DB:CMAB

Stock Analysis Report

Executive Summary

Mapfre, S.A., engages in the insurance and reinsurance activities worldwide.

Rewards

Trading at 45.1% below its fair value

Earnings are forecast to grow 15.22% per year

Risk Analysis

Dividend of 5.99% is not well covered by earnings

Profit margins (2.1%) are lower than last year (3.7%)



Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.3%

CMAB

0.4%

DE Insurance

0.07%

DE Market


1 Year Return

-2.1%

CMAB

27.1%

DE Insurance

14.8%

DE Market

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

Return vs Market: CMAB underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

CMABIndustryMarket
7 Day0.3%0.4%0.07%
30 Day0.6%0.3%1.4%
90 Day-6.0%4.3%6.1%
1 Year2.5%-2.1%32.7%27.1%18.4%14.8%
3 Year1.1%-11.6%64.7%44.8%17.4%7.0%
5 Year0.7%-19.1%95.1%56.2%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Mapfre undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMAB (€2.39) is trading below our estimate of fair value (€4.36)

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


Price To Earnings Ratio

PE vs Industry: CMAB is poor value based on its PE Ratio (16x) compared to the Insurance industry average (11.9x).

PE vs Market: CMAB is good value based on its PE Ratio (16x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CMAB is good value based on its PB Ratio (0.8x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

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

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMAB's forecast earnings growth (15.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: CMAB's earnings (15.2% per year) are forecast to grow faster than the German market (13.2% per year).

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

Revenue vs Market: CMAB's revenue (2.7% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: CMAB's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMAB's Return on Equity is forecast to be low in 3 years time (9.1%).


Next Steps

Past Performance

How has Mapfre performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMAB has high quality earnings.

Growing Profit Margin: CMAB's current net profit margins (2.1%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: CMAB's earnings have declined by -4.7% per year over the past 5 years.

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

Earnings vs Industry: CMAB had negative earnings growth (-41%) over the past year, making it difficult to compare to the Insurance industry average (7.8%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mapfre'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: CMAB has a low level of unsold assets or inventory.

Debt Coverage by Assets: CMAB's debt is covered by short term assets (assets are 8.5x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

6.01%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.4%markettop25%3.5%industryaverage3.7%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: CMAB's dividend (5.99%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: CMAB's dividend (5.99%) is in the top 25% of dividend payers in the German market (3.53%)


Stability and Growth of Payments

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

Growing Dividend: CMAB's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.9%), CMAB's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMAB's dividends in 3 years are forecast to be covered by earnings (56.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Antonio Huertas Mejías (55yo)

7.8yrs

Tenure

€2,674,000

Compensation

Mr. Antonio Huertas Mejías serves as Chairman and CEO of MAPFRE SA (“MAPFRE”). Mr. Mejías serves as President of Fundación MAPFRE. His Other positions include: President of the Board of Trustees of Fundaci ...


CEO Compensation Analysis

Compensation vs Market: Antonio's total compensation ($USD2.97M) is about average for companies of similar size in the German market ($USD3.59M).

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


Management Age and Tenure

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: CMAB's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: CMAB's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€43,38003 Jan 20
Fernando Mata Verdejo
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Director
Shares18,000
Max Price€2.41
Buy€60,02126 Nov 19
Ignacio Baeza Gómez
EntityIndividual
Role
Vice Chairman
First Vice Chairman of the Board
Shares23,818
Max Price€2.52
Buy€1,02101 Oct 19
Rosa García García
EntityIndividual
Shares415
Max Price€2.46
Buy€200,70007 Aug 19
Antonio Huertas Mejías
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares45,000
Max Price€4.46
Buy€155,70005 Aug 19
Antonio Huertas Mejías
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares45,000
Max Price€3.46
Buy€2,342,52709 May 19
Luis Hernando De Larramendi Martínez
EntityIndividual
Shares885,000
Max Price€2.65
Buy€25,03125 Feb 19
Antonio Huertas Mejías
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares10,175
Max Price€2.46

Ownership Breakdown

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


Management Team

  • Antonio Huertas Mejías (55yo)

    Chairman & CEO

    • Tenure: 7.8yrs
    • Compensation: €2.67m
  • Ángel Luis Dávila Bermejo (56yo)

    GM of Legal Affairs & Secretary General

    • Tenure: 11yrs
  • Alfredo Castelo Marín

    Member of Executive Committee & CEO of the North America Region

    • Tenure: 3yrs
  • Francisco José Marco Orenes (62yo)

    Group Chief Business Support Officer & Director

    • Tenure: 2.8yrs
    • Compensation: €771.00k
  • Jesús Martínez Castellanos (54yo)

    Chief Executive Officer of LATAM NORTH Regional Area

    • Tenure: 4.1yrs
  • José Luís Jiménez Guajardo-Fajardo (51yo)

    Group Chief Investment Officer

    • Tenure: 4.3yrs
  • José Manuel Inchausti Pérez (55yo)

    Third Vice Chairman & CEO of Iberia Regional Area

    • Tenure: 1.5yrs
  • Fernando Mata Verdejo (58yo)

    Group CFO & Director

    • Tenure: 3yrs
    • Compensation: €866.00k
  • Maria Sanz Isla (49yo)

    Member of Executive Committee & Group Chief People Officer

    • Natalia Núñez Arana

      Deputy Director Capital Markets & Head of Investor Relations


      Board Members

      • José Antonio Colomer Guiu (67yo)

        Independent Director

        • Tenure: 3.9yrs
        • Compensation: €252.00k
      • José Manuel Martínez Martínez

        Honorary Chairman

        • Ignacio Baeza Gómez (57yo)

          First Vice Chairman of the Board

          • Tenure: 8yrs
          • Compensation: €1.59m
        • Antonio Huertas Mejías (55yo)

          Chairman & CEO

          • Tenure: 7.8yrs
          • Compensation: €2.67m
        • Julio Castelo Matrán

          Honorary Chairman

          • Francisco José Marco Orenes (62yo)

            Group Chief Business Support Officer & Director

            • Tenure: 2.8yrs
            • Compensation: €771.00k
          • Catalina Miñarro Brugarolas (56yo)

            Second Vice-Chairwoman of the Board

            • Tenure: 3yrs
            • Compensation: €302.00k
          • José Manuel Inchausti Pérez (55yo)

            Third Vice Chairman & CEO of Iberia Regional Area

            • Tenure: 1.5yrs
          • Fernando Mata Verdejo (58yo)

            Group CFO & Director

            • Tenure: 3yrs
            • Compensation: €866.00k
          • Ana Isabel Fernández Álvarez (60yo)

            Independent Director

            • Tenure: 3.5yrs
            • Compensation: €193.00k

          Company Information

          Mapfre, S.A.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Mapfre, S.A.
          • Ticker: CMAB
          • Exchange: DB
          • Founded: 1933
          • Industry: Multi-line Insurance
          • Sector: Insurance
          • Market Cap: €7.369b
          • Shares outstanding: 3.05b
          • Website: https://www.mapfre.com

          Number of Employees


          Location

          • Mapfre, S.A.
          • Carretera de Pozuelo
          • Majadahonda
          • Madrid
          • 28222
          • Spain

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          MAPBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURJan 1980
          CMABDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
          0NQ2LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
          MPFR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
          MAPEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
          MAPWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1980
          CMABETLX (Eurotlx)YesOrdinary SharesITEURJan 1980
          MPFR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

          Biography

          Mapfre, S.A., engages in the insurance and reinsurance activities worldwide. It offers life, health, accidents, savings and investment, retirement, burial, travel and lifestyle insurance; and homeowners, automobile, third-party liability, family, and other insurance. The company also provides vehicles, third-party liability and assets, agriculture and livestock, commercial establishments, and other insurance products. In addition, it offers insurance products for engineering and construction, hulls and aviation, transportation of goods, surety and credit, and other insurances, as well as other non-life and reinsurance products. The company offers its services to professionals, entrepreneurs, self-employed people and small companies, and various corporations, as well as individuals. It distributes its products through a network of 5,373 direct and delegate offices; and 7,487 branches of banking institutions and other sales points, as well as through 84,000 delegates, agents, and brokers. The company was formerly known as Corporacion Mapfre and changed its name to Mapfre, S.A. in December 2006. Mapfre, S.A. was founded in 1933 and is based in Majadahonda, Spain. Mapfre S.A. is a subsidiary of Cartera Mapfre, S.L. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/20 21:05
          End of Day Share Price2020/01/20 00:00
          Earnings2019/09/30
          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.