DB:ANK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


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

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


Market Performance


7 Day Return

-0.7%

ANK

3.3%

DE Insurance

2.8%

DE Market


1 Year Return

-15.7%

ANK

-8.8%

DE Insurance

0.3%

DE Market

Return vs Industry: ANK underperformed the German Insurance industry which returned -8.5% over the past year.

Return vs Market: ANK underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

ANKIndustryMarket
7 Day-0.7%3.3%2.8%
30 Day-0.7%-2.1%0.2%
90 Day3.4%25.4%27.7%
1 Year-12.5%-15.7%-3.7%-8.8%2.3%0.3%
3 Year-0.1%-9.0%28.9%12.2%3.5%-4.9%
5 Year16.0%0.7%66.4%32.0%11.4%-3.4%

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 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: ANK (€30.2) is trading below our estimate of fair value (€61.85)

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


Price To Earnings Ratio

PE vs Industry: ANK is poor value based on its PE Ratio (11x) compared to the Insurance industry average (10.6x).

PE vs Market: ANK is good value based on its PE Ratio (11x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: ANK is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ANK is good value based on its PB Ratio (0.8x) compared to the DE Insurance industry average (0.9x).


Next Steps

Future Growth

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

9.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANK's forecast earnings growth (9.7% per year) is above the savings rate (0.2%).

Earnings vs Market: ANK's earnings (9.7% per year) are forecast to grow slower than the German market (22.2% per year).

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

Revenue vs Market: ANK's revenue (1.5% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: ANK's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANK's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

  • Explore growth companies in the Insurance industry.

Past Performance

How has Sompo Holdings performed over the past 5 years?

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANK has high quality earnings.

Growing Profit Margin: ANK's current net profit margins (3.3%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: ANK's earnings have grown by 6.5% per year over the past 5 years.

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

Earnings vs Industry: ANK had negative earnings growth (-16.3%) over the past year, making it difficult to compare to the Insurance industry average (10%).


Return on Equity

High ROE: ANK's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Sompo Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ANK's short term assets (¥1,060.5B) exceed its short term liabilities (¥33.7B).

Long Term Liabilities: ANK's short term assets (¥1,060.5B) do not cover its long term liabilities (¥10,331.6B).


Debt to Equity History and Analysis

Debt Level: ANK's debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: ANK's debt to equity ratio has increased from 7.7% to 31.3% over the past 5 years.

Debt Coverage: ANK's debt is well covered by operating cash flow (70.7%).

Interest Coverage: ANK's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Next Steps

Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANK's dividend (4.35%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: ANK's dividend (4.35%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

Stable Dividend: ANK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.9%), ANK'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

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

1.4yrs

Average management tenure


CEO

Kengo Sakurada (64yo)

5yrs

Tenure

JP¥248,000,000

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Kengo's total compensation ($USD2.31M) is below average for companies of similar size in the German market ($USD5.19M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kengo Sakurada
President5yrsJP¥248.00m0.0056% ¥619.9k
Keiji Nishizawa
CEO of Domestic P&C Insurance Business and Executive Officerno dataJP¥149.00m0.0026% ¥286.1k
Masahiro Hamada
Group CFO1.25yrsno data0.00088% ¥97.6k
Shinji Tsuji
Group COO9.08yrsJP¥101.00m0.0055% ¥611.0k
Yasunori Kuroda
Senior VPno datano data0.00065% ¥72.1k
Osamu Nose
Head of Investor Relations and Finance Departmentno datano datano data
Shu Nakamura
Manager of Corporate Communicationsno datano datano data
Shinichi Hara
Group Chief Human Resource Officer1.25yrsno data0.00045% ¥49.9k
Satoshi Kasai
CEO of Nursing Care & Healthcare Business and Executive Officer1.25yrsno data0.0013% ¥146.4k
Mikio Okumura
Group Co-CSO5.25yrsno data0.00052% ¥57.7k

1.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ANK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kengo Sakurada
President5yrsJP¥248.00m0.0056% ¥619.9k
Shinji Tsuji
Group COO9.08yrsJP¥101.00m0.0055% ¥611.0k
Scott Davis
Independent Outside Director6.08yrsno datano data
Isao Endo
Independent Outside Director6.08yrsno data0.00019% ¥21.1k
Hideyo Uchiyama
Independent Outside Director1.08yrsno data0.000050% ¥5.5k
Naoki Yanagida
Independent Outside Director1.08yrsno datano data
Sawako Nohara
Independent Outside Director7.08yrsno datano data
Atsuko Muraki
Independent Outside Director1.08yrsno datano data
Hidenori Hanada
Director1.08yrsno data0.0022% ¥239.5k
Misuzu Shibata
Independent Outside Director0.083yrno datano data

1.1yrs

Average Tenure

63yo

Average Age

Experienced Board: ANK's board of directors are not considered experienced ( 1.1 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: 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

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¥1.340t
  • Listing Market Cap: JP¥11.089b
  • Shares outstanding: 364.13m
  • Website: https://www.sompo-hd.com

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, including fire and allied, marine, personal accident, voluntary automobile, compulsory automobile liability, and other insurance products; and life insurance products comprising individual and group insurance and annuities. It also offers asset management and defined contribution pension fund management services; roadside assistance services; home remodeling services; and nursing care and healthcare services, including facility based care, homecare, and adult day care services. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. Sompo Holdings, Inc. was founded in 2010 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 21:20
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.