DB:ANK

Stock Analysis Report

Executive Summary

Sompo Holdings, Inc. provides property and casualty (P&C) insurance, life insurance, and financial and other services in Japan and internationally.

Snowflake

Fundamentals

Undervalued with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

DB:ANK

-1.0%

DE Insurance

-1.8%

DE Market


1 Year Return

7.3%

DB:ANK

20.6%

DE Insurance

-6.7%

DE Market

ANK underperformed the Insurance industry which returned 20.6% over the past year.

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


Share holder returns

ANKIndustryMarket
7 Day1.1%-1.0%-1.8%
30 Day4.4%3.2%1.6%
90 Day8.7%4.0%-1.6%
1 Year10.5%7.3%25.8%20.6%-3.7%-6.7%
3 Year52.6%40.9%82.3%60.3%20.6%10.1%
5 Year117.4%91.6%100.0%60.2%28.8%11.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sompo Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sompo Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sompo Holdings is good value based on earnings compared to the DE Insurance industry average.

Sompo Holdings is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Sompo Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Sompo Holdings is good value based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is Sompo Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sompo Holdings's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Sompo Holdings's earnings are expected to grow by 6% yearly, however this is not considered high growth (20% yearly).

Sompo Holdings's revenue growth is positive but not above the Germany market average.

Sompo Holdings's earnings growth is positive but not above the Germany market average.

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Sompo Holdings performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sompo Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Sompo Holdings's 1-year earnings growth is less than its 5-year average (4.9% vs 22.8%)

Sompo Holdings's earnings growth has not exceeded the DE Insurance industry average in the past year (4.9% vs 9.4%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

Sompo Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sompo Holdings's financial position?


Financial Position Analysis

Sompo Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sompo Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sompo Holdings's level of debt (34.8%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (19.1% vs 34.8% today).

Debt is not well covered by operating cash flow (12.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 17.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

3.82%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

Sompo Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

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

Sompo Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Sompo Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Kengo Sakurada (63yo)

7.3yrs

Tenure

JP¥248,000,000

Compensation

Mr. Kengo Sakurada has been Director of Sompo Japan Nipponkoa Insurance Inc. since 2018. He serves as the Group Chief Executive Officer, Representative Director, President, and Executive Officer at Sompo J ...


CEO Compensation Analysis

Kengo's remuneration is lower than average for companies of similar size in Germany.

Kengo's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

0.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Sompo Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.1yrs

Average Tenure

61yo

Average Age

The tenure for the Sompo Holdings board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Kengo Sakurada (63yo)

    President

    • Tenure: 7.3yrs
    • Compensation: ¥248.00m
  • Masahiro Hamada (55yo)

    Group CFO

    • Tenure: 0.3yrs
  • Mikio Okumura (54yo)

    Group CSO

    • Tenure: 4.3yrs
  • Koichi Narasaki (61yo)

    Group Chief Digital Officer

    • Tenure: 3.2yrs
  • Shinji Tsuji (63yo)

    Group COO

    • Tenure: 0.5yrs
    • Compensation: ¥101.00m
  • Osamu Nose

    Head of Investor Relations and Finance Department

  • Nigel Frudd (61yo)

    Head of Global Transactions Group

    • Tenure: 0.5yrs
  • Shinichi Hara (54yo)

    Group CHRO

    • Tenure: 0.3yrs
  • Keiji Nishizawa (61yo)

    Domestic Non-Life Insurance Business Owner & Executive Officer

    • Compensation: ¥159.00m
  • Yasunori Kuroda (56yo)

    Senior VP


Board Members

  • Masaki Hanawa (61yo)

    Director

    • Tenure: 0.1yrs
  • Isao Endo (63yo)

    Outside Director

    • Tenure: 5.1yrs
  • Scott Davis (59yo)

    Outside Director

    • Tenure: 5.1yrs
  • Kengo Sakurada (63yo)

    President

    • Compensation: ¥248.00m
  • Naoki Yanagida (59yo)

    Outside Director

    • Tenure: 0.1yrs
  • Tamami Murata (59yo)

    Outside Director

    • Tenure: 5.1yrs
  • Shinji Tsuji (63yo)

    Group COO

    • Tenure: 8.1yrs
    • Compensation: ¥101.00m
  • Hideyo Uchiyama (66yo)

    Outside Director

    • Tenure: 0.1yrs
  • Sawako Nohara (61yo)

    Outside Director

    • Tenure: 6.1yrs
  • Hidenori Hanada (61yo)

    Director

    • Tenure: 0.1yrs

Company Information

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


Key Information

  • Name: Sompo Holdings, Inc.
  • Ticker: ANK
  • Exchange: DB
  • Founded: 2010
  • Industry: property and casualty insurance
  • Sector: insurance
  • Market Cap: JP¥1.637t
  • Listing Market Cap: JP¥13.471b
  • Shares outstanding: 370.20m
  • Website: Click here

Number of Employees


Location

  • Sompo Holdings, Inc.
  • 26-1, Nishi-Shinjuku 1-chome
  • Shinjuku-ku
  • Tokyo
  • 160-8338
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8630TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 2007
ANKDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2007
NHOL.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2007
SMPN.YOTCPK (Pink Sheets LLC)ADRUSUSDApr 2016

Biography

Sompo Holdings, Inc. provides property and casualty (P&C) insurance, life insurance, and financial and other services in Japan and internationally. The company underwrites various P&C insurance products, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/15 21:26
End of Day Share Price2019/07/15 00:00
Earnings2019/03/31
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.