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Medibank Private

ASX:MPL
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MPL
ASX
A$10B
Market Cap
  1. Home
  2. AU
  3. Insurance
Company description

Medibank Private Limited, an integrated healthcare company, provides private health insurance and health solutions in Australia. The last earnings update was 152 days ago. More info.


Add to Portfolio Compare Print
  • Medibank Private has significant price volatility in the past 3 months.
MPL Share Price and Events
7 Day Returns
-1.6%
ASX:MPL
-0.6%
AU Insurance
-0.1%
AU Market
1 Year Returns
17%
ASX:MPL
4.9%
AU Insurance
4.9%
AU Market
MPL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Medibank Private (MPL) -1.6% 5.9% 32.1% 17% 19.3% -
AU Insurance -0.6% 2.6% 6.2% 4.9% 20.1% 16.5%
AU Market -0.1% 1.7% 5.8% 4.9% 19.7% 12.1%
1 Year Return vs Industry and Market
  • MPL outperformed the Insurance industry which returned 4.9% over the past year.
  • MPL outperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
MPL
Industry
5yr Volatility vs Market

MPL Value

 Is Medibank Private undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Medibank Private to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Medibank Private.

ASX:MPL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= A$0.74 * 21.7%
A$0.16
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. A$0.74
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:MPL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 30%) (0%))
0.789
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:MPL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Medibank Private is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:MPL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (21.7% – 7.08%) * A$0.74)
A$0.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.11 / (7.08% - 2.31%)
A$2.25
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$0.74 + A$2.25
A$2.99
ASX:MPL Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$2.99
Current discount Discount to share price of A$3.58
= -1 x (A$3.58 - A$2.99) / A$2.99
-19.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Medibank Private is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Medibank Private's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Medibank Private's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:MPL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.15
ASX:MPL Share Price ** ASX (2019-07-15) in AUD A$3.58
Australia Insurance Industry PE Ratio Median Figure of 10 Publicly-Listed Insurance Companies 22.12x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Medibank Private.

ASX:MPL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:MPL Share Price ÷ EPS (both in AUD)

= 3.58 ÷ 0.15

24.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medibank Private is overvalued based on earnings compared to the AU Insurance industry average.
  • Medibank Private is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Medibank Private's expected growth come at a high price?
Raw Data
ASX:MPL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.26x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
-1.9%per year
Australia Insurance Industry PEG Ratio Median Figure of 9 Publicly-Listed Insurance Companies 1.67x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

ASX:MPL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.26x ÷ -1.9%

-12.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medibank Private earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Medibank Private's assets?
Raw Data
ASX:MPL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.66
ASX:MPL Share Price * ASX (2019-07-15) in AUD A$3.58
Australia Insurance Industry PB Ratio Median Figure of 10 Publicly-Listed Insurance Companies 3.05x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:MPL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:MPL Share Price ÷ Book Value per Share (both in AUD)

= 3.58 ÷ 0.66

5.39x

* Primary Listing of Medibank Private.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Medibank Private is overvalued based on assets compared to the AU Insurance industry average.
X
Value checks
We assess Medibank Private's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Medibank Private has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MPL Future Performance

 How is Medibank Private expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Medibank Private expected to grow at an attractive rate?
  • Medibank Private's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Medibank Private's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Medibank Private's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:MPL Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:MPL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts -1.9%
ASX:MPL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 1.4%
Australia Insurance Industry Earnings Growth Rate Market Cap Weighted Average 13.8%
Australia Insurance Industry Revenue Growth Rate Market Cap Weighted Average 0.1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:MPL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:MPL Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 7,712 1
2022-06-30 7,440 1
2021-06-30 7,167 675 408 5
2020-06-30 6,953 627 444 5
2019-06-30 7,163 392 442 5
ASX:MPL Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,049 377 407
2018-09-30 7,032 393 426
2018-06-30 7,015 408 445
2018-03-31 7,010 428 454
2017-12-31 7,006 448 463
2017-09-30 6,977 421 456
2017-06-30 6,948 393 450
2017-03-31 6,914 379 436
2016-12-31 6,879 365 422
2016-09-30 6,843 359 420
2016-06-30 6,807 352 418
2016-03-31 6,791 363 393

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Medibank Private's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Medibank Private's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:MPL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Medibank Private Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MPL Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.15 0.17 0.14 3.00
2020-06-30 0.16 0.17 0.15 5.00
2019-06-30 0.16 0.17 0.16 5.00
ASX:MPL Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.15
2018-09-30 0.15
2018-06-30 0.16
2018-03-31 0.16
2017-12-31 0.17
2017-09-30 0.17
2017-06-30 0.16
2017-03-31 0.16
2016-12-31 0.15
2016-09-30 0.15
2016-06-30 0.15
2016-03-31 0.14

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Medibank Private is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Medibank Private's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Medibank Private has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MPL Past Performance

  How has Medibank Private performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Medibank Private's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Medibank Private's year on year earnings growth rate has been positive over the past 5 years.
  • Medibank Private's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Medibank Private's 1-year earnings growth is negative, it can't be compared to the AU Insurance industry average.
Earnings and Revenue History
Medibank Private's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Medibank Private Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:MPL Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,048.50 407.20 1,122.30
2018-09-30 7,031.50 426.15 1,108.00
2018-06-30 7,014.50 445.10 1,093.70
2018-03-31 7,010.15 454.15 1,082.00
2017-12-31 7,005.80 463.20 1,070.30
2017-09-30 6,976.95 456.35 1,071.50
2017-06-30 6,948.10 449.50 1,072.70
2017-03-31 6,913.70 435.70 1,059.60
2016-12-31 6,879.30 421.90 1,046.50
2016-09-30 6,843.35 419.75 1,050.70
2016-06-30 6,807.40 417.60 1,054.90
2016-03-31 6,790.60 393.35 1,074.95
2015-12-31 6,773.80 369.10 1,095.00
2015-09-30 6,727.70 327.20 1,101.75
2015-06-30 6,681.60 285.30 1,108.50
2015-03-31 6,631.30 244.45 1,151.60
2014-12-31 6,581.00 203.60 1,194.70
2014-09-30 6,533.35 167.20 1,216.80
2014-06-30 6,485.70 130.80 1,238.90
2013-06-30 6,005.00 232.70 1,023.20

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Medibank Private has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Medibank Private used its assets more efficiently than the AU Insurance industry average last year based on Return on Assets.
  • Medibank Private's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Medibank Private's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Medibank Private has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MPL Health

 How is Medibank Private's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Medibank Private's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Medibank Private is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Medibank Private's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Medibank Private's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Medibank Private has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Medibank Private Company Filings, last reported 6 months ago.

ASX:MPL Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,838.80 0.00 2,401.30
2018-09-30 1,838.80 0.00 2,401.30
2018-06-30 1,829.20 0.00 2,746.60
2018-03-31 1,829.20 0.00 2,746.60
2017-12-31 1,778.90 0.00 2,453.90
2017-09-30 1,778.90 0.00 2,453.90
2017-06-30 1,719.80 0.00 2,632.70
2017-03-31 1,719.80 0.00 2,632.70
2016-12-31 1,643.60 0.00 2,264.80
2016-09-30 1,643.60 0.00 2,264.80
2016-06-30 1,578.70 0.00 2,454.50
2016-03-31 1,578.70 0.00 2,454.50
2015-12-31 1,525.70 0.00 2,158.40
2015-09-30 1,525.70 0.00 2,158.40
2015-06-30 1,442.00 0.00 2,380.20
2015-03-31 1,442.00 0.00 2,380.20
2014-12-31 1,298.90 0.00 1,896.00
2014-09-30 1,298.90 0.00 1,896.00
2014-06-30 1,393.90 0.00 2,198.00
2013-06-30 1,402.70 0.00 2,336.62
  • Medibank Private has no debt.
  • Medibank Private has not taken on any debt in the past 5 years.
  • Medibank Private has no debt, it does not need to be covered by operating cash flow.
  • Medibank Private has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Medibank Private's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Medibank Private has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MPL Dividends

 What is Medibank Private's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.6%
Current annual income from Medibank Private dividends. Estimated to be 3.52% next year.
If you bought A$2,000 of Medibank Private shares you are expected to receive A$72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Medibank Private's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Medibank Private's dividend is below the markets top 25% of dividend payers in Australia (5.77%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:MPL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Australia Insurance Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.1%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:MPL Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.12 9.00
2020-06-30 0.13 11.00
2019-06-30 0.13 11.00
ASX:MPL Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-14 0.129 4.303
2018-08-23 0.127 4.713
2017-08-24 0.120 3.916
2017-02-16 0.113 4.001
2016-08-18 0.120 4.546
2016-02-18 0.100 3.373
2015-08-20 0.053 2.278

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Medibank Private has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Medibank Private only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Medibank Private's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Medibank Private's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Medibank Private afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Medibank Private has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MPL Management

 What is the CEO of Medibank Private's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Craig Drummond
COMPENSATION A$3,672,652
AGE 58
TENURE AS CEO 3 years
CEO Bio

Mr. Craig M. Drummond, BCom, CA, 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 the Chief Financial Officer of National Australia Bank Limited (NAB) until March 14, 2016 and also served as its Group Executive of Finance & Strategy from its joining in October 23, 2013 to March 15, 2016. He focused on further strengthening the Group's capital, funding and liquidity positions. He also oversaw the development of strategies to ensure the business was best placed to respond to future challenges and opportunities. He served as an Equity Analyst at Goldman Sachs JBWere Pty Ltd, Research Division. He served as the Chief Executive Officer and Country Head of Bank of America Merrill Lynch since October 2009. He served as the Head of Australian operations of Merrill Lynch & Co., Inc. since October 2009. He served as the Chief Executive Officer of Goldman Sachs Australia Pty. Ltd., since February 2007 and served as its Managing Director and Chief Operating Officer. He joined Goldman Sachs JB Were in 1986 in equity research and was in various roles as Chief Operating Officer, Chief Executive Officer and Executive Chairman from 2003 to May 2009. He served as the Chief Executive Officer and Chief Operating Officer at Goldman Sachs JBWere Pty Ltd. since February 2007 and served as its Co-Chief Executive Officer and Managing Director. He served as a Co-Head of Goldman Sachs JBWere Pty until September 2009. He served as an Equity Analyst at Goldman Sachs Group Inc., Research Division. He served as the Chairman of Goldman Sachs JBWere Pty Ltd. He has been a Director of Medibank Private Limited since July 4, 2016. He serves as a Director of Australian Financial Markets Association Limited. He serves as a Board Member of the Geelong Football Club Limited, the Florey Institute of Neuroscience & Mental Health. He served as a Director of Goldman Sachs Australia Pty. Ltd. Mr. Drummond graduated with a Bachelor of Commerce degree from The University of Melbourne in 1981. He completed the Advanced Management Program at Wharton University in 2001. He is a Senior Fellow of FINSIA and a Chartered Accountant.

CEO Compensation
  • Craig's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Craig's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Medibank Private management team in years:

2.9
Average Tenure
  • The tenure for the Medibank Private management team is about average.
Management Team

Craig Drummond

TITLE
CEO & Director
COMPENSATION
A$4M
AGE
58
TENURE
3 yrs

Mark Rogers

TITLE
Chief Financial Officer
COMPENSATION
A$1M
TENURE
2.5 yrs

John Goodall

TITLE
Group Executive of Technology & Operations
COMPENSATION
A$872K
TENURE
2.6 yrs

Mei Ramsay

TITLE
Group Executive of Legal
COMPENSATION
A$898K
TENURE
2.8 yrs

Kylie Bishop

TITLE
Group Executive of People & Culture
COMPENSATION
A$1M
TENURE
6 yrs

David Koczkar

TITLE
Group Chief Customer Officer
COMPENSATION
A$2M
TENURE
2.8 yrs

Tom Exton

TITLE
Group Financial Controller

Andrew Wilson

TITLE
Group Executive of Healthcare & Strategy
COMPENSATION
A$2M
TENURE
9 yrs

Emily Ritchie

TITLE
Head of Media & External Affairs

Andrew Matthews

TITLE
Chief Actuary
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Medibank Private board of directors in years:

5.3
Average Tenure
62
Average Age
  • The tenure for the Medibank Private board of directors is about average.
Board of Directors

Elizabeth Alexander

TITLE
Chairman of the Board
COMPENSATION
A$425K
AGE
76
TENURE
6.3 yrs

Craig Drummond

TITLE
CEO & Director
COMPENSATION
A$4M
AGE
58
TENURE
3 yrs

Peter Hodgett

TITLE
Independent Non-Executive Director
COMPENSATION
A$210K
TENURE
6.1 yrs

Linda Nicholls

TITLE
Independent Non-Executive Director
COMPENSATION
A$193K
AGE
71
TENURE
5.3 yrs

David Fagan

TITLE
Independent Non-Executive Director
COMPENSATION
A$220K
TENURE
5.3 yrs

Christine O’Reilly

TITLE
Independent Non-Executive Director
COMPENSATION
A$210K
AGE
58
TENURE
5.3 yrs

Anna Bligh

TITLE
Independent Non-Executive Director
COMPENSATION
A$192K
TENURE
6.6 yrs

Mike Wilkins

TITLE
Independent Non-Executive Director
COMPENSATION
A$191K
AGE
62
TENURE
2.2 yrs

Tracey Batten

TITLE
Independent Non-Executive Director
COMPENSATION
A$153K
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
28. Feb 19 Buy Tracey Batten Individual 26. Feb 19 26. Feb 19 14,285 A$2.78 A$39,712
21. Feb 19 Buy Michael Wilkins Individual 19. Feb 19 19. Feb 19 25,513 A$2.93 A$74,654
06. Feb 19 Buy Schroder Investment Management Limited Company 06. Oct 18 06. Feb 19 40,598,812 A$2.57 A$104,300,356
19. Nov 18 Sell The Vanguard Group, Inc. Company 18. Jul 18 15. Nov 18 -1,168,918 A$3.26 A$-3,775,610
19. Nov 18 Buy The Vanguard Group, Inc. Company 16. Jul 18 15. Nov 18 5,573,613 A$3.30 A$18,312,542
22. Nov 18 Sell Perpetual Limited Company 04. Jun 18 07. Nov 18 -25,158,828 A$3.12 A$-78,611,091
22. Nov 18 Buy Perpetual Limited Company 14. May 18 21. Nov 18 53,766,707 A$2.86 A$153,636,137
06. Sep 18 Buy Tracey Batten Individual 04. Sep 18 04. Sep 18 10,000 A$3.02 A$30,200
X
Management checks
We assess Medibank Private's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Medibank Private has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MPL News

Simply Wall St News

Who Has Been Buying Medibank Private Limited (ASX:MPL) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Medibank Private Limited (ASX:MPL). … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' See our latest analysis for Medibank Private The Last 12 Months Of Insider Transactions At Medibank Private Independent Non-Executive Director Michael Wilkins made the biggest insider purchase in the last 12 months. … Our data indicates that Medibank Private insiders own about AU$7.6m worth of shares (which is 0.08% of the company).

Simply Wall St -

How Many Medibank Private Limited (ASX:MPL) Shares Do Institutions Own?

The big shareholder groups in Medibank Private Limited (ASX:MPL) have power over the company. … See our latest analysis for Medibank Private ASX:MPL Ownership Summary, June 26th 2019 What Does The Institutional Ownership Tell Us About Medibank Private? … General Public Ownership The general public -- mostly retail investors -- own 64% of Medibank Private.

Simply Wall St -

What Did Medibank Private Limited's (ASX:MPL) CEO Take Home Last Year?

Craig Drummond has been the CEO of Medibank Private Limited (ASX:MPL) since 2016. … Our data indicates that Medibank Private Limited is worth AU$8.8b, and total annual CEO compensation is AU$3.7m. … If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Medibank Private.

Simply Wall St -

Should You Buy Medibank Private Limited (ASX:MPL) For Its Dividend?

Could Medibank Private Limited (ASX:MPL) be an attractive dividend share to own for the long haul? … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Medibank Private is a new dividend aristocrat in the making.

Simply Wall St -

Should You Be Impressed By Medibank Private Limited's (ASX:MPL) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every A$1 worth of equity in the company, it was able to earn A$0.22. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Medibank Private Limited (ASX:MPL)?

Generally speaking, as a company grows, institutions will increase their ownership. … Medibank Private is a pretty big company. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Have Insiders Been Buying Medibank Private Limited (ASX:MPL) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Medibank Private Limited (ASX:MPL). … The Last 12 Months Of Insider Transactions At Medibank Private.

Simply Wall St -

Medibank Private Limited (ASX:MPL) Investors Are Paying Above The Intrinsic Value

Valuing MPL, an insurance stock, can be daunting since these financial firms generally have cash flows that are impacted by regulations that are not imposed upon other industries. … For example, insurance companies are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

How Much is Medibank Private Limited's (ASX:MPL) CEO Getting Paid?

Craig Drummond has been the CEO of Medibank Private Limited (ASX:MPL) since 2016. … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Craig Drummond's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Should You Buy Medibank Private Limited (ASX:MPL) For Its Dividend?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the last few years Medibank Private Limited (ASX:MPL) has paid a dividend to shareholders. … Let's dig deeper into whether Medibank Private should have a place in your portfolio.

Simply Wall St -

MPL Company Info

Description

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 Health Insurance segment offers private health insurance products, including hospital cover that provides members with health cover for hospital treatments; and ancillary cover, which offers members with health cover for healthcare services, such as dental, optical, and physiotherapy. This segment also provides health insurance products to overseas visitors and overseas students. The Medibank Health segment offers health management and telehealth services to government and corporate customers, as well as distributes travel, life, and pet insurance products. The company underwrites its health insurance products under the Medibank and ahm brands. Medibank Private Limited was founded in 1976 and is based in Docklands, Australia.

Details
Name: Medibank Private Limited
MPL
Exchange: ASX
Founded: 1976
A$9,859,331,599
2,754,003,240
Website: http://www.medibank.com.au
Address: Medibank Private Limited
720 Bourke Street,
Docklands,
Victoria, 3008,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX MPL Ordinary Shares Australian Securities Exchange AU AUD 25. Nov 2014
OTCPK MDBP.F Ordinary Shares Pink Sheets LLC US USD 25. Nov 2014
DB MPV Ordinary Shares Deutsche Boerse AG DE EUR 25. Nov 2014
CHIA MPL Ordinary Shares Chi-X Australia AU AUD 25. Nov 2014
Number of employees
Current staff
Staff numbers
3,450
Medibank Private employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 11:53
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/02/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.