Executive Summary
Medibank Private Limited, an integrated healthcare company, provides private health insurance and health solutions in Australia.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2.2% per year for the next 3 years
Snowflake Analysis
Proven track record second-rate dividend payer.
Similar Companies
Share Price & News
How has Medibank Private's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MPL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.9%
MPL
2.5%
AU Insurance
0.5%
AU Market
1 Year Return
40.3%
MPL
16.9%
AU Insurance
19.1%
AU Market
Return vs Industry: MPL exceeded the Australian Insurance industry which returned 16.9% over the past year.
Return vs Market: MPL exceeded the Australian Market which returned 19.1% over the past year.
Shareholder returns
| MPL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 2.5% | 0.5% |
| 30 Day | 3.8% | 1.6% | -0.2% |
| 90 Day | -3.0% | -2.4% | 0.4% |
| 1 Year | 47.3%40.3% | 23.4%16.9% | 24.9%19.1% |
| 3 Year | 35.1%18.5% | 33.4%14.7% | 37.0%18.2% |
| 5 Year | 73.3%42.8% | 53.8%19.0% | 58.6%22.8% |
Price Volatility Vs. Market
How volatile is Medibank Private's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Why Medibank Private Limited's (ASX:MPL) High P/E Ratio Isn't Necessarily A Bad Thing2 weeks ago | Simply Wall St
Is Medibank Private Limited (ASX:MPL) A Great Dividend Stock?1 month ago | Simply Wall St
Does Medibank Private Limited's (ASX:MPL) CEO Pay Reflect Performance?Valuation
Is Medibank Private undervalued compared to its fair value and its price relative to the market?
2.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MPL (A$3.27) is trading below our estimate of fair value (A$3.36)
Significantly Below Fair Value: MPL is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MPL is poor value based on its PE Ratio (20.6x) compared to the Insurance industry average (20.4x).
PE vs Market: MPL is poor value based on its PE Ratio (20.6x) compared to the Australian market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: MPL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MPL is overvalued based on its PB Ratio (4.7x) compared to the AU Insurance industry average (2.9x).
Next Steps
Future Growth
How is Medibank Private forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-2.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MPL's earnings are forecast to decline over the next 3 years (-2.2% per year).
Earnings vs Market: MPL's earnings are forecast to decline over the next 3 years (-2.2% per year).
High Growth Earnings: MPL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MPL's revenue (3.2% per year) is forecast to grow slower than the Australian market (3.5% per year).
High Growth Revenue: MPL's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MPL's Return on Equity is forecast to be high in 3 years time (20.6%)
Next Steps
Past Performance
How has Medibank Private performed over the past 5 years?
15.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MPL has high quality earnings.
Growing Profit Margin: MPL's current net profit margins (6.5%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: MPL's earnings have grown by 15.7% per year over the past 5 years.
Accelerating Growth: MPL's earnings growth over the past year (3.2%) is below its 5-year average (15.7% per year).
Earnings vs Industry: MPL earnings growth over the past year (3.2%) underperformed the Insurance industry 7.2%.
Return on Equity
High ROE: MPL's Return on Equity (22.6%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Medibank Private's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: MPL has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if MPL's debt is covered by short term assets.
Financial Institutions Analysis
Asset Level: MPL's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if MPL has a sufficient allowance for bad loans.
Low Risk Liabilities: MPL reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if MPL has an acceptable proportion of non-loan assets held.
Low Risk Deposits: MPL has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if MPL has an appropriate level of bad loans.
Next Steps
Dividend
What is Medibank Private's current dividend yield, its reliability and sustainability?
4.01%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MPL's dividend (4.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.41%).
High Dividend: MPL's dividend (4.01%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, MPL has been paying a dividend for less than 10 years.
Growing Dividend: MPL's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (82.4%), MPL's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MPL's dividends in 3 years are forecast to be covered by earnings (84.9% payout ratio).
Next Steps
Management
What is the CEO of Medibank Private's salary, the management and board of directors tenure and is there insider trading?
3.3yrs
Average management tenure
CEO
Craig Drummond (58yo)
3.4yrs
Tenure
AU$4,091,635
Compensation
Mr. Craig M. Drummond, BCom, FCA, SF Fin, has been the Chief Executive Officer at Medibank Private Limited since July 4, 2016 and served as its Managing Director since July 4, 2016. Mr. Drummond served as ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD2.81M) is about average for companies of similar size in the Australian market ($USD2.90M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.3yrs
Average Tenure
Experienced Management: MPL's management team is considered experienced (3.3 years average tenure).
Board Age and Tenure
5.8yrs
Average Tenure
62yo
Average Age
Experienced Board: MPL's board of directors are considered experienced (5.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 98,893,672 |
| Max Price | AU$3.09 |
| Entity | Company |
| Shares | 67,449,997 |
| Max Price | AU$2.82 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 14,285 |
| Max Price | AU$2.78 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Non-Executive Director |
| Shares | 25,513 |
| Max Price | AU$2.93 |
| Entity | Company |
| Shares | 40,598,812 |
| Max Price | AU$2.57 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Craig Drummond (58yo)
CEO & Director
- Tenure: 3.4yrs
- Compensation: AU$4.09m
Andrew Wilson
Group Executive of Healthcare & Strategy
- Tenure: 9.4yrs
- Compensation: AU$1.88m
Peter Kopanidis
Senior Executive of Corporate Finance
- Tenure: 0yrs
Mei Ramsay
Group Executive of Legal
- Tenure: 3.3yrs
- Compensation: AU$996.23k
David Koczkar
Group Executive - Chief Customer Officer
- Tenure: 3.3yrs
- Compensation: AU$1.78m
Kylie Bishop
Group Executive of People & Culture
- Tenure: 6.4yrs
- Compensation: AU$1.02m
Andrew Matthews
Chief Actuary
- Tenure: 6.7yrs
John Goodall
Group Executive of Technology & Operations
- Tenure: 3.3yrs
- Compensation: AU$946.52k
Mark Rogers
Group Executive - Chief Financial Officer
- Tenure: 2.9yrs
- Compensation: AU$1.41m
Emily Ritchie
Head of Media & External Affairs
- Tenure: 0yrs
Board Members
Elizabeth Alexander (76yo)
Independent Chairman of the Board
- Tenure: 6.8yrs
- Compensation: AU$445.00k
Peter Hodgett
Independent Non-Executive Director
- Tenure: 6.5yrs
- Compensation: AU$219.87k
Linda Nicholls (71yo)
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: AU$203.50k
Christine O’Reilly (58yo)
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: AU$220.08k
Mike Wilkins (62yo)
Independent Non-Executive Director
- Tenure: 2.6yrs
- Compensation: AU$203.09k
Craig Drummond (58yo)
CEO & Director
- Tenure: 3.4yrs
- Compensation: AU$4.09m
Tracey Batten
Independent Non-Executive Director
- Tenure: 2.3yrs
- Compensation: AU$201.61k
Anna Bligh
Independent Non-Executive Director
- Tenure: 7yrs
- Compensation: AU$202.01k
David Fagan
Independent Non-Executive Director
- Tenure: 5.8yrs
- Compensation: AU$220.36k
Company Information
Medibank Private Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Medibank Private Limited
- Ticker: MPL
- Exchange: ASX
- Founded: 1976
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: AU$9.006b
- Shares outstanding: 2.75b
- Website: https://www.medibank.com.au
Number of Employees
Location
- Medibank Private Limited
- 720 Bourke Street
- Docklands
- Victoria
- 3008
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MPL | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2014 |
| MPL | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2014 |
| MPV | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2014 |
| MDBP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2014 |
Biography
Medibank Private Limited, an integrated healthcare company, provides private health insurance and health solutions in Australia. It operates in two segments, Health Insurance and Medibank Health. The Healt ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/12/15 10:35 |
| End of Day Share Price | 2019/12/13 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.