ASX:SUNPF

Stock Analysis Report

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Executive Summary

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


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: SUNPF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

SUNPF

-3.0%

AU Insurance

-1.6%

AU Market


1 Year Return

n/a

SUNPF

-33.7%

AU Insurance

-10.9%

AU Market

Return vs Industry: Insufficient data to determine how SUNPF performed against the Australian Insurance industry.

Return vs Market: Insufficient data to determine how SUNPF performed against the Australian Market.


Shareholder returns

SUNPFIndustryMarket
7 Day0.5%-3.0%-1.6%
30 Day0.08%-11.4%-3.7%
90 Day1.2%-12.3%-1.4%
1 Yearn/a-31.9%-33.7%-7.7%-10.9%
3 Yearn/a-13.3%-24.0%16.2%1.3%
5 Yearn/a2.3%-18.7%37.8%9.6%

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

No news available

Valuation

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

17.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SUNPF (A$102.29) is trading above our estimate of fair value (A$79.88)

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


Price To Earnings Ratio

PE vs Industry: SUNPF is good value based on its PE Ratio (17.4x) compared to the AU Insurance industry average (22.5x).

PE vs Market: SUNPF is good value based on its PE Ratio (17.4x) compared to the Australian market (20x).


Price to Earnings Growth Ratio

PEG Ratio: SUNPF is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SUNPF is good value based on its PB Ratio (0.9x) compared to the AU Insurance industry average (2.8x).


Next Steps

Future Growth

How is Suncorp Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUNPF's forecast earnings growth (14.6% per year) is above the savings rate (2.3%).

Earnings vs Market: SUNPF's earnings (14.6% per year) are forecast to grow slower than the Australian market (17.3% per year).

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

Revenue vs Market: SUNPF's revenue is expected to decline over the next 3 years (-15.8% per year).

High Growth Revenue: SUNPF's revenue is forecast to decline over the next 3 years (-15.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SUNPF's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has Suncorp Group performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUNPF has high quality earnings.

Growing Profit Margin: SUNPF's current net profit margins (4.2%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: SUNPF's earnings have declined by 4.3% per year over the past 5 years.

Accelerating Growth: SUNPF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SUNPF had negative earnings growth (-40.5%) over the past year, making it difficult to compare to the Insurance industry average (-33.8%).


Return on Equity

High ROE: SUNPF's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Suncorp Group's financial position?


Financial Position Analysis

Short Term Liabilities: SUNPF's short term assets (A$10.6B) do not cover its short term liabilities (A$56.8B).

Long Term Liabilities: SUNPF's short term assets (A$10.6B) do not cover its long term liabilities (A$26.1B).


Debt to Equity History and Analysis

Debt Level: SUNPF's debt to equity ratio (182.2%) is considered high.

Reducing Debt: SUNPF's debt to equity ratio has reduced from 183.2% to 182.2% over the past 5 years.

Debt Coverage: SUNPF's debt is not well covered by operating cash flow (9.9%).

Interest Coverage: SUNPF's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SUNPF's dividend (4.19%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: SUNPF's dividend (4.19%) is low compared to the top 25% of dividend payers in the Australian market (5.7%).


Stability and Growth of Payments

Stable Dividend: SUNPF's dividend payments have been volatile in the past 10 years.

Growing Dividend: SUNPF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), SUNPF's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SUNPF's dividends in 3 years are forecast to be covered by earnings (76.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Steve Johnston (53 yo)

1.42yrs

Tenure

AU$3,319,000

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 ($USD2.38M) is about average for companies of similar size in the Australian market ($USD2.64M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steve Johnston
Group CEO1.42yrsAU$3.32m0.010%
A$ 1.1m
Jeremy Robson
Group Chief Financial Officer1.42yrsAU$1.06m0.0013%
A$ 138.0k
Amanda Revis
Group Executive People & Culture4.58yrsAU$1.58m0.0053%
A$ 566.0k
Paul Smeaton
Chief Operating Officer of Insurance5.08yrsAU$1.61m0.0049%
A$ 527.2k
Fiona Thompson
Chief Risk Officer4yrsAU$1.46m0.0025%
A$ 266.3k
Lisa Harrison
Chief Executive Officer of Insurance Product & Portfolio3.25yrsAU$1.20m0.0035%
A$ 376.2k
Adam Bennett
Chief Information Officer0.25yrno datano data
Andrew Dempster
Head of Investor Relationsno datano datano data
Belinda Speirs
Group General Counsel1yrno datano data
Brett Zarb
Head of External Relationsno datano datano data
Clive van Horen
CEO of Banking & Wealth0.17yrno datano data
Darren Solomon
Company Secretary10.58yrsno datano data

2.3yrs

Average Tenure

Experienced Management: SUNPF's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steve Johnston
Group CEO1.42yrsAU$3.32m0.010%
A$ 1.1m
Elmer Funke Kupper
Independent Non-Executive Director0.75yrAU$129.00k0.0027%
A$ 295.4k
Douglas McTaggart
Independent Non-Executive Director8.5yrsAU$442.00k0.0032%
A$ 343.9k
Simon C. Machell
Independent Non-Executive Director3.5yrsAU$339.00k0.0047%
A$ 506.7k
Sally Herman
Independent Non-Executive Director5yrsAU$349.00k0.0031%
A$ 338.5k
Lindsay Tanner
Independent Non-Executive Director2.75yrsAU$311.00k0.0015%
A$ 157.4k
Sylvia Falzon
Independent Non-Executive Director2.08yrsAU$289.00k0.0013%
A$ 141.2k
Christine McLoughlin
Independent Chairman of the Board2.08yrsAU$657.00k0.0038%
A$ 410.7k
Ian Hammond
Independent Non Executive Director2yrsAU$307.00k0.0031%
A$ 335.3k

2.1yrs

Average Tenure

57yo

Average Age

Experienced Board: SUNPF's board of directors are not considered experienced ( 2.1 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.


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: SUNPF
  • Exchange: ASX
  • Founded: 1902
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: AU$10.781b
  • Shares outstanding: 1.28b
  • 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)SPONSRED ADSUSUSDOct 2013
SUNPEASX (Australian Securities Exchange)CNV PRF SHS (CPS3)AUAUDMay 2014
SUNPFASX (Australian Securities Exchange)FRN CNV SUB PERP AUD1000 'REGS'AUAUDMay 2017
SUNPHASX (Australian Securities Exchange)FRN CNV SNR PERP AUD100AUAUDDec 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 three segments: Insurance, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 10:35
End of Day Share Price2020/09/30 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.