ASX:SUN

Stock Analysis Report

Executive Summary

Suncorp Group Limited provides insurance, banking, and wealth products and services to retail, corporate, and commercial sectors in Australia and New Zealand.

Snowflake

Fundamentals

Solid track record 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

-1.1%

SUN

-0.8%

AU Insurance

0.9%

AU Market


1 Year Return

-5.4%

SUN

8.0%

AU Insurance

16.3%

AU Market

Return vs Industry: SUN underperformed the Australian Insurance industry which returned 8% over the past year.

Return vs Market: SUN underperformed the Australian Market which returned 16.3% over the past year.


Shareholder returns

SUNIndustryMarket
7 Day-1.1%-0.8%0.9%
30 Day-3.2%-1.9%0.6%
90 Day-2.2%-0.3%6.0%
1 Year3.2%-5.4%14.0%8.0%23.0%16.3%
3 Year29.3%6.0%43.2%23.1%41.6%22.3%
5 Year21.6%-11.2%48.2%13.7%57.7%22.5%

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

Valuation

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

15.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUN (A$13.19) is trading above our estimate of fair value (A$9.19)

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 (15.7x) compared to the Insurance industry average (19.8x).

PE vs Market: SUN is good value based on its PE Ratio (15.7x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SUN is poor value based on its PEG Ratio (10.1x)


Price to Book Ratio

PB vs Industry: SUN is good value based on its PB Ratio (1.3x) compared to the AU Insurance industry average (2.9x).


Next Steps

Future Growth

How is Suncorp Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUN's forecast earnings growth (1.6% per year) is below the savings rate (2.3%).

Earnings vs Market: SUN's earnings (1.6% per year) are forecast to grow slower than the Australian market (9.7% per year).

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

Revenue vs Market: SUN's revenue is expected to decline over the next 3 years (-18.5% per year).

High Growth Revenue: SUN's revenue is forecast to decline over the next 3 years (-18.5% 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 (9%).


Next Steps

Past Performance

How has Suncorp Group performed over the past 5 years?

3.2%

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 (6.7%).


Past Earnings Growth Analysis

Earnings Trend: SUN's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: SUN's earnings growth over the past year (10.5%) exceeds its 5-year average (3.2% per year).

Earnings vs Industry: SUN earnings growth over the past year (10.5%) exceeded the Insurance industry 7.2%.


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?

5.47%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.4%markettop25%5.6%industryaverage4.3%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: SUN's dividend (5.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.38%).

High Dividend: SUN's dividend (5.47%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).


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 (85.7%), 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 (79.5% payout ratio).


Next Steps

Management

What is the CEO of Suncorp Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Steve Johnston (53yo)

0.5yrs

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 ($USD1.51M) is below average for companies of similar size in the Australian market ($USD3.63M).

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


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: SUN's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

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.


Insider Trading

Insider Buying: SUN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$84,80204 Nov 19
Simon C. Machell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares6,305
Max PriceAU$13.45
SellAU$353,104,65911 Sep 19
PI Investment Management Limited
EntityCompany
Shares25,239,238.93
Max PriceAU$13.99
BuyAU$321,627,17611 Sep 19
PI Investment Management Limited
EntityCompany
Shares23,245,411.8
Max PriceAU$13.84
BuyAU$24,98521 Aug 19
Lindsay Tanner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,844.9
Max PriceAU$13.54
BuyAU$133,30015 Aug 19
Simon C. Machell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares9,710
Max PriceAU$13.73
BuyAU$55,36013 Aug 19
Sally Herman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares3,884
Max PriceAU$14.25
BuyAU$67,50012 Aug 19
Ian Hammond
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares4,855
Max PriceAU$13.90
SellAU$286,417,53009 Apr 19
FIL Limited
EntityCompany
Shares20,494,577.54
Max PriceAU$13.98
BuyAU$11,830,88309 Apr 19
FIL Limited
EntityCompany
Shares838,522.59
Max PriceAU$14.32
BuyAU$500,661,49402 Apr 19
FIL Limited
EntityCompany
Shares30,827,035.15
Max PriceAU$16.24
SellAU$243,408,84802 Apr 19
FIL Limited
EntityCompany
Shares15,424,678.73
Max PriceAU$15.78
BuyAU$29,99306 Mar 19
Lindsay Tanner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,111.93
Max PriceAU$14.20
BuyAU$79,20021 Feb 19
Sally Herman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,826
Max PriceAU$13.59
BuyAU$66,66904 Dec 18
Sylvia Falzon
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,855
Max PriceAU$13.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jeremy Robson

    Acting Chief Financial Officer

    • Tenure: 0.5yrs
    • Compensation: AU$859.63k
  • Amanda Revis

    Chief People Experience Officer

    • Tenure: 3.7yrs
    • Compensation: AU$1.68m
  • Gary Dransfield

    Chief Executive Officer of Insurance

    • Tenure: 2.1yrs
    • Compensation: AU$2.13m
  • Patrick Farrell

    Head of Investment

    • Tenure: 3.3yrs
  • Steve Johnston (53yo)

    Group CEO

    • Tenure: 0.5yrs
    • Compensation: AU$2.22m
  • Paul Smeaton

    Chief Executive Officer of New Zealand

    • Tenure: 4.2yrs
    • Compensation: AU$1.80m
  • Sarah Harland

    Chief Information Officer

    • Tenure: 3.2yrs
    • Compensation: AU$1.48m
  • Fiona Thompson

    Chief Risk Officer

    • Tenure: 3.1yrs
    • Compensation: AU$1.30m
  • David Carter

    Chief Executive Officer of Banking & Wealth

    • Tenure: 3.2yrs
    • Compensation: AU$1.62m
  • Lisa Harrison

    Chief Customer & Digital Officer

    • Tenure: 2.3yrs
    • Compensation: AU$1.14m

Board Members

  • Doug McTaggart (66yo)

    Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: AU$424.00k
  • Simon C. Machell (55yo)

    Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: AU$327.00k
  • Audette Exel (56yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$274.00k
  • Sally Herman (61yo)

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: AU$367.00k
  • Lindsay Tanner

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: AU$291.00k
  • Sylvia Falzon (54yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$217.00k
  • Christine McLoughlin (56yo)

    Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: AU$576.00k
  • Steve Johnston (53yo)

    Group CEO

    • Tenure: 0.5yrs
    • Compensation: AU$2.22m
  • Ian Hammond (61yo)

    Non Executive Director

    • Tenure: 1.1yrs
    • Compensation: AU$200.00k

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$16.561b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
SU4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
SNMY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
SNMC.YOTCPK (Pink Sheets LLC)SPONSRED ADSUSUSDOct 2013
SUNPEASX (Australian Securities Exchange)CNV PRF SHS (CPS3)AUAUDMay 2014
SUNPFASX (Australian Securities Exchange)FRN CNV SUB PERP AUD100 'REGS'AUAUDMay 2017

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 & Wealt ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 10:31
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.