspects of this stock and determine whether it is a good investment.

Overall Valuation

(A) Market Capitalization (Market Cap):

  • $137.85 billion
  • Market cap represents the total value of a company’s outstanding shares.
  • Large-cap companies are generally considered stable and less volatile.

Right or Wrong?

  • Allianz SE is a large-cap company, making it a relatively safe investment.
  • Large-cap stocks usually offer stability and lower volatility compared to smaller companies.

(B) Enterprise Value (EV):

  • $108.62 billion
  • EV represents the total value of the company, including debt and cash.
  • It shows how much it would cost to buy the entire company.

Right or Wrong?

  • Allianz’s EV is lower than its market cap, indicating a strong cash balance.
  • This is a positive sign as investors prefer companies with low debt and strong cash flow.
Allianz analysis

Share Structure

(A) Float:

  • 385.87 million shares
  • Float refers to the number of shares available for trading in the market.
  • A higher float means greater liquidity.

Right or Wrong?

  • Good float value, ensuring strong liquidity.
  • High float stocks generally have lower volatility.

Valuation Ratios

(A) Price-to-Earnings (P/E) Ratio:

  • 13.60 (A lower P/E ratio is often considered good)
  • This means investors are willing to pay $13.60 for every $1 of earnings.
  • A low P/E ratio suggests that the stock is undervalued.

Right or Wrong?

  • Allianz’s P/E ratio is low, making it an undervalued stock.
  • If the industry average P/E is higher, this could be a good buying opportunity.

Financial Strength

(A) Current Ratio:

  • 191.61
  • Measures the company’s ability to cover short-term liabilities.
  • Ideally, this ratio should be greater than 1.

Right or Wrong?

  • Very high, indicating that the company has sufficient cash and assets to cover its debts.

Financial Performance

(A) Income Statement

  • Revenue: $107.71 billion
  • Gross Profit: $16.41 billion
  • Net Income: $10.13 billion
  • EBITDA: $17.18 billion

Right or Wrong?

  • Revenue and net income are strong indicators of profitability.
  • High EBITDA suggests a strong core business.

Stock Performance

(A) 52-Week Change:

  • +30.35%
  • The stock has gained 30% in the past year, indicating strong performance.

(B) 50-Day & 200-Day Moving Averages:

  • 50-Day Average: $32.19
  • 200-Day Average: $30.57
  • When the 50-day average is above the 200-day average, it is a bullish signal.

Right or Wrong?

  • Bullish trend, suggesting that the stock could continue rising.
Stock Price 4 march 2025

Reasons to Invest in Allianz SE

Reasons to Buy:

  1. Low P/E Ratio (13.60) → The stock is undervalued.
  2. Strong Financials → Low debt, high cash reserves.
  3. Stable Dividend Payout → Provides regular income for investors.
  4. Good Performance (52-Week Change +30.35%) → Consistent stock growth.
  5. Robust Business Model → Insurance and financial services remain in demand.

Reasons Not to Buy:

  1. Low ROA (0.96%) → The company is not utilizing its assets efficiently.
  2. Interest Rate Sensitivity → Rising interest rates can impact financial firms.
  3. Global Uncertainty → Economic conditions in Europe and other regions can affect the business.

My Opinion:- Should You Buy Allianz SE (ALIZY)?

If you are a long-term investor, this stock can be a profitable investment.
For short-term traders, it’s best to monitor moving averages and market trends.
If you’re unsure about interest rates or economic conditions, proceed with caution.

Overall, Allianz SE is a strong and stable stock, especially for investors seeking steady income and long-term growth.

If you want a deeper analysis of stock market investments, be sure to check out our other blog. There, you’ll find market trends, top-performing stocks, and valuable investment tips. Click here to read more.

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