company background image
AUB

AUB GroupASX:AUB Stock Report

Last Price

AU$25.10

Market Cap

AU$1.9b

7D

-3.4%

1Y

55.6%

Updated

17 Jan, 2022

Data

Company Financials +
AUB fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends5/6

AUB Stock Overview

AUB Group Limited provides engages in the insurance broking and underwriting businesses in Australia and New Zealand.

Price History & Performance

Summary of all time highs, changes and price drops for AUB Group
Historical stock prices
Current Share PriceAU$25.10
52 Week HighAU$26.99
52 Week LowAU$15.61
Beta0.49
1 Month Change6.94%
3 Month Change10.48%
1 Year Change55.61%
3 Year Change105.91%
5 Year Change133.49%
Change since IPO1,035.75%

Recent News & Updates

Jan 08
Should You Be Adding AUB Group (ASX:AUB) To Your Watchlist Today?

Should You Be Adding AUB Group (ASX:AUB) To Your Watchlist Today?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Nov 03
Why We Think AUB Group Limited's (ASX:AUB) CEO Compensation Is Not Excessive At All

Why We Think AUB Group Limited's (ASX:AUB) CEO Compensation Is Not Excessive At All

Performance at AUB Group Limited ( ASX:AUB ) has been reasonably good and CEO Mike Emmett has done a decent job of...

Shareholder Returns

AUBAU InsuranceAU Market
7D-3.4%-1.6%-0.5%
1Y55.6%17.6%10.4%

Return vs Industry: AUB exceeded the Australian Insurance industry which returned 17.6% over the past year.

Return vs Market: AUB exceeded the Australian Market which returned 10.4% over the past year.

Price Volatility

Is AUB's price volatile compared to industry and market?
AUB volatility
AUB Average Weekly Movement3.2%
Insurance Industry Average Movement3.3%
Market Average Movement8.4%
10% most volatile stocks in AU Market15.2%
10% least volatile stocks in AU Market3.6%

Stable Share Price: AUB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AUB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1885988Mike Emmetthttps://www.aubgroup.com.au

AUB Group Limited provides engages in the insurance broking and underwriting businesses in Australia and New Zealand. The company provides insurance broking and advisory services primarily to SME clients; operates insurance broking networks represented by approximately 75 businesses, as well as distributes ancillary products; and underwrites, distributes, and manages insurance products and portfolios on behalf of licensed insurance companies. It also provides support services, such as loss adjustment, investigations, claims management, claims legal support, and rehabilitation services, as well as automated quoting, white-labelling, and technological support services.

AUB Group Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
AUB income statement (TTM)
RevenueAU$351.70m
Cost of RevenueAU$182.16m
Gross ProfitAU$169.54m
ExpensesAU$98.92m
EarningsAU$70.62m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)0.95
Gross Margin48.21%
Net Profit Margin20.08%
Debt/Equity Ratio35.3%

How did AUB perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is AUB Group undervalued compared to its fair value and its price relative to the market?

26.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AUB (A$25.1) is trading above our estimate of fair value (A$23.7)

Significantly Below Fair Value: AUB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AUB is good value based on its PE Ratio (26.5x) compared to the Australian Insurance industry average (30.7x).

PE vs Market: AUB is poor value based on its PE Ratio (26.5x) compared to the Australian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: AUB is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: AUB is good value based on its PB Ratio (3.9x) compared to the AU Insurance industry average (4.1x).


Future Growth

How is AUB Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

5.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUB's forecast earnings growth (5.3% per year) is above the savings rate (1.9%).

Earnings vs Market: AUB's earnings (5.3% per year) are forecast to grow slower than the Australian market (11.3% per year).

High Growth Earnings: AUB's earnings are forecast to grow, but not significantly.

Revenue vs Market: AUB's revenue (4.5% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: AUB's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AUB's Return on Equity is forecast to be low in 3 years time (14.5%).


Past Performance

How has AUB Group performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUB has a large one-off gain of A$23.2M impacting its June 30 2021 financial results.

Growing Profit Margin: AUB's current net profit margins (20.1%) are higher than last year (14%).


Past Earnings Growth Analysis

Earnings Trend: AUB's earnings have grown by 11.2% per year over the past 5 years.

Accelerating Growth: AUB's earnings growth over the past year (50.3%) exceeds its 5-year average (11.2% per year).

Earnings vs Industry: AUB earnings growth over the past year (50.3%) underperformed the Insurance industry 57.5%.


Return on Equity

High ROE: AUB's Return on Equity (14%) is considered low.


Financial Health

How is AUB Group's financial position?


Financial Position Analysis

Short Term Liabilities: AUB's short term assets (A$347.5M) exceed its short term liabilities (A$299.7M).

Long Term Liabilities: AUB's short term assets (A$347.5M) exceed its long term liabilities (A$248.1M).


Debt to Equity History and Analysis

Debt Level: AUB's net debt to equity ratio (22.4%) is considered satisfactory.

Reducing Debt: AUB's debt to equity ratio has increased from 24.8% to 35.3% over the past 5 years.

Debt Coverage: AUB's debt is well covered by operating cash flow (53.3%).

Interest Coverage: AUB's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AUB's dividend (2.19%) is higher than the bottom 25% of dividend payers in the Australian market (2.18%).

High Dividend: AUB's dividend (2.19%) is low compared to the top 25% of dividend payers in the Australian market (5.39%).


Stability and Growth of Payments

Stable Dividend: AUB's dividends per share have been stable in the past 10 years.

Growing Dividend: AUB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.8%), AUB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AUB's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Mike Emmett (54 yo)

2.83yrs

Tenure

AU$2,564,120

Compensation

Mr. Michael Patrick Cheere Emmett, also known as Mike, B Com, H.Dip. Acc CA (SA) has been a Director of Cover-More Group Limited since July 4, 2016 and served as its Group Chief Executive Officer since Jul...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD1.85M) is above average for companies of similar size in the Australian market ($USD1.40M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AUB's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: AUB's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: AUB Group Limited
  • Ticker: AUB
  • Exchange: ASX
  • Founded: 1885
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Implied Market Cap: AU$1.869b
  • Shares outstanding: 74.46m
  • Website: https://www.aubgroup.com.au

Number of Employees


Location

  • AUB Group Limited
  • 141 Walker Street
  • Level 14
  • North Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/17 16:28
End of Day Share Price2022/01/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.