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

Proven 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


Market Performance


7 Day Return

-1.9%

SUN

-0.6%

AU Insurance

1.0%

AU Market


1 Year Return

-5.9%

SUN

6.6%

AU Insurance

6.9%

AU Market

SUN underperformed the Insurance industry which returned 6.6% over the past year.

SUN underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

SUNIndustryMarket
7 Day-1.9%-0.6%1.0%
30 Day1.1%2.0%4.2%
90 Day0.4%0.2%1.6%
1 Year-0.2%-5.9%12.7%6.6%13.0%6.9%
3 Year27.6%7.7%48.3%28.3%39.6%20.9%
5 Year27.7%-4.0%48.0%14.9%52.8%18.7%

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

3 weeks ago | Simply Wall St

What Kind Of Shareholder Appears On The Suncorp Group Limited's (ASX:SUN) Shareholder Register?

Valuation

Is Suncorp Group undervalued based on future cash flows and its price relative to the stock market?

16.69x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Suncorp Group's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Suncorp Group's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Suncorp Group is good value based on earnings compared to the AU Insurance industry average.

Suncorp Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Suncorp Group is poor value based on expected growth next year.


Price Based on Value of Assets

Suncorp Group is good value based on assets compared to the AU Insurance industry average.


Next Steps

Future Growth

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

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Suncorp Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Suncorp Group's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Suncorp Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Suncorp Group's earnings growth is positive but not above the Australia market average.

Suncorp Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Suncorp Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Suncorp Group performed over the past 5 years?

3.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Suncorp Group's year on year earnings growth rate has been positive over the past 5 years.

Suncorp Group's 1-year earnings growth exceeds its 5-year average (10.5% vs 3.2%)

Suncorp Group's earnings growth has exceeded the AU Insurance industry average in the past year (10.5% vs 4%).


Return on Equity

Suncorp Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Suncorp Group used its assets less efficiently than the AU Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Suncorp Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Suncorp Group's financial position?


Financial Position Analysis

Suncorp Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Suncorp Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Suncorp Group's level of debt (190.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (174.7% vs 190.2% today).

Debt is not well covered by operating cash flow (7.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


Next Steps

Dividend

What is Suncorp Group's current dividend yield, its reliability and sustainability?

5.40%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Suncorp Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Suncorp Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Suncorp Group's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Steve Johnston (53yo)

0.3yrs

Tenure

AU$2,216,000

Compensation

Mr. Steve Johnston, B.Bus (Management), B.Bus (Public Administration), serves as Group Chief Executive Officer and Managing Director of Suncorp Group Ltd., and Suncorp-Metway Ltd. since September 9, 2019.  ...


CEO Compensation Analysis

Steve's remuneration is lower than average for companies of similar size in Australia.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

The tenure for the Suncorp Group management team is about average.


Board Age and Tenure

2.0yrs

Average Tenure

56yo

Average Age

The average tenure for the Suncorp Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Suncorp Group individual insiders in the past 3 months.


Recent Insider Transactions

SellAU$353,104,69311 Sep 19
PI Investment Management Limited
EntityCompany
Shares25,993,037
Max PriceAU$13.58
BuyAU$321,627,19711 Sep 19
PI Investment Management Limited
EntityCompany
Shares23,939,662
Max PriceAU$13.43
BuyAU$24,98521 Aug 19
Lindsay Tanner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,900
Max PriceAU$13.15
BuyAU$133,30015 Aug 19
Simon C. Machell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares10,000
Max PriceAU$13.33
BuyAU$55,36013 Aug 19
Sally Herman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares4,000
Max PriceAU$13.84
BuyAU$67,50012 Aug 19
Ian Hammond
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares5,000
Max PriceAU$13.50
BuyAU$11,830,88409 Apr 19
FIL Limited
EntityCompany
Shares863,566
Max PriceAU$13.90
SellAU$286,417,53809 Apr 19
FIL Limited
EntityCompany
Shares21,106,671
Max PriceAU$13.57
SellAU$243,408,84902 Apr 19
FIL Limited
EntityCompany
Shares15,885,354
Max PriceAU$15.32
BuyAU$500,661,51602 Apr 19
FIL Limited
EntityCompany
Shares31,747,719
Max PriceAU$15.77
BuyAU$29,99306 Mar 19
Lindsay Tanner
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares2,175
Max PriceAU$13.79
BuyAU$79,20021 Feb 19
Sally Herman
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares6,000
Max PriceAU$13.20
BuyAU$66,66904 Dec 18
Sylvia Falzon
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceAU$13.34
BuyAU$69,05008 Nov 18
Simon C. Machell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares5,000
Max PriceAU$13.81
BuyAU$209,89930 Oct 18
Ian Hammond
EntityIndividual
Role
Member of the Board of Directors
Non Executive Director
Shares15,000
Max PriceAU$14.00
BuyAU$180,120,70116 Oct 18
PI Investment Management Limited
EntityCompany
Shares12,281,739
Max PriceAU$14.67
BuyAU$348,00025 Sep 18
Christine McLoughlin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares24,000
Max PriceAU$14.50

Ownership Breakdown


Management Team

  • Jeremy Robson

    Acting Chief Financial Officer

    • Tenure: 0.3yrs
    • Compensation: AU$859.63k
  • Amanda Revis

    Chief People Experience Officer

    • Tenure: 3.5yrs
    • Compensation: AU$1.68m
  • Gary Dransfield

    Chief Executive Officer of Insurance

    • Tenure: 1.9yrs
    • Compensation: AU$2.13m
  • Patrick Farrell

    Head of Investment

    • Tenure: 3.2yrs
  • Steve Johnston (53yo)

    Group CEO & MD

    • Tenure: 0.3yrs
    • Compensation: AU$2.22m
  • Paul Smeaton

    Chief Executive Officer of New Zealand

    • Tenure: 4yrs
    • Compensation: AU$1.80m
  • Sarah Harland

    Chief Information Officer

    • Tenure: 3yrs
    • Compensation: AU$1.48m
  • Fiona Thompson

    Chief Risk Officer

    • Tenure: 2.9yrs
    • Compensation: AU$1.30m
  • David Carter

    Chief Executive Officer of Banking & Wealth

    • Tenure: 3yrs
    • Compensation: AU$1.62m
  • Lisa Harrison

    Chief Customer & Digital Officer

    • Tenure: 2.2yrs
    • Compensation: AU$1.14m

Board Members

  • Doug McTaggart (66yo)

    Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: AU$424.00k
  • Simon C. Machell (55yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: AU$327.00k
  • Audette Exel (56yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: AU$274.00k
  • Sally Herman (61yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$367.00k
  • Lindsay Tanner

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: AU$291.00k
  • Sylvia Falzon (54yo)

    Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$217.00k
  • Christine McLoughlin (56yo)

    Chairman of the Board

    • Tenure: 1yrs
    • Compensation: AU$576.00k
  • Ian Hammond (61yo)

    Non Executive Director

    • Tenure: 0.9yrs
    • 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$17.625b
  • Shares outstanding: 1.29b
  • 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
SUNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
SNMC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 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 Analysis2019/09/21 10:31
End of Day Share Price2019/09/20 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.