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
| AUB | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.3% | -0.1% | -0.1% |
| 30 Day | 7.2% | 1.6% | -1.2% |
| 90 Day | 8.4% | -2.5% | 1.8% |
| 1 Year | 36.2%32.1% | -11.8%-13.6% | 16.4%12.7% |
| 3 Year | 59.0%41.3% | -10.4%-21.3% | 27.7%12.2% |
| 5 Year | 159.8%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
6 days ago | Simply Wall St
Two Days Left Until AUB Group Limited (ASX:AUB) Trades Ex-Dividend1 week ago | Simply Wall St
Here's Why I Think AUB Group (ASX:AUB) Might Deserve Your Attention Today1 month ago | Simply Wall St
Did You Participate In Any Of AUB Group's (ASX:AUB) Fantastic 132% Return ?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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2yrs | AU$2.29m | no data | |
| Chief Financial Officer | 2.92yrs | AU$969.23k | 0.0048% A$ 65.1k | |
| Managing Director of AUB Group New Zealand | no data | no data | no data | |
| Group Head of Underwriting & Placement and CEO of AIMS | 0.67yr | no data | no data | |
| Chief Broking Officer of Austbrokers | 1.17yrs | no data | no data | |
| Joint Company Secretary | 0.92yr | no data | no data | |
| Joint Company Secretary | 2.25yrs | no data | no data | |
| Executive Director of Underwriting Agencies- Austagencies | no data | AU$276.90k | no data | |
| Regional Operations Manager of Queensland and New South Wales | no data | AU$227.32k | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Director | 2yrs | AU$2.29m | no data | |
| Non-Executive Chairman | 5.33yrs | AU$210.00k | 0.031% A$ 417.0k | |
| Independent Non-Executive Director | 5.42yrs | AU$115.00k | 0.014% A$ 188.4k | |
| Non-Executive Director | 10.42yrs | AU$115.00k | 0.034% A$ 462.9k | |
| Independent Non-Executive Director | 2.83yrs | AU$105.00k | 0.0081% A$ 109.3k | |
| Non-Executive Director | 7.08yrs | AU$136.00k | 0.027% A$ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AUB | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2005 |
| AUB | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 07:11 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.