LSE:HSTG

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Hastings Group Holdings

Executive Summary

Hastings Group Holdings plc, together with its subsidiaries, underwrites general insurance products in the United Kingdom.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Hastings Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

HSTG

4.9%

GB Insurance

2.8%

GB Market


1 Year Return

1.3%

HSTG

-25.9%

GB Insurance

-11.0%

GB Market

Return vs Industry: HSTG exceeded the UK Insurance industry which returned -25.7% over the past year.

Return vs Market: HSTG exceeded the UK Market which returned -11.7% over the past year.


Shareholder returns

HSTGIndustryMarket
7 Day2.9%4.9%2.8%
30 Day3.7%5.6%8.4%
90 Day11.5%-16.8%-7.9%
1 Year6.8%1.3%-18.2%-25.9%-6.7%-11.0%
3 Year-34.0%-43.4%-18.4%-32.5%-3.7%-15.4%
5 Yearn/a-1.3%-26.4%15.4%-10.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Hastings Group Holdings undervalued compared to its fair value and its price relative to the market?

45.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSTG (£1.83) is trading below our estimate of fair value (£3.37)

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


Price To Earnings Ratio

PE vs Industry: HSTG is poor value based on its PE Ratio (17.3x) compared to the Insurance industry average (10.9x).

PE vs Market: HSTG is poor value based on its PE Ratio (17.3x) compared to the UK market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: HSTG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HSTG is overvalued based on its PB Ratio (1.9x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

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

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSTG's forecast earnings growth (14.4% per year) is above the savings rate (1.2%).

Earnings vs Market: HSTG's earnings (14.4% per year) are forecast to grow slower than the UK market (20.4% per year).

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

Revenue vs Market: HSTG's revenue (5.2% per year) is forecast to grow faster than the UK market (3.7% per year).

High Growth Revenue: HSTG's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSTG's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has Hastings Group Holdings performed over the past 5 years?

35.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSTG has high quality earnings.

Growing Profit Margin: HSTG's current net profit margins (9.4%) are lower than last year (17.3%).


Past Earnings Growth Analysis

Earnings Trend: HSTG has become profitable over the past 5 years, growing earnings by 35.5% per year.

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

Earnings vs Industry: HSTG had negative earnings growth (-46.6%) over the past year, making it difficult to compare to the Insurance industry average (4.2%).


Return on Equity

High ROE: HSTG's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Hastings Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: HSTG's short term assets (£2.0B) do not cover its short term liabilities (£2.2B).

Long Term Liabilities: HSTG's short term assets (£2.0B) exceed its long term liabilities (£295.7M).


Debt to Equity History and Analysis

Debt Level: HSTG's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: HSTG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HSTG's debt is well covered by operating cash flow (59.5%).

Interest Coverage: HSTG's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Hastings Group Holdings's current dividend yield, its reliability and sustainability?

5.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSTG's dividend (5.46%) is higher than the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: HSTG's dividend (5.46%) is low compared to the top 25% of dividend payers in the UK market (5.69%).


Stability and Growth of Payments

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

Growing Dividend: HSTG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.6%), HSTG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSTG's dividends in 3 years are forecast to be covered by earnings (74.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average board tenure


CEO

Toby van der Meer (41yo)

2.25yrs

Tenure

UK£673,075

Compensation

Mr. Tobias Adriaan van der Meer, also known as Toby, is the Chief Executive Officer and Director of Hastings Group Holdings plc since March 1, 2018. He served as Managing Director of Retail at Hastings Gro ...


CEO Compensation Analysis

Compensation vs Market: Toby's total compensation ($USD838.94K) is below average for companies of similar size in the UK market ($USD1.72M).

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


Board Members

NamePositionTenureCompensationOwnership
Tobias van der Meer
CEO & Director2.25yrsUK£673.08k0.54% £6.5m
John Worth
Group CFO & Director1.08yrsUK£541.58k0.0047% £56.4k
Thomas Colraine
Independent Non-Executive Chairman0.083yrUK£90.25k0.012% £140.0k
Hermanus Bosman
Non-Executive Director3.25yrsno datano data
Pierre P. J. L. M. Lefèvre
Independent Non-Executive Director4.75yrsUK£111.02k0.014% £172.8k
Elizabeth Chambers
Independent Non-Executive Director1.75yrsUK£50.61kno data
Selina Sagayam
Independent Non-Executive Director2.83yrsUK£95.48kno data
Teresa Robson-Capps
Senior Independent Director0.083yrUK£65.60kno data
Alison Burns
Independent Non-Executive Director3.92yrsUK£50.70kno data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: HSTG's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Hastings Group Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hastings Group Holdings plc
  • Ticker: HSTG
  • Exchange: LSE
  • Founded: 1996
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£1.210b
  • Shares outstanding: 660.88m
  • Website: https://www.hastingsplc.com

Number of Employees


Location

  • Hastings Group Holdings plc
  • Conquest House
  • Collington Avenue
  • Bexhill-On-Sea
  • East Sussex
  • TN39 3LW
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSTGLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2015
8HGDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2015
HSTGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2015
HNGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2015

Biography

Hastings Group Holdings plc, together with its subsidiaries, underwrites general insurance products in the United Kingdom. It is involved in the underwriting and brokerage of private car, van, bike, and home insurance under various brands, including Hastings Direct, Hastings PREMIER, Hastings ESSENTIAL, Hastings Direct SmartMiles, InsurePink, and People’s Choice. The company leases properties. Hastings Group Holdings plc was founded in 1996 and is based in Bexhill-On-Sea, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 00:14
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
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.