DB:7A2

Stock Analysis Report

Executive Summary

AIA Group Limited provides insurance products and services.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

DB:7A2

0.1%

DE Insurance

-0.6%

DE Market


1 Year Return

31.3%

DB:7A2

18.8%

DE Insurance

-8.3%

DE Market

7A2 outperformed the Insurance industry which returned 20.9% over the past year.

7A2 outperformed the Market in Germany which returned -6.7% over the past year.


Share holder returns

7A2IndustryMarket
7 Day0.5%0.1%-0.6%
30 Day11.7%3.2%1.8%
90 Day6.9%2.2%-3.2%
1 Year33.5%31.3%24.0%18.8%-5.4%-8.3%
3 Year77.3%69.2%83.8%61.6%19.3%8.9%
5 Year168.8%149.8%101.2%61.1%28.4%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is AIA Group undervalued based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AIA Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

AIA Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AIA Group is overvalued based on earnings compared to the DE Insurance industry average.

AIA Group is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

AIA Group is poor value based on expected growth next year.


Price Based on Value of Assets

AIA Group is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is AIA Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AIA Group's revenue is expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).

AIA Group's earnings are expected to grow significantly at over 20% yearly.

AIA Group's revenue growth is expected to exceed the Germany market average.

AIA Group's earnings growth is expected to exceed the Germany market average.

AIA Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

AIA Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has AIA Group performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AIA Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

AIA Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

AIA Group's 1-year earnings growth is negative, it can't be compared to the DE Insurance industry average.


Return on Equity

AIA Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AIA Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

AIA Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AIA Group's financial position?


Financial Position Analysis

AIA Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AIA Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

AIA Group's level of debt (16.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (18.2% vs 16.9% today).

Debt is well covered by operating cash flow (27.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 11.3x debt.


Next Steps

Dividend

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

1.82%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AIA Group's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.46%).

AIA Group's dividend is below the markets top 25% of dividend payers in Germany (3.85%).

Whilst dividend payments have been stable, AIA Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but AIA Group only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Keng Hooi Ng (64yo)

2.1yrs

Tenure

US$9,536,956

Compensation

Mr. Keng Hooi Ng has been President, Group Chief Executive and Executive Director at AIA Group Limited since June 1, 2017. Mr. Ng served as Executive Vice President and Regional Chief Executive Officer at  ...


CEO Compensation Analysis

Keng Hooi's remuneration is higher than average for companies of similar size in Germany.

Keng Hooi's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

54.5yo

Average Age

The tenure for the AIA Group management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

66.5yo

Average Age

The tenure for the AIA Group board of directors is about average.


Insider Trading

AIA Group individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Buy€1,11017 Jul 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares116
Max Price€9.57
Buy€38,721,23717 Jul 19
Capital Research and Management Company
EntityCompany
Shares3,992,816
Max Price€9.70
Sell€467,84403 Jul 19
Yong-Boon Yeo
EntityIndividual
Role
Member of the Board of Directors
Shares50,000
Max Price€9.36
Sell€1,198,15924 Jun 19
Chak-Kwong So
EntityIndividual
Role
Member of the Board of Directors
Shares130,000
Max Price€9.22
Buy€4,08420 Jun 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares474
Max Price€8.62
Buy€14,802,35604 Jun 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares1,718,676
Max Price€8.61
Buy€44,17331 May 19
John Harrison
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max Price€8.83
Buy€1,10720 May 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares126
Max Price€8.78
Buy€86,386,89808 May 19
Capital Group International Inc.
EntityCompany
Shares9,456,304
Max Price€9.14
Sell€8,307,50108 May 19
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
EntityCompany
Shares877,347
Max Price€9.47
Buy€1,10418 Apr 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares122
Max Price€9.05
Buy€1,10419 Mar 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares125
Max Price€8.83
Buy€24,794,64407 Mar 19
Capital Research and Management Company
EntityCompany
Shares2,801,372
Max Price€8.85
Sell€121,916,70922 Feb 19
Capital Group International Inc.
EntityCompany
Shares3,640,776
Max Price€33.49
Buy€8,892,36421 Feb 19
Capital Research and Management Company
EntityCompany
Shares1,065,081
Max Price€8.35
Buy€1,09920 Feb 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares131
Max Price€8.39
Buy€1,09418 Jan 19
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares144
Max Price€7.60
Buy€1,09920 Dec 18
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares152
Max Price€7.23
Buy€1,09820 Nov 18
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares153
Max Price€7.18
Buy€1,88419 Oct 18
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares273
Max Price€6.90
Buy€1,06320 Sep 18
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares150
Max Price€7.09
Buy€1,09920 Aug 18
Keng Hooi Ng
EntityIndividual
Role
Group Chief Executive
Member of the Board of Directors
Shares143
Max Price€7.69

Ownership Breakdown


Management Team

  • Mark Konyn (57yo)

    Group Chief Investment Officer

    • Tenure: 3.8yrs
  • Stuart Anthony Spencer (53yo)

    Group Chief Marketing Officer

    • Tenure: 2.1yrs
  • Mitch New (54yo)

    Group General Counsel & Interim Group Chief Risk Officer

  • Garth Brian Jones (56yo)

    Group Chief Financial Officer

    • Tenure: 8.3yrs
  • Mark Vincent Thomas Saunders (55yo)

    Group Chief Strategy & Corporate Development Officer

    • Tenure: 2.1yrs
  • Andrew Leung

    Head of External Manager Strategies

  • Lance Montague Burbidge

    Head of Investor Relations

  • Keng Hooi Ng (64yo)

    Group Chief Executive

    • Tenure: 2.1yrs
    • Compensation: $9.54m
  • Cara Ang (51yo)

    Group Chief Human Resources Officer

    • Tenure: 2.1yrs
  • Biswa Misra (41yo)

    Group Chief Technology & Operations Officer

    • Tenure: 2.1yrs

Board Members

  • Lawrence Lau (75yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: $222.41k
  • Chung-Kong Chow (68yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: $238.69k
  • Mohamed Azman Bin Yahya (55yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: $222.41k
  • George Yeo (65yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: $265.81k
  • Edmund Tse (81yo)

    Independent Non-Executive Chairman

    • Tenure: 8.5yrs
    • Compensation: $752.01k
  • Jack So (73yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: $282.08k
  • Narongchai Akrasanee (74yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: $287.43k
  • John Harrison (63yo)

    Independent Non-Executive Director

    • Tenure: 8.0yrs
    • Compensation: $282.08k
  • Swee-Lian Teo (59yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: $222.41k
  • Keng Hooi Ng (64yo)

    Group Chief Executive

    • Tenure: 2.1yrs
    • Compensation: $9.54m

Company Information

AIA Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AIA Group Limited
  • Ticker: 7A2
  • Exchange: DB
  • Founded: 1919
  • Industry: life and health insurance
  • Sector: insurance
  • Market Cap: HK$1.029t
  • Listing Market Cap: HK$117.327b
  • Shares outstanding: 12.04b
  • Website: Click here

Number of Employees


Location

  • AIA Group Limited
  • AIA Wealth Select Centre
  • 12/F, AIA Tower
  • North Point
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1299SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2010
AAIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2010
7A2DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2010
1299SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
1299SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2010
1299 NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2010
AAGI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2011

Biography

AIA Group Limited provides insurance products and services. The company offers life, medical, accident protection, critical illness protection, and disability income protection insurance products, as well  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/17 21:28
End of Day Share Price2019/07/17 00:00
Earnings2018/12/31
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.