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Sompo Holdings
(8630)
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Rating:75Outperform
Price Target:
¥7,602.00
▲(10.61% Upside)
Action:Reiterated
Date:08/22/26
The score is driven primarily by improved financial performance (strong FY2026 revenue and margin rebound, strengthening leverage profile, and solid cash generation) and supportive valuation (low P/E with a moderate dividend yield). These positives are tempered by mixed near-term technical signals, with the stock below its 20-day average and muted momentum indicators.
Positive Factors
Revenue and Profitability Recovery
The sharp improvement in revenue and operating profitability indicates stronger business performance and earnings capacity. If supported by disciplined underwriting, pricing and cost control, it can strengthen the group’s medium-term earnings base.
Negative Factors
Earnings Cyclicality
The wide variation in profitability shows that results remain sensitive to underwriting outcomes, catastrophe losses and investment conditions. Such cyclicality makes the recent rebound less dependable as a steady medium-term earnings trend.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Recovery
The sharp improvement in revenue and operating profitability indicates stronger business performance and earnings capacity. If supported by disciplined underwriting, pricing and cost control, it can strengthen the group’s medium-term earnings base.
Read all positive factors
Sompo Holdings (8630) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.34T
Dividend Yield2.19%
Average Volume (3M)2.52M
Price to Earnings (P/E)8.8
Beta (1Y)0.85
Revenue GrowthN/A
EPS GrowthN/A
CountryJP
Employees55,702
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)776.77
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
¥7,117.00Price Target Upside3.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)588.95
Revenue Forecast (FY)¥6.05T
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 makes money primarily by underwriting insurance and managing investment portfolios associated with its insurance liabilities, with earnings influenced by claims experience, pricing/terms, catastrophe losses, and investment/interest-...
Sompo Holdings Earnings Call Summary
Earnings Call Date:Nov 19, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Nov 13, 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 | 6.53T | 6.23T | 5.38T | 5.35T | 4.34T | 4.13T |
| Gross Profit | 4.31T | 6.23T | 5.38T | 4.60T | 3.64T | 3.50T |
| EBITDA | 711.60B | 975.06B | 373.06B | 722.78B | 148.22B | 413.06B |
| Net Income | 702.66B | 640.09B | 243.13B | 529.65B | 26.41B | 224.84B |
Balance Sheet | ||||||
| Total Assets | 18.89T | 18.60T | 15.89T | 14.83T | 14.46T | 13.79T |
| Cash, Cash Equivalents and Short-Term Investments | 1.19T | 1.13T | 1.03T | 1.23T | 1.25T | 1.17T |
| Total Debt | 955.48B | 748.02B | 691.20B | 1.29T | 904.07B | 1.02T |
| Total Liabilities | 13.47T | 13.31T | 11.66T | 11.96T | 11.43T | 11.75T |
| Stockholders Equity | 5.30T | 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 Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥7.47T | 8.36 | 17.69% | 3.79% | 20.69% | 30.43% | |
75 Outperform | ¥6.34T | 8.76 | 13.27% | 2.13% | ― | ― | |
68 Neutral | ¥6.57T | 11.92 | 11.07% | 2.83% | 16.92% | 66.45% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | ¥2.33T | 16.31 | 9.01% | 2.55% | 6.25% | 17.99% | |
66 Neutral | ¥14.52T | 18.66 | 18.94% | 2.69% | -0.19% | -40.12% | |
62 Neutral | ¥1.79T | 10.88 | ― | 2.44% | -5.90% | 27.69% |
* Financial Sector Average
JP:8630
Sompo Holdings
6,850.00
2,162.08
46.12%
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1,362.93
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JAPAN POST INSURANCE Co., Ltd.
1,669.00
320.16
23.74%
Sompo Holdings Corporate Events
Sompo Holdings Releases IFRS-Based Q1 2026 Consolidated Results and Segment Data
Aug 14, 2026
Sompo Holdings, Inc. has released supplementary information on its consolidated financial results for the three months ended June 30, 2026, prepared under IFRS. The disclosure covers overall group performance and detailed operating results for its...
Sompo Holdings Posts Strong Q1 Earnings and Confirms Full-Year Outlook
Aug 14, 2026
Sompo Holdings reported strong results for the three months ended June 30, 2026, with insurance revenue rising 28.0% year-on-year to ¥1,616.98 billion and net income attributable to owners of the parent surging 52.8% to ¥181.17 billion. ...
Sompo Holdings Reports Progress on 2026 Share Buyback Program
Aug 5, 2026
Sompo Holdings has reported the latest progress on its ongoing share buyback program authorized by its board in May 2026. Between July 1 and July 31, the company repurchased 1,874,800 shares of common stock via open-market transactions on the Toky...
Sompo Holdings Details Progress of ¥69 Billion Share Buyback Programme
Jul 3, 2026
Sompo Holdings has disclosed the progress of its ongoing share buyback program authorized by its board in May 2026, aimed at enhancing capital efficiency and shareholder value. The company is repurchasing its own common stock through open-market t...
Sompo Holdings Updates Regulator on Progress of Business Improvement Plans
Jun 15, 2026
Sompo Holdings and its core subsidiary Sompo Japan Insurance have reported to Japan’s Financial Services Agency on the progress of their business improvement plans ordered in response to fraudulent automobile insurance claims and related iss...
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.