Sompo Holdings (8630) AI Stock Analysis

• Market Cap: ¥5.19T
• Dividend Yield: 2.82%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 22.4
• 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): 262.55
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥5,587.00 ▼(-0.82% Downside)

Sompo Holdings' strong financial performance, characterized by consistent revenue and profit growth, efficient operations, and robust cash flow generation, is the primary driver of its stock score. Technical analysis supports a positive outlook with bullish momentum, although valuation metrics suggest the stock is fairly valued. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Cash Flow Generation

Robust cash flow generation supports reinvestment and dividend distribution, ensuring financial flexibility and shareholder returns.

Profitability

Improved profitability through cost management enhances operational efficiency and boosts long-term earnings potential.

Negative Factors

Reliance on Liabilities

High reliance on liabilities can increase financial risk, potentially impacting stability if economic conditions worsen.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to fund new investments or increase shareholder returns.

Debt Management

Reliance on debt can constrain financial flexibility, potentially affecting the company's ability to respond to market changes.

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. While the balance sheet indicates some reliance on liabilities, the company's ability to generate cash flow and profitability mitigates 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	5.29T	5.38T	5.35T	4.34T	4.13T	3.80T
Gross Profit	5.29T	5.38T	4.60T	3.64T	3.50T	3.25T
EBITDA	566.58B	373.06B	722.78B	148.22B	413.06B	277.37B
Net Income	241.69B	243.13B	529.65B	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: 5633.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5633 is above the 20-day moving average (MA) of 5357.20, above the 50-day MA of 5031.94, and above the 200-day MA of 4603.17, indicating a bullish trend. The MACD of 148.78 indicates Negative momentum. The RSI at 76.84 is Negative, neither overbought nor oversold. The STOCH value of 88.96 is Negative, 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
8411	77 Outperform	¥15.40T	15.39	9.14%	2.38%	-3.62%	23.01%
8630	76 Outperform	¥5.19T	22.45	―	2.82%	11.37%	27.90%
8750	69 Neutral	¥5.04T	12.37	10.61%	3.26%	-8.02%	5.21%
8725	69 Neutral	¥5.66T	8.02	16.44%	2.59%	23.01%	2.59%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8766	66 Neutral	$11.33T	10.88	19.96%	3.33%	-2.10%	-8.76%
6178	61 Neutral	¥5.30T	14.34	3.72%	3.03%	-1.36%	38.26%

Sompo Holdings Corporate Events

Sompo’s Digital Arm Moves to Take Nousouken Private via Tender Offer

Sompo Holdings has announced that its wholly owned digital subsidiary, Sompo Light Vortex, will launch a tender offer to acquire all outstanding common shares and share acquisition rights of Nousouken Corporation, which is listed on the Tokyo Stock Exchange Growth Market. The transaction is structured to ultimately make Sompo Light Vortex, together with Nousouken’s top executives and major shareholders Tomomasa Oikawa and Hiroshi Horiuchi, the sole shareholders of Nousouken and to take the company private, with tender commitments already secured from these key insiders. The move underlines Sompo’s strategy of deepening its digital technology footprint through Sompo Light Vortex and may strengthen its position in technology-enabled services, while giving Nousouken access to a larger corporate platform and more stable ownership to pursue longer-term growth initiatives outside the public markets.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5587.00 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 Business Improvement Plans

Sompo Holdings and its subsidiary, Sompo Japan Insurance, have reported progress on their business improvement plans to the Financial Services Agency, following orders to address fraudulent insurance claims, premium adjustments, and customer data leaks. The company is committed to implementing these measures to regain stakeholder trust and transform its operations to be more customer-centric.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5587.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Announces Share Buyback Plan

Sompo Holdings has announced a resolution for share buybacks as part of its shareholder return policy, aiming to maintain financial soundness and improve capital efficiency. The buyback plan involves purchasing up to 24 million shares, representing 2.64% of its outstanding shares, with a total value cap of ¥77 billion, scheduled between December 1, 2025, and March 31, 2026.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Revises Financial Forecasts Upward for FY 2026

Sompo Holdings has revised its financial forecast for the fiscal year ending March 31, 2026, significantly increasing its net income projection from 335 billion yen to 540 billion yen, marking a 61.2% rise. This revision is attributed to increased unrealized gains on financial products due to market fluctuations and lower-than-expected insurance claims from natural disasters, impacting the company’s financial performance positively.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Strong Financial Results for First Half of 2025

Sompo Holdings reported its consolidated financial results for the six months ending September 30, 2025. The company showcased its performance across various subsidiaries, including Sompo Japan Insurance, Sompo International Holdings, and Sompo Himawari Life Insurance. These results reflect the company’s ongoing efforts to strengthen its market position and adapt to changing industry dynamics. The financial outcomes are crucial for stakeholders as they indicate the company’s operational health and strategic direction.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Reports Strong Financial Growth for H1 2025

Sompo Holdings reported a significant increase in its financial performance for the six months ending September 30, 2025, with notable growth in insurance revenue and net income. The company’s strong financial results reflect its robust market positioning and operational efficiency, which are likely to have positive implications for its stakeholders.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Completes Share Buyback Program

Sompo Holdings, Inc. has completed a significant share buyback program, repurchasing 1,743,000 shares worth approximately ¥8 billion in November 2025. This move is part of a broader resolution by the Board of Directors to repurchase up to 33 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.

Sompo Holdings Advances Share Buyback Program

Sompo Holdings, Inc. announced progress in its share buyback program, having repurchased 4,794,200 shares valued at ¥22,259,379,100 from October 1 to October 31, 2025. This initiative is part of a broader strategy approved by the Board of Directors to repurchase up to 33,000,000 shares, enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:8630) stock is a Buy with a Yen5062.00 price target. To see the full list of analyst forecasts on Sompo Holdings stock, see the JP:8630 Stock Forecast page.