DB:8HG

Stock Analysis Report

Hastings Group Holdings

Executive Summary

Hastings Group Holdings plc, together with its subsidiaries, underwrites general insurance products in the United Kingdom.


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8HG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

8HG

1.2%

DE Insurance

2.2%

DE Market


1 Year Return

-25.7%

8HG

-17.1%

DE Insurance

-17.2%

DE Market

Return vs Industry: 8HG underperformed the German Insurance industry which returned -18.2% over the past year.

Return vs Market: 8HG underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

8HGIndustryMarket
7 Day-1.1%1.2%2.2%
30 Day-0.3%-20.0%-15.7%
90 Day-11.3%-28.2%-24.0%
1 Year-21.0%-25.7%-13.5%-17.1%-14.9%-17.2%
3 Year-29.8%-39.3%9.1%-4.1%-16.4%-23.3%
5 Yearn/a22.2%-2.2%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Hastings Group 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: 8HG (€1.88) is trading below our estimate of fair value (€4.99)

Significantly Below Fair Value: 8HG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8HG is poor value based on its PE Ratio (17.4x) compared to the Insurance industry average (8.7x).

PE vs Market: 8HG is poor value based on its PE Ratio (17.4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: 8HG is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 8HG is overvalued based on its PB Ratio (1.9x) compared to the DE Insurance industry average (0.8x).


Next Steps

Future Growth

How is Hastings Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8HG's forecast earnings growth (17.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 8HG's earnings (17.2% per year) are forecast to grow faster than the German market (14.4% per year).

High Growth Earnings: 8HG's earnings are forecast to grow, but not significantly.

Revenue vs Market: 8HG's revenue (5.4% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: 8HG's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8HG's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Hastings Group Holdings performed over the past 5 years?

35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8HG has high quality earnings.

Growing Profit Margin: 8HG's current net profit margins (9.4%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: 8HG has become profitable over the past 5 years, growing earnings by 35.5% per year.

Accelerating Growth: 8HG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8HG had negative earnings growth (-46.6%) over the past year, making it difficult to compare to the Insurance industry average (17.9%).


Return on Equity

High ROE: 8HG's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Hastings Group 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: 8HG has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8HG's debt is covered by short term assets (assets are 8.2x debt).


Financial Institutions Analysis

Asset Level: 8HG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 8HG has a sufficient allowance for bad loans.

Low Risk Liabilities: 8HG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 8HG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 8HG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 8HG has an appropriate level of bad loans.


Next Steps

Dividend

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

5.42%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 8HG's dividend (5.42%) is higher than the bottom 25% of dividend payers in the German market (1.68%).

High Dividend: 8HG's dividend (5.42%) is in the top 25% of dividend payers in the German market (4.97%)


Stability and Growth of Payments

Stable Dividend: 8HG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 8HG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.6%), 8HG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 8HG's dividends in 3 years are forecast to be covered by earnings (77.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average board tenure


CEO

Toby van der Meer (41yo)

2s

Tenure

UK£623,435

Compensation

Mr. Tobias Adriaan van der Meer, also known as Toby, is the Chief Executive Officer and Director of Hastings Group Holdings plc since March 1, 2018. He served as Managing Director of Retail at Hastings Gro ...


CEO Compensation Analysis

Compensation vs Market: Toby's total compensation ($USD776.18K) is below average for companies of similar size in the German market ($USD1.85M).

Compensation vs Earnings: Insufficient data to compare Toby's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Tobias van der Meer
CEO & Director2yrsUK£623.44k0.54% £7.5m
John Worth
Group CFO & Director0.83yrno datano data
Thomas Colraine
Senior Independent Director4.42yrsUK£85.40k0.012% £159.8k
Hermanus Bosman
Non-Executive Director3yrsno datano data
P. Lefèvre
Independent Non-Executive Director4.42yrsUK£107.04k0.014% £197.3k
Gary Hoffman
Non-Executive Chairman1.83yrsUK£718.46k1.2% £16.6m
Elizabeth Chambers
Independent Non-Executive Director1.42yrsUK£11.71kno data
Selina Sagayam
Independent Non-Executive Director2.58yrsUK£91.40kno data
Teresa Robson-Capps
Independent Non-Executive Director3.67yrsUK£62.67kno data
Alison Burns
Independent Non-Executive Director3.67yrsUK£50.90kno data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 8HG's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: 8HG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Hastings Group Holdings plc
  • Ticker: 8HG
  • Exchange: DB
  • Founded: 1996
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£1.219b
  • Listing Market Cap: UK£1.381b
  • Shares outstanding: 660.89m
  • Website: https://www.hastingsplc.com

Number of Employees


Location

  • Hastings Group Holdings plc
  • Conquest House
  • Collington Avenue
  • Bexhill-On-Sea
  • East Sussex
  • TN39 3LW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2015
8HGDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
HSTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2015

Biography

Hastings Group Holdings plc, together with its subsidiaries, underwrites general insurance products in the United Kingdom. It is involved in the underwriting and brokerage of car, van, bike, and home insurance under various brands, including Hastings Direct, Hastings PREMIER, Hastings ESSENTIAL, Hastings Direct SmartMiles, InsurePink, and People’s Choice. The company leases properties. Hastings Group Holdings plc was founded in 1996 and is based in Bexhill-On-Sea, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:39
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.