NYSE:IHC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$626.1m

Last Updated

2021/06/19 22:16 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with acceptable 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IHC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-7.6%

IHC

-6.0%

US Insurance

-1.9%

US Market


1 Year Return

48.4%

IHC

32.1%

US Insurance

38.2%

US Market

Return vs Industry: IHC exceeded the US Insurance industry which returned 33.3% over the past year.

Return vs Market: IHC exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

IHCIndustryMarket
7 Day-7.6%-6.0%-1.9%
30 Day-10.9%-6.6%1.1%
90 Day-0.6%1.1%4.3%
1 Year49.2%48.4%35.4%32.1%40.4%38.2%
3 Year25.0%21.7%30.0%20.5%57.5%47.8%
5 Year158.4%147.5%77.4%55.3%127.2%101.7%

Long-Term 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?

31.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IHC ($42.77) is trading above our estimate of fair value ($30.59)

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 (31x) compared to the US Insurance industry average (10.4x).

PE vs Market: IHC is poor value based on its PE Ratio (31x) compared to the US market (19.4x).


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 (1.3x) compared to the US Insurance industry average (1.1x).


Future Growth

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

2.2%

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.


Past Performance

How has Independence Holding performed over the past 5 years?

-8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHC has a large one-off gain of $5.8M impacting its March 31 2021 financial results.

Growing Profit Margin: IHC's current net profit margins (4.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: IHC's earnings have declined by 8.1% per year over the past 5 years.

Accelerating Growth: IHC's earnings growth over the past year (154.5%) exceeds its 5-year average (-8.1% per year).

Earnings vs Industry: IHC earnings growth over the past year (154.5%) exceeded the Insurance industry 51.9%.


Return on Equity

High ROE: IHC's Return on Equity (4.3%) is considered low.


Financial Health

How is Independence Holding's financial position?


Financial Position Analysis

Short Term Liabilities: IHC's short term assets ($577.9M) exceed its short term liabilities ($105.4M).

Long Term Liabilities: IHC's short term assets ($577.9M) exceed its long term liabilities ($543.5M).


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 9.4%.

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


Dividend

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

1.03%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 20 2021Ex Dividend DateJun 24 2021Dividend Pay DateJul 09 202115 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: IHC's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: IHC's dividend (1.03%) is low compared to the top 25% of dividend payers in the US market (3.43%).


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 reasonably low payout ratio (31.9%), 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?

6.4yrs

Average management tenure


CEO

Roy Tjay Thung (76 yo)

21.42yrs

Tenure

US$1,684,491

Compensation

Mr. Roy Tjay Kiang Thung served as Chief Executive Officer and Director (July 2002 until August 2016) at American Independence Corp. since July 2002. He has been Chairman, Chief Executive Officer and Direc...


CEO Compensation Analysis

Compensation vs Market: Roy Tjay's total compensation ($USD1.68M) is about average for companies of similar size in the US market ($USD2.38M).

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


Leadership Team

Experienced Management: IHC's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: IHC's board of directors are seasoned and experienced ( 15 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

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$626.129m
  • Shares outstanding: 14.64m
  • Website: https://www.ihcgroup.com

Number of Employees


Location

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

Listings


Biography

Independence Holding Company, through its subsidiaries, engages in health, pet, and life insurance businesses. The company’s dental portfolio includes indemnity and PPO plans for employer groups of two or ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 22:16
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.