Executive Summary
Topdanmark A/S, together with its subsidiaries, operates as an insurance company in Denmark. More Details
Rewards
Risk Analysis
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
| TOP | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.2% | -0.7% | 1.4% |
| 30 Day | 11.0% | 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 Year | 17.9%2.3% | 6.3%-9.4% | 54.1%42.1% |
| 5 Year | 97.7%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
1 week ago | Simply Wall St
Does The Market Have A Low Tolerance For Topdanmark A/S' (CPH:TOP) Mixed Fundamentals?1 month ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Topdanmark A/S' (CPH:TOP) Shares?2 months ago | Simply Wall St
Topdanmark (CPH:TOP) Has Compensated Shareholders With A Respectable 65% Return On Their InvestmentValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Member of Executive Board | 2.92yrs | kr.7.90m | 0.00094% DKK 238.7k | |
| CFO & Member of the Executive Board | no data | kr.6.70m | 0.00052% DKK 132.0k | |
| COO & Member of Executive Board | 4.83yrs | kr.6.80m | 0.00052% DKK 132.0k | |
| CTO & Member of Executive Board | 2.25yrs | kr.5.30m | 0.0015% DKK 383.4k | |
| Head of Accounting | no data | no data | no data | |
| Head of IR | 1yr | no data | no data | |
| Head of Human Resources & Communication | 1yr | no data | no data | |
| Head of Marketing | no data | no data | no data | |
| Head of Internal Audit | no data | no data | no data | |
| Head of Reinsurance | no data | no data | no data | |
| Head of Statistical & Actuarial Services | no data | no data | no data | |
| Head of Asset Management | no data | no data | no data |
2.3yrs
Average Tenure
55yo
Average Age
Experienced Management: TOP's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 3.75yrs | kr.385.00k | 0.00057% DKK 144.7k | |
| Chairman | 1.75yrs | kr.1.38m | 0.0023% DKK 581.5k | |
| Director | 1.75yrs | kr.257.00k | 0.00057% DKK 144.7k | |
| Independent Deputy Chairman | 2.75yrs | kr.963.00k | 0.000060% DKK 15.2k | |
| Employee Representative Director | 6yrs | kr.481.00k | 0.0011% DKK 271.7k | |
| Independent Director | 1.75yrs | kr.385.00k | 0.00011% DKK 27.9k | |
| Independent Director | 1.75yrs | kr.385.00k | 0.00052% DKK 132.0k | |
| Employee Representative Director | 1.83yrs | kr.257.00k | 0.0012% DKK 297.1k | |
| Employee Representative Director | 1.83yrs | kr.257.00k | 0.0021% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TQ71 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| TOP | CPSE (OMX Nordic Exchange Copenhagen) | Yes | Ordinary Shares | DK | DKK | Jan 1992 |
| 0QCQ | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | DKK | Jan 1992 |
| TOPC | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | DKK | Jan 1992 |
| TPDK.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/20 18:05 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.