Great Eastern Holdings Struggles, but Financial Prospects Remain Reasonable
January 3, 2023
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Great Eastern Intrinsic Value – Great Eastern ($SGX:G07) Holdings, commonly referred to as Great Eastern, is a Singapore-based financial services company with a strong presence in the region. Despite its long history and success, Great Eastern’s stock has been showing some weakness lately, with its share price declining over the past year. This is primarily due to concerns about the company’s ability to sustain its profitability in the face of a challenging business environment. Nevertheless, there are still plenty of reasons to be optimistic about the company’s financial prospects. For one, Great Eastern remains well-capitalized and has a strong balance sheet, which should help it weather any economic downturns. The company also has a solid track record of delivering consistent returns, which suggests that its financial performance should remain stable going forward.
In addition, Great Eastern has made a number of strategic investments and acquisitions over the years which have helped it diversify its income streams and expand its customer base. This should provide the company with a competitive advantage in the long run. Overall, while Great Eastern has been struggling recently, its financial prospects remain reasonably good. The company’s strong balance sheet and diverse income streams should help it survive any economic downturns and remain profitable in the future.
Stock Price
Great Eastern Holdings, one of Singapore’s largest insurance companies, has been facing some struggles recently. The news coming out of Great Eastern Holdings has been mostly positive until now. On Wednesday, its stock opened at SG$18.4 and closed at SG$18.5, which was a 1.5% increase from its last closing price of SG$18.3. This suggests that the company is still on a positive trajectory despite its struggles. The company has been focusing on cost containment and efficiency, which has helped it remain profitable despite the challenges it has faced. It is also continuing to invest in digital technology, which will help it stay competitive in the long run.
Great Eastern Holdings has also been taking steps to strengthen its balance sheet. This includes a focus on risk management and capital management, as well as the divestment of some non-core businesses. These measures will help the company be better prepared for any future economic uncertainties. Despite the struggles it faces, the company is still taking steps to ensure its long-term sustainability and profitability. With its continued focus on cost containment, efficiency, and digital technology, Great Eastern Holdings should remain a strong competitor in the insurance market for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Great Eastern. More…
| Total Revenues | Net Income | Net Margin |
| 14.82k | 946 | 6.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Great Eastern. More…
| Operations | Investing | Financing |
| 5.26k | -2.73k | -330.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Great Eastern. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 108.5k | 99k | 19.87 |
Key Ratios Snapshot
Some of the financial key ratios for Great Eastern are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.3% | – | 7.8% |
| FCF Margin | ROE | ROA |
| 35.0% | 7.5% | 0.7% |
VI Analysis – Great Eastern Intrinsic Value Calculator
Great Eastern is a well-established company with long-term potential, and its fundamentals can be easily analysed through the VI app. The app’s VI Line algorithm assesses the company’s financial statements to compute its fair value – which, in the case of Great Eastern, works out to be SG$21.4. However, the current market price of Great Eastern’s stock is SG$18.5, which is 14% lower than its fair value. This presents an opportunity for potential investors to buy undervalued shares in a company with a solid track record and secure a good return on their investments. The current market price of Great Eastern’s stock is an attractive proposition for those looking to capitalise on the gap between its fair value and market price. More…
VI Peers
The company offers a range of life insurance products and services in Singapore, Malaysia, Indonesia, China, and Hong Kong. Great Eastern Holdings Ltd is a subsidiary of OCBC Bank. Mercuries Life Insurance Co Ltd is a life insurance company headquartered in Taiwan. The company offers a range of life insurance products and services in Taiwan, China, Hong Kong, and Macau. Genworth Financial Inc is a life insurance company headquartered in the United States. The company offers a range of life insurance products and services in the United States, Canada, Australia, New Zealand, and the United Kingdom. CIG Pannonia Life Insurance OJSC is a life insurance company headquartered in Hungary. The company offers a range of life insurance products and services in Hungary, Romania, Slovakia, and the Czech Republic.
– Mercuries Life Insurance Co Ltd ($TWSE:2867)
Mercuries Life Insurance Co Ltd has a market cap of 17.2B as of 2022. The company has a Return on Equity of -13.78%. Mercuries Life Insurance Co Ltd is a life insurance company. The company offers a range of life insurance products, including term life, whole life, and universal life insurance.
– Genworth Financial Inc ($NYSE:GNW)
Genworth Financial Inc is a holding company, which engages in the provision of insurance, investment, and mortgage solutions. It operates through the following segments: Insurance, Mortgage Insurance, Long-Term Care Insurance, and Corporate and Run-Off. The Insurance segment provides protection products, including life insurance, fixed annuities, and long-term care insurance. The Mortgage Insurance segment offers credit enhancement products primarily for the mortgage industry. The Long-Term Care Insurance segment provides policyholders with the flexibility to receive benefits in various ways to help them meet their long-term care needs. The Corporate and Run-Off segment includes results from corporate operations and other insurance businesses that are no longer actively marketed. The company was founded in 1871 and is headquartered in Richmond, VA.
– CIG Pannonia Life Insurance OJSC ($LTS:0P2E)
CIG Pannonia Life Insurance OJSC is a leading provider of life insurance products and services in Central and Eastern Europe. The company has a strong market presence in Hungary, Romania, and Bulgaria, and offers a wide range of life insurance products, including whole life, term life, and universal life insurance. CIG Pannonia Life Insurance OJSC has a market capitalization of 12.54 billion as of 2022 and a return on equity of 11.51%. The company is headquartered in Budapest, Hungary.
Summary
Investing in Great Eastern Holdings (GEH) can be a risky endeavour, as the company has suffered from recent financial struggles.
However, the company’s prospects remain reasonable and investors should feel confident that GEH can weather the storm. The stock price has been volatile, with some declines in value, but it has been mostly positive since the financial issues began. Analysts expect that GEH will continue to be a strong investment option in the long run and it has the potential to generate returns for investors who take the risk. With an experienced management team and strong fundamentals, GEH may be worth considering for those looking for a long-term investment.
