XTRA:TLX

Stock Analysis Report

Executive Summary

Talanx AG provides insurance and reinsurance products and services worldwide.

Rewards

Trading at 50.1% below its fair value

Earnings are forecast to grow 5.92% per year

Earnings grew by 33.8% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TLX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

TLX

1.7%

DE Insurance

1.0%

DE Market


1 Year Return

51.6%

TLX

31.6%

DE Insurance

15.7%

DE Market

Return vs Industry: TLX exceeded the German Insurance industry which returned 31.6% over the past year.

Return vs Market: TLX exceeded the German Market which returned 15.7% over the past year.


Shareholder returns

TLXIndustryMarket
7 Day3.1%1.7%1.0%
30 Day5.6%2.1%1.0%
90 Day14.5%8.0%6.7%
1 Year58.0%51.6%37.4%31.6%19.3%15.7%
3 Year60.7%42.6%64.7%44.8%19.5%8.9%
5 Year124.4%81.5%106.9%65.6%36.9%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Talanx 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: TLX (€45.26) is trading below our estimate of fair value (€90.73)

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


Price To Earnings Ratio

PE vs Industry: TLX is poor value based on its PE Ratio (12x) compared to the Insurance industry average (12x).

PE vs Market: TLX is good value based on its PE Ratio (12x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: TLX is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: TLX is overvalued based on its PB Ratio (1.1x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Talanx forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLX's forecast earnings growth (5.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: TLX's earnings (5.9% per year) are forecast to grow slower than the German market (13.3% per year).

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

Revenue vs Market: TLX's revenue (2.3% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: TLX's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLX's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Talanx performed over the past 5 years?

-0.09%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLX has high quality earnings.

Growing Profit Margin: TLX's current net profit margins (2.6%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: TLX's earnings have declined by -0.09% per year over the past 5 years.

Accelerating Growth: TLX's earnings growth over the past year (33.8%) exceeds its 5-year average (-0.09% per year).

Earnings vs Industry: TLX earnings growth over the past year (33.8%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: TLX's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Talanx's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TLX has a low level of unsold assets or inventory.

Debt Coverage by Assets: TLX's debt is covered by short term assets (assets are 4.3x debt).


Financial Institutions Analysis

Asset Level: TLX's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if TLX has a sufficient allowance for bad loans.

Low Risk Liabilities: TLX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TLX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TLX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TLX has an appropriate level of bad loans.


Next Steps

Dividend

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

3.20%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.3%markettop25%3.6%industryaverage3.8%forecastin3Years3.8%

Current dividend yield vs market & industry

Notable Dividend: TLX's dividend (3.2%) is higher than the bottom 25% of dividend payers in the German market (1.33%).

High Dividend: TLX's dividend (3.2%) is low compared to the top 25% of dividend payers in the German market (3.55%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TLX has been paying a dividend for less than 10 years.

Growing Dividend: TLX's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), TLX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLX's dividends in 3 years are forecast to be well covered by earnings (46.6% payout ratio).


Next Steps

Management

What is the CEO of Talanx's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Torsten Leue (53yo)

1.6yrs

Tenure

€3,815,680

Compensation

Mr. Torsten Leue serves as a Chairman of Supervisory Board at Hannover Rück SE since May 08, 2019 and HDI Global SE since March 9, 2018. He was its Vice Chairman of Supervisory Board of Hannover Rück SE ti ...


CEO Compensation Analysis

Compensation vs Market: Torsten's total compensation ($USD4.24M) is about average for companies of similar size in the German market ($USD4.63M).

Compensation vs Earnings: Torsten's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.6yrs

Average Tenure

53yo

Average Age

Experienced Management: TLX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

7.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TLX's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

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.


Management Team

  • Torsten Leue (53yo)

    Chairman of Management Board & CEO

    • Tenure: 1.6yrs
    • Compensation: €3.82m
  • Immo Querner (56yo)

    CFO & Member of Management Board

    • Tenure: 13.9yrs
    • Compensation: €1.67m
  • Carsten Werle

    Head of Investor Relations

    • Tenure: 0yrs
  • Jean-Jacques Henchoz (55yo)

    Member of the Management Board

    • Tenure: 0.7yrs
  • Sven Fokkema (49yo)

    Member of Management Board

    • Tenure: 1.6yrs
    • Compensation: €927.50k
  • Edgar Puls (46yo)

    Member of the Management Board

    • Tenure: 0.6yrs

Board Members

  • Norbert Steiner (65yo)

    Supervisory Board Member

    • Tenure: 6.6yrs
    • Compensation: €128.00k
  • Erhard Schipporeit (70yo)

    Supervisory Board Member

    • Tenure: 16.5yrs
    • Compensation: €206.00k
  • Herbert Haas (65yo)

    Chairman of the Supervisory Board

    • Tenure: 1.6yrs
    • Compensation: €2.74m
  • Dirk Lohmann (61yo)

    Supervisory Board Member

    • Tenure: 6.6yrs
    • Compensation: €99.00k
  • Thomas Lindner (68yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 1.6yrs
    • Compensation: €174.00k
  • Hermann Jung (64yo)

    Supervisory Board Member

    • Tenure: 6.6yrs
    • Compensation: €118.00k
  • Ralf Rieger (57yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 10.5yrs
    • Compensation: €179.00k
  • Jutta Mück (57yo)

    Supervisory Board Member

    • Tenure: 10.5yrs
    • Compensation: €112.00k
  • Jutta Hammer (51yo)

    Supervisory Board Member

    • Tenure: 8.8yrs
    • Compensation: €126.00k
  • Antonia Aschendorf (56yo)

    Supervisory Board Member

    • Tenure: 8.3yrs
    • Compensation: €130.00k

Company Information

Talanx AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Talanx AG
  • Ticker: TLX
  • Exchange: XTRA
  • Founded: 1996
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: €11.442b
  • Shares outstanding: 252.80m
  • Website: https://www.talanx.com

Number of Employees


Location

  • Talanx AG
  • HDI-Platz 1
  • Riethorst 2
  • Hanover
  • 30659
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TLXDB (Deutsche Boerse AG)YesRegistered SharesDEEUROct 2012
TLXXTRA (XETRA Trading Platform)YesRegistered SharesDEEUROct 2012
TLXDBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEUROct 2012
0QA8LSE (London Stock Exchange)YesRegistered SharesGBEUROct 2012
TLXSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFOct 2012
TNXWSE (Warsaw Stock Exchange)YesRegistered SharesPLPLNOct 2012
TLXWBAG (Wiener Boerse AG)YesRegistered SharesATEUROct 2012
TNXX.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDOct 2012

Biography

Talanx AG provides insurance and reinsurance products and services worldwide. The company offers life, casualty, liability, motor, aviation, legal protection, fire, burglary and theft, water damage, plate  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 21:42
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.