ASX:AUB

Stock Analysis Report

Executive Summary

AUB Group Limited provides insurance broking, underwriting, and risk services in Australasia.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has AUB Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.3%

ASX:AUB

-1.0%

AU Insurance

-2.6%

AU Market


1 Year Return

-23.3%

ASX:AUB

-1.9%

AU Insurance

-0.7%

AU Market

AUB underperformed the Insurance industry which returned -1.9% over the past year.

AUB underperformed the Market in Australia which returned -0.7% over the past year.


Share holder returns

AUBIndustryMarket
7 Day-5.3%-1.0%-2.6%
30 Day-2.3%-2.7%-4.1%
90 Day-13.2%-0.09%0.5%
1 Year-20.4%-23.3%3.7%-1.9%5.1%-0.7%
3 Year17.9%5.9%38.8%20.2%30.1%13.0%
5 Year23.1%1.4%44.0%11.3%36.4%5.9%

Price Volatility Vs. Market

How volatile is AUB Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AUB Group undervalued based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AUB Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

AUB Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

AUB Group is good value based on earnings compared to the AU Insurance industry average.

AUB Group is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

AUB Group is poor value based on expected growth next year.


Price Based on Value of Assets

AUB Group is good value based on assets compared to the AU Insurance industry average.


Next Steps

Future Growth

How is AUB Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AUB Group's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).

AUB Group's earnings are expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

AUB Group's revenue growth is positive but not above the Australia market average.

AUB Group's earnings growth is positive but not above the Australia market average.

AUB Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

AUB Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has AUB Group performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AUB Group's year on year earnings growth rate has been positive over the past 5 years.

AUB Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

AUB Group's 1-year earnings growth is negative, it can't be compared to the AU Insurance industry average.


Return on Equity

AUB Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

AUB Group used its assets more efficiently than the AU Insurance industry average last year based on Return on Assets.


Return on Capital Employed

AUB Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is AUB Group's financial position?


Financial Position Analysis

AUB Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AUB Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AUB Group's level of debt (12.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (20.7% vs 12.6% today).

Debt is well covered by operating cash flow (62.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 5.4x debt.


Next Steps

Dividend

What is AUB Group's current dividend yield, its reliability and sustainability?

4.39%

Expected Dividend Yield


Dividend Yield and Payments Analysis

AUB Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.66%).

AUB Group's dividend is below the markets top 25% of dividend payers in Australia (5.9%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of AUB Group's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Mike Emmett (52yo)

0.4yrs

Tenure

Mr. Michael Patrick Cheere Emmett, also known as Mike, has been a Director of Cover-More Group Limited since July 4, 2016 and served as its Group Chief Executive Officer since July 4, 2016. Mr. Emmett has  ...


Management Age and Tenure

1.6yrs

Average Tenure

56yo

Average Age

The average tenure for the AUB Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.8yrs

Average Tenure

63yo

Average Age

The tenure for the AUB Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Fabian Pasquini (56yo)

    Divisional Chief Executive of National Partners & Group Acquisition

    • Compensation: A$574.48k
  • Howard Elderman

    Group Legal Counsel & Company Secretary

    • Tenure: 1.8yrs
  • Angie Zissis

    Managing Director of SURA

    • Tenure: 3.1yrs
    • Compensation: A$512.12k
  • Nigel Thomas

    Divisional Chief Executive of Austbrokers Network

    • Compensation: A$573.32k
  • Mark Peter Searles (58yo)

    Advisory

    • Tenure: 0.4yrs
    • Compensation: A$1.39m
  • David Franks

    Joint Company Secretary

  • Mark Shanahan

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: A$472.77k
  • Keith McIvor

    MD of AUB Group New Zealand & Head of Group Development

    • Compensation: A$719.01k
  • Mike Emmett (52yo)

    CEO, MD & Director

    • Tenure: 0.4yrs
  • Justin Coss

    Company Secretary

    • Tenure: 3.8yrs

Board Members

  • David Clarke (63yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: A$178.50k
  • Paul Lahiff (66yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: A$115.00k
  • Mike Emmett (52yo)

    CEO, MD & Director

  • Ray Carless (64yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: A$115.00k
  • Cath Rogers

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: A$16.94k
  • Robin Low (58yo)

    Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: A$136.00k

Company Information

AUB Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AUB Group Limited
  • Ticker: AUB
  • Exchange: ASX
  • Founded: 1885
  • Industry: insurance brokers
  • Sector: insurance
  • Market Cap: AU$790.155m
  • Shares outstanding: 73.50m
  • Website: Click here

Number of Employees


Location

  • AUB Group Limited
  • 88 Phillip Street
  • Level 10
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AUBASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2005
AUBCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2005

Biography

AUB Group Limited provides insurance broking, underwriting, and risk services in Australasia. The company operates insurance broking networks represented by approximately 100 businesses, as well as distrib ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 10:35
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.