Independence Holding Co. relative valuation is OVERVALUED and it has a fundamental analysis score of 43.
Our analysis is based on comparing Independence Holding Co. with the following peers – Genworth Financial, Inc. Class A, MetLife, Inc., Lincoln National Corporation, CNO Financial Group, Inc., Kansas City Life Insurance Company, Prudential Financial, Inc. and Assurant, Inc. (GNW-US, MET-US, LNC-US, CNO-US, KCLI-US, PRU-US and AIZ-US).
Independence Holding Co. has shown good performance overall, both over the last one year (at 28.01%) as well as over the last month (at 4.80%). Share price performance over the last month, though has been lower than that over the last year. But Independence Holding Co.’s stock has done better than its overall peer group whose performance was -0.75% over the last month.
- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- It’s current Price/Book of 0.76 is about median in its peer group.
- The market expects faster earnings growth from IHC-US than from its peers and also a turnaround in its current ROE.
- IHC-US has relatively low profit margins and median capital efficiency.
- Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
- Over the last five years, IHC-US‘s return on equity has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
- While the company’s relatively high underwriting margin suggests a disciplined strategy in writing policies versus peers, its pre-tax margin suggests relatively higher operating costs.
- While IHC-US‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.
- The company is likely overinvesting in a business with only median returns.
- Our analysis rates Independence Holding Co. as OVERVALUED relative to its peers.
Share Price Performance
Considering peers, relative outperformance over the last year and the last month suggest a leading position.
IHC-US‘s share price performance of 28.01% over the last 12 months is above peer median of 13.92%. The 30-day trend in its share price performance of 4.80% is also above the peer median of -0.75% suggesting that this company is a leading performer relative to its peers.
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Independence Holding Co.’s price of USD 19.65 is greater than CapitalCube’s implied price of USD 15.21. At this level, CapitalCube believes that Independence Holding Co. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 15.66 and USD 21.23.
Valuation & Peer Metrics
A complete list of valuation metrics is available on the company page.
Independence Holding Co. engages in underwriting, administering and/or distributing group and individual specialty products, including disability, supplemental health, pet, and group life insurance through its subsidiaries. It operates through the following segments: Medical Stop-Loss, Fully Insured Health, Group Disability, and Individual Accident and Health, and Other. The Medical Stop-Loss segment are short-duration and accounted for based on actuarial estimates of the amount of loss inherent in that period’s claims or open claims for prior periods, including losses incurred for claims that have not been reported. The Fully Insured Health segment is the liability for policy benefits and claims for fully insured medical and dental business and are established using historical claim development patterns. The Group Disability segment is comprised of long term disability and disability benefits law. The Individual Accident and Health and Other segment is a combination of closed lines of business as well as certain small existing lines. The company was founded in 1980 and is headquartered in Stamford, CT.
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