Sompo Holdings (8630) AI Stock Analysis

• Market Cap: $4.64T
• Dividend Yield: 2.63%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.98
• Revenue Growth: 11.37%
• EPS Growth: 27.90%
• Country: JP
• Employees: 48,421
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Property & Casualty
• EPS (TTM): 485.45
• Shares Outstanding: 990,482,060
• 10 Day Avg. Volume: 1,948,800
• 30 Day Avg. Volume: 2,744,693
• PEG Ratio: 0.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $5,346.87
• Price Target Upside: 14.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Sompo Holdings scores a 72, reflecting solid financial performance with strong profitability and effective cost management, balanced by liquidity concerns due to negative cash flow. While its valuation appears attractive, technical indicators suggest caution. The absence of recent earnings call data and corporate events limits additional insights.

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 through various streams, primarily from its insurance operations. The company earns premiums from its non-life insurance products, such as automobile, property, and liability insurance. Additionally, Sompo Holdings offers life insurance policies, contributing to its income through premium collections. The company also invests the premiums it receives into financial markets, generating investment income. Furthermore, Sompo Holdings is involved in asset management, earning fees from managing assets for clients. Strategic partnerships and acquisitions in healthcare and digital transformation initiatives also play a role in expanding its revenue base.

Sompo Holdings Financial Statement Overview

Summary

Sompo Holdings exhibits strong financial performance with notable revenue and profit growth, and effective cost management. However, challenges in cash flow metrics with negative operating and free cash flows raise potential liquidity concerns.

Income Statement

Sompo Holdings demonstrated robust revenue growth, with a TTM revenue increase of 7.55% from the previous year. The gross profit margin is exceptionally high at 97.65% TTM, indicating effective cost management. The net profit margin also improved, reaching 10.02% TTM, showcasing strong profitability. However, the EBITDA margin decreased to 4.86% TTM, which may indicate rising operational expenses or lower efficiency.

Balance Sheet

The company's balance sheet reflects stability, with a low debt-to-equity ratio of 0.23 TTM, indicating manageable leverage. The equity ratio is solid at 19.74% TTM, suggesting a healthy equity base. Return on equity improved significantly to 17.83% TTM, highlighting strong returns for shareholders. Nonetheless, the total liabilities remain high relative to assets, which could pose a risk if financial conditions worsen.

Cash Flow

Sompo Holdings showed a decline in cash flow metrics, with negative operating and free cash flows TTM. The absence of operating cash flow to net income and free cash flow to net income ratios suggests potential liquidity challenges. Previous periods demonstrated positive cash flow trends, but the recent downturn warrants close monitoring of cash management and operational efficiency.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
4.82T	4.49T	4.13T	3.80T	3.71T
	Gross Profit
4.91T	4.49T	4.13T	3.80T	3.71T
	EBIT
430.07B	23.80B	220.44B	112.09B	96.99B
	EBITDA
587.46B	148.22B	413.07B	277.38B	256.73B
	Net Income Common Stockholders
416.05B	91.16B	224.84B	142.48B	122.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.23T	1.25T	1.17T	1.07T	958.02B
	Total Assets
14.83T	14.46T	13.79T	13.12T	11.98T
	Total Debt
682.35B	609.05B	539.74B	529.59B	504.09B
	Net Debt
-549.00B	-637.59B	-631.15B	-539.39B	-420.93B
	Total Liabilities
11.96T	614.13B	11.75T	11.09T	10.37T
	Stockholders Equity
2.85T	1.85T	2.03T	2.02T	1.60T
Cash Flow		Free Cash Flow
442.15B	424.75B	578.52B	601.66B	329.40B
	Operating Cash Flow
473.14B	448.89B	600.02B	626.20B	356.45B
	Investing Cash Flow
-496.99B	-324.63B	-348.54B	-359.52B	-140.12B
	Financing Cash Flow
-87.61B	-92.36B	-170.11B	-94.50B	-230.60B

Sompo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4663.00
• 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 JP:8630, the sentiment is Positive. The current price of 4663 is above the 20-day moving average (MA) of 4476.05, above the 50-day MA of 4477.23, and above the 200-day MA of 3799.24, indicating a bullish trend. The MACD of 64.53 indicates Negative momentum. The RSI at 56.13 is Neutral, neither overbought nor oversold. The STOCH value of 61.35 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
8630	72 Outperform	$4.64T	9.77	17.07%	2.63%	11.37%	27.90%
8715	66 Neutral	¥45.23B	14.55		1.29%	7.94%	26.40%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%

Sompo Holdings Corporate Events

Sompo Holdings Reports Progress on Share Buyback Program

Sompo Holdings, Inc. announced the progress of its share buyback program, which was initiated by a resolution from its Board of Directors in November 2024. As of March 2025, the company repurchased 4,786,800 shares valued at approximately ¥21.96 billion through open-market transactions on the Tokyo Stock Exchange. This move is part of a larger buyback initiative with a potential total of up to 72 million shares, indicating a strategic effort to enhance shareholder value and optimize capital structure.

Sompo Holdings Adopts IFRS for Enhanced Financial Transparency

Sompo Holdings, Inc. has announced its decision to adopt the International Financial Reporting Standards (IFRS) starting from the fiscal year ending March 31, 2025. This move aims to enhance the international comparability of its financial information, potentially impacting its operations and positioning in the global market.

Sompo Holdings Reports Progress on Share Buyback Program

Sompo Holdings, Inc. announced the progress of its share buyback program, having repurchased 6,456,300 shares worth approximately ¥27.99 billion between February 1 and February 28, 2025. This initiative is part of a broader plan approved by the Board of Directors to repurchase up to 72 million shares, aiming to enhance shareholder value and optimize capital structure.

Sompo Holdings Unveils New Management Structure and Strategic Business Segmentation

Sompo Holdings announced a structural reorganization effective April 1, 2025, creating two business segments: Sompo P&C and Sompo Wellbeing, with new Business CEOs appointed to each. This move is part of their strategy to increase resilience and connectivity, aiming to enhance enterprise value and global positioning while delivering innovative solutions to meet evolving customer needs.

Sompo Holdings Reports Nine-Month Financial Results

Sompo Holdings reported its consolidated financial results for the nine months ending December 31, 2024. The report includes financial performances of its major subsidiaries, showcasing their balance sheets, income statements, and solvency margin ratios. This announcement gives stakeholders insights into the company’s operational health and financial stability.

Sompo Holdings Announces Strong Financial Performance for Nine Months Ending December 2024

Sompo Holdings, Inc. reported its consolidated financial results for the nine months ending December 31, 2024, showing significant financial metrics such as ordinary income and net income attributable to shareholders. The company implemented a 3-for-1 stock split in April 2024, affecting net income per share calculations. While there are no revisions to the announced dividends or financial forecasts, the company indicates resilience in its financial performance despite the economic challenges.

Sompo Holdings Reports Progress in Share Buyback Program

Sompo Holdings has announced the progress of its share buyback program, which was initiated following a board resolution in November 2024. During January 2025, the company repurchased over 6 million shares valued at approximately ¥25.3 billion through open-market transactions, demonstrating its active steps to manage capital and enhance shareholder value.