Great Eastern Holdings (SGX:G07) - Share price, News & Analysis

G07 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

G07 Stock Overview

Great Eastern Holdings Limited, an investment holding company, provides insurance products in Singapore, Malaysia, and rest of Asia.

Rewards

Trading at 58.7% below our estimate of its fair value

Earnings grew by 15.9% over the past year

Risk Analysis

Unstable dividend track record

Great Eastern Holdings Competitors

AIA Group

SEHK:1299

HK$969.6b

Ping An Insurance (Group) Company of China

SEHK:2318

HK$915.1b

China Life Insurance

SEHK:2628

HK$694.5b

Allianz

XTRA:ALV

€79.4b

Price History & Performance

Summary of all time highs, changes and price drops for Great Eastern Holdings
Historical stock prices
Current Share Price	S$20.14
52 Week High	S$22.95
52 Week Low	S$19.80
Beta	0.58
1 Month Change	-5.98%
3 Month Change	-6.67%
1 Year Change	-11.36%
3 Year Change	-22.27%
5 Year Change	-9.89%
Change since IPO	496.74%

Recent News & Updates

Apr 20

Great Eastern Holdings (SGX:G07) Has Announced That It Will Be Increasing Its Dividend To S$0.55

Great Eastern Holdings Limited's ( SGX:G07 ) dividend will be increasing to S$0.55 on 5th of May. The announced payment...

Mar 29

Great Eastern Holdings (SGX:G07) Is Paying Out A Larger Dividend Than Last Year

Great Eastern Holdings Limited ( SGX:G07 ) will increase its dividend on the 5th of May to S$0.55. This makes the...

Shareholder Returns

	G07	SG Insurance	SG Market
7D	0%	2.5%	1.4%
1Y	-11.4%	-18.5%	-0.3%

Return vs Industry: G07 exceeded the SG Insurance industry which returned -18.5% over the past year.

Return vs Market: G07 underperformed the SG Market which returned -0.3% over the past year.

Price Volatility

Is G07's price volatile compared to industry and market?
G07 volatility
G07 Average Weekly Movement	1.8%
Insurance Industry Average Movement	5.1%
Market Average Movement	5.2%
10% most volatile stocks in SG Market	12.3%
10% least volatile stocks in SG Market	2.5%

Stable Share Price: G07 is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: G07's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1908	5,500	Hock Seng Khor	https://www.greateasternlife.com

Great Eastern Holdings Limited, an investment holding company, provides insurance products in Singapore, Malaysia, and rest of Asia. It operates through Life Insurance, Non-Life Insurance, and Shareholders segments. The Life Insurance segment offers life, long-term health and accident, annuity business written, and unit-linked insurance products.

Great Eastern Holdings Fundamentals Summary

How do Great Eastern Holdings's earnings and revenue compare to its market cap?
G07 fundamental statistics
Market Cap	S$9.53b
Earnings (TTM)	S$1.11b
Revenue (TTM)	S$19.93b

8.6x

P/E Ratio

0.5x

P/S Ratio

Is G07 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
G07 income statement (TTM)
Revenue	S$19.93b
Cost of Revenue	S$16.55b
Gross Profit	S$3.38b
Other Expenses	S$2.26b
Earnings	S$1.11b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	2.35
Gross Margin	16.95%
Net Profit Margin	5.59%
Debt/Equity Ratio	0.1%

How did G07 perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

28%

Payout Ratio

Valuation

Is Great Eastern Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: G07 (SGD20.14) is trading below our estimate of fair value (SGD48.81)

Significantly Below Fair Value: G07 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: G07 is good value based on its PE Ratio (8.6x) compared to the Asian Insurance industry average (11.1x).

PE vs Market: G07 is good value based on its PE Ratio (8.6x) compared to the SG market (11.9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate G07's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: G07 is good value based on its PB Ratio (1x) compared to the XA Insurance industry average (1.2x).

Future Growth

How is Great Eastern Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.6%

Forecasted Insurance industry annual growth in earnings

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if G07's forecast earnings growth is above the savings rate (1.8%).

Earnings vs Market: Insufficient data to determine if G07's earnings are forecast to grow faster than the SG market

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

Revenue vs Market: Insufficient data to determine if G07's revenue is forecast to grow faster than the SG market.

High Growth Revenue: Insufficient data to determine if G07's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: G07's Return on Equity is forecast to be low in 3 years time (10.3%).

Past Performance

How has Great Eastern Holdings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

6.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: G07 has high quality earnings.

Growing Profit Margin: G07's current net profit margins (5.6%) are higher than last year (4.5%).

Past Earnings Growth Analysis

Earnings Trend: G07's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: G07's earnings growth over the past year (15.9%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: G07 earnings growth over the past year (15.9%) exceeded the Insurance industry 7.2%.

Return on Equity

High ROE: G07's Return on Equity (11.2%) is considered low.

Financial Health

How is Great Eastern Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: G07's short term assets (SGD94.9B) exceed its short term liabilities (SGD9.7B).

Long Term Liabilities: G07's short term assets (SGD94.9B) exceed its long term liabilities (SGD90.6B).

Debt to Equity History and Analysis

Debt Level: G07 has more cash than its total debt.

Reducing Debt: G07's debt to equity ratio has reduced from 6.6% to 0.1% over the past 5 years.

Debt Coverage: G07's debt is well covered by operating cash flow (28490.7%).

Interest Coverage: G07's interest payments on its debt are well covered by EBIT (13060x coverage).

Balance Sheet

Dividend

What is Great Eastern Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: G07's dividend (3.23%) is higher than the bottom 25% of dividend payers in the SG market (2.22%).

High Dividend: G07's dividend (3.23%) is low compared to the top 25% of dividend payers in the SG market (5.95%).

Stability and Growth of Payments

Stable Dividend: G07's dividend payments have been volatile in the past 10 years.

Growing Dividend: G07's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.6%), G07's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (7.4%), G07's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

6.5yrs

Average management tenure

CEO

Hock Seng Khor (62 yo)

6.5yrs

Tenure

S$4,400,000

Compensation

Mr. Hock Seng Khor has been the Group Chief Executive Officer at Great Eastern Holdings Limited since November 2, 2015. Mr. Khor is Executive Director of Great Eastern General Insurance (Malaysia) Berhad....

CEO Compensation Analysis

Compensation vs Market: Hock Seng's total compensation ($USD3.19M) is about average for companies of similar size in the SG market ($USD2.84M).

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

Leadership Team

Experienced Management: G07's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: G07's board of directors are considered experienced (6.3 years average tenure).

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31