Sompo Holdings (JP:8630)
:8630
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Sompo Holdings
(8630)
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Rating:74Outperform
Price Target:
¥6,236.00
▲(10.70% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improving financial performance (stronger growth and margins, conservative leverage, and solid cash conversion) and an attractive valuation (low P/E and decent yield). These positives are tempered by mixed technicals, with the stock below key short- and medium-term moving averages.
Positive Factors
Revenue & margin recovery
Sustained revenue acceleration and materially higher operating and net margins indicate improved underwriting results and/or investment performance. That durable improvement supports earnings power over the medium term and provides a stronger base for capital accumulation and strategic reinvestment.
Negative Factors
Earnings cyclicality and volatility
Sompo operates in a cyclical insurance environment where underwriting results and investment returns can swing materially year-to-year. This structural volatility makes medium-term earnings less predictable and can stress capital and underwriting discipline during adverse loss or market cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & margin recovery
Sustained revenue acceleration and materially higher operating and net margins indicate improved underwriting results and/or investment performance. That durable improvement supports earnings power over the medium term and provides a stronger base for capital accumulation and strategic reinvestment.
Read all positive factors
Sompo Holdings (8630) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.67T
Dividend Yield2.82%
Average Volume (3M)2.52M
Price to Earnings (P/E)8.7
Beta (1Y)0.97
Revenue GrowthN/A
EPS GrowthN/A
CountryJP
Employees48,421
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)335.82
Shares Outstanding934,228,760
10 Day Avg. Volume2,771,380
30 Day Avg. Volume2,515,143
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.06
Price to Sales (P/S)0.88
P/FCF Ratio8.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥6,647.14Price Target Upside18.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)574.72
Revenue Forecast (FY)¥4.82T
Sompo Holdings Business Overview & Revenue Model
Company Description
Sompo Holdings, Inc., established in 2010 and based in Tokyo, Japan, operates globally, delivering property and casualty (P&C) insurance solutions. Its multifaceted business is organized into distinct segments: domestic P&C insurance, internationa...
How the Company Makes Money
Sompo Holdings primarily earns money through insurance operations across non-life, life, and international businesses.
1) Non-life (property & casualty) insurance underwriting: The company collects insurance premiums from individuals and business...
Sompo Holdings Earnings Call Summary
Earnings Call Date:Nov 19, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
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.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.
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.
Read all updates
Q2-2024 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.32T | 6.23T | 5.38T | 5.35T | 4.34T | 4.13T |
| Gross Profit | 4.72T | 6.23T | 5.38T | 4.60T | 3.64T | 3.50T |
| EBITDA | 413.36B | 975.06B | 373.06B | 722.78B | 148.22B | 413.06B |
| Net Income | 139.34B | 640.09B | 243.13B | 529.65B | 26.41B | 224.84B |
Balance Sheet | ||||||
| Total Assets | 15.87T | 18.60T | 15.89T | 14.83T | 14.46T | 13.79T |
| Cash, Cash Equivalents and Short-Term Investments | 896.95B | 1.13T | 1.03T | 1.23T | 1.25T | 1.17T |
| Total Debt | 688.00B | 748.02B | 691.20B | 1.29T | 904.07B | 1.02T |
| Total Liabilities | 11.52T | 13.31T | 11.66T | 11.96T | 11.43T | 11.75T |
| Stockholders Equity | 4.33T | 5.17T | 4.21T | 2.85T | 1.85T | 2.03T |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 671.65B | 547.65B | 601.59B | 356.86B | 578.52B |
| Operating Cash Flow | 0.00 | 706.42B | 573.01B | 634.29B | 381.00B | 600.02B |
| Investing Cash Flow | 0.00 | -232.91B | -272.24B | -640.09B | -257.38B | -358.31B |
| Financing Cash Flow | 0.00 | -412.70B | -481.66B | -112.62B | -92.36B | -170.11B |
Sompo Holdings Technical Analysis
Positive
5633.00
Price Trends
5947.24
Positive
5839.05
Positive
5321.26
Positive
Market Momentum
72.04
Negative
59.65
Neutral
74.58
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 5633 is below the 20-day moving average (MA) of 5966.25, below the 50-day MA of 5947.24, and above the 200-day MA of 5321.26, indicating a bullish trend. The MACD of 72.04 indicates Negative momentum. The RSI at 59.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.58 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥6.76T | 8.50 | 16.97% | 2.59% | 21.58% | 19.34% | |
77 Outperform | ¥13.94T | 13.93 | 20.81% | 3.33% | -1.60% | -4.78% | |
74 Outperform | ¥5.67T | 8.70 | ― | 2.82% | ― | ― | |
74 Outperform | ¥6.44T | 14.62 | 10.61% | 3.26% | 10.30% | 3.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | ¥2.26T | 16.81 | 7.91% | 2.74% | 6.17% | 16.15% | |
46 Neutral | ¥1.70T | 9.99 | ― | 2.44% | -12.57% | 42.29% |
* Financial Sector Average
JP:8630
Sompo Holdings
6,242.00
1,965.15
45.95%
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JP:7181
JAPAN POST INSURANCE Co., Ltd.
1,564.50
499.37
46.88%
Sompo Holdings Corporate Events
Sompo Holdings to Rebrand as Sompo Group and Unveil New Decade-Long Vision
May 20, 2026
Sompo Holdings will change its corporate name to Sompo Group, Inc., reflecting a strategic shift to emphasize a unified group identity and closer integration between the holding company and its operating subsidiaries. The legal change, subject to ...
Sompo Holdings refreshes board and executive lineup ahead of June AGM
May 20, 2026
Sompo Holdings has announced a slate of board and executive changes to be formally approved at its June 22, 2026 annual general meeting, including the reappointment of Group CEO Mikio Okumura and key deputies, and the promotion of Group CFO Katsuy...
Sompo Holdings launches J-ESOP stock plan to boost employee ownership
May 20, 2026
Sompo Holdings will introduce a stock compensation plan using a Japanese-style employee stock ownership trust (J-ESOP) for employees of the parent company and more than 30 domestic group firms, covering up to about 48,000 staff. The scheme is desi...
Sompo Holdings Launches ¥69 Billion Share Buyback to Boost Capital Efficiency
May 20, 2026
Sompo Holdings’ board has approved a new share buyback program under Japan’s Companies Act, authorizing the repurchase of up to 17 million common shares, or about 1.9% of shares outstanding, for a maximum of ¥69 billion between Ju...
Sompo Holdings Unveils Full-Year 2026 Results and 2027 Outlook
May 20, 2026
Sompo Holdings released a comprehensive summary of its consolidated financial results for the fiscal year ended March 31, 2026 under IFRS, detailing performance across domestic PC, overseas insurance, and domestic life insurance businesses. The di...
Sompo Holdings’ Profit Surges on Strong Insurance Revenue and Investment Recovery
May 20, 2026
Sompo Holdings reported consolidated insurance revenue of ¥5.37 trillion for the fiscal year ended March 31, 2026, up 6.1% year on year, with net income attributable to owners of the parent surging 163.3% to ¥640.1 billion under IFRS. Th...
Sompo Holdings Completes ¥77 Billion Share Buyback Program
Mar 25, 2026
Sompo Holdings has completed a share buyback program authorized by its board in November 2025, repurchasing 13,880,900 common shares for a total of ¥76,999,614,200 through open-market transactions on the Tokyo Stock Exchange. In March 2026 al...
Sompo Updates Regulators on Progress of Business Overhaul After Misconduct Cases
Mar 13, 2026
Sompo Holdings and its main non-life unit Sompo Japan have submitted updated reports to Japan’s Financial Services Agency on the progress of their business improvement plans. These plans respond to regulatory orders tied to fraudulent automo...
Sompo Holdings Advances Large-Scale Share Buyback Program
Mar 4, 2026
Sompo Holdings has reported progress on its ongoing share buyback program, repurchasing 3,124,500 shares of common stock for approximately ¥18.2 billion through open-market transactions on the Tokyo Stock Exchange between February 1 and Febru...
Sompo Completes $3.5 Billion Acquisition of Aspen Insurance
Feb 24, 2026
Sompo Holdings has completed its acquisition of Aspen Insurance Holdings for approximately USD 3.5 billion through its subsidiary Sompo International, in a move that strengthens its global insurance platform and specialty lines capabilities. Aspen...
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.