BST:EG7

Stock Analysis Report

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Executive Summary

FBD Holdings plc, through its subsidiaries, engages in the underwriting of general insurance to farmers, private individuals, and business owners in Ireland.


Snowflake Analysis

Very undervalued with adequate balance sheet.

Share Price & News

How has FBD Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EG7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.4%

EG7

-1.7%

DE Insurance

-1.9%

DE Market


1 Year Return

-36.9%

EG7

-4.4%

DE Insurance

8.1%

DE Market

Return vs Industry: EG7 underperformed the German Insurance industry which returned -4.3% over the past year.

Return vs Market: EG7 underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

EG7IndustryMarket
7 Day-3.4%-1.7%-1.9%
30 Day-5.6%-2.4%-0.2%
90 Day-3.4%10.0%12.8%
1 Year-36.9%-36.9%0.9%-4.4%10.5%8.1%
3 Yearn/a21.3%5.6%3.2%-5.0%
5 Yearn/a54.1%22.2%11.9%-3.2%

Price Volatility Vs. Market

How volatile is FBD Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is FBD Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EG7 (€5.74) is trading below our estimate of fair value (€23.47)

Significantly Below Fair Value: EG7 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EG7 is good value based on its PE Ratio (3.9x) compared to the DE Insurance industry average (10.3x).

PE vs Market: EG7 is good value based on its PE Ratio (3.9x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: EG7 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: EG7 is good value based on its PB Ratio (0.6x) compared to the DE Insurance industry average (0.9x).


Next Steps

Future Growth

How is FBD Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EG7's forecast earnings growth (9.8% per year) is above the savings rate (0.2%).

Earnings vs Market: EG7's earnings (9.8% per year) are forecast to grow slower than the German market (23.2% per year).

High Growth Earnings: EG7's earnings are forecast to grow, but not significantly.

Revenue vs Market: EG7's revenue (1.5% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: EG7's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EG7's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has FBD Holdings performed over the past 5 years?

61.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EG7 has high quality earnings.

Growing Profit Margin: EG7's current net profit margins (16.3%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: EG7 has become profitable over the past 5 years, growing earnings by 61.2% per year.

Accelerating Growth: EG7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EG7 had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Insurance industry average (10%).


Return on Equity

High ROE: EG7's Return on Equity (15.4%) is considered low.


Next Steps

Financial Health

How is FBD Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: EG7's short term assets (€394.5M) do not cover its short term liabilities (€958.9M).

Long Term Liabilities: EG7's short term assets (€394.5M) exceed its long term liabilities (€60.4M).


Debt to Equity History and Analysis

Debt Level: EG7's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: EG7's debt to equity ratio has increased from 0.3% to 13.3% over the past 5 years.

Debt Coverage: EG7's debt is well covered by operating cash flow (73.6%).

Interest Coverage: EG7's interest payments on its debt are well covered by EBIT (26.4x coverage).


Balance Sheet


Next Steps

Dividend

What is FBD Holdings's current dividend yield, its reliability and sustainability?

8.66%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EG7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EG7's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EG7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EG7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: EG7 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EG7's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Paul D'Alton (69 yo)

0.33

Tenure

Mr. Paul M. D'Alton serves as Interim Chief Executive Officer and Executive Director at FBD Holdings Plc since April 3, 2020 and at FBD Insurance plc since April 3, 2020. Mr. D'Alton serves as Finance Dire ...


Leadership Team

NamePositionTenureCompensationOwnership
John O'Grady
Group CFO4.08yrs€462.00k0.031%
€ 67.3k
Paul D'Alton
Interim CEO & Executive Director0.33yrno datano data
Enda Kyne
Chief Technology & Operations Officer3.58yrsno datano data
Jackie McMahon
Chief Claims Officer1.92yrsno datano data
John Cahalan
Chief Commercial Officer3.25yrsno datano data
Kate Tobin
Chief Underwriting Officer1.92yrsno datano data
Maureen O'Meara
Head of Sales for Munsterno datano datano data
Derek Hall
Chief Risk Officer & Company Secretary3.67yrsno data0.036%
€ 79.7k
David Kelly
Senior Executive Mngr & Director of the Board of FBD Property & Leisure Ltdno datano datano data
Noel Skelton
Senior Executive Manager & Director of FBD Insurance Brokers Limitedno datano datano data
Enda O'Brien
Senior Executive Manager and Director of FBD Property & Leisure Limitedno datano datano data
Michael Sharpe
Head of Investor Relationsno datano datano data

3.3yrs

Average Tenure

Experienced Management: EG7's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John O'Grady
Group CFO4.08yrs€462.00k0.031%
€ 67.3k
Paul D'Alton
Interim CEO & Executive Director0.33yrno datano data
David Kelly
Senior Executive Mngr & Director of the Board of FBD Property & Leisure Ltdno datano datano data
Noel Skelton
Senior Executive Manager & Director of FBD Insurance Brokers Limitedno datano datano data
Enda O'Brien
Senior Executive Manager and Director of FBD Property & Leisure Limitedno datano datano data
Liam Herlihy
Independent Chairman of the Board3.25yrs€119.00k0.023%
€ 50.1k
Padraig Walshe
Non-Executive Director8.67yrs€50.00k0.0031%
€ 6.9k
Mary Brennan
Independent Non-Executive Director4yrs€62.00kno data
Richard Pike
Independent Non-Executive Director0.92yr€14.00k0.0071%
€ 15.6k
Walter Bogaerts
Independent Non-Executive Director4.5yrs€71.00kno data
David O'Connor
Senior Independent Non-Executive Director1.58yrs€70.00k0.0043%
€ 9.4k
Joe Healy
Independent Non-Executive Director3yrs€50.00k0.00080%
€ 1.8k

3.3yrs

Average Tenure

62yo

Average Age

Experienced Board: EG7's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

FBD Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FBD Holdings plc
  • Ticker: EG7
  • Exchange: BST
  • Founded: 1969
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: €219.428m
  • Shares outstanding: 35.05m
  • Website: https://www.fbdgroup.com

Number of Employees


Location

  • FBD Holdings plc
  • FBD House
  • Bluebell
  • Dublin
  • Co. Dublin
  • 12
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EG7ISE (Irish Stock Exchange)YesOrdinary SharesIEEURJan 1992
FBHLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
EG7IBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
EG7BST (Boerse-Stuttgart)YesOrdinary SharesDEEURJan 1992

Biography

FBD Holdings plc, through its subsidiaries, engages in the underwriting of general insurance to farmers, private individuals, and business owners in Ireland. The company operates in two segments, Underwrit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 21:21
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.