NIB Holdings Ltd NHF

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A$7.12 +0.06 (0.85%)

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As of May 27, 2024 12:07am Delayed Price Open

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NIB Holdings' Earnings Outlook Is Positive Even if Private Health Margins Fall

Nathan Zaia Feb 26, 2024

NIB Holdings is Australia’s fourth-largest provider of private health insurance. In addition to private health insurance for Australian and New Zealand residents, the firm also provides health insurance for overseas students and temporary overseas workers in Australia, and distributes travel insurance internationally.

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Price vs Fair Value

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NHF is trading at a 456% premium.

Price

A$7.06

May 24, 2024

Fair Value

A$9.90

Feb 26, 2024

Uncertainty

Medium

1-Star Price: A$76.30
5-Star Price: A$4.21
Economic Moat: Gkmwbch
Capital Allocation: Tvqdfmhl

Bulls Say, Bears Say

Bulls

Industry growth is tied to a steadily increasing population, ageing demographics and a rise in healthcare spending.

Bears

There is increasing risk of the regulator refusing to fully pass through higher claims costs as insurers become highly profitable and if participation falls, which would be detrimental to margins.

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Trading Information

Previous Close Price: A$7.06
Day Range: A$7.10–7.13
52-Week Range: A$7.01–8.95
Bid/Ask: A$7.11 / A$7.13
Market Cap: A$3.42 Bil
Volume/Avg: 7,846 / 969,435

Key Statistics

Price/Earnings (Normalized): 14.21
Price/Sales: 1.04
Dividend Yield (Trailing): 4.25%
Dividend Yield (Forward): 4.25%
Total Yield: 4.26%

Company Profile

NIB Holdings is Australia's fourth-largest health fund. It is a national provider of private health insurance, life insurance, travel insurance, and related healthcare services, with a growing presence in New Zealand. Approximately 55% of the population is covered by private health insurance because of taxation benefits, shorter wait times, a choice of doctor and hospital, and cover of ancillary health services.

Sector: Financial Services
Industry: Insurance - Specialty
Stock Style Box: Mid Core
Total Number of Employees: —
Website: https://www.nib.com.au

Competitors

Valuation

Metric	NHF	MPL	SUN
Price/Earnings (Normalized)	14.21	18.35	17.00
Price/Book Value	3.34	4.24	1.48
Price/Sales	1.04	1.28	1.50
Price/Cash Flow	11.21	26.70	—

Price/Earnings

NHF

MPL

SUN

Financial Strength

Metric	NHF	MPL	SUN
Quick Ratio	—	—	—
Current Ratio	—	—	—
Interest Coverage	18.69	486.06	0.08

Quick Ratio

No chart available

Profitability

Metric	NHF	MPL	SUN
Return on Assets (Normalized)	13.30%	12.90%	1.07%
Return on Equity (Normalized)	27.95%	25.09%	8.88%
Return on Invested Capital (Normalized)	21.49%	21.52%	0.17%

Return on Assets

NHF

MPL

SUN

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