CPSE:TOP

Stock Analysis Report

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Executive Summary

Topdanmark A/S, together with its subsidiaries, operates as an insurance company in Denmark.


Snowflake Analysis

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

8.4%

TOP

1.7%

DK Insurance

2.5%

DK Market


1 Year Return

-20.9%

TOP

-18.7%

DK Insurance

21.4%

DK Market

Return vs Industry: TOP underperformed the Danish Insurance industry which returned -18.8% over the past year.

Return vs Market: TOP underperformed the Danish Market which returned 20.7% over the past year.


Shareholder returns

TOPIndustryMarket
7 Day8.4%1.7%2.5%
30 Day1.2%-5.3%3.8%
90 Day1.6%8.5%17.3%
1 Year-18.4%-20.9%-14.0%-18.7%23.8%21.4%
3 Year64.2%42.5%1.3%-13.1%47.4%34.9%
5 Year77.9%54.4%19.4%-7.5%49.3%30.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOP (DKK298) is trading below our estimate of fair value (DKK314.14)

Significantly Below Fair Value: TOP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TOP is poor value based on its PE Ratio (28.3x) compared to the Insurance industry average (9.7x).

PE vs Market: TOP is poor value based on its PE Ratio (28.3x) compared to the Danish market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: TOP is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: TOP is overvalued based on its PB Ratio (4.2x) compared to the XE Insurance industry average (1x).


Next Steps

Future Growth

How is Topdanmark forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOP's forecast earnings growth (10.9% per year) is above the savings rate (0.3%).

Earnings vs Market: TOP's earnings (10.9% per year) are forecast to grow slower than the Danish market (13.2% per year).

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

Revenue vs Market: TOP's revenue is expected to decline over the next 3 years (-2.9% per year).

High Growth Revenue: TOP's revenue is forecast to decline over the next 3 years (-2.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOP's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Topdanmark performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOP has high quality earnings.

Growing Profit Margin: TOP's current net profit margins (5.3%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TOP's earnings have grown by 1.8% per year over the past 5 years.

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

Earnings vs Industry: TOP had negative earnings growth (-39.1%) over the past year, making it difficult to compare to the Insurance industry average (10%).


Return on Equity

High ROE: TOP's Return on Equity (14.7%) is considered low.


Next Steps

Financial Health

How is Topdanmark's financial position?


Financial Position Analysis

Short Term Liabilities: TOP's short term assets (DKK6.3B) do not cover its short term liabilities (DKK19.1B).

Long Term Liabilities: TOP's short term assets (DKK6.3B) do not cover its long term liabilities (DKK68.4B).


Debt to Equity History and Analysis

Debt Level: TOP's debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: TOP's debt to equity ratio has reduced from 64.6% to 36% over the past 5 years.

Debt Coverage: TOP's debt is well covered by operating cash flow (386.7%).

Interest Coverage: TOP's interest payments on its debt are well covered by EBIT (13.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Topdanmark current dividend yield, its reliability and sustainability?

2.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOP's dividend (2.85%) is higher than the bottom 25% of dividend payers in the Danish market (1.4%).

High Dividend: TOP's dividend (2.85%) is low compared to the top 25% of dividend payers in the Danish market (3.43%).


Stability and Growth of Payments

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

Growing Dividend: TOP has only been paying a dividend for 2 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), TOP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TOP's dividends in 3 years are not forecast to be well covered by earnings (100.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Insurance industry.

Management

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

2.5yrs

Average management tenure


CEO

Peter Hermann (47yo)

2.42yrs

Tenure

ø7,900,000

Compensation

Mr. Peter Hermann has been the Chief Executive Officer of Topdanmark A/S since February 5, 2018 and has been its Member of Executive Board since February 5, 2018. Mr. Hermann has been the Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD1.20M) is about average for companies of similar size in the Danish market ($USD1.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Peter Hermann
CEO & Member of Executive Board2.42yrsø7.90m0.00094% DKK243.9k
Lars Thykier
CFO & Member of the Executive Boardno dataø6.70m0.00052% DKK134.9k
Brian Jacobsen
COO & Member of Executive Board4.33yrsø6.80m0.00052% DKK134.9k
Thomas Erichsen
CTO & Member of Executive Board1.75yrsø5.30m0.0015% DKK391.8k
Niels Olesen
Head of Accountingno datano datano data
Steffen Heegaard
Group Communications & IR Directorno datano datano data
Jens Green
Head of Marketingno datano datano data
Louise Hørdum
Head of Human Resources2.5yrsno datano data
Lars Skovsende
Head of Internal Auditno datano datano data
Jens Ellborg
Head of Reinsuranceno datano datano data

2.5yrs

Average Tenure

54yo

Average Age

Experienced Management: TOP's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petri Niemisvirta
Director3.25yrsø385.00k0.00057% DKK147.9k
Ricard Wennerklint
Chairman1.25yrsø1.38m0.0023% DKK594.2k
Morten Thorsrud
Director1.25yrsø257.00k0.00057% DKK147.9k
Jens Aaløse
Independent Deputy Chairman2.25yrsø963.00k0.000060% DKK15.6k
Mette Jensen
Employee Representative Director5.5yrsø481.00k0.0011% DKK277.6k
Anne Eberhard
Independent Director1.25yrsø385.00k0.00011% DKK28.5k
Cristina Hansen
Independent Director1.25yrsø385.00k0.00052% DKK134.9k
Elise Bundgaard
Employee Representative Director1.33yrsø257.00k0.0012% DKK303.6k
Ole Mortensen
Employee Representative Director1.33yrsø257.00k0.0021% DKK534.5k

1.3yrs

Average Tenure

52yo

Average Age

Experienced Board: TOP's board of directors are not considered experienced ( 1.3 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

Topdanmark A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Topdanmark A/S
  • Ticker: TOP
  • Exchange: CPSE
  • Founded: 1985
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: ø25.947b
  • Shares outstanding: 87.19m
  • Website: https://www.topdanmark.com

Number of Employees


Location

  • Topdanmark A/S
  • Borupvang 4
  • Ballerup
  • 2750
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TQ71DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
TOPCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKJan 1992
0QCQLSE (London Stock Exchange)YesOrdinary SharesGBDKKJan 1992
TOPCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKJan 1992
TPDK.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Topdanmark A/S, together with its subsidiaries, operates as an insurance company in Denmark. It offers non-life insurance products, motor insurance policies, risk management advice, and home and travel insurance products, as well as life insurance and pension fund schemes primarily in the event of illness, death, and injuries. The company also provides asset management services. It serves individual households, and SMEs and agricultural businesses under the Topdanmark and Coop Forsikringer brands. The company was founded in 1985 is headquartered in Ballerup, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 20:54
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
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.