tiprankstipranks
Trending News
More News >
Sompo Holdings, Inc. (JP:8630)
:8630
Advertisement

Sompo Holdings (8630) AI Stock Analysis

Compare
2 Followers

Top Page

JP

Sompo Holdings

(OTC:8630)

Rating:70Outperform
Price Target:
¥4,698.00
▲(9.43%Upside)
Sompo Holdings scores well due to strong financial performance, particularly in revenue and profit growth, and solid cash flow generation. However, technical analysis indicates a neutral to slightly bearish trend, which tempers the overall score. Valuation is fair with a reasonable P/E ratio and attractive dividend yield.

Sompo Holdings (8630) vs. iShares MSCI Japan ETF (EWJ)

Sompo Holdings Business Overview & Revenue Model

Company DescriptionSompo 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 MoneySompo Holdings primarily generates revenue through the underwriting of various insurance products across its property and casualty, life insurance, and overseas insurance segments. Premiums collected from policyholders constitute the main revenue stream, with the company leveraging its expertise in risk assessment to ensure profitability. Investment income from the management of its insurance float - the pool of premiums collected before claims are paid out - is another significant source of revenue. The company also earns fees and commissions from its financial services, which include asset management and risk consulting. Strategic partnerships and alliances with global insurers and financial institutions further enhance its revenue potential and market reach. Through these diversified income streams, Sompo Holdings maintains a robust financial position in the competitive insurance industry.

Sompo Holdings Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q2-2024)
|
% Change Since: -7.70%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of achievements and challenges. While the company has reported strong financial performance and set strategic growth plans, it faces significant issues in its domestic operations and ongoing investigations related to Bigmotor and price fixing.
Q2-2024 Updates
Positive Updates
Increase in Adjusted Consolidated Profit
The adjusted consolidated profit increased by JPY 82.3 billion to JPY 133.2 billion, driven by rising interest rates and improved rates and underwriting.
Strong Overseas Insurance Performance
Overseas insurance business reported a profit of JPY 46.9 billion in the July-September period, with investment income and FX providing a positive impact.
Record High Adjusted Consolidated Profit
The adjusted consolidated profit is projected to reach a record high for the fiscal year, despite challenges in the domestic market.
Strategic Focus on Growth and Well-being
Sompo is focusing on creating a well-being platform targeting people in their 50s and 70s to address health, retirement, and long-term care anxieties.
Negative Updates
Bigmotor and Price Fixing Issues
The company is addressing issues related to Bigmotor and price fixing, with investigations ongoing and preventive measures being developed.
Domestic P&C Insurance Challenges
The domestic P&C insurance sector is facing system fatigue and environmental changes, with issues such as depopulation and natural disasters impacting performance.
Decline in Auto Insurance Performance
Auto insurance performance is under pressure, with a combined ratio over 100% and challenges in raising prices due to the Bigmotor issue.
Challenges in Fire and Allied Insurance
Fire and Allied Insurance faced a decrease in new business acquisition and higher loss occurrences, impacting adjusted profit.
Company Guidance
In the earnings call for Sompo Holdings, several key metrics and strategic directions were discussed. The executives highlighted an adjusted consolidated profit increase of JPY 82.3 billion in the first half, reaching JPY 133.2 billion, with a full-year forecast remaining at JPY 280 billion. The overseas insurance business contributed significantly, with strong investment income and a third-quarter preliminary report of JPY 46.9 billion profit. Domestically, auto insurance faced challenges with an increased accident rate and repair costs, prompting a revision in the loss ratio forecast to 66.3%. The adjusted consolidated profit for the domestic P&C business was down by JPY 21.5 billion, notably JPY 12.6 billion attributed to auto insurance. The company aims to address these challenges by implementing preventive measures, enhancing corporate governance, and focusing on strategic growth in both domestic and international markets. Key performance indicators such as ROE and EPS growth rate will be officially announced next spring, alongside a focus on maintaining corporate governance and sustainable profit growth.

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 there is some reliance on liabilities, the company's ability to generate cash flow and profitability mitigates related risks.
Income Statement
85
Very Positive
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
75
Positive
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
80
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue5.25T4.82T4.49T4.13T3.80T
Gross Profit5.25T4.82T4.49T4.13T3.80T
EBITDA560.02B493.34B148.22B413.07B277.38B
Net Income422.93B416.05B91.16B224.84B142.48B
Balance Sheet
Total Assets15.03T14.83T14.46T13.79T13.12T
Cash, Cash Equivalents and Short-Term Investments1.03T1.23T1.25T1.17T1.07T
Total Debt691.39B682.35B609.05B539.74B529.59B
Total Liabilities12.16T11.96T614.13B11.75T11.09T
Stockholders Equity2.85T2.85T1.85T2.03T2.02T
Cash Flow
Free Cash Flow406.64B442.15B424.75B578.52B601.66B
Operating Cash Flow430.68B473.14B448.89B600.02B626.20B
Investing Cash Flow-272.24B-496.99B-324.63B-348.54B-359.52B
Financing Cash Flow-481.66B-87.61B-92.36B-170.11B-94.50B

Sompo Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4293.00
Price Trends
50DMA
4366.60
Negative
100DMA
4421.92
Negative
200DMA
4096.61
Positive
Market Momentum
MACD
-28.23
Negative
RSI
50.07
Neutral
STOCH
78.77
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 4293 is above the 20-day moving average (MA) of 4265.20, below the 50-day MA of 4366.60, and above the 200-day MA of 4096.61, indicating a neutral trend. The MACD of -28.23 indicates Negative momentum. The RSI at 50.07 is Neutral, neither overbought nor oversold. The STOCH value of 78.77 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$10.20T11.738.45%3.20%7.33%30.52%
73
Outperform
¥11.24T10.8620.44%3.12%14.87%74.60%
70
Outperform
¥3.99T17.2414.66%3.54%11.37%27.90%
68
Neutral
$16.73B11.759.79%3.76%11.87%-7.97%
67
Neutral
¥4.90T7.0016.15%3.21%-1.15%104.17%
64
Neutral
$4.08T9.6111.52%3.43%2.99%81.04%
63
Neutral
¥3.96T11.323.78%3.75%-4.62%48.73%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8630
Sompo Holdings
4,293.00
1,000.45
30.39%
JP:8725
MS&AD Insurance Group Holdings
3,119.00
-452.58
-12.67%
JP:8766
Tokio Marine Holdings
5,958.00
-56.95
-0.95%
JP:8750
Dai-ichi Life Holdings
1,114.50
-3.20
-0.29%
JP:6178
JAPAN POST HOLDINGS Co
1,350.00
-200.18
-12.91%
JP:8411
Mizuho Financial Group
4,126.00
840.69
25.59%

Sompo Holdings Corporate Events

Sompo Holdings Advances Share Buyback Program
Jul 3, 2025

Sompo Holdings has announced the progress of its share buyback program, repurchasing 4,014,600 shares worth ¥17,486,937,400 from June 2 to June 30, 2025. This move is part of a broader strategy approved by the Board of Directors to repurchase up to 33,000,000 shares, aiming to optimize capital structure and enhance shareholder returns.

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 Announces Fiscal Year 2025 Financial Results
Jun 27, 2025

Sompo Holdings reported its consolidated financial results for the fiscal year ended March 31, 2025, highlighting its performance across various segments including Sompo Japan Insurance, Sompo International Holdings, and Sompo Himawari Life Insurance. The release provides insights into the company’s operational outcomes and sets forecasts for the upcoming fiscal year, indicating a strategic focus on maintaining growth and stability in its insurance operations.

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 FY 2025
Jun 27, 2025

Sompo Holdings reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 4.7% increase in insurance revenue. However, the company faced significant declines in net income before tax and net income attributable to owners of the parent, with decreases of 46.3% and 54.1% respectively. The company’s financial condition also showed a slight decrease in total assets and equity attributable to owners of the parent. The announcement indicates challenges in maintaining profitability, which may impact stakeholders’ confidence and the company’s market positioning.

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 Updates on Business Improvement Plans
Jun 13, 2025

Sompo Holdings and its subsidiary, Sompo Japan Insurance, have submitted updates on their business improvement plans to the Financial Services Agency. These updates address previous issues with fraudulent automobile insurance claims and insurance premium adjustments. The company is committed to regaining trust by emphasizing compliance and customer-centric practices, aiming to become a more customer-focused entity.

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 Japan Investigates Potential Data Breach
Jun 11, 2025

Sompo Japan Insurance Inc., a subsidiary of Sompo Holdings, reported unauthorized access to its system, potentially affecting customer data. Although no misuse of data has been confirmed, the company has taken immediate measures to secure its systems and is working with cyber experts and authorities to investigate the breach, emphasizing its commitment to data security.

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 Japan Submits Business Improvement Plan Amidst Customer Data Leak
May 30, 2025

Sompo Japan Insurance Inc., a subsidiary of Sompo Holdings, has submitted a business improvement plan to the Financial Services Agency following a business improvement order due to a customer information leakage. The company is implementing more fundamental measures to prevent recurrence, emphasizing compliance and customer protection to restore trust.

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 Enhances Board Benefit Trust with Additional Investment
May 20, 2025

Sompo Holdings has announced an additional monetary contribution to its Board Benefit Trust (BBT) to ensure the continuation of its performance-linked stock compensation plan. This move involves a planned investment of 350 million yen to acquire up to 71,000 common shares, reflecting the company’s commitment to aligning executive incentives with shareholder interests.

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 Announces Share Buyback and Treasury Stock Cancellation
May 20, 2025

Sompo Holdings has announced a resolution to conduct share buybacks and cancel a portion of its treasury stock. This move is part of their strategy to ensure financial soundness and improve capital efficiency while adhering to their shareholder return policy. The buyback will involve up to 33 million shares, valued at ¥105 billion, and the cancellation will affect over 56 million shares, aiming to adjust capital levels in response to market conditions and business performance.

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 Higher Than Expected Financial Results for FY 2025
May 20, 2025

Sompo Holdings, Inc. reported a variance from its previous financial forecasts for the fiscal year ending March 31, 2025, with a notable increase in ordinary income by 10.5% year-on-year. This growth was driven by a rise in net premiums written and investment income, particularly from its domestic P&C and overseas insurance businesses, leading to higher than anticipated profits and net income attributable to shareholders.

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 Announces Strong Fiscal Year 2025 Financial Results
May 20, 2025

Sompo Holdings, Inc. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a robust performance across its subsidiaries. The announcement highlights the company’s strategic focus on strengthening its core insurance operations and expanding its international footprint, which is expected to enhance its market position and deliver value to stakeholders.

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 Strong Financial Results and Announces Stock Split
May 20, 2025

Sompo Holdings reported its consolidated financial results for the fiscal year ending March 31, 2025, showing an increase in ordinary income and net income attributable to shareholders. The company also implemented a 3-for-1 common stock split and announced dividends per share, reflecting a strong financial position and commitment to shareholder returns.

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 Completes Share Buyback Program
May 20, 2025

Sompo Holdings, Inc. announced the completion of its share buyback program, repurchasing over 3 million shares in May 2025, totaling approximately ¥14.16 billion. This move is part of a broader strategy to optimize capital structure and enhance shareholder returns, reflecting the company’s commitment to financial stability and market competitiveness.

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 in Share Buyback Program
May 7, 2025

Sompo Holdings has announced the progress of its share buyback program, which was initiated by a resolution from its Board of Directors in November 2024. As of April 2025, the company has repurchased 7,473,800 shares valued at approximately ¥32.79 billion through open-market transactions on the Tokyo Stock Exchange. This move is part of a larger plan to buy back up to 72 million shares, with a total potential value of ¥155 billion, aimed at enhancing shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025