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. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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 is not significantly more volatile than the rest of Danish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TOP's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

TOP

-0.7%

DK Insurance

1.4%

DK Market


1 Year Return

-16.6%

TOP

-12.8%

DK Insurance

25.3%

DK Market

Return vs Industry: TOP underperformed the Danish Insurance industry which returned -12.8% over the past year.

Return vs Market: TOP underperformed the Danish Market which returned 25.3% over the past year.


Shareholder returns

TOPIndustryMarket
7 Day3.2%-0.7%1.4%
30 Day11.0%2.8%3.0%
90 Day-2.7%20.5%9.5%
1 Year-14.0%-16.6%-8.5%-12.8%27.7%25.3%
3 Year17.9%2.3%6.3%-9.4%54.1%42.1%
5 Year97.7%71.6%45.9%12.3%71.6%49.6%

Long-Term 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?

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOP (DKK291.2) is trading below our estimate of fair value (DKK360.22)

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 (25.8x) compared to the XE Insurance industry average (12.3x).

PE vs Market: TOP is poor value based on its PE Ratio (25.8x) compared to the Danish market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TOP is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TOP is overvalued based on its PB Ratio (4x) 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 8 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOP's forecast earnings growth (20.3% per year) is above the savings rate (0.2%).

Earnings vs Market: TOP's earnings (20.3% per year) are forecast to grow faster than the Danish market (12.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TOP's revenue is expected to decline over the next 3 years (-7.7% per year).

High Growth Revenue: TOP's revenue is forecast to decline over the next 3 years (-7.7% 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 (23.5%)


Next Steps

Past Performance

How has Topdanmark performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOP has high quality earnings.

Growing Profit Margin: TOP's current net profit margins (4.4%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: TOP's earnings have declined by 2.2% 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 (-28.5%) over the past year, making it difficult to compare to the Insurance industry average (-6.8%).


Return on Equity

High ROE: TOP's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is Topdanmark's financial position?


Financial Position Analysis

Short Term Liabilities: TOP's short term assets (DKK6.7B) do not cover its short term liabilities (DKK18.1B).

Long Term Liabilities: TOP's short term assets (DKK6.7B) do not cover its long term liabilities (DKK78.1B).


Debt to Equity History and Analysis

Debt Level: TOP's debt to equity ratio (41.7%) is considered high.

Reducing Debt: TOP's debt to equity ratio has reduced from 42.9% to 41.7% over the past 5 years.

Debt Coverage: TOP's debt is well covered by operating cash flow (274%).

Interest Coverage: TOP's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOP's dividend (2.92%) is higher than the bottom 25% of dividend payers in the Danish market (0.93%).

High Dividend: TOP's dividend (2.92%) is low compared to the top 25% of dividend payers in the Danish market (3.48%).


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 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.2%), 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 (105.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Peter Hermann (47 yo)

2.92yrs

Tenure

kr.7,900,000

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 ($USD1.29M) is about average for companies of similar size in the Danish market ($USD1.60M).

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 Board2.92yrskr.7.90m0.00094%
DKK 238.7k
Lars Thykier
CFO & Member of the Executive Boardno datakr.6.70m0.00052%
DKK 132.0k
Brian Jacobsen
COO & Member of Executive Board4.83yrskr.6.80m0.00052%
DKK 132.0k
Thomas Erichsen
CTO & Member of Executive Board2.25yrskr.5.30m0.0015%
DKK 383.4k
Niels Olesen
Head of Accountingno datano datano data
Steffen Heegaard
Head of IR1yrno datano data
Louise Hørdum
Head of Human Resources & Communication1yrno datano data
Jens Green
Head of Marketingno datano datano data
Lars Skovsende
Head of Internal Auditno datano datano data
Jens Ellborg
Head of Reinsuranceno datano datano data
Carsten Pedersen
Head of Statistical & Actuarial Servicesno datano datano data
Henrik Thornval
Head of Asset Managementno datano datano data

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: TOP's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Petri Niemisvirta
Director3.75yrskr.385.00k0.00057%
DKK 144.7k
Ricard Wennerklint
Chairman1.75yrskr.1.38m0.0023%
DKK 581.5k
Morten Thorsrud
Director1.75yrskr.257.00k0.00057%
DKK 144.7k
Jens Aaløse
Independent Deputy Chairman2.75yrskr.963.00k0.000060%
DKK 15.2k
Mette Jensen
Employee Representative Director6yrskr.481.00k0.0011%
DKK 271.7k
Anne Eberhard
Independent Director1.75yrskr.385.00k0.00011%
DKK 27.9k
Cristina Hansen
Independent Director1.75yrskr.385.00k0.00052%
DKK 132.0k
Elise Bundgaard
Employee Representative Director1.83yrskr.257.00k0.0012%
DKK 297.1k
Ole Mortensen
Employee Representative Director1.83yrskr.257.00k0.0021%
DKK 523.1k

1.8yrs

Average Tenure

52yo

Average Age

Experienced Board: TOP's board of directors are not considered experienced ( 1.8 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: kr.25.393b
  • Shares outstanding: 87.26m
  • 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 ins...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 18:05
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
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.