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Zurich Insurance posts 6% rise in operating profit
Zurich Insurance posts 6% rise in operating profit

Yahoo

time07-08-2025

  • Business
  • Yahoo

Zurich Insurance posts 6% rise in operating profit

(Reuters) -Zurich Insurance reported a 6% rise in first half operating profit on Thursday as individuals and businesses continued spending on insurance policies amid concerns over severe weather-related catastrophes. Europe's third-largest insurer by market cap said its operating profit was $4.2 billion in the first six months of 2025, slightly above analysts' average estimate of $4.14 billion in a company-provided consensus. At its core property and casualty (P&C), accounting for roughly half of the firm's earnings, operating profit grew 9% year-on-year, beating analysts's expectations. Sign in to access your portfolio

At 10p, is this penny stock a screaming buy?
At 10p, is this penny stock a screaming buy?

Yahoo

time12-07-2025

  • Business
  • Yahoo

At 10p, is this penny stock a screaming buy?

Finding market-beating penny stocks is no easy feat. While plenty of these tiny enterprises boast about their enormous growth potential, few actually deliver on their promises. And there's nothing stopping a 10p stock from crashing to 1p. Yet, at the same time, if such a company defies expectations, the market-cap can skyrocket overnight. This week, DP Poland (LSE:DPP) caught my attention. The penny stock's been quietly making progress over the last five years, and its share price is actually already up over 70% since September 2023. Yet if analyst forecasts are right, more chunky dividend growth could be just around the corner. At least that's what a 17p price target suggests, versus the 10p shares that are currently trading at. So what does DP Poland do? What's behind the bullish forecast? And is now the time to think about buying? DP Poland's a very similar business to another London incumbent – Domino's Pizza Group. The company holds the master franchise rights for Domino's Pizza in Poland and Croatia, operating a network of 122 stores. However, following its acquisition of Pizzeria 105 earlier this year, 90 new franchise locations have since been added to its network, which are in the process of being re-branded as Domino's. This deal's a big catalyst behind the bullish sentiment. Beyond adding scale, it pushes the firm even further into its franchise-led, capital-light model while reaching new cities and customers overnight. The impact of this is only amplified by the rapid expansion of the online food delivery market in Poland, which is currently booming at a 50% annual growth rate. And a similar story's beginning to emerge in Croatia. Needless to say, having a market-leading brand, a debt-free balance sheet, double-digit revenue growth, and expanding profit margins is an impressive feat. And it's especially rare for a penny stock trading at what seems to be a pretty cheap valuation. After all, its price-to-operating cash flow ratio sits at just 17.5 – half of its historical levels. So is this a screaming buy? There's a lot to like about this business. However, even the most promising enterprises have their weak spots. And in the case of DP Poland, there are a few things investors need to carefully consider. Profit margins have been expanding over the years, but the bottom line is still in negative territory, resulting in a long history of cash burn. As a result, the company's been raising a lot of capital over the years, resulting in enormous equity dilution. For reference, the number of shares outstanding has surged from 153 million in 2018 to 920 million today. With the company on the verge of entering the black, that may no longer be a prominent concern. However, this is also dependent on the acquisition of Pizzeria 105 going smoothly. That's far from guaranteed, especially considering this is the firm's first large-scale merger. Any hiccups along the way or weaker-than-expected sales from acquired locations could push margins back in the wrong direction. All things considered, DP Poland seems to be an attractive opportunity right now. That's why I think this penny stock deserves a closer look from investors seeking some exposure to the burgeoning Polish fast food market and geographic diversification. The post At 10p, is this penny stock a screaming buy? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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