LSE:HSTG

Stock Analysis Report

Hastings Group Holdings

Executive Summary

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

Snowflake

Fundamentals

Good value with moderate growth potential.


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


Market Performance


7 Day Return

5.1%

HSTG

5.6%

GB Insurance

1.9%

GB Market


1 Year Return

-15.8%

HSTG

-1.4%

GB Insurance

2.4%

GB Market

Return vs Industry: HSTG underperformed the UK Insurance industry which returned -1.4% over the past year.

Return vs Market: HSTG underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

HSTGIndustryMarket
7 Day5.1%5.6%1.9%
30 Day-4.1%0.3%-1.1%
90 Day-0.9%-8.1%-1.8%
1 Year-10.3%-15.8%3.6%-1.4%7.4%2.4%
3 Year7.1%-7.5%21.1%4.2%18.2%3.7%
5 Yearn/a36.8%8.0%35.7%6.1%

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?

27.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HSTG (£1.95) is trading below our estimate of fair value (£2.7)

Significantly Undervalued: HSTG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HSTG is good value based on its PE Ratio (13.4x) compared to the Insurance industry average (14.7x).

PE vs Market: HSTG is good value based on its PE Ratio (13.4x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: HSTG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HSTG is overvalued based on its PB Ratio (2x) compared to the GB Insurance industry average (1.9x).


Next Steps

Future Growth

How is Hastings Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSTG's forecast earnings growth (19% per year) is above the savings rate (1.2%).

Earnings vs Market: HSTG's earnings (19% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: HSTG's revenue (6.7% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: HSTG's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HSTG's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

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

47.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HSTG's earnings have grown significantly by 47.5% per year over the past 5 years.

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 (-32.3%) over the past year, making it difficult to compare to the Insurance industry average (15.2%).


Return on Equity

High ROE: HSTG's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: HSTG has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: HSTG has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hastings Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HSTG has a low level of unsold assets or inventory.

Debt Coverage by Assets: HSTG's debt is covered by short term assets (assets are 8.335780x debt).


Financial Institutions Analysis

Asset Level: HSTG's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HSTG has a sufficient allowance for bad loans.

Low Risk Liabilities: HSTG reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HSTG has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HSTG has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HSTG has an appropriate level of bad loans.


Next Steps

Dividend

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

6.92%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%2.0%markettop25%5.4%industryaverage5.0%forecastin3Years7.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HSTG's dividend (6.92%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: HSTG's dividend (6.92%) is in the top 25% of dividend payers in the UK market (5.42%)

Stable Dividend: Whilst dividend payments have been stable, HSTG has been paying a dividend for less than 10 years.

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 (92.5%), 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 (84.7% payout ratio).


Next Steps

Management

What is the CEO of Hastings Group Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Toby van der Meer (41yo)

1.6yrs

Tenure

UK£623,435

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Toby's compensation with company performance.


Board Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: HSTG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Toby van der Meer (41yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£623.44k
  • Tony Leppard

    Company Secretary

    • Tenure: 0yrs
  • Carole Jones (59yo)

    Group Human Resources Director

    • Tenure: 0yrs
  • John Worth (56yo)

    Group CFO & Director

    • Tenure: 0.4yrs
  • John Armstrong

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tom Colraine (60yo)

    Senior Independent Director

    • Tenure: 4.1yrs
    • Compensation: UK£85.40k
  • Herman Bosman (51yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Pierre Lefèvre (63yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£107.04k
  • Gary Hoffman (59yo)

    Non-Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£718.46k
  • Selina Sagayam (47yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£91.40k
  • Sumit Rajpal (43yo)

    Non-Executive Director

    • Tenure: 4.1yrs
  • Toby van der Meer (41yo)

    CEO & Director

    • Tenure: 1.6yrs
    • Compensation: UK£623.44k
  • John Worth (56yo)

    Group CFO & Director

    • Tenure: 0.4yrs
  • Teresa Robson-Capps (64yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£62.67k
  • Alison Burns (56yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£50.90k

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£1.290b
  • Shares outstanding: 660.89m
  • 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

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 car, van, bike, and home insur ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:41
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.