Executive Summary
nib holdings limited, together with its subsidiaries, underwrites and distributes health insurance to residents, and international students and visitors in Australia, New Zealand, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has nib holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NHF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: NHF's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.5%
NHF
-0.5%
AU Insurance
2.0%
AU Market
1 Year Return
5.5%
NHF
-24.0%
AU Insurance
-0.4%
AU Market
Return vs Industry: NHF exceeded the Australian Insurance industry which returned -24% over the past year.
Return vs Market: NHF exceeded the Australian Market which returned -0.4% over the past year.
Shareholder returns
| NHF | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -0.5% | 2.0% |
| 30 Day | -1.7% | 2.8% | 4.4% |
| 90 Day | 32.3% | 8.7% | 12.1% |
| 1 Year | 8.9%5.5% | -22.0%-24.0% | 3.0%-0.4% |
| 3 Year | -6.4%-15.0% | -8.6%-19.8% | 27.3%11.6% |
| 5 Year | 90.3%61.2% | 26.8%0.7% | 70.2%35.9% |
Long-Term Price Volatility Vs. Market
How volatile is nib holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is nib holdings limited's (ASX:NHF) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?1 month ago | Simply Wall St
How Is nib holdings' (ASX:NHF) CEO Paid Relative To Peers?1 month ago | Simply Wall St
What To Know Before Buying nib holdings limited (ASX:NHF) For Its DividendValuation
Is nib holdings undervalued compared to its fair value and its price relative to the market?
9.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NHF (A$5.77) is trading below our estimate of fair value (A$6.39)
Significantly Below Fair Value: NHF is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: NHF is poor value based on its PE Ratio (29.2x) compared to the AU Insurance industry average (26.3x).
PE vs Market: NHF is poor value based on its PE Ratio (29.2x) compared to the Australian market (23.2x).
Price to Earnings Growth Ratio
PEG Ratio: NHF is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: NHF is overvalued based on its PB Ratio (4.3x) compared to the AU Insurance industry average (3.1x).
Next Steps
Future Growth
How is nib holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
12.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NHF's forecast earnings growth (12.5% per year) is above the savings rate (2%).
Earnings vs Market: NHF's earnings (12.5% per year) are forecast to grow slower than the Australian market (18.3% per year).
High Growth Earnings: NHF's earnings are forecast to grow, but not significantly.
Revenue vs Market: NHF's revenue (4.2% per year) is forecast to grow slower than the Australian market (5.2% per year).
High Growth Revenue: NHF's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NHF's Return on Equity is forecast to be high in 3 years time (20.6%)
Next Steps
Past Performance
How has nib holdings performed over the past 5 years?
8.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NHF has high quality earnings.
Growing Profit Margin: NHF's current net profit margins (3.6%) are lower than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: NHF's earnings have grown by 8.7% per year over the past 5 years.
Accelerating Growth: NHF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NHF had negative earnings growth (-39.8%) over the past year, making it difficult to compare to the Insurance industry average (-33.8%).
Return on Equity
High ROE: NHF's Return on Equity (14.9%) is considered low.
Next Steps
Financial Health
How is nib holdings's financial position?
Financial Position Analysis
Short Term Liabilities: NHF's short term assets (A$1.1B) exceed its short term liabilities (A$703.1M).
Long Term Liabilities: NHF's short term assets (A$1.1B) exceed its long term liabilities (A$373.0M).
Debt to Equity History and Analysis
Debt Level: NHF's debt to equity ratio (38.4%) is considered satisfactory.
Reducing Debt: NHF's debt to equity ratio has increased from 19.1% to 38.4% over the past 5 years.
Debt Coverage: NHF's debt is well covered by operating cash flow (90.9%).
Interest Coverage: NHF's interest payments on its debt are well covered by EBIT (14.5x coverage).
Balance Sheet
Next Steps
Dividend
What is nib holdings's current dividend yield, its reliability and sustainability?
2.43%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NHF's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Australian market (2.06%).
High Dividend: NHF's dividend (2.43%) is low compared to the top 25% of dividend payers in the Australian market (5%).
Stability and Growth of Payments
Stable Dividend: NHF's dividend payments have been volatile in the past 10 years.
Growing Dividend: NHF's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (70.9%), NHF's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NHF's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.7yrs
Average management tenure
CEO
Mark Fitzgibbon (60 yo)
18.92yrs
Tenure
AU$3,080,745
Compensation
Mr. Mark Fitzgibbon, MBA( UTS ), MA( MGSM ), ALCA, FAICD has been the Chief Executive Officer of NIB Holdings Limited since October 2002 and has been its Managing Director since May 2007. Mr. Fitzgibbon ha...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD2.39M) is above average for companies of similar size in the Australian market ($USD1.28M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 18.92yrs | AU$3.08m | 0.58% A$ 15.3m | |
| Group Chief Financial Officer | 0.58yr | AU$714.92k | no data | |
| Group Chief Information Officer | 8.58yrs | AU$791.88k | 0.039% A$ 1.0m | |
| Chief Risk Officer | 3.5yrs | AU$584.71k | 0.0080% A$ 209.6k | |
| Chief Executive Officer of NIB New Zealand | 7.67yrs | AU$1.06m | 0.050% A$ 1.3m | |
| Group Executive of Australian Residents Health Insurance | no data | AU$492.76k | 0.00015% A$ 4.0k | |
| Group Executive of Business Services | no data | AU$558.76k | no data | |
| Head of Corporate Affairs & Investor Relations | no data | no data | no data | |
| Company Secretary | no data | no data | no data |
7.7yrs
Average Tenure
Experienced Management: NHF's management team is seasoned and experienced (7.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 18.92yrs | AU$3.08m | 0.58% A$ 15.3m | |
| Independent Non-Executive Chairman of the Board | 9.25yrs | AU$318.80k | 0.055% A$ 1.4m | |
| Independent Non-Executive Director | 4.83yrs | AU$178.30k | 0.018% A$ 479.5k | |
| Additional Independent Non-Executive Director | 0.67yr | AU$13.95k | no data | |
| Independent Non-Executive Director | 7.17yrs | AU$178.80k | 0.0068% A$ 178.5k | |
| Independent Non-Executive Director | 2.75yrs | AU$185.18k | 0.011% A$ 288.9k | |
| Independent Non-Executive Director | 3.92yrs | AU$241.90k | 0.0052% A$ 138.1k |
4.8yrs
Average Tenure
60yo
Average Age
Experienced Board: NHF's board of directors are considered experienced (4.8 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
nib holdings limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: nib holdings limited
- Ticker: NHF
- Exchange: ASX
- Founded: 1952
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: AU$2.636b
- Shares outstanding: 456.09m
- Website: https://www.nib.com.au
Number of Employees
Location
- nib holdings limited
- 22 Honeysuckle Drive
- Newcastle
- New South Wales
- 2300
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NHF | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Nov 2007 |
| 3GU | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2007 |
| NHF | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Nov 2007 |
Biography
nib holdings limited, together with its subsidiaries, underwrites and distributes health insurance to residents, and international students and visitors in Australia, New Zealand, and internationally. It o...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 07:06 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/06/30 |
| 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.