ASX:NHF

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record 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


Market Performance


7 Day Return

0.9%

NHF

2.6%

AU Insurance

0.4%

AU Market


1 Year Return

26.5%

NHF

6.1%

AU Insurance

9.8%

AU Market

Return vs Industry: NHF exceeded the Australian Insurance industry which returned 6.1% over the past year.

Return vs Market: NHF exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

NHFIndustryMarket
7 Day0.9%2.6%0.4%
30 Day-6.2%-1.3%-1.3%
90 Day-13.5%-1.5%-0.5%
1 Year31.0%26.5%13.0%6.1%16.1%9.8%
3 Year65.6%50.1%45.1%24.7%36.1%17.9%
5 Year168.7%126.9%50.9%15.8%49.4%15.7%

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?

21.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NHF (A$6.92) is trading above our estimate of fair value (A$6.91)

Significantly Below Fair Value: NHF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NHF is poor value based on its PE Ratio (21.1x) compared to the Insurance industry average (19x).

PE vs Market: NHF is poor value based on its PE Ratio (21.1x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: NHF is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: NHF is overvalued based on its PB Ratio (5x) compared to the AU Insurance industry average (2.9x).


Next Steps

Future Growth

How is nib holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHF's forecast earnings growth (3.2% per year) is above the savings rate (2.3%).

Earnings vs Market: NHF's earnings (3.2% per year) are forecast to grow slower than the Australian market (10.3% per year).

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

Revenue vs Market: NHF's revenue (2.7% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: NHF's revenue (2.7% 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 (21.9%)


Next Steps

Past Performance

How has nib holdings performed over the past 5 years?

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NHF's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: NHF's earnings growth over the past year (12.8%) is below its 5-year average (16.2% per year).

Earnings vs Industry: NHF earnings growth over the past year (12.8%) exceeded the Insurance industry 4%.


Return on Equity

High ROE: NHF's Return on Equity (23.6%) is considered high.


Return on Assets

ROA vs Industry: NHF has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: NHF has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is nib holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: NHF has a low level of unsold assets or inventory.

Debt Coverage by Assets: NHF's debt is covered by short term assets (assets are 4.542960x debt).


Financial Institutions Analysis

Asset Level: NHF's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if NHF has a sufficient allowance for bad loans.

Low Risk Liabilities: NHF reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if NHF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: NHF has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if NHF has an appropriate level of bad loans.


Next Steps

Dividend

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

3.32%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%2.4%markettop25%5.6%industryaverage4.2%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NHF's dividend (3.32%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: NHF's dividend (3.32%) is low compared to the top 25% of dividend payers in the Australian market (5.59%).

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 (70.2%), 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 (64.1% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Mark Fitzgibbon (59yo)

12.4yrs

Tenure

AU$3,885,667

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 ($USD2.66M) is about average for companies of similar size in the Australian market ($USD1.42M).

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


Management Age and Tenure

6.9yrs

Average Tenure

Experienced Management: NHF's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

59yo

Average Age

Experienced Board: NHF's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: NHF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$515,36003 Oct 19
Mark Fitzgibbon
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares70,000
Max PriceAU$7.36
BuyAU$4,902,77729 Aug 19
The Vanguard Group, Inc.
EntityCompany
Shares544,753
Max PriceAU$9.00
SellAU$678,08729 Aug 19
The Vanguard Group, Inc.
EntityCompany
Shares78,288
Max PriceAU$8.66
SellAU$532,64626 May 19
Mark Fitzgibbon
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares80,000
Max PriceAU$6.66
BuyAU$268,64009 May 19
Jacqueline Chow
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares46,000
Max PriceAU$5.84
BuyAU$104,47111 Jan 19
Realindex Investments Pty Limited
EntityCompany
Shares19,779
Max PriceAU$5.28
BuyAU$430,22811 Jan 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares83,562
Max PriceAU$5.21
SellAU$358,92724 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares75,000
Max PriceAU$4.79
SellAU$1,959,27024 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares405,621
Max PriceAU$4.83
BuyAU$687,03124 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares144,819
Max PriceAU$4.75
BuyAU$808,94424 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares165,149
Max PriceAU$4.90
BuyAU$12,82117 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares2,649
Max PriceAU$4.84
BuyAU$355,22017 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares73,514
Max PriceAU$4.83
SellAU$263,57414 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares56,561
Max PriceAU$4.66
BuyAU$152,67214 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares32,291
Max PriceAU$4.75
BuyAU$1,321,67512 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares276,917
Max PriceAU$4.77
BuyAU$75,72412 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares15,240
Max PriceAU$4.97
BuyAU$9,95905 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares1,980
Max PriceAU$5.03
BuyAU$5,071,81903 Dec 18
Realindex Investments Pty Limited
EntityCompany
Shares928,010
Max PriceAU$5.47
BuyAU$2,671,82203 Dec 18
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares451,519
Max PriceAU$5.95

Ownership Breakdown


Management Team

  • Michelle McPherson

    CFO & Deputy CEO

    • Tenure: 16.6yrs
    • Compensation: AU$1.69m
  • Mark Fitzgibbon (59yo)

    MD, CEO & Executive Director

    • Tenure: 12.4yrs
    • Compensation: AU$3.89m
  • Brendan Mills

    Chief Information Officer

    • Tenure: 7.3yrs
    • Compensation: AU$881.65k
  • Roslyn Toms

    Chief Risk Officer

    • Tenure: 2.3yrs
    • Compensation: AU$684.34k
  • Rob Hennin

    Chief Executive Officer of NIB New Zealand

    • Tenure: 6.4yrs
    • Compensation: AU$1.09m
  • Matthew Neat

    Head of Corporate Affairs & Investor Relations

    • Tenure: 0yrs
  • Wendy Lenton

    Group Executive of People & Culture

    • Tenure: 2.2yrs
    • Compensation: AU$696.91k
  • Jordan French

    Company Secretary

    • Tenure: 0yrs

Board Members

  • Steve Crane (67yo)

    Independent Chairman of the Board

    • Tenure: 8yrs
    • Compensation: AU$311.00k
  • Donal O’Dwyer (66yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: AU$173.94k
  • Mark Fitzgibbon (59yo)

    MD, CEO & Executive Director

    • Tenure: 12.4yrs
    • Compensation: AU$3.89m
  • Lee Ausburn

    Independent Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: AU$174.50k
  • Christine McLoughlin (56yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: AU$174.50k
  • Jacqueline Chow

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$156.00k
  • Anne Loveridge (58yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: AU$236.00k

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$3.150b
  • Shares outstanding: 455.16m
  • 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 Australian, New Zealand, and internationally. It ope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 10:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.