ASX:SDF

Stock Analysis Report

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Executive Summary

Steadfast Group Limited provides general insurance brokerage services Australasia, Asia, and Europe. More Details


Snowflake Analysis

Adequate balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SDF's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

SDF

-1.3%

AU Insurance

-1.7%

AU Market


1 Year Return

11.7%

SDF

-15.0%

AU Insurance

10.5%

AU Market

Return vs Industry: SDF exceeded the Australian Insurance industry which returned -15% over the past year.

Return vs Market: SDF exceeded the Australian Market which returned 10.5% over the past year.


Shareholder returns

SDFIndustryMarket
7 Day-2.0%-1.3%-1.7%
30 Day-3.2%2.7%-0.3%
90 Day0.8%-1.6%2.7%
1 Year14.9%11.7%-13.2%-15.0%14.1%10.5%
3 Year54.8%43.2%-8.9%-20.1%29.7%14.0%
5 Year164.8%132.0%19.7%-3.5%62.5%31.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SDF (A$3.91) is trading above our estimate of fair value (A$3.18)

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


Price To Earnings Ratio

PE vs Industry: SDF is poor value based on its PE Ratio (37.9x) compared to the AU Insurance industry average (25.5x).

PE vs Market: SDF is poor value based on its PE Ratio (37.9x) compared to the Australian market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: SDF is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: SDF's PB Ratio (3x) is in line with the AU Insurance industry average.


Next Steps

Future Growth

How is Steadfast Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDF's forecast earnings growth (9.1% per year) is above the savings rate (2%).

Earnings vs Market: SDF's earnings (9.1% per year) are forecast to grow slower than the Australian market (15.4% per year).

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

Revenue vs Market: SDF's revenue (4.8% per year) is forecast to grow slower than the Australian market (5.6% per year).

High Growth Revenue: SDF's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Steadfast Group performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDF has high quality earnings.

Growing Profit Margin: SDF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SDF's earnings have declined by 18.5% per year over the past 5 years.

Accelerating Growth: SDF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SDF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (-19.2%).


Return on Equity

High ROE: SDF's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Steadfast Group's financial position?


Financial Position Analysis

Short Term Liabilities: SDF's short term assets (A$1.5B) exceed its short term liabilities (A$858.6M).

Long Term Liabilities: SDF's short term assets (A$1.5B) exceed its long term liabilities (A$979.8M).


Debt to Equity History and Analysis

Debt Level: SDF's debt to equity ratio (72.6%) is considered high.

Reducing Debt: SDF's debt to equity ratio has increased from 22.6% to 72.6% over the past 5 years.

Debt Coverage: SDF's debt is well covered by operating cash flow (30.5%).

Interest Coverage: SDF's interest payments on its debt are well covered by EBIT (16.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SDF's dividend (2.46%) is higher than the bottom 25% of dividend payers in the Australian market (2.11%).

High Dividend: SDF's dividend (2.46%) is low compared to the top 25% of dividend payers in the Australian market (5.5%).


Stability and Growth of Payments

Stable Dividend: SDF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SDF's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.8%), SDF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SDF's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Robert Kelly (72 yo)

24.92yrs

Tenure

AU$3,966,168

Compensation

Mr. Robert Bernard Kelly co-founded Steadfast Group Limited and has been its Chief Executive Officer and Managing Director since April 18, 1996. Mr. Kelly has experience in the insurance industry. He serve...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD3.09M) is above average for companies of similar size in the Australian market ($USD1.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Kelly
Co-Founder24.92yrsAU$3.97m0.40%
A$ 13.6m
Stephen Humphrys
Chief Financial Officer8.17yrsAU$1.91m0.088%
A$ 3.0m
Samantha Hollman
Chief Operating Officer4.5yrsAU$1.44m0.028%
A$ 963.2k
Linda Ellis
Group Company Secretary & Corporate Counsel 7.75yrsAU$809.15k0.0078%
A$ 264.4k
Simon Lightbody
Chief Executive Officer of Steadfast Underwriting Agencies6.17yrsAU$1.43m0.13%
A$ 4.5m
Allan Reynolds
Executive General Manager of Asia18.25yrsAU$1.19m0.13%
A$ 4.3m
Shalome Ruiter
Investor Relations Managerno datano datano data
Duncan A. Ramsey
General Counsel5.67yrsno datano data
Martyn Thompson
Executive General Manager of Corporate Developmentno datano datano data
Peter Roberts
Executive GM of Business Solutions & Company Secretary7.83yrsno datano data

7.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SDF's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Kelly
Co-Founder24.92yrsAU$3.97m0.40%
A$ 13.6m
Francis Michael O'Halloran
Non-Executive Independent Chairman8.42yrsAU$275.00k0.12%
A$ 3.9m
David Liddy
Non-Executive Deputy Chairman1.17yrsAU$170.00k0.018%
A$ 605.3k
Anne O'Driscoll
Non-Executive Independent Director7.67yrsAU$172.50k0.019%
A$ 660.5k
Gai McGrath
Non-Executive Independent Director2.75yrsAU$150.00k0.0057%
A$ 192.8k
Philip Purcell
Non-Executive Independent Director8.08yrsAU$150.00k0.012%
A$ 409.4k
Gregory Rynenberg
Non-Executive Independent Director22.58yrsAU$150.00k0.12%
A$ 4.1m

8.1yrs

Average Tenure

71yo

Average Age

Experienced Board: SDF's board of directors are considered experienced (8.1 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

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


Key Information

  • Name: Steadfast Group Limited
  • Ticker: SDF
  • Exchange: ASX
  • Founded: 1996
  • Industry: Insurance Brokers
  • Sector: Insurance
  • Market Cap: AU$3.389b
  • Shares outstanding: 864.58m
  • Website: https://www.steadfast.com.au

Location

  • Steadfast Group Limited
  • 99 Bathurst Street
  • Level 4
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2013
1S6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2013
SDFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2013

Biography

Steadfast Group Limited provides general insurance brokerage services Australasia, Asia, and Europe. It also provides insurance underwriting services and related services. The company operates a network of...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 07:04
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
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.