ASX:PSI

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PSC Insurance Group

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with limited growth.

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

Stable Share Price: PSI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

PSI

-0.7%

AU Insurance

-0.3%

AU Market


1 Year Return

4.9%

PSI

-30.7%

AU Insurance

-6.9%

AU Market

Return vs Industry: PSI exceeded the Australian Insurance industry which returned -30.7% over the past year.

Return vs Market: PSI exceeded the Australian Market which returned -6.9% over the past year.


Shareholder returns

PSIIndustryMarket
7 Day4.9%-0.7%-0.3%
30 Day5.3%3.7%5.1%
90 Day18.7%-8.1%4.2%
1 Year8.3%4.9%-28.8%-30.7%-3.5%-6.9%
3 Year11.9%2.4%-12.8%-23.5%18.1%3.0%
5 Yearn/a2.5%-18.6%44.2%15.1%

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 compared to its fair value and its price relative to the market?

44.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSI (A$2.99) is trading above our estimate of fair value (A$1.79)

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


Price To Earnings Ratio

PE vs Industry: PSI is poor value based on its PE Ratio (44.9x) compared to the AU Insurance industry average (24.4x).

PE vs Market: PSI is poor value based on its PE Ratio (44.9x) compared to the Australian market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: PSI is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: PSI is overvalued based on its PB Ratio (3.5x) compared to the AU Insurance industry average (2.9x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSI's forecast earnings growth (10.7% per year) is above the savings rate (2.3%).

Earnings vs Market: PSI's earnings (10.7% per year) are forecast to grow slower than the Australian market (17.7% per year).

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

Revenue vs Market: PSI's revenue (6.9% per year) is forecast to grow faster than the Australian market (4.6% per year).

High Growth Revenue: PSI's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSI's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

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

19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSI has a large one-off loss of A$16.3M impacting its June 30 2020 financial results.

Growing Profit Margin: PSI's current net profit margins (10.3%) are lower than last year (21.6%).


Past Earnings Growth Analysis

Earnings Trend: PSI's earnings have grown by 19.9% 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 (-27.6%) over the past year, making it difficult to compare to the Insurance industry average (-33.8%).


Return on Equity

High ROE: PSI's Return on Equity (7.7%) is considered low.


Next Steps

Financial Health

How is PSC Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: PSI's short term assets (A$264.1M) exceed its short term liabilities (A$219.9M).

Long Term Liabilities: PSI's short term assets (A$264.1M) exceed its long term liabilities (A$197.9M).


Debt to Equity History and Analysis

Debt Level: PSI's debt to equity ratio (64.8%) is considered high.

Reducing Debt: PSI's debt to equity ratio has reduced from 138.5% to 64.8% over the past 5 years.

Debt Coverage: PSI's debt is not well covered by operating cash flow (15.1%).

Interest Coverage: PSI's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSI's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.09%).

High Dividend: PSI's dividend (3.01%) is low compared to the top 25% of dividend payers in the Australian market (5.45%).


Stability and Growth of Payments

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.1%), PSI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PSI's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Paul Dwyer

no data

Tenure

AU$94,343

Compensation

Mr. Paul Robert Dwyer has been the Deputy Chairman of PSC Insurance Group Limited since May 16, 2019 and served as its Executive Deputy Chairman since May 2, 2018 until May 16, 2019 and Group Managing Dire ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD67.10K) is below average for companies of similar size in the Australian market ($USD935.63K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Dwyer
Deputy Chairmanno dataAU$94.34k22.98%
A$ 200.9m
Rohan Stewart
Group Chief Executive Officer2.42yrsAU$483.53k0.96%
A$ 8.4m
Joshua Reid
Group Chief Financial Officer4.83yrsAU$468.24k0.40%
A$ 3.5m
John Dwyer
Director of Broking & Executive Director9.83yrsAU$350.00k12.15%
A$ 106.2m
Antony Robinson
MD & Executive Director5.25yrsAU$533.50k0.27%
A$ 2.4m
Tara Falk
Executive Director1yrAU$582.75k2.49%
A$ 21.8m
Julia Mitchell
Group Manager Governance & Compliance2.75yrsno datano data
Stephen Abbott
Company Secretary5.42yrsno datano data

2.8yrs

Average Tenure

Experienced Management: PSI's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Dwyer
Deputy Chairmanno dataAU$94.34k22.98%
A$ 200.9m
John Dwyer
Director of Broking & Executive Director9.83yrsAU$350.00k12.15%
A$ 106.2m
Antony Robinson
MD & Executive Director5.25yrsAU$533.50k0.27%
A$ 2.4m
Tara Falk
Executive Director1yrAU$582.75k2.49%
A$ 21.8m
Brian Austin
Independent Non-Executive Chairmanno dataAU$350.00k12.18%
A$ 106.5m
Melvyn S. Sims
Independent Non-Executive Director4.17yrsAU$168.89kno data

4.2yrs

Average Tenure

Experienced Board: PSI's board of directors are considered experienced (4.2 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 been diluted in the past year, with total shares outstanding growing by 7.8%.


Top Shareholders

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: 2010
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: AU$873.926m
  • Shares outstanding: 292.28m
  • 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 four segments: Distribution, Agency, United Kingdom, and Group. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 10:41
End of Day Share Price2020/10/23 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.