Sompo Holdings (8630) AI Stock Analysis

• Market Cap: $4.19T
• Dividend Yield: 3.25%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.01
• Revenue Growth: 11.37%
• EPS Growth: 27.90%
• Country: JP
• Employees: 48,421
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 127.41
• Shares Outstanding: 934,228,760
• 10 Day Avg. Volume: 2,771,380
• 30 Day Avg. Volume: 2,515,143
• PEG Ratio: -0.34
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 0.93
• Enterprise Value/Ebitda: 8.55
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥5,159.00 ▲(10.99% Upside)

Sompo Holdings' strong financial performance is the most significant factor, supported by solid revenue and profit growth, efficient operations, and robust cash flow. Technical analysis indicates stable trading conditions, while valuation metrics suggest a reasonable price with an attractive dividend yield.

Sompo Holdings Business Overview & Revenue Model

Company Description

Sompo Holdings, Inc. provides property and casualty (P&C) insurance services in Japan and internationally. The company operates through Domestic P&C Insurance Business, Overseas Insurance Business, Domestic Life Insurance Business, and Nursing Care and Healthcare Business segments. It offers various P&C insurance products, including automobile, fire, personal accident, and marine, as well as security, risk management, assistance, and warranty services; and life insurance products. The company also provides nursing care and healthcare services; and customer security, health, and wellbeing support services. In addition, it offers asset management services; home remodeling services; health support services comprising health guidance and health counseling, and employee assistance programs; and wellness communication services. The company was formerly known as Sompo Japan Nipponkoa Holdings, Inc. and changed its name to Sompo Holdings, Inc. in October 2016. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Sompo Holdings generates revenue primarily through its insurance premium income from both property and casualty as well as life insurance segments. The company collects premiums from policyholders, which are invested in various financial instruments to generate returns. Key revenue streams include premiums from automobile insurance, homeowners insurance, and corporate insurance solutions. In addition to underwriting income, the company earns investment income from its diversified portfolio of investments, which includes stocks, bonds, and real estate. Sompo also benefits from partnerships with other financial institutions and agencies, enhancing its distribution channels and expanding its customer base. The company's international operations further contribute to its earnings through global insurance products and services, leveraging cross-border expertise and market presence.

Sompo Holdings Financial Statement Overview

Summary

Sompo Holdings demonstrates strong financial health with consistent revenue and profit growth, efficient operations, and solid cash flow generation. The balance sheet shows some reliance on liabilities, but strong cash flow and profitability mitigate related risks.

Income Statement

Sompo Holdings has shown consistent revenue growth, with a notable increase from 2024 to 2025. The company maintains a strong gross profit margin, with the TTM (Trailing-Twelve-Months) at 100% due to the nature of the insurance industry. The net profit margin has improved, reflecting better cost management and profitability. EBIT and EBITDA margins are healthy, indicating efficient operations.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio, demonstrating prudent financial leverage. The return on equity (ROE) is strong, highlighting effective use of equity capital. However, the equity ratio suggests a reliance on liabilities, which could pose risks if not managed carefully.

Cash Flow

Sompo Holdings exhibits robust cash flow generation. Operating cash flow is consistently higher than net income, indicating strong cash conversion. The free cash flow to net income ratio is favorable, supporting the company's capability to reinvest and distribute dividends. While there was a slight decline in free cash flow growth in the most recent year, overall cash flow health remains solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.20T	5.38T	4.82T	4.17T	4.16T	3.84T
Gross Profit	5.20T	5.42T	4.82T	4.59T	4.16T	3.84T
EBITDA	566.58B	451.67B	587.46B	148.22B	413.06B	277.37B
Net Income	421.48B	243.13B	416.05B	26.41B	224.84B	142.48B
Balance Sheet
Total Assets	15.87T	15.89T	14.83T	14.46T	13.79T	13.12T
Cash, Cash Equivalents and Short-Term Investments	0.00	1.03T	1.23T	1.25T	1.17T	1.07T
Total Debt	780.60B	691.20B	1.29T	614.42B	539.74B	992.99B
Total Liabilities	11.52T	11.66T	11.96T	11.43T	11.75T	11.09T
Stockholders Equity	4.33T	4.21T	2.85T	1.85T	2.03T	2.02T
Cash Flow
Free Cash Flow	0.00	547.65B	601.59B	356.86B	578.52B	601.66B
Operating Cash Flow	0.00	573.01B	634.29B	381.00B	600.02B	626.20B
Investing Cash Flow	0.00	-272.24B	-640.09B	-257.38B	-358.31B	-373.72B
Financing Cash Flow	0.00	-481.66B	-112.62B	-92.36B	-170.11B	-94.50B

Sompo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4648.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8630, the sentiment is Positive. The current price of 4648 is above the 20-day moving average (MA) of 4638.20, below the 50-day MA of 4660.53, and above the 200-day MA of 4382.90, indicating a neutral trend. The MACD of 14.74 indicates Positive momentum. The RSI at 49.70 is Neutral, neither overbought nor oversold. The STOCH value of 24.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8630.

Sompo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8766	73 Outperform	$11.65T	8.75	26.83%	3.30%	12.02%	75.88%
8630	72 Outperform	$4.19T	18.12	―	3.25%	11.37%	27.90%
8411	70 Outperform	$12.06T	13.00	8.69%	2.80%	-1.99%	23.19%
8725	69 Neutral	$5.31T	7.06	16.93%	2.96%	8.40%	58.45%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
6178	64 Neutral	¥4.28T	12.04	3.83%	3.45%	-2.48%	12.18%
8750	62 Neutral	$4.00T	11.84	9.18%	3.89%	-10.49%	-9.62%

Sompo Holdings Corporate Events

Sompo Holdings Reports Progress on Share Buyback Program

Sompo Holdings has announced the progress of its share buyback program, which was initially resolved by the Board of Directors in May 2025. As of September 2025, the company has repurchased 2,949,400 shares valued at approximately ¥14 billion through open-market transactions on the Tokyo Stock Exchange. This move is part of a larger plan to buy back up to 33 million shares, with a total value not exceeding ¥105 billion, aimed at enhancing shareholder value.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen4698.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Updates Business Improvement Plans Amidst Insurance Challenges

Sompo Holdings and its subsidiary, Sompo Japan Insurance, have updated their business improvement plans to address issues related to fraudulent automobile insurance claims, insurance premium adjustments, and customer information leakage. These measures are part of their efforts to regain trust and enhance growth, positioning themselves as a customer-centric company.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen4698.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Progress on Share Buyback Program

Sompo Holdings has announced the progress of its share buyback program, which was initiated following a Board resolution in May 2025. As of August 31, 2025, the company repurchased 4,023,000 shares valued at approximately ¥18.86 billion through open-market transactions on the Tokyo Stock Exchange. This move is part of a broader strategy to repurchase up to 33 million shares, highlighting the company’s commitment to enhancing shareholder value.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen4698.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Acquires Aspen Insurance to Boost Global Presence

Sompo Holdings has announced its acquisition of Aspen Insurance Holdings Limited, a specialty insurance group with operations in the U.S., U.K., and Bermuda. This acquisition aligns with Sompo’s Mid-Term Management Plan to enhance its global insurance and reinsurance operations, aiming for non-linear growth and transformation of its revenue structure. The acquisition is expected to boost Sompo’s earnings per share and help achieve its consolidated ROE targets, further solidifying its position as a leading player in the global insurance market.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen4698.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Mixed Financial Results

Sompo Holdings, Inc. is a prominent Japanese company operating in the insurance sector, offering a wide range of insurance services both domestically and internationally. The company is known for its diversified portfolio, which includes property and casualty insurance, life insurance, and nursing care services.

Sompo Holdings Reports Stable Q2 2025 Financial Results

Sompo Holdings, Inc. reported its consolidated financial results for the three months ended June 30, 2025, highlighting the performance of its principal subsidiaries. The results indicate a stable financial position with detailed insights into the operations of Sompo Japan Insurance Inc., Sompo International Holdings Ltd., and Sompo Himawari Life Insurance, Inc. The announcement provides a comprehensive overview of the company’s quarterly balance sheets, income statements, and solvency margin ratios, reflecting its ongoing commitment to maintaining financial stability and growth in the insurance sector.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5270.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Mixed Financial Results for Q2 2025

Sompo Holdings reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in insurance revenue but a decline in net income compared to the previous year. The company experienced a decrease in net income before tax and net income attributable to owners, reflecting a challenging financial period. Despite this, the company maintains a stable equity position, with a slight increase in the equity ratio attributable to owners of the parent. The financial outlook for the fiscal year ending March 31, 2026, remains positive with an expected increase in net income attributable to owners.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5270.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Progress on Share Buyback Program

Sompo Holdings, Inc. has announced the progress of its share buyback program, with 5,650,800 shares repurchased for a total value of ¥24,283,091,600 during July 2025. This initiative is part of a broader plan approved by the Board of Directors, which allows for the repurchase of up to 33,000,000 shares, reflecting a strategic move to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5270.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.