DB:OCZA

Stock Analysis Report

Grupo Catalana Occidente

Executive Summary

Grupo Catalana Occidente, S.A., together with its subsidiaries, provides insurance products and services worldwide.

Rewards

Trading at 46.8% below its fair value

Earnings are forecast to grow 6.77% per year

Earnings grew by 10.8% over the past year

Risk Analysis

Unstable dividend track record



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Grupo Catalana Occidente's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

OCZA

0.9%

DE Insurance

0.3%

DE Market


1 Year Return

-12.6%

OCZA

26.9%

DE Insurance

13.8%

DE Market

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

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


Shareholder returns

OCZAIndustryMarket
7 Day-1.6%0.9%0.3%
30 Day-2.4%1.4%1.3%
90 Day-1.3%3.9%5.2%
1 Year-10.7%-12.6%32.5%26.9%17.4%13.8%
3 Year7.1%1.3%63.6%43.8%15.9%5.7%
5 Year34.9%22.4%98.0%58.5%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Grupo Catalana Occidente undervalued compared to its fair value and its price relative to the market?

49.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCZA (€31.4) is trading below our estimate of fair value (€59.06)

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


Price To Earnings Ratio

PE vs Industry: OCZA is good value based on its PE Ratio (9.9x) compared to the Insurance industry average (11.9x).

PE vs Market: OCZA is good value based on its PE Ratio (9.9x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: OCZA is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Grupo Catalana Occidente forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCZA's forecast earnings growth (6.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: OCZA's earnings (6.8% per year) are forecast to grow slower than the German market (13.2% per year).

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

Revenue vs Market: OCZA's revenue (4.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: OCZA's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCZA's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has Grupo Catalana Occidente performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCZA has high quality earnings.

Growing Profit Margin: OCZA's current net profit margins (9.4%) are higher than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: OCZA's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: OCZA's earnings growth over the past year (10.8%) exceeds its 5-year average (9.1% per year).

Earnings vs Industry: OCZA earnings growth over the past year (10.8%) exceeded the Insurance industry 7.8%.


Return on Equity

High ROE: OCZA's Return on Equity (11.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grupo Catalana Occidente'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: OCZA has a low level of unsold assets or inventory.

Debt Coverage by Assets: OCZA's debt is covered by short term assets (assets are 16.6x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Grupo Catalana Occidente's current dividend yield, its reliability and sustainability?

2.71%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.3%markettop25%3.6%industryaverage3.7%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: OCZA's dividend (2.58%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: OCZA's dividend (2.58%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.4%), OCZA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OCZA's dividends in 3 years are forecast to be well covered by earnings (26.6% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

José Ignacio Álvarez Juste (59yo)

7.8yrs

Tenure

€519,000

Compensation

Mr. José Ignacio Álvarez Juste serves as Chief Executive Officer and Director of Grupo Catalana Occidente, SA since April 26, 2016. His experience includes Experience CEO of Bilbao Compañía Anónima de Segu ...


CEO Compensation Analysis

Compensation vs Market: José Ignacio's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.07M).

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


Management Age and Tenure

3.4yrs

Average Tenure

59yo

Average Age

Experienced Management: OCZA's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

17.1yrs

Average Tenure

63yo

Average Age

Experienced Board: OCZA's board of directors are seasoned and experienced ( 17.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€37,60003 Jan 20
Francisco José Arregui Laborda
EntityIndividual
Role
Member of the Board of Directors
Director General & Secretary
Shares1,185
Max Price€31.73
Buy€1,59003 Jan 20
Beatriz Bravo
EntityIndividual
Shares50
Max Price€31.81
Buy€18,00403 Jan 20
Celia Arevalo
EntityIndividual
Shares566
Max Price€31.81
Buy€100,22417 Dec 19
Jose Maria Serra Farré
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,200
Max Price€31.32
Buy€99,59709 Nov 19
Jose Maria Serra Farré
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares2,990
Max Price€33.31
Buy€99,97505 Jun 19
Jose Maria Serra Farré
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,225
Max Price€31.00
Buy€199,24908 May 19
Jose Maria Serra Farré
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares6,000
Max Price€33.34
Buy€149,47706 Mar 19
Jose Maria Serra Farré
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares4,560
Max Price€32.78

Ownership Breakdown

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


Management Team

  • Jose Maria Serra Farré (75yo)

    Executive Chairman

    • Compensation: €44.00k
  • Francisco José Arregui Laborda (62yo)

    Director General & Secretary

    • Tenure: 22yrs
    • Compensation: €541.00k
  • Juan Cañellas

    Head of Traditional Business

    • Tenure: 0.3yrs
  • Hugo Serra Calderón (44yo)

    Executive Director

    • Compensation: €89.00k
  • David Ponce

    Head of Credit Insurance

    • Tenure: 0.3yrs
  • José Ignacio Álvarez Juste (59yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: €519.00k
  • Carlos González Bailac

    Financial Director

    • Joaquín Guallar Pérez (44yo)

      Vice-Secretary

      • Patricia Rodríguez García

        Investor Relations


        Board Members

        • Jose Maria Serra Farré (75yo)

          Executive Chairman

          • Compensation: €44.00k
        • Francisco José Arregui Laborda (62yo)

          Director General & Secretary

          • Tenure: 22yrs
          • Compensation: €541.00k
        • Jorge Enrich Izard (75yo)

          Director

          • Tenure: 26.8yrs
          • Compensation: €23.00k
        • Enrique Giró Godó (60yo)

          Director

          • Tenure: 12.2yrs
        • Federico Halpern Blasco (77yo)

          Director

          • Tenure: 26.2yrs
          • Compensation: €23.00k
        • Francisco Javier Pérez Farguell (64yo)

          Independent Director

          • Tenure: 23.8yrs
        • Javier Juncadella Salisachs (72yo)

          Vice Chairman

          • Tenure: 8yrs
          • Compensation: €191.00k
        • Hugo Serra Calderón (44yo)

          Executive Director

          • Compensation: €89.00k
        • José Ignacio Álvarez Juste (59yo)

          CEO & Director

          • Tenure: 7.8yrs
          • Compensation: €519.00k
        • Juan Ignacio Guerrero Gilabert (61yo)

          Independent Director

          • Tenure: 8.8yrs

        Company Information

        Grupo Catalana Occidente, S.A.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Grupo Catalana Occidente, S.A.
        • Ticker: OCZA
        • Exchange: DB
        • Founded: 1864
        • Industry: Multi-line Insurance
        • Sector: Insurance
        • Market Cap: €3.584b
        • Shares outstanding: 117.90m
        • Website: https://www.grupocatalanaoccidente.com

        Number of Employees


        Location

        • Grupo Catalana Occidente, S.A.
        • Paseo de la Castellana 4
        • Madrid
        • Madrid
        • 28046
        • Spain

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        GCOBME (Bolsas y Mercados Espanoles)YesOrdinary SharesESEURNov 1993
        OCZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1993
        0NRNLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1993
        GCNJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1993
        GCOEBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1993
        GCO NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1993

        Biography

        Grupo Catalana Occidente, S.A., together with its subsidiaries, provides insurance products and services worldwide. The company offers multirisk products and services related to home and family, stores, communities, offices, and SMEs; life insurance products, such as life risk, life savings, pension plans, and investment funds, as well as funeral, death, and health insurance; and automobile insurance coverage products for cars or transport fleets. It also provides other insurance products, such as industrial products, engineering, accidents, and liability; and credit insurance and reinsurance. In addition, the company offers domestic and international debt collection services; and installment credit protection and special products. Grupo Catalana Occidente, S.A. markets its products primarily under the Seguros Catalana Occidente, Plus Ultra Seguros, Seguros Bilbao, NorteHispana Seguros, Crédito y Caución, Atradius, and Atradius Re brands. The company was founded in 1864 and is headquartered in Madrid, Spain. Grupo Catalana Occidente, S.A. is a subsidiary of INOC, S.A. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/26 21:09
        End of Day Share Price2020/01/24 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.