ASX:NHF

Stock Analysis Report

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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


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


Market Performance


7 Day Return

-2.1%

NHF

-3.2%

AU Insurance

-0.8%

AU Market


1 Year Return

-43.6%

NHF

-33.7%

AU Insurance

-12.4%

AU Market

Return vs Industry: NHF underperformed the Australian Insurance industry which returned -33% over the past year.

Return vs Market: NHF underperformed the Australian Market which returned -11.6% over the past year.


Shareholder returns

NHFIndustryMarket
7 Day-2.1%-3.2%-0.8%
30 Day-13.3%-11.0%-3.8%
90 Day-14.7%-11.4%0.3%
1 Year-41.8%-43.6%-31.4%-33.7%-9.2%-12.4%
3 Year-22.9%-30.0%-12.1%-22.9%16.4%1.5%
5 Year50.1%27.1%4.5%-17.0%41.7%12.0%

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

Valuation

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

23.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHF (A$4.17) is trading below our estimate of fair value (A$5.46)

Significantly Below Fair Value: NHF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NHF is good value based on its PE Ratio (21.1x) compared to the AU Insurance industry average (22.7x).

PE vs Market: NHF is poor value based on its PE Ratio (21.1x) compared to the Australian market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: NHF is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: NHF is overvalued based on its PB Ratio (3.1x) compared to the AU Insurance industry average (2.8x).


Next Steps

Future Growth

How is nib holdings forecast to perform in the next 1 to 3 years based on estimates from 5 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 (2.3%).

Earnings vs Market: NHF's earnings (12.5% per year) are forecast to grow slower than the Australian market (18.5% 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 (4.3% 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?

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHF's dividend (3.36%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: NHF's dividend (3.36%) is low compared to the top 25% of dividend payers in the Australian market (5.68%).


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 (62% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Mark Fitzgibbon (60 yo)

18.58yrs

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 ($USD2.25M) is above average for companies of similar size in the Australian market ($USD1.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Fitzgibbon
MD, CEO & Executive Director18.58yrsAU$3.08m0.60%
A$ 11.4m
Nick Freeman
Group Chief Financial Officer0.25yrAU$714.92kno data
Brendan Mills
Group Chief Information Officer8.25yrsAU$791.88k0.039%
A$ 742.9k
Roslyn Toms
Chief Risk Officer3.17yrsAU$584.71k0.0080%
A$ 151.3k
Rob Hennin
Chief Executive Officer of NIB New Zealand7.33yrsAU$1.06m0.050%
A$ 951.4k
Edward Close
Group Executive of Australian Residents Health Insuranceno dataAU$492.76k0.00015%
A$ 2.9k
Matt Paterson
Group Executive of Business Servicesno dataAU$558.76kno data
Matthew Neat
Head of Corporate Affairs & Investor Relationsno datano datano data
Jordan French
Company Secretaryno datano datano data

7.3yrs

Average Tenure

Experienced Management: NHF's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Fitzgibbon
MD, CEO & Executive Director18.58yrsAU$3.08m0.60%
A$ 11.4m
Steven Crane
Independent Non-Executive Chairman of the Board8.92yrsAU$318.80k0.055%
A$ 1.0m
Donal O'Dwyer
Independent Non-Executive Director4.5yrsAU$178.30k0.0091%
A$ 172.9k
David Gordon
Additional Independent Non-Executive Director0.33yrAU$13.95kno data
Lee Ausburn
Independent Non-Executive Director6.83yrsAU$178.80k0.0068%
A$ 128.9k
Christine McLoughlin
Independent Non-Executive Director9.5yrsAU$153.42k0.024%
A$ 462.4k
Jacqueline Chow
Independent Non-Executive Director2.42yrsAU$185.18k0.011%
A$ 208.5k
Anne Loveridge
Independent Non-Executive Director3.58yrsAU$241.90k0.0052%
A$ 99.6k

5.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: NHF's board of directors are considered experienced (5.7 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

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$1.900b
  • Shares outstanding: 455.75m
  • Website: https://www.nib.com.au

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NHFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2007
3GUDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2007
NHFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 19:12
End of Day Share Price2020/09/21 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.