TSEC:2881

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Fubon Financial Holding

Executive Summary

Fubon Financial Holding Co., Ltd. provides various financial services in Taiwan and internationally.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Fubon Financial Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2881 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

2881

3.6%

TW Insurance

4.7%

TW Market


1 Year Return

0.8%

2881

0.4%

TW Insurance

10.4%

TW Market

Return vs Industry: 2881 matched the TW Insurance industry which returned 0.4% over the past year.

Return vs Market: 2881 underperformed the TW Market which returned 10.4% over the past year.


Shareholder returns

2881IndustryMarket
7 Day2.6%3.6%4.7%
30 Day7.4%6.9%7.0%
90 Day-1.6%0.6%1.9%
1 Year5.4%0.8%3.8%0.4%15.4%10.4%
3 Year8.2%-5.0%6.2%-5.3%26.2%11.5%
5 Year-12.8%-31.0%-4.6%-22.2%50.5%23.1%

Price Volatility Vs. Market

How volatile is Fubon Financial Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fubon Financial Holding undervalued compared to its fair value and its price relative to the market?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2881 (NT$43.5) is trading below our estimate of fair value (NT$76.82)

Significantly Below Fair Value: 2881 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2881 is good value based on its PE Ratio (6.7x) compared to the Insurance industry average (7.9x).

PE vs Market: 2881 is good value based on its PE Ratio (6.7x) compared to the TW market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2881 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: 2881 is good value based on its PB Ratio (0.9x) compared to the TW Insurance industry average (0.9x).


Next Steps

Future Growth

How is Fubon Financial Holding forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2881's forecast earnings growth (2% per year) is above the savings rate (0.9%).

Earnings vs Market: 2881's earnings (2% per year) are forecast to grow slower than the TW market (15.2% per year).

High Growth Earnings: 2881's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2881's revenue is expected to decline over the next 3 years (-8.3% per year).

High Growth Revenue: 2881's revenue is forecast to decline over the next 3 years (-8.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2881's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Fubon Financial Holding performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2881 has high quality earnings.

Growing Profit Margin: 2881's current net profit margins (7.2%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: 2881's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: 2881's earnings growth over the past year (56.6%) exceeds its 5-year average (-3.4% per year).

Earnings vs Industry: 2881 earnings growth over the past year (56.6%) exceeded the Insurance industry 35.9%.


Return on Equity

High ROE: 2881's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

How is Fubon Financial Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 2881's short term assets (NT$2,895.4B) exceed its short term liabilities (NT$236.0B).

Long Term Liabilities: 2881's short term assets (NT$2,895.4B) do not cover its long term liabilities (NT$7,820.6B).


Debt to Equity History and Analysis

Debt Level: 2881's debt to equity ratio (88%) is considered high.

Reducing Debt: 2881's debt to equity ratio has reduced from 95.4% to 88% over the past 5 years.

Debt Coverage: 2881's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2881's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Fubon Financial Holding's current dividend yield, its reliability and sustainability?

4.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2881's dividend (4.6%) is higher than the bottom 25% of dividend payers in the TW market (2.46%).

High Dividend: 2881's dividend (4.6%) is low compared to the top 25% of dividend payers in the TW market (5.48%).


Stability and Growth of Payments

Stable Dividend: 2881's dividend payments have been volatile in the past 10 years.

Growing Dividend: 2881's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 2881's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2881's dividends in 3 years are forecast to be well covered by earnings (41.6% payout ratio).


Next Steps

Management

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

6.0yrs

Average board tenure


CEO

Jerry Harn (57yo)

2.83yrs

Tenure

Mr. Wey-Ting Harn, also known as Jerry, serves as the President at Taipei Fubon Commercial Bank Co., Ltd. Mr. Harn serves as President and General Manager of Fubon Financial Holding Co., Ltd. and has been  ...


Board Members

NamePositionTenureCompensationOwnership
Wey-Ting Harn
President2.83yrsno data0.024% NT$105.7m
Howard Lin
CIO & Director18.33yrsno data0.00038% NT$1.7m
Ming-Hsing Tsai
Chairman of the Board4.42yrsno data3.48% NT$15.5b
Ming-Je Tang
Independent Director6yrsno datano data
Chi-Yan Cheung
Independent Director9yrsno datano data
Gang Shyy
Chairman of Fubon Asset Management3.58yrsno datano data
Philip Hu
Chairman of Fubon Securities Investment Services Co Ltdno datano datano data
Raymond Yang
Chairman of Fubon Futures Co Ltd no datano datano data
Chen Po-Yao
Chairman of Fubon Insurance Co.no datano datano data
Lixin Ma
Chairman of Fubon Huayi Bank1.42yrsno datano data

6.0yrs

Average Tenure

62yo

Average Age

Experienced Board: 2881's board of directors are considered experienced (6 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.


Top Shareholders

Company Information

Fubon Financial Holding Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fubon Financial Holding Co., Ltd.
  • Ticker: 2881
  • Exchange: TSEC
  • Founded: 1961
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: NT$445.162b
  • Shares outstanding: 10.23b
  • Website: https://www.fubon.com

Number of Employees


Location

  • Fubon Financial Holding Co., Ltd.
  • No. 237, Section 1
  • Jianguo South Road
  • Taipei City
  • 106
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FUIZ.FOTCPK (Pink Sheets LLC)SPON GDR REG SUSUSDApr 1998
94382327BDL (Bourse de Luxembourg)SPON GDR REG SLUUSDApr 1998
94382572BDL (Bourse de Luxembourg)SPON GDR 144ALUUSDApr 1998
2881TSEC (Taiwan Stock Exchange)YesCommon SharesTWTWDDec 2001
2881ATSEC (Taiwan Stock Exchange)TWD10 PREF ATWTWDMay 2016
2881BTSEC (Taiwan Stock Exchange)TWD10 PREF SHS BTWTWDApr 2018

Biography

Fubon Financial Holding Co., Ltd. provides various financial services in Taiwan and internationally. It operates through Bank Business, Insurance Business, Life Insurance Business, Securities Business, and Others segments. The company primarily offers insurance products, including property, casualty, life, accident, and health insurance products. It also provides retail and consumer, corporate, commercial, and investment banking services; brokerage services; margin lending; securities financing and refinancing, trading, underwriting, and transfer services; and trust, venture capital, investment and financial management, insurance agency, futures, and foreign currency and CNY services. In addition, the company offers marketing management, creditor’s rights management, IT software, investment, asset management, sports, stadium management, and capital management services, as well as invests in and manages real estate properties; and financial bill and credit card services. Fubon Financial Holding Co., Ltd. was founded in 1961 and is based in Taipei City, Taiwan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 16:13
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.