Helvetia Holding AG, through its subsidiaries, provides life and non-life insurance, and reinsurance products in Switzerland, Germany, Austria, Spain, Italy, France, and internationally.
The last earnings update was 46 days ago.
Discounted Cash Flow Calculation for LSE:0QKO using Excess Returns Model Model
The calculations below outline how an intrinsic value for Helvetia Holding is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Helvetia Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
Helvetia Holding's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Helvetia Holding's earnings available for a low price, and how does
this compare to other companies in the same industry?
Helvetia Holding's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).
Helvetia Holding's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Helvetia Holding's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Helvetia Holding's finances.
The net worth of a company is the difference between its assets and liabilities.
Helvetia Holding's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Helvetia Holding's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Helvetia Holding's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.9x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Philipp Gmür serves as Chief Executive Officer of Helvetia Schweizerische Versicherungsgesellschaft AG. He is a Director of Allreal Holding AG since 2019. He serves as Chief Executive Officer (Group CEO) at Helvetia Insurance (“Helvetia”) since since September 2016. He served as CEO of Helvetia Switzerland and Member of the Group Management Board from 2003 to 2016, Helvetia Member of the Management Board, Switzerland and Head of Sale from 2000 to 2002 and Helvetia Head of regional office in Lucerne from 1995 to 2000. He Joined Helvetia in 1993 and served at High Court of Lucerne Court Clerk 1991 to 1993. He serves as Member of the Board of the Swiss Insurance Association SIA and Coop Rechtsschutz AG, Aarau and Two other Board Member appointments for non-listed companies and two Board of Trustee appointments. he holds a Doctorate (Dr. iur.), University of Fribourg, LL.M., Duke Law School, USA and Advanced Management Program, Harvard Business School.
Philipp's compensation has been consistent with company performance over the past year.
Philipp's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Helvetia Holding management team is about average.
Chief Executive Officer
Chief Financial Officer
Chief Investment Officer
Head of IT & Group CTO
Head of Investor Relations
Head of Corporate Communications & PR
Group Human Resources
Head of Ocupational Pensions Switzerland
Chief Executive Officer of Europe
Head of Private Pensions Switzerland
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Helvetia Holding board of directors is about average.
Helvetia Holding AG, through its subsidiaries, provides life and non-life insurance, and reinsurance products in Switzerland, Germany, Austria, Spain, Italy, France, and internationally. It offers life insurance, pension plans, and annuity insurance products; and non-life insurance products, such as property, motor vehicle, liability, transport, art, health, and accident insurance. The company was founded in 1858 and is headquartered in St. Gallen, Switzerland.
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