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QBE

QBE Insurance GroupASX:QBE Stock Report

Last Price

AU$12.05

Market Cap

AU$17.8b

7D

-1.0%

1Y

42.8%

Updated

20 Jan, 2022

Data

Company Financials +
QBE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends1/6

QBE Stock Overview

QBE Insurance Group Limited underwrites general insurance and reinsurance risks for personal, business, corporate, institutional, and multinational customers.

Rewards

Trading at 47.8% below our estimate of its fair value

Earnings are forecast to grow 16.08% per year

Risk Analysis

No risks detected for QBE from our risk checks.

QBE Insurance Group Competitors

Suncorp Group

ASX:SUN

AU$14.8b

Berkshire Hathaway

NYSE:BRK.A

US$703.8b

JPMorgan Chase

NYSE:JPM

US$438.5b

Bank of America

NYSE:BAC

US$375.1b

Price History & Performance

Summary of all time highs, changes and price drops for QBE Insurance Group
Historical stock prices
Current Share PriceAU$12.05
52 Week HighAU$12.72
52 Week LowAU$7.88
Beta1.15
1 Month Change6.73%
3 Month Change1.86%
1 Year Change42.77%
3 Year Change11.06%
5 Year Change-0.41%
Change since IPO391.17%

Recent News & Updates

Shareholder Returns

QBEAU InsuranceAU Market
7D-1.0%-0.9%-1.7%
1Y42.8%16.5%7.7%

Return vs Industry: QBE exceeded the Australian Insurance industry which returned 16.5% over the past year.

Return vs Market: QBE exceeded the Australian Market which returned 7.7% over the past year.

Price Volatility

Is QBE's price volatile compared to industry and market?
QBE volatility
QBE Average Weekly Movement3.3%
Insurance Industry Average Movement3.3%
Market Average Movement8.5%
10% most volatile stocks in AU Market15.3%
10% least volatile stocks in AU Market3.6%

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

Volatility Over Time: QBE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188611,444Andrew Hortonhttps://www.qbe.com

QBE Insurance Group Limited underwrites general insurance and reinsurance risks for personal, business, corporate, institutional, and multinational customers. The company offers range of commercial, personal, and specialty products, such as commercial and domestic property, motor and motor casualty, agriculture, public/product liability, professional indemnity, workers' compensation, marine, energy and aviation, accident and health, financial and credit, and other insurances, as well as risk management solutions. It also manages Lloyd’s syndicates, as well as offers investment management services.

QBE Insurance Group Fundamentals Summary

How do QBE Insurance Group's earnings and revenue compare to its market cap?
QBE fundamental statistics
Market CapUS$12.88b
Earnings (TTM)-US$414.00m
Revenue (TTM)US$13.17b

1.0x

P/S Ratio

-31.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
QBE income statement (TTM)
RevenueUS$13.17b
Cost of RevenueUS$12.46b
Gross ProfitUS$709.00m
ExpensesUS$1.12b
Earnings-US$414.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 18, 2022

Earnings per share (EPS)-0.28
Gross Margin5.39%
Net Profit Margin-3.14%
Debt/Equity Ratio31.1%

How did QBE perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

-30%

Payout Ratio

Valuation

Is QBE Insurance Group undervalued compared to its fair value and its price relative to the market?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QBE (A$12.05) is trading below our estimate of fair value (A$23.09)

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


Price To Earnings Ratio

PE vs Industry: QBE is unprofitable, so we can't compare its PE Ratio to the Australian Insurance industry average.

PE vs Market: QBE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QBE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QBE is good value based on its PB Ratio (1.5x) compared to the AU Insurance industry average (4x).


Future Growth

How is QBE Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QBE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: QBE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: QBE's is expected to become profitable in the next 3 years.

Revenue vs Market: QBE's revenue (1.8% per year) is forecast to grow slower than the Australian market (4.9% per year).

High Growth Revenue: QBE's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QBE's Return on Equity is forecast to be low in 3 years time (12.4%).


Past Performance

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

-32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QBE is currently unprofitable.

Growing Profit Margin: QBE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QBE is unprofitable, and losses have increased over the past 5 years at a rate of 32.3% per year.

Accelerating Growth: Unable to compare QBE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QBE is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (57.5%).


Return on Equity

High ROE: QBE has a negative Return on Equity (-4.04%), as it is currently unprofitable.


Financial Health

How is QBE Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: QBE's short term assets ($19.3B) do not cover its short term liabilities ($37.2B).

Long Term Liabilities: QBE's short term assets ($19.3B) exceed its long term liabilities ($3.4B).


Debt to Equity History and Analysis

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

Reducing Debt: QBE's debt to equity ratio has reduced from 33.6% to 31.1% over the past 5 years.

Debt Coverage: QBE's debt is well covered by operating cash flow (78%).

Interest Coverage: QBE's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

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

1.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QBE's dividend (1.78%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.21%).

High Dividend: QBE's dividend (1.78%) is low compared to the top 25% of dividend payers in the Australian market (5.47%).


Stability and Growth of Payments

Stable Dividend: QBE's dividend payments have been volatile in the past 10 years.

Growing Dividend: QBE's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: QBE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: QBE's dividends in 3 years are forecast to be covered by earnings (54.8% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Andrew Horton

0.33

Tenure

Mr. Andrew Horton has been the Chief Executive Officer of Beazley Furlonge Ltd. since 2003 and Beazley plc since 2008. Mr. Horton has broad financial services experience with significant exposure to operat...


Leadership Team

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


Board Members

Experienced Board: QBE's board of directors are considered experienced (5.3 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

QBE Insurance Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: QBE Insurance Group Limited
  • Ticker: QBE
  • Exchange: ASX
  • Founded: 1886
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Implied Market Cap: AU$17.836b
  • Shares outstanding: 1.48b
  • Website: https://www.qbe.com

Number of Employees


Location

  • QBE Insurance Group Limited
  • 388 George Street
  • Level 18
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 07:03
End of Day Share Price2022/01/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.