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

Reasonable growth potential with mediocre balance sheet.

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 +/- 4% a week.

Volatility Over Time: SDF's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

SDF

0.3%

AU Insurance

1.3%

AU Market


1 Year Return

11.9%

SDF

-21.1%

AU Insurance

-1.0%

AU Market

Return vs Industry: SDF exceeded the Australian Insurance industry which returned -19.7% over the past year.

Return vs Market: SDF exceeded the Australian Market which returned -1.2% over the past year.


Shareholder returns

SDFIndustryMarket
7 Day0.3%0.3%1.3%
30 Day14.9%9.5%6.0%
90 Day9.7%-0.4%6.8%
1 Year14.9%11.9%-18.9%-21.1%2.4%-1.0%
3 Year48.4%37.4%-8.3%-19.5%22.9%7.6%
5 Year208.9%169.9%14.5%-9.2%55.7%24.6%

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?

2.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SDF (A$3.86) is trading above our estimate of fair value (A$2.77)

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


Price To Earnings Ratio

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

PE vs Market: SDF 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 SDF's PEG Ratio to determine if it is good value.


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?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

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

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

Revenue vs Market: SDF's revenue (5.4% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: SDF's revenue (5.4% 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 (12.3%).


Next Steps

Past Performance

How has Steadfast Group performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SDF is currently unprofitable.

Growing Profit Margin: SDF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SDF is unprofitable, and losses have increased over the past 5 years at a rate of 17.2% per year.

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

Earnings vs Industry: SDF is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-33.8%).


Return on Equity

High ROE: SDF has a negative Return on Equity (-2.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Steadfast Group's financial position?


Financial Position Analysis

Short Term Liabilities: SDF's short term assets (A$1.4B) exceed its short term liabilities (A$1.1B).

Long Term Liabilities: SDF's short term assets (A$1.4B) exceed its long term liabilities (A$408.9M).


Debt to Equity History and Analysis

Debt Level: SDF's debt to equity ratio (60.2%) is considered high.

Reducing Debt: SDF's debt to equity ratio has increased from 19.3% to 60.2% over the past 5 years.

Debt Coverage: SDF's debt is well covered by operating cash flow (30.8%).

Interest Coverage: SDF is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SDF's dividend (2.49%) is higher than the bottom 25% of dividend payers in the Australian market (2.14%).

High Dividend: SDF's dividend (2.49%) is low compared to the top 25% of dividend payers in the Australian market (5.1%).


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: SDF is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SDF's dividends in 3 years are forecast to be covered by earnings (64.8% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Robert Kelly (73 yo)

24.58yrs

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 ($USD2.90M) is above average for companies of similar size in the Australian market ($USD1.90M).

Compensation vs Earnings: Robert's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Kelly
Co-Founder24.58yrsAU$3.97m0.40%
A$ 13.4m
Stephen Humphrys
Chief Financial Officer7.83yrsAU$1.91m0.088%
A$ 2.9m
Samantha Hollman
Chief Operating Officer4.17yrsAU$1.44m0.028%
A$ 948.6k
Linda Ellis
Group Company Secretary & Corporate Counsel 7.42yrsAU$809.15k0.0078%
A$ 260.4k
Simon Lightbody
Chief Executive Officer of Steadfast Underwriting Agencies5.83yrsAU$1.43m0.13%
A$ 4.5m
Allan Reynolds
Executive General Manager of Asia17.92yrsAU$1.19m0.13%
A$ 4.2m
Shalome Ruiter
Investor Relations Managerno datano datano data
Duncan A. Ramsey
General Counsel5.33yrsno datano data
Martyn Thompson
Executive General Manager of Corporate Developmentno datano datano data
Peter Roberts
Executive GM of Business Solutions & Company Secretary7.5yrsno datano data

7.5yrs

Average Tenure

57yo

Average Age

Experienced Management: SDF's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Kelly
Co-Founder24.58yrsAU$3.97m0.40%
A$ 13.4m
Francis Michael O'Halloran
Non-Executive Independent Chairman8.08yrsAU$275.00k0.12%
A$ 3.8m
David Liddy
Non-Executive Deputy Chairman0.83yrAU$170.00k0.018%
A$ 596.0k
Anne O'Driscoll
Non-Executive Independent Director7.33yrsAU$172.50k0.019%
A$ 650.4k
Gai McGrath
Non-Executive Independent Director2.42yrsAU$150.00k0.0057%
A$ 190.0k
Philip Purcell
Non-Executive Independent Director7.75yrsAU$150.00k0.012%
A$ 403.0k
Gregory Rynenberg
Non-Executive Independent Director22.25yrsAU$150.00k0.12%
A$ 4.1m

7.8yrs

Average Tenure

71.5yo

Average Age

Experienced Board: SDF's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SDF insiders have sold more shares than they have bought 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 2.1%.


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$3.339b
  • Shares outstanding: 865.03m
  • 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 Analysis2020/11/23 10:32
End of Day Share Price2020/11/23 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.