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NHF

nib holdingsASX:NHF Stock Report

Last Price

AU$6.54

Market Cap

AU$3.0b

7D

-3.5%

1Y

13.3%

Updated

22 Jan, 2022

Data

Company Financials +
NHF fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance6/6
Financial Health6/6
Dividends4/6

NHF Stock Overview

nib holdings limited, together with its subsidiaries, underwrites and distributes private health insurance to Australian and New Zealand residents, as well as international students and visitors.

nib holdings Competitors

Medibank Private

ASX:MPL

AU$9.0b

Price History & Performance

Summary of all time highs, changes and price drops for nib holdings
Historical stock prices
Current Share PriceAU$6.54
52 Week HighAU$8.05
52 Week LowAU$5.13
Beta0.34
1 Month Change-6.84%
3 Month Change-5.08%
1 Year Change13.35%
3 Year Change22.47%
5 Year Change41.56%
Change since IPO454.24%

Recent News & Updates

Oct 28
This Is Why nib holdings limited's (ASX:NHF) CEO Compensation Looks Appropriate

This Is Why nib holdings limited's (ASX:NHF) CEO Compensation Looks Appropriate

CEO Mark Fitzgibbon has done a decent job of delivering relatively good performance at nib holdings limited ( ASX:NHF...

Shareholder Returns

NHFAU InsuranceAU Market
7D-3.5%-3.1%-2.8%
1Y13.3%14.0%5.8%

Return vs Industry: NHF matched the Australian Insurance industry which returned 14% over the past year.

Return vs Market: NHF exceeded the Australian Market which returned 5.8% over the past year.

Price Volatility

Is NHF's price volatile compared to industry and market?
NHF volatility
NHF Average Weekly Movement4.1%
Insurance Industry Average Movement3.4%
Market Average Movement8.6%
10% most volatile stocks in AU Market15.4%
10% least volatile stocks in AU Market3.7%

Stable Share Price: NHF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NHF's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19521,200Mark Fitzgibbonhttps://www.nib.com.au

nib holdings limited, together with its subsidiaries, underwrites and distributes private health insurance to Australian and New Zealand residents, as well as international students and visitors. The company operates through Australian Residents Health Insurance, New Zealand Residents Health Insurance, International (Inbound) Health Insurance, and nib Travel segments. It also offers health insurance products, including single, couples, and family health insurance, as well as single parent health insurance; life insurance; travel insurance; and income protection insurance services.

nib holdings Fundamentals Summary

How do nib holdings's earnings and revenue compare to its market cap?
NHF fundamental statistics
Market CapAU$2.99b
Earnings (TTM)AU$161.10m
Revenue (TTM)AU$2.63b

18.6x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NHF income statement (TTM)
RevenueAU$2.63b
Cost of RevenueAU$2.17b
Gross ProfitAU$467.30m
ExpensesAU$306.20m
EarningsAU$161.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin17.75%
Net Profit Margin6.12%
Debt/Equity Ratio32.9%

How did NHF perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

68%

Payout Ratio

Valuation

Is nib holdings undervalued compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHF (A$6.54) is trading below our estimate of fair value (A$7.97)

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 good value based on its PE Ratio (18.6x) compared to the Australian Insurance industry average (29.4x).

PE vs Market: NHF's PE Ratio (18.6x) is in line with the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: NHF is poor value based on its PEG Ratio (9.5x)


Price to Book Ratio

PB vs Industry: NHF is overvalued based on its PB Ratio (4.2x) compared to the AU Insurance industry average (3.9x).


Future Growth

How is nib holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHF's forecast earnings growth (2% per year) is above the savings rate (1.9%).

Earnings vs Market: NHF's earnings (2% per year) are forecast to grow slower than the Australian market (11.1% per year).

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

Revenue vs Market: NHF's revenue (4.3% per year) is forecast to grow slower than the Australian market (4.8% per year).

High Growth Revenue: NHF's revenue (4.3% 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 (21.8%)


Past Performance

How has nib holdings performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHF has high quality earnings.

Growing Profit Margin: NHF's current net profit margins (6.1%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: NHF's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: NHF's earnings growth over the past year (83.3%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: NHF earnings growth over the past year (83.3%) exceeded the Insurance industry 57.5%.


Return on Equity

High ROE: NHF's Return on Equity (22.8%) is considered high.


Financial Health

How is nib holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NHF's short term assets (A$1.2B) exceed its short term liabilities (A$646.4M).

Long Term Liabilities: NHF's short term assets (A$1.2B) exceed its long term liabilities (A$350.2M).


Debt to Equity History and Analysis

Debt Level: NHF has more cash than its total debt.

Reducing Debt: NHF's debt to equity ratio has reduced from 39.3% to 32.9% over the past 5 years.

Debt Coverage: NHF's debt is well covered by operating cash flow (46.8%).

Interest Coverage: NHF's interest payments on its debt are well covered by EBIT (70.5x coverage).


Balance Sheet


Dividend

What is nib holdings's current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHF's dividend (3.67%) is higher than the bottom 25% of dividend payers in the Australian market (2.25%).

High Dividend: NHF's dividend (3.67%) is low compared to the top 25% of dividend payers in the Australian market (5.52%).


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 (68.1%), 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 (65.5% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Mark Fitzgibbon (61 yo)

19.92yrs

Tenure

AU$3,117,649

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 ($USD2.25M) is above average for companies of similar size in the Australian market ($USD1.40M).

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


Leadership Team

Experienced Management: NHF's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

Experienced Board: NHF's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NHF insiders have only sold shares 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 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
  • Implied Market Cap: AU$2.992b
  • Shares outstanding: 457.44m
  • Website: https://www.nib.com.au

Number of Employees


Location

  • nib holdings limited
  • 22 Honeysuckle Drive
  • Newcastle
  • New South Wales
  • 2300
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 07:02
End of Day Share Price2022/01/21 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.