Executive Summary
Suncorp Group Limited provides insurance, banking, and wealth products and services to retail, corporate, and commercial sectors in Australia and New Zealand.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -3.8% per year for the next 3 years
Snowflake Analysis
Average dividend payer and fair value.
Similar Companies
Share Price & News
How has Suncorp Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SUN has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.8%
SUN
1.3%
AU Insurance
0.02%
AU Market
1 Year Return
-8.0%
SUN
4.5%
AU Insurance
14.6%
AU Market
Return vs Industry: SUN underperformed the Australian Insurance industry which returned 4.5% over the past year.
Return vs Market: SUN underperformed the Australian Market which returned 14.6% over the past year.
Shareholder returns
| SUN | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 1.3% | 0.02% |
| 30 Day | -4.0% | -2.5% | 0.2% |
| 90 Day | -5.5% | 0.2% | 5.7% |
| 1 Year | 0.5%-8.0% | 10.3%4.5% | 19.7%14.6% |
| 3 Year | 10.9%-8.7% | 27.3%9.1% | 38.7%20.2% |
| 5 Year | 18.0%-13.4% | 41.0%9.6% | 50.6%17.1% |
Price Volatility Vs. Market
How volatile is Suncorp Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Suncorp Group Limited (ASX:SUN) Is About To Go Ex-Dividend, And It Pays A 5.6% Yield3 weeks ago | Simply Wall St
Do You Like Suncorp Group Limited (ASX:SUN) At This P/E Ratio?1 month ago | Simply Wall St
Should You Buy Suncorp Group Limited (ASX:SUN) For Its Dividend?Valuation
Is Suncorp Group undervalued compared to its fair value and its price relative to the market?
15.36x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SUN (A$12.47) is trading above our estimate of fair value (A$10.58)
Significantly Below Fair Value: SUN is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SUN is good value based on its PE Ratio (15.4x) compared to the Insurance industry average (19x).
PE vs Market: SUN is good value based on its PE Ratio (15.4x) compared to the Australian market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: SUN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SUN is good value based on its PB Ratio (1.2x) compared to the AU Insurance industry average (3.1x).
Next Steps
Future Growth
How is Suncorp Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
-3.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SUN's earnings are forecast to decline over the next 3 years (-3.8% per year).
Earnings vs Market: SUN's earnings are forecast to decline over the next 3 years (-3.8% per year).
High Growth Earnings: SUN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SUN's revenue is expected to decline over the next 3 years (-6.1% per year).
High Growth Revenue: SUN's revenue is forecast to decline over the next 3 years (-6.1% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SUN's Return on Equity is forecast to be low in 3 years time (8.5%).
Next Steps
Past Performance
How has Suncorp Group performed over the past 5 years?
-0.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SUN has high quality earnings.
Growing Profit Margin: SUN's current net profit margins (6.8%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: SUN's earnings have declined by -0.2% per year over the past 5 years.
Accelerating Growth: SUN's earnings growth over the past year (10.5%) exceeds its 5-year average (-0.2% per year).
Earnings vs Industry: SUN earnings growth over the past year (10.5%) underperformed the Insurance industry 12.8%.
Return on Equity
High ROE: SUN's Return on Equity (8.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Suncorp 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: SUN has a low level of unsold assets or inventory.
Debt Coverage by Assets: SUN's debt is not covered by short term assets (assets are 0.4x debt).
Financial Institutions Analysis
Asset Level: SUN's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if SUN has a sufficient allowance for bad loans.
Low Risk Liabilities: SUN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if SUN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: SUN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if SUN has an appropriate level of bad loans.
Next Steps
Dividend
What is Suncorp Group's current dividend yield, its reliability and sustainability?
5.61%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: SUN's dividend (5.61%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).
High Dividend: SUN's dividend (5.61%) is in the top 25% of dividend payers in the Australian market (5.35%)
Stability and Growth of Payments
Stable Dividend: SUN's dividend payments have been volatile in the past 10 years.
Growing Dividend: SUN's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.9%), SUN's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SUN's dividends in 3 years are forecast to be covered by earnings (81.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Steve Johnston (53yo)
0.8yrs
Tenure
AU$2,216,000
Compensation
Mr. Steve Johnston, B.Bus (Management), B.Bus (Public Administration), has been Group Chief Executive Officer and Managing Director of Suncorp Group Ltd., and Suncorp-Metway Ltd. since September 9, 2019. H ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD1.47M) is below average for companies of similar size in the Australian market ($USD3.66M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 0.8yrs | AU$2.22m | 0.0087% A$1.4m | |
| Group Chief Financial Officer | 0.8yrs | AU$859.63k | 0.00064% A$100.3k | |
| Chief Information Officer | 3.4yrs | AU$1.48m | 0.0021% A$330.8k | |
| Chief People Experience Officer | 3.9yrs | AU$1.68m | 0.0037% A$584.7k | |
| Chief Executive Officer of Insurance | 2.3yrs | AU$2.13m | 0.0072% A$1.1m | |
| Chief Executive Officer of New Zealand | 4.4yrs | AU$1.80m | 0.0033% A$522.0k | |
| Chief Risk Officer | 3.3yrs | AU$1.30m | 0.0012% A$186.5k | |
| Chief Customer & Digital Officer | 2.6yrs | AU$1.14m | 0.0026% A$406.0k | |
| Head of Investment | 3.6yrs | no data | no data | |
| Executive General Manager of Investor Relations & Communications | 0yrs | no data | no data |
3.3yrs
Average Tenure
Experienced Management: SUN's management team is considered experienced (3.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group CEO | 0.8yrs | AU$2.22m | 0.0087% A$1.4m | |
| Non-Executive Director | 0.08yrs | no data | 0.0018% A$280.6k | |
| Non-Executive Director | 7.8yrs | AU$424.00k | 0.0022% A$349.6k | |
| Non-Executive Director | 2.8yrs | AU$327.00k | 0.0040% A$623.9k | |
| Non-Executive Director | 7.7yrs | AU$274.00k | 0.0014% A$227.3k | |
| Non-Executive Director | 4.3yrs | AU$367.00k | 0.0023% A$363.7k | |
| Non-Executive Director | 2.1yrs | AU$291.00k | 0.00062% A$97.2k | |
| Non-Executive Director | 1.4yrs | AU$217.00k | 0.00061% A$95.6k | |
| Chairman of the Board | 1.4yrs | AU$576.00k | 0.0039% A$605.1k | |
| Non Executive Director | 1.3yrs | AU$200.00k | 0.0019% A$301.0k |
1.8yrs
Average Tenure
56yo
Average Age
Experienced Board: SUN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Suncorp Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Suncorp Group Limited
- Ticker: SUN
- Exchange: ASX
- Founded: 1902
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: AU$15.676b
- Shares outstanding: 1.26b
- Website: https://www.suncorpgroup.com.au
Number of Employees
Location
- Suncorp Group Limited
- Brisbane Square
- Level 28
- Brisbane
- Queensland
- 4000
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SUN | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| SU4 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| SNMY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| SNMC.Y | OTCPK (Pink Sheets LLC) | SPONSRED ADS | US | USD | Oct 2013 | |
| SUNPE | ASX (Australian Securities Exchange) | CNV PRF SHS (CPS3) | AU | AUD | May 2014 | |
| SUNPF | ASX (Australian Securities Exchange) | FRN CNV SUB PERP AUD5000 'REGS' | AU | AUD | May 2017 | |
| SUNPH | ASX (Australian Securities Exchange) | FRN CNV SNR PERP AUD5000 | AU | AUD | Dec 2019 |
Biography
Suncorp Group Limited provides insurance, banking, and wealth products and services to retail, corporate, and commercial sectors in Australia and New Zealand. It operates through Insurance, Banking & Wealth, and Suncorp New Zealand segments. The Insurance segment designs, manufactures, and delivers general insurance products and services, including home and contents, motor, marine, travel, commercial property, industrial special risk, public liability and professional indemnity, workers’ compensation, compulsory third party, loan protection, and equity and cash benefit products. The Banking & Wealth segment designs, manufactures, and delivers banking, financial planning, and superannuation and fund administration services, such as commercial, agribusiness, small business, home and personal loans, savings and transaction accounts, foreign exchange services, treasury products and services, superannuation services, and funds administration and financial planning services. The Suncorp New Zealand segment designs, manufactures, and delivers general and life insurance products comprising home and contents, motor, commercial property, public liability and professional indemnity, life, trauma, total and permanent disablement, and income protection. The company was formerly known as Suncorp-Metway Limited and changed its name to Suncorp Group Limited in December 2010. Suncorp Group Limited was founded in 1902 and is based in Brisbane, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 10:32 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.