ASX:AUB

Stock Analysis Report

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Executive Summary

AUB Group Limited provides operates as an equity-based insurance broker in Australia and New Zealand. More Details


Snowflake Analysis

Solid track record established dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AUB is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AUB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-4.3%

AUB

-0.1%

AU Insurance

-0.1%

AU Market


1 Year Return

32.1%

AUB

-13.6%

AU Insurance

12.7%

AU Market

Return vs Industry: AUB exceeded the Australian Insurance industry which returned -13.6% over the past year.

Return vs Market: AUB exceeded the Australian Market which returned 12.7% over the past year.


Shareholder returns

AUBIndustryMarket
7 Day-4.3%-0.1%-0.1%
30 Day7.2%1.6%-1.2%
90 Day8.4%-2.5%1.8%
1 Year36.2%32.1%-11.8%-13.6%16.4%12.7%
3 Year59.0%41.3%-10.4%-21.3%27.7%12.2%
5 Year159.8%114.5%18.1%-4.8%59.9%29.1%

Long-Term 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 compared to its fair value and its price relative to the market?

24.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AUB (A$18.23) is trading above our estimate of fair value (A$17.41)

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 (24.7x) compared to the AU Insurance industry average (25x).

PE vs Market: AUB is poor value based on its PE Ratio (24.7x) compared to the Australian market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: AUB is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: AUB is overvalued based on its PB Ratio (3.1x) compared to the AU Insurance industry average (3x).


Next Steps

Future Growth

How is AUB Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AUB's forecast earnings growth (9.3% per year) is above the savings rate (2%).

Earnings vs Market: AUB's earnings (9.3% per year) are forecast to grow slower than the Australian market (15.4% per year).

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

Revenue vs Market: AUB's revenue is expected to decline over the next 3 years (-3.4% per year).

High Growth Revenue: AUB's revenue is forecast to decline over the next 3 years (-3.4% 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 (16.5%).


Next Steps

Past Performance

How has AUB Group performed over the past 5 years?

6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AUB has high quality earnings.

Growing Profit Margin: AUB's current net profit margins (16%) are higher than last year (13.9%).


Past Earnings Growth Analysis

Earnings Trend: AUB's earnings have grown by 6.2% per year over the past 5 years.

Accelerating Growth: AUB's earnings growth over the past year (21%) exceeds its 5-year average (6.2% per year).

Earnings vs Industry: AUB earnings growth over the past year (21%) exceeded the Insurance industry -19.2%.


Return on Equity

High ROE: AUB's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is AUB Group's financial position?


Financial Position Analysis

Short Term Liabilities: AUB's short term assets (A$285.3M) exceed its short term liabilities (A$239.4M).

Long Term Liabilities: AUB's short term assets (A$285.3M) do not cover its long term liabilities (A$320.6M).


Debt to Equity History and Analysis

Debt Level: AUB's debt to equity ratio (47.4%) is considered high.

Reducing Debt: AUB's debt to equity ratio has increased from 25.8% to 47.4% over the past 5 years.

Debt Coverage: AUB's debt is well covered by operating cash flow (40.7%).

Interest Coverage: AUB's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AUB's dividend (2.83%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: AUB's dividend (2.83%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).


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 (69.7%), 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 (65.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Mike Emmett (53 yo)

2yrs

Tenure

AU$2,286,675

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 ($USD1.75M) is above average for companies of similar size in the Australian market ($USD925.21K).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Emmett
CEO, MD & Director2yrsAU$2.29mno data
Mark Shanahan
Chief Financial Officer2.92yrsAU$969.23k0.0048%
A$ 65.1k
Keith McIvor
Managing Director of AUB Group New Zealandno datano datano data
Angie Zissis
Group Head of Underwriting & Placement and CEO of AIMS0.67yrno datano data
Ben Bessell
Chief Broking Officer of Austbrokers1.17yrsno datano data
David Franks
Joint Company Secretary0.92yrno datano data
Allan K. Luu
Joint Company Secretary2.25yrsno datano data
W. Patterson
Executive Director of Underwriting Agencies- Austagenciesno dataAU$276.90kno data
Ron Broadbent
Regional Operations Manager of Queensland and New South Walesno dataAU$227.32kno data

1.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: AUB's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Emmett
CEO, MD & Director2yrsAU$2.29mno data
David Clarke
Non-Executive Chairman5.33yrsAU$210.00k0.031%
A$ 417.0k
Paul Lahiff
Independent Non-Executive Director5.42yrsAU$115.00k0.014%
A$ 188.4k
Raymond Carless
Non-Executive Director10.42yrsAU$115.00k0.034%
A$ 462.9k
Cath Rogers
Independent Non-Executive Director2.83yrsAU$105.00k0.0081%
A$ 109.3k
Robin Low
Non-Executive Director7.08yrsAU$136.00k0.027%
A$ 371.1k

5.4yrs

Average Tenure

64yo

Average Age

Experienced Board: AUB's board of directors are considered experienced (5.4 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 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$1.356b
  • Shares outstanding: 74.40m
  • 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

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

Biography

AUB Group Limited provides operates as an equity-based insurance broker in Australia and New Zealand. The company operates insurance broking networks represented by approximately 77 businesses, as well as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/07 07:11
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.