XTRA:TLX

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Talanx AG provides insurance and reinsurance products and services worldwide. More Details


Snowflake Analysis

Very undervalued with adequate balance sheet and pays a dividend.


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 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TLX's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

TLX

-0.7%

DE Insurance

0.05%

DE Market


1 Year Return

-29.0%

TLX

-13.3%

DE Insurance

2.3%

DE Market

Return vs Industry: TLX underperformed the German Insurance industry which returned -13.3% over the past year.

Return vs Market: TLX underperformed the German Market which returned 2.3% over the past year.


Shareholder returns

TLXIndustryMarket
7 Day-1.9%-0.7%0.05%
30 Day3.3%-0.04%2.2%
90 Day19.1%17.4%9.8%
1 Year-25.7%-29.0%-8.6%-13.3%5.6%2.3%
3 Year-0.3%-12.1%19.6%4.1%3.7%-5.5%
5 Year53.0%23.8%70.4%35.2%41.8%21.7%

Long-Term 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 (€32.36) is trading below our estimate of fair value (€75.16)

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


Price To Earnings Ratio

PE vs Industry: TLX is good value based on its PE Ratio (11.6x) compared to the DE Insurance industry average (12.1x).

PE vs Market: TLX is good value based on its PE Ratio (11.6x) compared to the German market (24.5x).


Price to Earnings Growth Ratio

PEG Ratio: TLX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TLX is good value based on its PB Ratio (0.8x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is Talanx forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLX's forecast earnings growth (20.5% per year) is above the savings rate (0.07%).

Earnings vs Market: TLX's earnings (20.5% per year) are forecast to grow slower than the German market (25.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TLX's revenue (2.6% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: TLX's revenue (2.6% 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 (9.5%).


Next Steps

Past Performance

How has Talanx performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLX has high quality earnings.

Growing Profit Margin: TLX's current net profit margins (1.8%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: TLX's earnings have grown by 0.3% per year over the past 5 years.

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

Earnings vs Industry: TLX had negative earnings growth (-26.7%) over the past year, making it difficult to compare to the Insurance industry average (-23.4%).


Return on Equity

High ROE: TLX's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is Talanx's financial position?


Financial Position Analysis

Short Term Liabilities: TLX's short term assets (€21.2B) exceed its short term liabilities (€16.1B).

Long Term Liabilities: TLX's short term assets (€21.2B) do not cover its long term liabilities (€148.0B).


Debt to Equity History and Analysis

Debt Level: TLX's debt to equity ratio (31.7%) is considered satisfactory.

Reducing Debt: TLX's debt to equity ratio has increased from 25.9% to 31.7% over the past 5 years.

Debt Coverage: TLX's debt is well covered by operating cash flow (99%).

Interest Coverage: TLX's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

4.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TLX's dividend (4.64%) is higher than the bottom 25% of dividend payers in the German market (1.02%).

High Dividend: TLX's dividend (4.64%) is in the top 25% of dividend payers in the German market (3.46%)


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54%), TLX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TLX's dividends in 3 years are forecast to be well covered by earnings (41.4% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Torsten Leue (54 yo)

2.67yrs

Tenure

€2,769,000

Compensation

Mr. Torsten Leue has been Chairman of the Supervisory board at E+S Rückversicherung AG since March 1, 2019. He serves as a Chairman of Supervisory Board at Hannover Rück SE since May 08, 2019 and serves as...


CEO Compensation Analysis

Compensation vs Market: Torsten's total compensation ($USD3.36M) is below average for companies of similar size in the German market ($USD5.37M).

Compensation vs Earnings: Torsten's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Torsten Leue
Chairman of the Management Board & CEO2.67yrs€2.77mno data
Jan Wicke
CFO & Member of the Management Board0.33yr€1.77mno data
Sven Fokkema
Member of the Management Board2.67yrs€1.20mno data
Jean-Jacques Henchoz
Member of the Management Board1.75yrs€3.39mno data
Edgar Puls
Member of the Management Board1.67yrs€796.46kno data
Wilm Langenbach
Member of Management Board19yrsno datano data
Carsten Werle
Head of Investor Relationsno datano datano data

2.2yrs

Average Tenure

52yo

Average Age

Experienced Management: TLX's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norbert Steiner
Member of Supervisory Board7.67yrs€129.00kno data
Erhard Schipporeit
Member of Supervisory Board17.58yrs€206.00kno data
Herbert Haas
Chairman of the Supervisory Board2.67yrs€515.00kno data
Dirk Lohmann
Member of Supervisory Board7.67yrs€102.00kno data
Thomas Lindner
Deputy Chairman of the Supervisory Board2.67yrs€205.00kno data
Hermann Jung
Member of Supervisory Board7.67yrs€130.00kno data
Ralf Rieger
Employee Representative Deputy Chairman of Supervisory Board11.58yrs€184.00kno data
Jutta Mück
Employee Representative Member of Supervisory Board11.58yrs€132.00kno data
Jutta Hammer
Employee Representative Member of Supervisory Board9.92yrs€140.00kno data
Antonia Aschendorf
Member of Supervisory Board9.33yrs€132.00kno data
Christoph Meister
Employee Representative Member of Supervisory Board6.67yrs€102.00kno data
Jens Schubert
Employee Representative Member of Supervisory Board6.67yrs€102.00kno data

7.7yrs

Average Tenure

60yo

Average Age

Experienced Board: TLX's board of directors are considered experienced (7.7 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

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


Key Information

  • Name: Talanx AG
  • Ticker: TLX
  • Exchange: XTRA
  • Founded:
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: €8.192b
  • Shares outstanding: 252.68m
  • 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
TLXCDB (Deutsche Boerse AG)ADRDEEURAug 2015

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 Analysis2021/01/19 19:13
End of Day Share Price2021/01/19 00:00
Earnings2020/09/30
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.