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nib holdings

DB:3GU
Snowflake Description

Excellent balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3GU
DB
A$4B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

nib holdings limited, together with its subsidiaries, provides health insurance services to residents, and international students and visitors in Australia, New Zealand, and internationally. The last earnings update was 154 days ago. More info.


Add to Portfolio Compare Print
  • nib holdings has significant price volatility in the past 3 months.
3GU Share Price and Events
7 Day Returns
1%
DB:3GU
0.5%
DE Insurance
-0.7%
DE Market
1 Year Returns
41.8%
DB:3GU
21.2%
DE Insurance
-7.6%
DE Market
3GU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
nib holdings (3GU) 1% 6% 39.3% 41.8% 56.3% 130.1%
DE Insurance 0.5% 2.1% 2.1% 21.2% 63% 61.1%
DE Market -0.7% -0.9% -3.8% -7.6% 8.2% 11.1%
1 Year Return vs Industry and Market
  • 3GU outperformed the Insurance industry which returned 21.2% over the past year.
  • 3GU outperformed the Market in Germany which returned -7.6% over the past year.
Price Volatility
3GU
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of nib holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for nib holdings.

DB:3GU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= A$1.55 * 23.9%
A$0.37
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. A$1.55
Discount Rate (Cost of Equity) See below 5.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3GU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 30%) (6.52%))
0.81
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.81 * 5.96%)
5.06%

Discounted Cash Flow Calculation for DB:3GU using Excess Returns Model Model

The calculations below outline how an intrinsic value for nib holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:3GU Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (23.9% – 5.06%) * A$1.55)
A$0.29
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$0.29 / (5.06% - 0.23%)
A$6.03
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$1.55 + A$6.03
A$7.58
DB:3GU Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:3GU represents 0.62114x of ASX:NHF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.62114x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (AUD) x Listing Adjustment Factor
= A$ 7.58 x 0.62114
€4.71
Value per share (EUR) From above. €4.71
Current discount Discount to share price of €4.91
= -1 x (€4.91 - €4.71) / €4.71
-4.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of nib holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for nib holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are nib holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3GU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.30
ASX:NHF Share Price ** ASX (2019-07-19) in AUD A$7.9
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.38x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.75x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of nib holdings.

DB:3GU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NHF Share Price ÷ EPS (both in AUD)

= 7.9 ÷ 0.30

26.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • nib holdings is overvalued based on earnings compared to the DE Insurance industry average.
  • nib holdings is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does nib holdings's expected growth come at a high price?
Raw Data
DB:3GU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 26.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
5.2%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.16x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

DB:3GU PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 26.46x ÷ 5.2%

5.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • nib holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on nib holdings's assets?
Raw Data
DB:3GU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$1.33
ASX:NHF Share Price * ASX (2019-07-19) in AUD A$7.9
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.09x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.71x
DB:3GU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NHF Share Price ÷ Book Value per Share (both in AUD)

= 7.9 ÷ 1.33

5.94x

* Primary Listing of nib holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • nib holdings is overvalued based on assets compared to the DE Insurance industry average.
X
Value checks
We assess nib holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. nib holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is nib holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is nib holdings expected to grow at an attractive rate?
  • nib holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • nib holdings's earnings growth is positive but not above the Germany market average.
  • nib holdings's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3GU Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3GU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 5.2%
DB:3GU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 4.4%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.6%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:3GU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3GU Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,849 1
2022-06-30 2,721 1
2021-06-30 2,572 156 4
2020-06-30 2,474 153 4
2019-06-30 2,360 142 4
DB:3GU Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,366 191 136
2018-09-30 2,314 186 134
2018-06-30 2,262 180 132
2018-03-31 2,196 175 126
2017-12-31 2,129 170 119
2017-09-30 2,083 171 119
2017-06-30 2,037 172 120
2017-03-31 2,001 164 120
2016-12-31 1,964 157 121
2016-09-30 1,927 153 107
2016-06-30 1,890 148 93
2016-03-31 1,835 132 85

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • nib holdings's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • nib holdings's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3GU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from nib holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3GU Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.32 0.35 0.29 5.00
2020-06-30 0.32 0.35 0.30 7.00
2019-06-30 0.31 0.35 0.29 7.00
DB:3GU Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.30
2018-09-30 0.30
2018-06-30 0.29
2018-03-31 0.28
2017-12-31 0.27
2017-09-30 0.27
2017-06-30 0.27
2017-03-31 0.27
2016-12-31 0.28
2016-09-30 0.24
2016-06-30 0.21
2016-03-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • nib holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess nib holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
nib holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has nib holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare nib holdings's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • nib holdings's year on year earnings growth rate has been positive over the past 5 years.
  • nib holdings's 1-year earnings growth is less than its 5-year average (14.4% vs 16%)
  • nib holdings's earnings growth has exceeded the DE Insurance industry average in the past year (14.4% vs 9.4%).
Earnings and Revenue History
nib holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from nib holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3GU Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,365.60 135.80
2018-09-30 2,313.95 134.10
2018-06-30 2,262.30 132.40
2018-03-31 2,195.55 125.55
2017-12-31 2,128.80 118.70
2017-09-30 2,083.10 119.15
2017-06-30 2,037.40 119.60
2017-03-31 2,000.75 120.45
2016-12-31 1,964.10 121.30
2016-09-30 1,927.00 107.10
2016-06-30 1,889.90 92.90
2016-03-31 1,834.94 85.37
2015-12-31 1,779.99 77.84
2015-09-30 1,725.30 76.82
2015-06-30 1,670.62 75.80
2015-03-31 1,633.92 73.70
2014-12-31 1,597.22 71.60
2014-09-30 1,562.09 70.76
2014-06-30 1,526.96 69.91
2014-03-31 1,485.40 70.22
2013-12-31 1,443.83 70.53
2013-09-30 1,383.06 68.85
2013-06-30 1,322.29 67.16
2013-03-31 1,269.83 66.39
2012-12-31 1,217.37 65.62
2012-09-30 1,185.19 66.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • nib holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • nib holdings used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.
  • nib holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess nib holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
nib holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is nib holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up nib holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • nib holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • nib holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of nib holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from nib holdings Company Filings, last reported 6 months ago.

DB:3GU Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 605.60 234.40 905.90
2018-09-30 605.60 234.40 905.90
2018-06-30 557.80 230.60 924.10
2018-03-31 557.80 230.60 924.10
2017-12-31 538.90 230.80 829.80
2017-09-30 538.90 230.80 829.80
2017-06-30 427.60 153.20 745.10
2017-03-31 427.60 153.20 745.10
2016-12-31 418.20 153.40 657.50
2016-09-30 418.20 153.40 657.50
2016-06-30 386.10 151.90 670.10
2016-03-31 386.10 151.90 670.10
2015-12-31 362.52 150.73 537.40
2015-09-30 362.52 150.73 537.40
2015-06-30 344.26 63.89 580.81
2015-03-31 344.26 63.89 580.81
2014-12-31 332.35 68.38 521.86
2014-09-30 332.35 68.38 521.86
2014-06-30 356.37 66.85 559.50
2014-03-31 356.37 66.85 559.50
2013-12-31 349.51 66.13 520.61
2013-09-30 349.51 66.13 520.61
2013-06-30 326.15 62.45 494.84
2013-03-31 326.15 62.45 494.84
2012-12-31 315.90 55.28 498.77
2012-09-30 315.90 55.28 498.77
  • nib holdings's level of debt (38.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.9% vs 38.7% today).
  • Debt is well covered by operating cash flow (81.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 27.8x coverage).
X
Financial health checks
We assess nib holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. nib holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is nib holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.66%
Current annual income from nib holdings dividends. Estimated to be 2.81% next year.
If you bought €2,000 of nib holdings shares you are expected to receive €53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • nib holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).
  • nib holdings's dividend is below the markets top 25% of dividend payers in Germany (3.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:3GU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3GU Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 0.22 9.00
2020-06-30 0.22 11.00
2019-06-30 0.22 11.00
DB:3GU Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 0.210 3.379
2018-08-20 0.200 3.662
2018-02-19 0.195 3.312
2017-08-21 0.190 2.995
2017-02-20 0.175 3.075
2016-08-22 0.148 3.153
2015-08-24 0.115 3.033
2015-03-19 0.113 3.130
2014-08-26 0.115 3.570
2014-02-24 0.105 3.525
2013-08-26 0.100 4.209
2013-02-18 0.100 4.481
2012-08-20 0.100 5.302
2011-08-22 0.080 5.351
2011-02-21 0.090 6.477
2010-08-23 0.070 5.541
2010-02-22 0.040 3.154
2009-08-17 0.028 2.233
2009-02-25 0.020 2.381
2008-08-29 0.021 2.708

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of nib holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess nib holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can nib holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. nib holdings has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Fitzgibbon
COMPENSATION A$4,115,454
AGE 59
TENURE AS CEO 16.8 years
CEO Bio

Mr. Mark Fitzgibbon, MBA( UTS ), MA( MGSM ), ALCA, FAICD has been the Chief Executive Officer of NIB Holdings Limited since October 2002 and has been its Managing Director since May 2007. Mr. Fitzgibbon has been the Chief Executive Officer of NIB Health Funds Limited since October 2002 and serves as its Managing Director. He served as Chief Executive Officer of both the national and NSW peak industry bodies for licensed clubs and served several Chief Executive Officer positions in local government, including General Manager of Bankstown Council from 1995 to 1999. He serves as an Executive Director of NIB Health Funds Limited. He has been a Director of NIB Holdings Limited since May 28, 2007. Mr. Fitzgibbon serves as a Director of NIB Nzed limited, Nib Health Care Services, Nib Servicing Facilities pty limited, TOWER Medical Insurance Limited and IMAN Australian Health Plans Pty Ltd. Mr. Fitzgibbon serves as a Director of various nib holdings subsidiaries including World Nomads Group Pty Limited. He serves as a Director of The Australian Health Insurance Association Ltd and Member of the Newcastle City Council Financial Advisory Panel. He served as a Director of the Newcastle Knights and the Australian Health Services Alliance. He is a Fellow of the Australian Institute of Company Directors. Mr. Fitzgibbon has Masters in Business Administration from University Of Technology Sydney and has an MA from Macquarie Graduate School Of Management. He is a ALCA (Charles Sturt University).

CEO Compensation
  • Mark's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Mark's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the nib holdings management team in years:

6.2
Average Tenure
  • The average tenure for the nib holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Fitzgibbon

TITLE
MD, CEO & Executive Director
COMPENSATION
A$4M
AGE
59
TENURE
16.8 yrs

Michelle McPherson

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
16.3 yrs

Brendan Mills

TITLE
Chief Information Officer
COMPENSATION
A$773K
TENURE
7.1 yrs

Roslyn Toms

TITLE
Chief Risk Officer
COMPENSATION
A$608K
TENURE
2 yrs

Wendy Lenton

TITLE
Group Executive of People & Culture
COMPENSATION
A$597K
TENURE
1.9 yrs

Rob Hennin

TITLE
Chief Executive Officer of NIB New Zealand
COMPENSATION
A$1M
TENURE
6.2 yrs

Rhod McKensey

TITLE
Group Executive of Australian Residents Health Insurance
COMPENSATION
A$2M

Justin Vaughan

TITLE
Group Executive of Benefits & Provider Relations
COMPENSATION
A$778K

David Kan

TITLE
Group Executive of International & New Business
COMPENSATION
A$895K
TENURE
4.5 yrs

Matthew Neat

TITLE
Head of Corporate Affairs & Investor Relations
Board of Directors Tenure

Average tenure and age of the nib holdings board of directors in years:

5.7
Average Tenure
59
Average Age
  • The tenure for the nib holdings board of directors is about average.
Board of Directors

Steve Crane

TITLE
Chairman of the Board
COMPENSATION
A$300K
AGE
67
TENURE
7.8 yrs

Mark Fitzgibbon

TITLE
MD, CEO & Executive Director
COMPENSATION
A$4M
AGE
59
TENURE
12.2 yrs

Christine McLoughlin

TITLE
Independent Non-Executive Director
COMPENSATION
A$163K
AGE
56
TENURE
8.3 yrs

Lee Ausburn

TITLE
Independent Non-Executive Director
COMPENSATION
A$163K
TENURE
5.7 yrs

Anne Loveridge

TITLE
Independent Non-Executive Director
COMPENSATION
A$209K
AGE
58
TENURE
2.4 yrs

Donal O’Dwyer

TITLE
Independent Non-Executive Director
COMPENSATION
A$150K
AGE
66
TENURE
3.3 yrs

Jacqueline Chow

TITLE
Independent Non-Executive Director
COMPENSATION
A$35K
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • nib holdings individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. May 19 Sell Mark Fitzgibbon Individual 21. May 19 21. May 19 -80,000 €4.10 €-328,168
09. May 19 Buy Jacqueline Chow Individual 06. May 19 06. May 19 46,000 €3.65 €167,853
11. Jan 19 Buy Realindex Investments Pty Limited Company 28. Dec 18 10. Jan 19 19,779 €3.30 €65,218
11. Jan 19 Buy Colonial First State Asset Management (Australia) Limited Company 24. Dec 18 08. Jan 19 83,562 €3.25 €268,026
24. Dec 18 Sell Realindex Investments Pty Limited Company 19. Dec 18 21. Dec 18 -405,621 €3.00 €-1,215,888
24. Dec 18 Buy Realindex Investments Pty Limited Company 17. Dec 18 21. Dec 18 165,149 €3.04 €502,016
24. Dec 18 Sell Colonial First State Asset Management (Australia) Limited Company 18. Dec 18 19. Dec 18 -75,000 €3.01 €-225,476
24. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 17. Dec 18 19. Dec 18 144,819 €2.98 €431,589
17. Dec 18 Buy Realindex Investments Pty Limited Company 14. Dec 18 14. Dec 18 2,649 €3.07 €8,143
17. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 14. Dec 18 14. Dec 18 73,514 €3.07 €225,618
14. Dec 18 Sell Colonial First State Asset Management (Australia) Limited Company 13. Dec 18 13. Dec 18 -56,561 €2.96 €-167,663
14. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 11. Dec 18 11. Dec 18 32,291 €3.02 €97,101
12. Dec 18 Buy Realindex Investments Pty Limited Company 03. Dec 18 07. Dec 18 15,240 €3.14 €47,906
12. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 05. Dec 18 11. Dec 18 276,917 €3.04 €840,599
05. Dec 18 Buy Realindex Investments Pty Limited Company 03. Dec 18 03. Dec 18 1,980 €3.26 €6,460
03. Dec 18 Buy Realindex Investments Pty Limited Company 30. Jul 18 30. Nov 18 928,010 €3.52 €3,270,612
03. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 30. Jul 18 30. Nov 18 451,519 €3.84 €1,722,950
03. Sep 18 Sell Mark Fitzgibbon Individual 29. Aug 18 29. Aug 18 -60,000 €3.96 €-237,520
03. Sep 18 Buy Mark Fitzgibbon Individual 01. Sep 18 01. Sep 18 91,561 €4.00 €366,651
X
Management checks
We assess nib holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. nib holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

nib holdings limited, together with its subsidiaries, provides health insurance services to residents, and international students and visitors in Australia, New Zealand, and internationally. It operates through Australian Residents Health Insurance, New Zealand Residents Health Insurance, International (Inbound) Health Insurance, and World Nomads Group segments. The company offers health insurance products, including single, couples, and family health insurance; life insurance; travel insurance; and funeral and income protection insurance services, as well as health insurance for international workers. nib holdings limited was founded in 1952 and is headquartered in Newcastle, Australia.

Details
Name: nib holdings limited
3GU
Exchange: DB
Founded: 1952
A$2,259,077,105
455,346,272
Website: http://www.nib.com.au
Address: nib holdings limited
22 Honeysuckle Drive,
Newcastle,
New South Wales, 2300,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NHF Ordinary Shares Australian Securities Exchange AU AUD 05. Nov 2007
DB 3GU Ordinary Shares Deutsche Boerse AG DE EUR 05. Nov 2007
CHIA NHF Ordinary Shares Chi-X Australia AU AUD 05. Nov 2007
Number of employees
Current staff
Staff numbers
1,300
nib holdings employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/21 22:52
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/02/17
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.