Helvetia Holding AG (HBAN) AI Stock Analysis

• Market Cap: CHF20.14B
• Dividend Yield: 3.19%
• Average Volume (3M): 78.66K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.53
• Revenue Growth: -1.57%
• EPS Growth: 95.56%
• Country: CH
• Employees: 11,915
• Sector: General
• Sector Strength: N/A
• Industry: Insurance - Diversified
• EPS (TTM): 5.40
• Shares Outstanding: 99,418,090
• 10 Day Avg. Volume: 81,768
• 30 Day Avg. Volume: 78,662
• PEG Ratio: 0.23
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -66.84
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF243.00
• Price Target Upside: 14.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: CHF206.00 ▼(-2.74% Downside)

Helvetia Holding AG's overall stock score reflects strong revenue growth and strategic market expansion, tempered by profitability challenges and negative cash flow trends. The valuation is reasonable, and technical indicators suggest a neutral outlook. Earnings call insights provide a positive future outlook, despite regional challenges.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market strategies and product demand, enhancing long-term business sustainability and market position.

European Market Expansion

Expansion in the European market strengthens Helvetia's competitive position and diversifies its revenue base, supporting durable growth.

Balance Sheet Stability

A stable balance sheet with manageable leverage enhances financial flexibility, supporting long-term operational and strategic initiatives.

Negative Factors

Profitability Challenges

Moderate profitability may limit reinvestment capabilities and shareholder returns, posing challenges to sustaining competitive advantages.

Negative Cash Flow Trends

Negative cash flow trends can constrain financial flexibility, impacting the company's ability to invest in growth opportunities and manage debt.

Increased Operational Costs

Rising operational costs can erode profit margins, necessitating efficiency improvements to maintain competitiveness and financial health.

Helvetia Holding AG Business Overview & Revenue Model

Company Description

Helvetia Holding AG, through its subsidiaries, engages in life and non-life insurance, and reinsurance business in Switzerland, Germany, Austria, Spain, Italy, France, Liechtenstein, and internationally. It offers life insurance products in the areas of investment-linked, group life, and others; non-life insurance products in the areas of property, motor vehicle, health/accident, liability, and transport; and annuity insurance products and pension plans. The company was founded in 1858 and is headquartered in Sankt Gallen, Switzerland.

How the Company Makes Money

Helvetia Holding AG generates revenue primarily through its core business segments: property and casualty insurance, life insurance, and asset management. The company earns premiums from policyholders in exchange for providing coverage against various risks. In the property and casualty segment, Helvetia collects premiums from individual and corporate clients for coverage related to property damage, liability, and other risks. The life insurance segment contributes revenue through premiums paid for life policies, annuities, and pension plans. Additionally, Helvetia's asset management division generates fees from managing investment portfolios for clients. Strategic partnerships with banks and financial advisors enhance distribution channels and increase customer reach, while investment income from its investment portfolio further supports the company's earnings. Overall, Helvetia's diversified product offerings and strong customer relationships play a critical role in its revenue generation.

Helvetia Holding AG Financial Statement Overview

Summary

Helvetia Holding AG's financial performance is mixed. Strong revenue growth is offset by moderate profitability and negative free cash flow trends. The balance sheet shows stability but with leverage concerns. Overall, financial health is stable but requires improvement in profitability and cash flow.

Income Statement

Helvetia Holding AG has shown a mixed performance on its income statement. The gross profit margin remains robust at 100%, indicating effective revenue management. However, the net profit margin of 4.29% in 2024 reflects moderate profitability. The revenue growth rate from 2023 to 2024 was a strong 21.66%, highlighting positive growth momentum. The absence of EBIT in 2024 is a concern, although the EBITDA margin of 7.35% suggests stable operational efficiency. Despite some profitability challenges, the revenue trajectory is promising.

Balance Sheet

The balance sheet of Helvetia Holding AG indicates moderate stability. The debt-to-equity ratio is 0.48, which is manageable and indicates a balanced approach to leverage. The company's return on equity (ROE) is 11.65%, showcasing a reasonable return on shareholder investment. With an equity ratio of 6.78%, the company maintains a moderate equity base relative to its total assets. Overall, the balance sheet reflects a stable financial position with some leverage but reasonable returns.

Cash Flow

Helvetia Holding AG faces challenges in its cash flow statement. The significant decline in free cash flow from 2023 to 2024 indicates a concerning trend, with a negative free cash flow of -118.2 million in 2024. The operating cash flow to net income ratio is low, suggesting potential issues in cash generation relative to reported profits. The free cash flow to net income ratio is also negative, highlighting inefficiencies in converting profit to free cash flow. Overall, the cash flow position requires improvement to enhance financial flexibility.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Helvetia Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 211.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:HBAN, the sentiment is Positive. The current price of 211.8 is above the 20-day moving average (MA) of 203.76, above the 50-day MA of 203.33, and above the 200-day MA of 194.34, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 48.99 is Neutral, neither overbought nor oversold. The STOCH value of 38.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:HBAN.

Helvetia Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZURN	78 Outperform	CHF82.21B	16.26	23.97%	4.66%	-7.33%	17.93%
SREN	73 Outperform	CHF34.65B	11.67	17.22%	4.49%	-4.94%	-5.71%
VAHN	70 Outperform	CHF2.13B	14.14	6.06%	3.38%	-1.58%	4.07%
SLHN	68 Neutral	CHF25.28B	21.37	17.11%	3.80%	-1.65%	10.05%
HBAN	59 Neutral	CHF20.14B	19.63	―	3.19%	-1.57%	95.56%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Helvetia Holding AG Corporate Events

Helvetia Baloise Group Receives Stable Rating Post-Merger

AM Best has confirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of ‘a+’ (Excellent) for Helvetia Schweizerische Versicherungsgesellschaft AG, with a stable outlook. This follows the successful merger of Helvetia Holding AG and Baloise Holding AG, which has strengthened the group’s market position and operational performance, supported by a strong balance sheet and effective risk management. The merger is expected to enhance long-term performance and efficiency through synergies, reinforcing the strategic direction of the Helvetia Baloise Group.

The most recent analyst rating on (CH:HBAN) stock is a Buy with a CHF236.00 price target. To see the full list of analyst forecasts on Helvetia Holding AG stock, see the CH:HBAN Stock Forecast page.