Executive Summary
Medibank Private Limited, an integrated healthcare company, provides private health insurance and health solutions in Australia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and slightly overvalued.
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 is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MPL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.4%
MPL
-0.1%
AU Insurance
-0.1%
AU Market
1 Year Return
-2.8%
MPL
-13.6%
AU Insurance
12.7%
AU Market
Return vs Industry: MPL exceeded the Australian Insurance industry which returned -13.6% over the past year.
Return vs Market: MPL underperformed the Australian Market which returned 12.7% over the past year.
Shareholder returns
| MPL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | -0.1% | -0.1% |
| 30 Day | -8.6% | 1.6% | -1.2% |
| 90 Day | -2.8% | -2.5% | 1.8% |
| 1 Year | 1.6%-2.8% | -11.8%-13.6% | 16.4%12.7% |
| 3 Year | 0.2%-12.7% | -10.4%-21.3% | 27.7%12.2% |
| 5 Year | 24.3%0% | 18.1%-4.8% | 59.9%29.1% |
Long-Term 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
3 weeks ago | Simply Wall St
Are Dividend Investors Getting More Than They Bargained For With Medibank Private Limited's (ASX:MPL) Dividend?1 month ago | Simply Wall St
Is Medibank Private Limited's (ASX:MPL) Recent Stock Performance Influenced By Its Financials In Any Way?2 months ago | Simply Wall St
Did You Participate In Any Of Medibank Private's (ASX:MPL) Respectable 74% Return?Valuation
Is Medibank Private undervalued compared to its fair value and its price relative to the market?
18.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MPL (A$2.76) is trading below our estimate of fair value (A$3.37)
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 good value based on its PE Ratio (21x) compared to the AU Insurance industry average (25x).
PE vs Market: MPL is poor value based on its PE Ratio (21x) compared to the Australian market (19.6x).
Price to Earnings Growth Ratio
PEG Ratio: MPL is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: MPL is overvalued based on its PB Ratio (4.1x) compared to the AU Insurance industry average (3x).
Next Steps
Future Growth
How is Medibank Private forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
4.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MPL's forecast earnings growth (4.4% per year) is above the savings rate (2%).
Earnings vs Market: MPL's earnings (4.4% per year) are forecast to grow slower than the Australian market (15.4% per year).
High Growth Earnings: MPL's earnings are forecast to grow, but not significantly.
Revenue vs Market: MPL's revenue (4.9% per year) is forecast to grow slower than the Australian market (5.5% per year).
High Growth Revenue: MPL's revenue (4.9% 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 (22.6%)
Next Steps
Past Performance
How has Medibank Private performed over the past 5 years?
-2.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MPL has high quality earnings.
Growing Profit Margin: MPL's current net profit margins (5.3%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: MPL's earnings have declined by 2.8% per year over the past 5 years.
Accelerating Growth: MPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MPL had negative earnings growth (-13.4%) over the past year, making it difficult to compare to the Insurance industry average (-19.2%).
Return on Equity
High ROE: MPL's Return on Equity (19.5%) is considered low.
Next Steps
Financial Health
How is Medibank Private's financial position?
Financial Position Analysis
Short Term Liabilities: MPL's short term assets (A$3.0B) exceed its short term liabilities (A$1.6B).
Long Term Liabilities: MPL's short term assets (A$3.0B) exceed its long term liabilities (A$174.9M).
Debt to Equity History and Analysis
Debt Level: MPL is debt free.
Reducing Debt: MPL has not had any debt for past 5 years.
Debt Coverage: MPL has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: MPL has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Medibank Private current dividend yield, its reliability and sustainability?
4.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MPL's dividend (4.38%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).
High Dividend: MPL's dividend (4.38%) is low compared to the top 25% of dividend payers in the Australian market (5.61%).
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 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (92.1%), MPL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MPL's dividends in 3 years are forecast to be covered by earnings (85.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Craig Drummond (58 yo)
4.67yrs
Tenure
AU$2,323,397
Compensation
Mr. Craig M. Drummond, BCom, FCA, SF Fin, has been the Chief Executive Officer at Medibank Private Limited since July 4, 2016 and served as its Managing Director since July 4, 2016. Mr. Drummond served as ...
CEO Compensation Analysis
Compensation vs Market: Craig's total compensation ($USD1.78M) is about average for companies of similar size in the Australian market ($USD2.53M).
Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.67yrs | AU$2.32m | 0.050% A$ 3.8m | |
| Group Executive & CFO | 4.17yrs | AU$1.06m | 0.0072% A$ 550.3k | |
| Group Executive of Technology & Operations | 4.25yrs | AU$693.92k | 0.0030% A$ 230.3k | |
| Group Executive of Legal | 4.5yrs | AU$702.72k | 0.0040% A$ 301.8k | |
| Group Executive of People & Culture | 7.67yrs | AU$757.88k | 0.013% A$ 995.7k | |
| Group Executive of Healthcare & Strategy | 10.67yrs | AU$1.23m | 0.026% A$ 2.0m | |
| Group Executive & Chief Customer Officer | 4.5yrs | AU$1.25m | 0.026% A$ 2.0m | |
| Senior Executive of Corporate Finance | no data | no data | no data | |
| Senior Executive of Investor Relations | no data | no data | no data | |
| Senior Executive of External Affairs | no data | no data | no data | |
| Group Financial Controller | no data | no data | no data |
4.5yrs
Average Tenure
Experienced Management: MPL's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 4.67yrs | AU$2.32m | 0.050% A$ 3.8m | |
| Independent Chairman of the Board | 8yrs | AU$448.42k | 0.0045% A$ 344.3k | |
| Independent Non-Executive Director | 7.75yrs | AU$230.46k | 0.0025% A$ 187.0k | |
| Independent Non-Executive Director | 7yrs | AU$209.47k | 0.0016% A$ 123.9k | |
| Independent Non-Executive Director | 7yrs | AU$229.33k | 0.0025% A$ 193.1k | |
| Independent Chairman | 0.42yr | AU$210.19k | 0.0036% A$ 275.9k | |
| Independent Non-Executive Director | 3.58yrs | AU$209.31k | 0.0018% A$ 138.3k | |
| Independent Non-Executive Director | 8.25yrs | AU$209.70k | 0.0016% A$ 123.1k | |
| Independent Non-Executive Director | 7yrs | AU$229.35k | 0.0017% A$ 130.0k |
7.0yrs
Average Tenure
63yo
Average Age
Experienced Board: MPL's board of directors are considered experienced (7 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
Medibank Private Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Medibank Private Limited
- Ticker: MPL
- Exchange: ASX
- Founded: 1997
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: AU$7.601b
- 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. The company operates through two segments, Health Insurance and Medibank Hea...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 07:12 |
| 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.