DB:1S6

Stock Analysis Report

Executive Summary

Steadfast Group Limited provides general insurance brokerage services Australasia, Asia, and Europe.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.

Share Price & News

How has Steadfast Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

DB:1S6

-1.0%

DE Insurance

-0.6%

DE Market


1 Year Return

25.4%

DB:1S6

18.5%

DE Insurance

-7.8%

DE Market

1S6 outperformed the Insurance industry which returned 19.7% over the past year.

1S6 outperformed the Market in Germany which returned -7.4% over the past year.


Share holder returns

1S6IndustryMarket
7 Day2.4%-1.0%-0.6%
30 Day11.5%1.0%0.1%
90 Day7.3%2.2%-3.5%
1 Year28.8%25.4%23.7%18.5%-4.9%-7.8%
3 Year75.0%61.2%82.6%60.6%18.2%8.0%
5 Year194.2%140.3%99.4%59.7%30.3%12.3%

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

No news available

Valuation

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

34.84x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

Steadfast Group is overvalued based on earnings compared to the DE Insurance industry average.

Steadfast Group is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

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


Price Based on Value of Assets

Steadfast Group is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is Steadfast Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Steadfast Group's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Steadfast Group's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Steadfast Group's revenue growth is positive but not above the Germany market average.

Steadfast Group's earnings growth is positive but not above the Germany market average.

Steadfast Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Steadfast Group performed over the past 5 years?

25.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Steadfast Group has delivered over 20% year on year earnings growth in the past 5 years.

Steadfast Group's 1-year earnings growth exceeds its 5-year average (31.8% vs 25.5%)

Steadfast Group's earnings growth has exceeded the DE Insurance industry average in the past year (31.8% vs 9.4%).


Return on Equity

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


Return on Assets

Steadfast Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

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


Next Steps

Financial Health

How is Steadfast Group's financial position?


Financial Position Analysis

Steadfast Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Steadfast Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Steadfast Group's level of debt (31.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (1.7% vs 31.2% today).

Debt is well covered by operating cash flow (41.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 13.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

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

2.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Steadfast Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).

Steadfast Group's dividend is below the markets top 25% of dividend payers in Germany (3.9%).

Steadfast Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Steadfast Group only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Robert Kelly (72yo)

23.3yrs

Tenure

AU$3,070,953

Compensation

Mr. Robert Bernard Kelly is the Co-Founder of Steadfast Group Limited and has been its Chief Executive Officer and Managing Director since April 18, 1996. Mr. Kelly has over 45 years' experience in the ins ...


CEO Compensation Analysis

Robert's remuneration is higher than average for companies of similar size in Germany.

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


Management Age and Tenure

6.1yrs

Average Tenure

56yo

Average Age

The average tenure for the Steadfast Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

72yo

Average Age

The tenure for the Steadfast Group board of directors is about average.


Insider Trading

Steadfast Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€2,178,97007 Jun 19
Robert Kelly
EntityIndividual
Role
Co-Founder
Member of the Board of Directors
Shares1,142,863
Max Price€1.91
Buy€3,079,12726 May 19
The Vanguard Group, Inc.
EntityCompany
Shares1,453,081
Max Price€2.12
Sell€301,37910 Apr 19
Challenger Limited
EntityCompany
Shares152,086
Max Price€1.98
Buy€10,180,43810 Apr 19
Challenger Limited
EntityCompany
Shares5,501,341
Max Price€1.85
Buy€18,54522 Mar 19
Gai McGrath
EntityIndividual
Role
Member of the Board of Directors
Shares9,250
Max Price€2.00
Sell€2,773,89313 Mar 19
Vinva Investment Management
EntityCompany
Shares1,399,494
Max Price€1.98
Buy€836,07313 Mar 19
Vinva Investment Management
EntityCompany
Shares476,619
Max Price€1.75
Buy€4,596,40306 Mar 19
AustralianSuper Pty Ltd
EntityCompany
Shares2,288,481
Max Price€2.01
Sell€3,851,18206 Mar 19
AustralianSuper Pty Ltd
EntityCompany
Shares1,988,103
Max Price€1.94
Sell€21,56105 Mar 19
Francis O'Halloran
EntityIndividual
Role
Chairman of the Board
Shares11,000
Max Price€1.96
Buy€205,91627 Feb 19
Francis O'Halloran
EntityIndividual
Role
Chairman of the Board
Shares105,000
Max Price€1.96
Sell€439,44427 Feb 19
Robert Kelly
EntityIndividual
Role
Co-Founder
Member of the Board of Directors
Shares225,000
Max Price€1.95
Sell€19,65027 Feb 19
Gregory Rynenberg
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max Price€1.96
Sell€639,58427 Feb 19
Francis O'Halloran
EntityIndividual
Role
Chairman of the Board
Shares326,107
Max Price€1.97
Buy€30,779,82802 Jan 19
Vinva Investment Management
EntityCompany
Shares17,483,388
Max Price€1.76
Sell€20,384,98502 Jan 19
Vinva Investment Management
EntityCompany
Shares11,614,946
Max Price€1.76
Buy€9,908,68820 Dec 18
AustralianSuper Pty Ltd
EntityCompany
Shares5,079,029
Max Price€1.95
Sell€3,951,26820 Dec 18
AustralianSuper Pty Ltd
EntityCompany
Shares2,047,523
Max Price€1.93
Buy€19,203,40121 Nov 18
Challenger Limited
EntityCompany
Shares10,469,754
Max Price€1.83
Sell€1,804,05821 Nov 18
Challenger Limited
EntityCompany
Shares937,394
Max Price€1.92
Sell€205,00016 Nov 18
David Liddy
EntityIndividual
Role
Member of the Board of Directors
Shares105,455
Max Price€1.94
Sell€606,55806 Sep 18
Francis O'Halloran
EntityIndividual
Role
Chairman of the Board
Shares325,000
Max Price€1.87
Sell€1,983,24406 Sep 18
Robert Kelly
EntityIndividual
Role
Co-Founder
Member of the Board of Directors
Shares1,090,480
Max Price€1.82
Sell€926,65806 Sep 18
Robert Kelly
EntityIndividual
Role
Co-Founder
Member of the Board of Directors
Shares509,520
Max Price€1.82
Buy€140,25606 Sep 18
Francis O'Halloran
EntityIndividual
Role
Chairman of the Board
Shares75,000
Max Price€1.87

Ownership Breakdown


Management Team

  • Peter Roberts (49yo)

    Executive General Manager of Business Solutions

  • Stephen Humphrys

    Chief Financial Officer

    • Tenure: 6.5yrs
    • Compensation: A$1.48m
  • Duncan A. Ramsay (56yo)

    General Counsel

    • Tenure: 4.0yrs
  • Allan Reynolds

    Executive General Manager of Direct

    • Tenure: 16.6yrs
    • Compensation: A$873.03k
  • Simon Lightbody

    Chief Executive Officer of Steadfast Underwriting Agencies

    • Tenure: 4.0yrs
    • Compensation: A$843.88k
  • Sam Hollman

    Chief Operating Officer

    • Tenure: 2.8yrs
    • Compensation: A$1.02m
  • Robert Kelly (72yo)

    Co-Founder

    • Tenure: 23.3yrs
    • Compensation: A$3.07m
  • Linda Ellis

    Group Company Secretary & Corporate Counsel

    • Tenure: 6.1yrs
    • Compensation: A$524.33k
  • Nick Cook

    Executive General Manager of Partner & Broker Services

  • Martyn Thompson

    Executive General Manager of Corporate Development


Board Members

  • Frank O'Halloran (73yo)

    Non-Executive Independent Chairman

    • Tenure: 6.8yrs
    • Compensation: A$242.05k
  • David Liddy (69yo)

    Non-Executive Independent Director

    • Tenure: 6.5yrs
    • Compensation: A$144.20k
  • Anne O’Driscoll

    Non-Executive Independent Director

    • Tenure: 6.0yrs
    • Compensation: A$144.20k
  • Robert Kelly (72yo)

    Co-Founder

    • Tenure: 23.3yrs
    • Compensation: A$3.07m
  • Gai McGrath

    Non-Executive Independent Director

    • Tenure: 1.1yrs
    • Compensation: A$10.73k
  • Philip Purcell

    Non-Executive Independent Director

    • Tenure: 6.4yrs
    • Compensation: A$128.75k
  • Greg Rynenberg

    Non-Executive Independent Director

    • Tenure: 20.9yrs
    • Compensation: A$128.75k

Company Information

Steadfast Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Steadfast Group Limited
  • Ticker: 1S6
  • Exchange: DB
  • Founded: 1996
  • Industry: insurance brokers
  • Sector: insurance
  • Market Cap: AU$2.880b
  • Listing Market Cap: AU$1.808b
  • Shares outstanding: 789.06m
  • Website: Click here

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 other complementary businesses, including technolo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/24 00:39
End of Day Share Price2019/07/22 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.