DB:3SY

Stock Analysis Report

Sony Financial Holdings

Executive Summary

Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally.

Rewards

Trading at 22% below its fair value

Earnings are forecast to grow 3.23% per year

Earnings grew by 14% over the past year

Pays a reliable dividend of 2.46%

Risk Analysis

No risks detected for 3SY from our risk checks.


Snowflake Analysis

Solid track record average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.7%

3SY

1.1%

DE Insurance

0.5%

DE Market


1 Year Return

23.7%

3SY

27.9%

DE Insurance

15.9%

DE Market

Return vs Industry: 3SY underperformed the German Insurance industry which returned 29.2% over the past year.

Return vs Market: 3SY exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

3SYIndustryMarket
7 Day-3.7%1.1%0.5%
30 Day-6.1%0.7%1.7%
90 Day7.1%3.9%6.1%
1 Year27.6%23.7%33.5%27.9%19.6%15.9%
3 Year50.4%37.2%66.9%46.7%17.7%7.3%
5 Year92.3%65.6%96.4%57.3%28.7%11.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3SY (€21.4) is trading below our estimate of fair value (€27.42)

Significantly Below Fair Value: 3SY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3SY is poor value based on its PE Ratio (16.2x) compared to the Insurance industry average (11.9x).

PE vs Market: 3SY is good value based on its PE Ratio (16.2x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 3SY is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: 3SY is overvalued based on its PB Ratio (1.7x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Sony Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3SY's forecast earnings growth (3.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3SY's earnings (3.2% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: 3SY's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3SY's revenue (3% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: 3SY's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3SY's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Sony Financial Holdings performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3SY has high quality earnings.

Growing Profit Margin: 3SY's current net profit margins (4.3%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: 3SY's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: 3SY's earnings growth over the past year (14%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: 3SY earnings growth over the past year (14%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: 3SY's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sony Financial Holdings'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: 3SY has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3SY's debt is covered by short term assets (assets are 3.3x debt).


Financial Institutions Analysis

Asset Level: 3SY's level of assets compared to its equity is very high.

Allowance for Bad Loans: Insufficient data to determine if 3SY has a sufficient allowance for bad loans.

Low Risk Liabilities: 3SY reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 3SY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 3SY has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 3SY has an appropriate level of bad loans.


Next Steps

Dividend

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

2.57%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sony Financial Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.6%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: 3SY's dividend (2.46%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 3SY's dividend (2.46%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: 3SY's dividends per share have been stable in the past 10 years.

Growing Dividend: 3SY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), 3SY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Shigeru Ishii (65yo)

3.6yrs

Tenure

0

Mr. Shigeru Ishii serves as Executive Vice President of Sony Corp. since June 2018. He serves as President at Sony Financial Holdings Inc., since June 2016 and Representative Director since June 2015 and a ...


Management Age and Tenure

3.5yrs

Average Tenure

Experienced Management: 3SY's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

62yo

Average Age

Experienced Board: 3SY's board of directors are considered experienced (3.1 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

  • Shigeru Ishii (65yo)

    Chairman & President

    • Tenure: 3.6yrs
  • Hiroaki Kiyomiya (57yo)

    MD & Director

    • Tenure: 4.6yrs
  • Toru Hasegawa

    Executive Officer

    • Tenure: 3.5yrs
  • Maki Ogawa

    Executive Officer

    • Tenure: 3.4yrs
  • Hiroyuki Tsubota

    Executive Officer of General Affairs Dept & Human Resources Dept


    Board Members

    • Masashi Oka (64yo)

      Outside Director

      • Tenure: 0.6yrs
    • Shiro Kuniya (62yo)

      Outside Director

      • Tenure: 6.6yrs
    • Shogo Ikeuchi (57yo)

      Outside Director

      • Tenure: 0.6yrs
    • Shigeru Ishii (65yo)

      Chairman & President

      • Tenure: 3.6yrs
    • Hiroaki Kiyomiya (57yo)

      MD & Director

      • Tenure: 4.6yrs
    • Yutaka Ito (64yo)

      Director

      • Tenure: 5.6yrs
    • Shiro Kambe (58yo)

      Director

      • Tenure: 4.6yrs
    • Yasuyuki Hayase (62yo)

      Chairperson of Standing Audit & Supervisory Board

      • Takatoshi Ito (69yo)

        Outside Director

        • Tenure: 1.6yrs
      • Naomi Matsuoka (54yo)

        Director

        • Tenure: 0.6yrs

      Company Information

      Sony Financial Holdings Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Sony Financial Holdings Inc.
      • Ticker: 3SY
      • Exchange: DB
      • Founded: 1979
      • Industry: Life and Health Insurance
      • Sector: Insurance
      • Market Cap: JP¥1.101t
      • Listing Market Cap: JP¥9.020b
      • Shares outstanding: 435.05m
      • Website: https://www.sonyfh.co.jp

      Number of Employees


      Location

      • Sony Financial Holdings Inc.
      • Otemachi Financial City Grand Cube
      • 8th Floor
      • Tokyo
      • 100-0004
      • Japan

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      8729TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYOct 2007
      3SYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2007
      SYFH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2007
      SNYF.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

      Biography

      Sony Financial Holdings Inc., together with its subsidiaries, provides financial services in Japan and internationally. The company operates through three segments: Life Insurance Business, Non-Life Insurance Business, and Banking Business. It offers death protection, medical, educational endowment, living benefit, and other insurance products; and automobile, medical, overseas travel, and fire insurance products, as well as reinsurance services. The company also provides Yen and foreign currency deposits, mortgage loans, and investment trust and other services; and venture capital and credit card settlement services, as well as plans, develops, and operates nursing care homes. It provides its products through lifeplanner sales employees and independent agencies, as well as through Internet. The company was founded in 1979 and is headquartered in Tokyo, Japan. Sony Financial Holdings Inc. is a subsidiary of Sony Corporation. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 21:08
      End of Day Share Price2020/01/21 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      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.