Steadfast Group Ltd SDF

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A$5.68 +0.10 (1.79%)

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As of Apr 29, 2024 6:10am Delayed Price Closed

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Company Report

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Steadfast Benefiting From Higher Insurance Premiums and Cash Rates

Nathan Zaia Feb 28, 2024

Steadfast Group operates the largest general insurance broker network in Australia and New Zealand. Taking equity interests in insurance broker business, Steadfast has been consolidating the market since it was founded in 1996. It has deployed a similar strategy in underwriting agencies. It derives revenue by being paid a commission (from insurers) based on gross written premium written by agencies within its network, earning a share of profits from associates and joint ventures, and receiving professional services fees.

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Price vs Fair Value

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SDF is trading at a 10% discount.

Price

A$5.68

Apr 29, 2024

Fair Value

A$3.60

Nov 16, 2023

Uncertainty

Medium

1-Star Price: A$8.58
5-Star Price: A$5.69
Economic Moat: Pbpsy
Capital Allocation: Dsbywcwhs

Bulls Say, Bears Say

Bulls

Steadfast's scale and expertise in insurance products and services leave it well placed to benefit from higher insurance pricing.

Bears

The growth prospects for insurance volumes and prices are closely tied to the ebb and flow of the insurance cycle and general economic conditions. Downside risk could increase if Australia's growth outlook weakens.

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Trading Information

Previous Close Price: A$5.58
Day Range: A$5.64–5.72
52-Week Range: A$5.13–6.18
Bid/Ask: A$5.58 / A$5.72
Market Cap: A$6.28 Bil
Volume/Avg: 1.9 Mil / 2.5 Mil

Key Statistics

Price/Earnings (Normalized): 27.34
Price/Sales: 5.41
Dividend Yield (Trailing): 2.77%
Dividend Yield (Forward): 2.38%
Total Yield: 2.77%

Company Profile

Steadfast Group is the largest general insurance broker network in Australia and New Zealand, with over 425 brokers and around 1,900 offices in Australia, New Zealand, Singapore, and London. Steadfast operates as both a broker and a consolidator via equity interests in insurance broker businesses, generating over AUD 12 billion of network broker gross written premium annually. Steadfast also co-owns and consolidates underwriting agencies and other complementary businesses.

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

Competitors

Valuation

Metric	SDF	MMC	PSI
Price/Earnings (Normalized)	27.34	23.73	26.43
Price/Book Value	2.73	7.85	4.16
Price/Sales	5.41	4.24	6.69
Price/Cash Flow	21.70	18.61	25.24

Price/Earnings

SDF

MMC

PSI

Financial Strength

Metric	SDF	MMC	PSI
Quick Ratio	1.48	0.46	1.02
Current Ratio	1.50	1.14	1.21
Interest Coverage	5.85	9.54	7.89

Quick Ratio

SDF

MMC

PSI

Profitability

Metric	SDF	MMC	PSI
Return on Assets (Normalized)	4.40%	9.42%	7.61%
Return on Equity (Normalized)	10.53%	35.90%	18.04%
Return on Invested Capital (Normalized)	4.35%	16.96%	12.05%

Return on Assets

SDF

MMC

PSI

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