NYSE:IHC

Stock Analysis Report

Executive Summary

Independence Holding Company, through its subsidiaries, engages in life and health insurance business.


Snowflake Analysis

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

IHC

-10.4%

US Insurance

-10.6%

US Market


1 Year Return

-1.8%

IHC

3.8%

US Insurance

5.2%

US Market

Return vs Industry: IHC underperformed the US Insurance industry which returned 9.3% over the past year.

Return vs Market: IHC underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

IHCIndustryMarket
7 Day-2.4%-10.4%-10.6%
30 Day-8.3%-7.7%-8.5%
90 Day-11.3%-6.5%-4.6%
1 Year-0.8%-1.8%6.2%3.8%7.4%5.2%
3 Year114.7%109.5%19.4%10.2%31.7%23.2%
5 Year228.5%216.7%54.2%35.9%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IHC ($38.21) is trading above our estimate of fair value ($35.59)

Significantly Below Fair Value: IHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IHC is poor value based on its PE Ratio (21.4x) compared to the Insurance industry average (12.4x).

PE vs Market: IHC is poor value based on its PE Ratio (21.4x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IHC is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is Independence Holding forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.0%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Independence Holding has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Independence Holding performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHC has high quality earnings.

Growing Profit Margin: IHC's current net profit margins (7.1%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: IHC's earnings have grown by 16.3% per year over the past 5 years.

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

Earnings vs Industry: IHC had negative earnings growth (-35.6%) over the past year, making it difficult to compare to the Insurance industry average (34.8%).


Return on Equity

High ROE: IHC's Return on Equity (5.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Independence Holding'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: IHC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if IHC's debt is covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.6%markettop25%4.1%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: IHC's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: IHC's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: IHC's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.6%), IHC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

14.0yrs

Average management tenure


CEO

Roy Tjay Thung (75yo)

20.1yrs

Tenure

US$2,119,396

Compensation

Mr. Roy Tjay Kiang Thung has been Chief Executive Officer and Director at American Independence Corp. since July 2002. He has been Chairman, Chief Executive Officer, President and Director at Independence  ...


CEO Compensation Analysis

Compensation vs Market: Roy Tjay's total compensation ($USD2.12M) is about average for companies of similar size in the US market ($USD1.75M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roy Tjay Thung
Chairman20.1yrsUS$2.12m1.65% $9.4m
David Kettig
Executive VP8.8yrsUS$752.59k0.60% $3.4m
Vincent Furfaro
Senior VP of Corp. Development & Chief Information Security Officer1.1yrsUS$714.20kno data
Teresa Ellen Herbert
CFO, Senior VP & Director3.3yrsUS$849.44k0.56% $3.2m
Loan Nisser
Vice President of Legal & Secretary5.1yrsno datano data
Larry Graber
Senior VP20.1yrsUS$827.72k0.37% $2.1m
Gary Balzofiore
Senior Vice President of Specialty Health Operations1.1yrsUS$567.31k0.20% $1.2m

14.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: IHC's management team is seasoned and experienced (14 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Tjay Thung
Chairman20.1yrsUS$2.12m1.65% $9.4m
David Kettig
Executive VP8.8yrsUS$752.59k0.60% $3.4m
Teresa Ellen Herbert
CFO, Senior VP & Director3.3yrsUS$849.44k0.56% $3.2m
Larry Graber
Senior VP20.1yrsUS$827.72k0.37% $2.1m
Steven Lapin
Vice Chairman of the Board20.6yrsno data0.82% $4.7m
Ronald Simon
Independent Director3.3yrsUS$146.26k0.30% $1.7m
Allan Kirkman
Independent Director39.2yrsUS$158.26k0.21% $1.2m
James Tatum
Independent Director19.8yrsUS$156.76k0.29% $1.7m
John Lahey
Independent Director13.7yrsUS$149.26k0.18% $1.0m

13.7yrs

Average Tenure

73yo

Average Age

Experienced Board: IHC's board of directors are seasoned and experienced ( 13.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Independence Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Independence Holding Company
  • Ticker: IHC
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$567.407m
  • Shares outstanding: 14.85m
  • Website: https://www.ihcgroup.com

Number of Employees


Location

  • Independence Holding Company
  • 96 Cummings Point Road
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IHCNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1982

Biography

Independence Holding Company, through its subsidiaries, engages in life and health insurance business. The company’s dental portfolio includes indemnity and PPO plans for employer groups of two or more lives, and for individuals within affinity groups; vision plans that offer a flat reimbursement amount for exams and materials; and short-term medical products for people with temporary needs for health coverage. It also provides supplemental products, including hospital indemnity, fixed indemnity limited benefit, critical illness, accident medical coverage, and life insurance products to individuals and families; and pet insurance and occupational accident insurance products. In addition, the company offers group long-term and short-term disability products to employers that provide benefit to their employees; New York short-term disability plan that offers temporary cash payments to replace wages lost; and group term life products, such as group term life, accidental death and dismemberment AD&D, supplemental life and AD&D, and dependent life products. Independence Holding Company markets its products through general agents, independent brokers, and independent producers in 50 states of the United States, the District of Columbia, the Virgin Islands, and Puerto Rico. The company was founded in 1980 and is headquartered in Stamford, Connecticut. Independence Holding Company operates as a subsidiary of Geneve Holdings, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:22
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
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.