NYSE:IHC

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet unattractive dividend payer.


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

0.9%

IHC

-2.4%

US Insurance

-1.2%

US Market


1 Year Return

-0.8%

IHC

-13.5%

US Insurance

19.5%

US Market

Return vs Industry: IHC exceeded the US Insurance industry which returned -13.5% over the past year.

Return vs Market: IHC underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

IHCIndustryMarket
7 Day0.9%-2.4%-1.2%
30 Day-0.9%1.8%5.8%
90 Day17.5%0.2%8.1%
1 Year0.4%-0.8%-11.1%-13.5%22.3%19.5%
3 Year41.2%37.2%0.2%-7.0%43.6%34.0%
5 Year191.9%180.2%37.6%20.2%87.3%66.1%

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?

378.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IHC ($38.75) is trading above our estimate of fair value ($28.9)

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 (378x) compared to the US Insurance industry average (14.7x).

PE vs Market: IHC is poor value based on its PE Ratio (378x) compared to the US market (19x).


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 (0.9x).


Next Steps

Future Growth

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

25.8%

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?

-1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHC has high quality earnings.

Growing Profit Margin: IHC's current net profit margins (0.4%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: IHC's earnings have declined by 1.8% 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 (-95%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).


Return on Equity

High ROE: IHC's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Independence Holding's financial position?


Financial Position Analysis

Short Term Liabilities: IHC's short term assets ($520.5M) exceed its short term liabilities ($86.8M).

Long Term Liabilities: IHC's short term assets ($520.5M) do not cover its long term liabilities ($532.8M).


Debt to Equity History and Analysis

Debt Level: IHC is debt free.

Reducing Debt: IHC has no debt compared to 5 years ago when its debt to equity ratio was 14.8%.

Debt Coverage: IHC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IHC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IHC's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: IHC's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 high payout ratio (409.8%), IHC's dividend payments are not 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?

5.8yrs

Average management tenure


CEO

Roy Tjay Thung (76 yo)

20.75yrs

Tenure

US$3,241,255

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 and Director at Independence Holding Co. ...


CEO Compensation Analysis

Compensation vs Market: Roy Tjay's total compensation ($USD3.24M) is above average for companies of similar size in the US market ($USD1.91M).

Compensation vs Earnings: Roy Tjay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roy Tjay Thung
Chairman & CEO20.75yrsUS$3.24m1.61%
$ 9.2m
David Kettig
President9.5yrsUS$1.19m0.60%
$ 3.4m
Teresa Ellen Herbert
CFO, Senior VP & Director3.92yrsUS$935.88k0.57%
$ 3.2m
Loan Nisser
Vice President of Legal & Secretary5.75yrsno datano data
Vincent Furfaro
Senior VP of Corp. Development & Chief Information Security Officer1.75yrsUS$714.20k0%
$ 0
Larry Graber
Senior VP20.75yrsUS$827.72k0.38%
$ 2.1m
Gary Balzofiore
Senior Vice President of Specialty Health Operations1.75yrsUS$567.31k0.21%
$ 1.2m

5.8yrs

Average Tenure

61.5yo

Average Age

Experienced Management: IHC's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roy Tjay Thung
Chairman & CEO20.75yrsUS$3.24m1.61%
$ 9.2m
David Kettig
President9.5yrsUS$1.19m0.60%
$ 3.4m
Teresa Ellen Herbert
CFO, Senior VP & Director3.92yrsUS$935.88k0.57%
$ 3.2m
Larry Graber
Senior VP20.75yrsUS$827.72k0.38%
$ 2.1m
Steven Lapin
Vice Chairman of the Board21.25yrsno data0.83%
$ 4.7m
Ronald Simon
Independent Director3.92yrsUS$150.03k0.30%
$ 1.7m
Allan Kirkman
Independent Director39.83yrsUS$160.53k0.22%
$ 1.2m
James Tatum
Independent Director20.5yrsUS$165.53k0.30%
$ 1.7m
John Lahey
Independent Director14.33yrsUS$156.53k0.19%
$ 1.1m

14.3yrs

Average Tenure

74yo

Average Age

Experienced Board: IHC's board of directors are seasoned and experienced ( 14.3 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.


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$568.035m
  • Shares outstanding: 14.66m
  • 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 liv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 23:54
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.