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Sompo Holdings (TSE:8630) Piotroski F-Score : 8 (As of Dec. 11, 2024)


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What is Sompo Holdings Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Sompo Holdings has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Sompo Holdings's Piotroski F-Score or its related term are showing as below:

TSE:8630' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 8

During the past 13 years, the highest Piotroski F-Score of Sompo Holdings was 9. The lowest was 2. And the median was 6.


Sompo Holdings Piotroski F-Score Historical Data

The historical data trend for Sompo Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sompo Holdings Piotroski F-Score Chart

Sompo Holdings Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 8.00 7.00 4.00 8.00

Sompo Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - 8.00 - -

Competitive Comparison of Sompo Holdings's Piotroski F-Score

For the Insurance - Property & Casualty subindustry, Sompo Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sompo Holdings's Piotroski F-Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Sompo Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Sompo Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 円416,054 Mil.
Cash Flow from Operations was 円473,137 Mil.
Revenue was 円4,824,520 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (13351277 + 14832778) / 2 = 円14092027.5 Mil.
Total Assets at the begining of this year (Mar23) was 円13,351,277 Mil.
Long-Term Debt & Capital Lease Obligation was 円682,349 Mil.
Total Assets was 円14,832,778 Mil.
Total Liabilities was 円11,964,520 Mil.
Net Income was 円26,413 Mil.

Revenue was 円4,338,581 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (13787835 + 13351277) / 2 = 円13569556 Mil.
Total Assets at the begining of last year (Mar22) was 円13,787,835 Mil.
Long-Term Debt & Capital Lease Obligation was 円609,051 Mil.
Total Assets was 円13,351,277 Mil.
Total Liabilities was 円11,432,137 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sompo Holdings's current Net Income (TTM) was 416,054. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Sompo Holdings's current Cash Flow from Operations (TTM) was 473,137. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=416054/13351277
=0.03116211

ROA (Last Year)=Net Income/Total Assets (Mar22)
=26413/13787835
=0.00191567

Sompo Holdings's return on assets of this year was 0.03116211. Sompo Holdings's return on assets of last year was 0.00191567. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Sompo Holdings's current Net Income (TTM) was 416,054. Sompo Holdings's current Cash Flow from Operations (TTM) was 473,137. ==> 473,137 > 416,054 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=682349/14092027.5
=0.04842092

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=609051/13569556
=0.04488364

Sompo Holdings's gearing of this year was 0.04842092. Sompo Holdings's gearing of last year was 0.04488364. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Mar24)=Total Assets/Total Liabilities
=14832778/11964520
=1.2397303

Current Ratio (Last Year: Mar23)=Total Assets/Total Liabilities
=13351277/11432137
=1.16787238

Sompo Holdings's current ratio of this year was 1.2397303. Sompo Holdings's current ratio of last year was 1.16787238. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Sompo Holdings's number of shares in issue this year was 991.336. Sompo Holdings's number of shares in issue last year was 1010.83. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=416054/4824520
=0.08623739

Net Margin (Last Year: TTM)=Net Income/Revenue
=26413/4338581
=0.00608794

Sompo Holdings's net margin of this year was 0.08623739. Sompo Holdings's net margin of last year was 0.00608794. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=4824520/13351277
=0.3613527

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=4338581/13787835
=0.31466731

Sompo Holdings's asset turnover of this year was 0.3613527. Sompo Holdings's asset turnover of last year was 0.31466731. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Sompo Holdings has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Sompo Holdings  (TSE:8630) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Sompo Holdings Piotroski F-Score Related Terms

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Sompo Holdings Business Description

Traded in Other Exchanges
Address
26-1, Nishi-Shinjuku 1-chome, Shinjuku-ku, Tokyo, JPN, 160-8338
Sompo Holdings was formed in 2010 after the merger of the former Sompo Japan and Nipponkoa Insurance. The name Sompo, which means "nonlife insurance" in Japanese, was adopted as a common brand in 2001 for a planned three-way merger of Yasuda Fire, Nissan Fire, and Taisei Fire. Sompo has around a 26% market share of nonlife insurance premiums in Japan, compared with around 29% and 33% for larger rivals Tokio Marine and MS&AD.

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