ASX:PSI

Stock Analysis Report

PSC Insurance Group

Executive Summary

PSC Insurance Group Limited provides insurance services in Australia, the United Kingdom, and New Zealand.

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.

Share Price & News

How has PSC Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

PSI

-0.05%

AU Insurance

1.3%

AU Market


1 Year Return

-6.1%

PSI

6.5%

AU Insurance

9.9%

AU Market

Return vs Industry: PSI underperformed the Australian Insurance industry which returned 6.5% over the past year.

Return vs Market: PSI underperformed the Australian Market which returned 9.9% over the past year.


Share holder returns

PSIIndustryMarket
7 Day0%-0.05%1.3%
30 Day-0.4%-4.3%-0.7%
90 Day4.5%-3.8%-0.4%
1 Year-3.2%-6.1%13.4%6.5%16.3%9.9%
3 Year27.4%17.4%42.4%22.3%35.8%17.6%
5 Yearn/a51.4%16.2%51.9%17.8%

Price Volatility Vs. Market

How volatile is PSC Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PSC Insurance Group undervalued based on future cash flows and its price relative to the stock market?

27.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: PSI (A$2.76) is trading above our estimate of fair value (A$1.29)

Significantly Undervalued: PSI is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: PSI is poor value based on its PE Ratio (27.4x) compared to the Insurance industry average (18.6x).

PE vs Market: PSI is poor value based on its PE Ratio (27.4x) compared to the Australian market (17.9x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: PSI is overvalued based on its PB Ratio (4.5x) compared to the AU Insurance industry average (2.7x).


Next Steps

Future Growth

How is PSC Insurance Group expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PSI's forecast earnings growth (16% per year) is above the savings rate (2.3%).

Earnings vs Market: PSI's earnings (16% per year) are forecast to grow faster than the Australian market (10.2% per year).

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

Revenue vs Market: PSI's revenue (17.3% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: PSI's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: PSI's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has PSC Insurance Group performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSI's earnings have grown significantly by 30% per year over the past 5 years.

Accelerating Growth: PSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSI had negative earnings growth (-10.4%) over the past year, making it difficult to compare to the Insurance industry average (4%).


Return on Equity

High ROE: PSI's Return on Equity (16.4%) is considered low.


Return on Assets

ROA vs Industry: PSI's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: PSI's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is PSC Insurance Group'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: PSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: PSI's debt is covered by short term assets (assets are 10.124510x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is PSC Insurance Group's current dividend yield, its reliability and sustainability?

2.96%

Expected Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.5%markettop25%5.6%industryaverage4.0%forecastin3Years3.0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PSI's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.5%).

High Dividend: PSI's dividend (3.01%) is low compared to the top 25% of dividend payers in the Australian market (5.6%).

Stable Dividend: Whilst dividend payments have been stable, PSI has been paying a dividend for less than 10 years.

Growing Dividend: PSI's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (82.5%), PSI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSI's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

What is the CEO of PSC Insurance Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Paul Dwyer 0

0yrs

Tenure

AU$334,935

Compensation

Mr. Paul Robert Dwyer served as Group Managing Director at PSC Insurance Group Ltd from May 2, 2018 to May 16, 2019 and has been its Executive Deputy Chairman since May 2, 2018. Mr. Dwyer is the Managing D ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD228.05K) is about average for companies of similar size in the Australian market ($USD737.74K).

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


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: PSI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

Experienced Board: PSI's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: PSI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$140,28423 Sep 19
John Dwyer
EntityIndividual
Role
Member of the Board of Directors
Director of Broking & Executive Director
Shares50,000
Max PriceAU$2.81
BuyAU$118,01017 Sep 19
John Dwyer
EntityIndividual
Role
Member of the Board of Directors
Director of Broking & Executive Director
Shares43,036
Max PriceAU$2.74
BuyAU$1,147,30817 Sep 19
MAM Pty Limited
EntityCompany
Shares406,399
Max PriceAU$2.85
BuyAU$2,166,40817 Sep 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares752,031
Max PriceAU$2.88
SellAU$4,500,95217 Sep 19
MAM Pty Limited
EntityCompany
Shares1,612,230
Max PriceAU$2.80
SellAU$8,557,41217 Sep 19
Wilson Asset Management (International) Pty Limited
EntityCompany
Shares3,053,440
Max PriceAU$4.00
BuyAU$52,66005 Sep 19
Brian Austin
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares20,000
Max PriceAU$2.63
SellAU$10,499,99521 Dec 18
Paul Dwyer
EntityIndividual
Role
Chief Executive Officer
Executive Deputy Chairman
Shares4,200,000
Max PriceAU$2.50
BuyAU$82,50009 Nov 18
Brian Austin
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares30,000
Max PriceAU$2.75

Ownership Breakdown


Management Team

  • Tony Robinson (61yo)

    MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$2.00m
  • Paul Dwyer

    Executive Deputy Chairman

    • Tenure: 0yrs
    • Compensation: AU$334.93k
  • John Dwyer

    Director of Broking & Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$325.00k
  • Josh Reid

    Group Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: AU$476.06k
  • Stephen Abbott

    Company Secretary

    • Tenure: 4.4yrs
  • Rohan Stewart

    Group Chief Executive Officer

    • Tenure: 1.4yrs
    • Compensation: AU$475.15k
  • Julia Mitchell

    Group Manager Governance & Compliance

    • Tenure: 1.8yrs
  • Tara Falk

    Executive Director

    • Tenure: 0yrs

Board Members

  • Brian Austin

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$325.00k
  • Tony Robinson (61yo)

    MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: AU$2.00m
  • Mel Sims

    Independent Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$134.06k
  • Paul Dwyer

    Executive Deputy Chairman

    • Tenure: 0yrs
    • Compensation: AU$334.93k
  • John Dwyer

    Director of Broking & Executive Director

    • Tenure: 8.8yrs
    • Compensation: AU$325.00k
  • Tara Falk

    Executive Director

    • Tenure: 0yrs

Company Information

PSC Insurance Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PSC Insurance Group Limited
  • Ticker: PSI
  • Exchange: ASX
  • Founded:
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: AU$747.214m
  • Shares outstanding: 270.73m
  • Website: https://www.pscinsurancegroup.com.au

Location

  • PSC Insurance Group Limited
  • 96 Wellington Parade
  • Level 4
  • East Melbourne
  • Victoria
  • 3002
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSIASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
PSICHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015

Biography

PSC Insurance Group Limited provides insurance services in Australia, the United Kingdom, and New Zealand. The company operates through Distribution, Agency, and United Kingdom segments. The company is inv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 10:44
End of Day Share Price2019/10/11 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.

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