ASX:MPL

Stock Analysis Report

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Executive Summary

Medibank Private Limited, an integrated healthcare company, provides private health insurance and health solutions in Australia. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

MPL

-1.5%

AU Insurance

-1.4%

AU Market


1 Year Return

-20.9%

MPL

-29.9%

AU Insurance

-7.1%

AU Market

Return vs Industry: MPL exceeded the Australian Insurance industry which returned -30.7% over the past year.

Return vs Market: MPL underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

MPLIndustryMarket
7 Day-1.8%-1.5%-1.4%
30 Day5.1%3.4%3.4%
90 Day-6.6%-5.4%3.8%
1 Year-17.3%-20.9%-28.0%-29.9%-3.7%-7.1%
3 Year0.2%-12.4%-12.1%-22.9%16.9%2.1%
5 Year42.5%15.0%4.3%-17.2%46.0%15.6%

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

Valuation

Is Medibank Private undervalued compared to its fair value and its price relative to the market?

2.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MPL (A$2.69) is trading below our estimate of fair value (A$2.75)

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 (23.5x) compared to the AU Insurance industry average (24.4x).

PE vs Market: MPL is poor value based on its PE Ratio (23.5x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: MPL is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: MPL is overvalued based on its PB Ratio (4.1x) 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 7 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPL's forecast earnings growth (7.4% per year) is above the savings rate (2.3%).

Earnings vs Market: MPL's earnings (7.4% per year) are forecast to grow slower than the Australian market (17.7% per year).

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

Revenue vs Market: MPL's revenue (3.3% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: MPL's revenue (3.3% 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 (20.5%)


Next Steps

Past Performance

How has Medibank Private performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPL has high quality earnings.

Growing Profit Margin: MPL's current net profit margins (4.7%) are lower than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: MPL's earnings have grown by 1.4% 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 (-27.9%) over the past year, making it difficult to compare to the Insurance industry average (-33.8%).


Return on Equity

High ROE: MPL's Return on Equity (17.4%) 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$3.1B) exceed its short term liabilities (A$1.8B).

Long Term Liabilities: MPL's short term assets (A$3.1B) exceed its long term liabilities (A$199.0M).


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?

4.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPL's dividend (4.46%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: MPL's dividend (4.46%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.7%), 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 (86.9% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Craig Drummond (59 yo)

4.25yrs

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 ($USD1.65M) is below average for companies of similar size in the Australian market ($USD2.51M).

Compensation vs Earnings: Craig's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Craig Drummond
CEO & Director4.25yrsAU$2.32m0.050%
A$ 3.6m
Mark Rogers
Group Executive & CFO3.75yrsAU$1.06m0.0072%
A$ 532.4k
John Goodall
Group Executive of Technology & Operations3.83yrsAU$693.92k0.0030%
A$ 222.8k
Mei Ramsay
Group Executive of Legal4.08yrsAU$702.72k0.0040%
A$ 291.9k
Kylie Bishop
Group Executive of People & Culture7.25yrsAU$757.88k0.013%
A$ 963.3k
Andrew Wilson
Group Executive of Healthcare & Strategy10.25yrsAU$1.23m0.026%
A$ 1.9m
David Koczkar
Group Executive & Chief Customer Officer4.08yrsAU$1.25m0.026%
A$ 1.9m
Peter Kopanidis
Senior Executive of Corporate Financeno datano datano data
Emily Ritchie
Senior Executive of External Affairsno datano datano data
Tom Exton
Group Financial Controllerno datano datano data

4.1yrs

Average Tenure

Experienced Management: MPL's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Drummond
CEO & Director4.25yrsAU$2.32m0.050%
A$ 3.6m
Elizabeth Alexander
Independent Chairman of the Board7.58yrsAU$448.42k0.0045%
A$ 333.1k
Peter Hodgett
Independent Non-Executive Director7.33yrsAU$230.46k0.0025%
A$ 180.9k
Linda Nicholls
Independent Non-Executive Director6.58yrsAU$209.47k0.0016%
A$ 119.9k
Christine O'Reilly
Independent Non-Executive Director6.58yrsAU$229.33k0.0025%
A$ 186.8k
Michael Wilkins
Independent Chairmanno dataAU$210.19k0.0036%
A$ 266.9k
Tracey Batten
Independent Non-Executive Director3.17yrsAU$209.31k0.0018%
A$ 133.8k
Anna Bligh
Independent Non-Executive Director7.83yrsAU$209.70k0.0016%
A$ 119.1k
David Fagan
Independent Non-Executive Director6.58yrsAU$229.35k0.0017%
A$ 125.7k

6.6yrs

Average Tenure

63yo

Average Age

Experienced Board: MPL's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MPL 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$7.353b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2014
MPLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2014
MPVDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2014
MDBP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 10:42
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
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.