AUB Group (AUB) AI Stock Analysis

• Market Cap: €3.73B
• Dividend Yield: 2.69%
• Average Volume (3M): 240.34K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.88
• Revenue Growth: 6.53%
• EPS Growth: -8.63%
• Country: AU
• Employees: 2,582
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Brokers
• EPS (TTM): 0.68
• Shares Outstanding: 116,587,430
• 10 Day Avg. Volume: 194,680
• 30 Day Avg. Volume: 240,340
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €36.26
• Price Target Upside: 8.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

AUB Group Limited shows a strong financial position with impressive revenue growth and profitability. The company's solid balance sheet and prudent debt management are key strengths. Technical indicators suggest potential short-term weakness, but valuation metrics highlight a high P/E ratio balanced by a solid dividend yield. These factors combine to give a moderately positive outlook for the stock.

AUB Group Business Overview & Revenue Model

Company Description

AUB Group Limited (AUB) is an Australia-based company that operates in the insurance sector, providing a range of risk management, insurance broking, and underwriting services. AUB Group is one of the largest insurance broking networks in Australasia, with operations extending across Australia and New Zealand. The company's core services include insurance broking, underwriting agencies, and risk management solutions, primarily catering to small and medium-sized enterprises (SMEs) and other specialized industries.

How the Company Makes Money

AUB Group Limited generates revenue primarily through its network of insurance brokers and underwriting agencies. The company earns commissions from insurance companies for policies sold through its brokers, which is a key revenue stream. Additionally, AUB benefits from fees charged for risk management consulting and other advisory services. The underwriting agencies managed by AUB also contribute to its income by writing insurance policies and earning underwriting profits. Strategic partnerships with various insurance carriers and a focus on expanding its broker network and service offerings are significant factors that bolster the company's earnings.

AUB Group Financial Statement Overview

Summary

AUB Group Limited demonstrates strong revenue growth and improved profitability, with robust financial health reflected in its balance sheet. While operating cash flow has decreased, the overall cash flow remains positive, supporting the company's operations and growth initiatives. The company's prudent debt management and strong equity position contribute to its solid financial standing.

Income Statement

The company shows strong revenue growth with a significant increase from $826M in 2023 to $1.05B in 2024, representing a growth rate of 27.1%. Gross profit margin is robust at 49.5% for 2024, although it has decreased from the previous year's 89.5%. Net profit margin improved to 13.1% in 2024, indicating increased profitability. EBIT margin also showed improvement, suggesting effective cost management and operational efficiencies. Overall, the income statement reflects strong growth and improving profitability metrics.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.48, showing a conservative leverage approach. Return on equity stands at 9.1%, reflecting efficient use of equity to generate earnings. The equity ratio is healthy at 37.4%, suggesting stability and a strong capital structure. The company's cash position has significantly strengthened over the years, contributing to a robust financial position.

Cash Flow

Operating cash flow decreased from $202M in 2023 to $82M in 2024, which is a potential concern. However, the company maintains positive free cash flow of $75.6M, indicating the ability to sustain operations and invest in growth. The free cash flow to net income ratio is at 0.55, showing that cash generation from operations aligns with net income. Despite the decline in operating cash flow, the overall cash flow position remains positive.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.05B	826.34M	336.86M	315.86M	307.75M
	Gross Profit
519.53M	739.63M	295.08M	280.50M	274.57M
	EBIT
364.17M	181.45M	73.92M	52.27M	58.11M
	EBITDA
219.69M	241.81M	97.47M	73.26M	78.89M
	Net Income Common Stockholders
137.07M	65.25M	80.84M	70.62M	47.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.29B	1.20B	593.48M	282.87M	243.68M
	Total Assets
4.05B	3.88B	1.64B	1.15B	1.02B
	Total Debt
724.69M	661.11M	74.74M	238.15M	261.44M
	Net Debt
-561.62M	-535.61M	-517.72M	-43.67M	18.29M
	Total Liabilities
2.30B	2.37B	642.80M	547.83M	529.94M
	Stockholders Equity
1.51B	1.28B	854.49M	478.75M	429.28M
Cash Flow		Free Cash Flow
75.60M	201.49M	93.34M	111.89M	89.60M
	Operating Cash Flow
82.00M	202.24M	95.53M	112.59M	90.11M
	Investing Cash Flow
-82.81M	-136.85M	118.45M	23.23M	-153.86M
	Financing Cash Flow
89.21M	498.66M	98.80M	-96.99M	87.36M

AUB Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AUB, the sentiment is Positive. The current price of 33.53 is above the 20-day moving average (MA) of 31.63, above the 50-day MA of 30.55, and above the 200-day MA of 30.73, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 68.87 is Neutral, neither overbought nor oversold. The STOCH value of 63.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AUB.

AUB Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBE	77 Outperform	$32.24B	12.21	17.21%	4.25%	6.01%	31.57%
IAG	74 Outperform	$20.10B	15.91	18.88%	3.53%	34.77%	―
MPL	73 Outperform	$12.97B	26.49	20.97%	5.70%	5.21%	-21.15%
AUB	72 Outperform	€3.73B	32.15	7.96%	2.69%	6.53%	-8.63%
SUN	70 Outperform	$22.04B	15.44	9.52%	4.96%	-11.75%	―
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

AUB Group Corporate Events

AUB Group Projects Strong Earnings for FY25 Amid Favorable Trading

AUB Group Limited has announced an optimistic earnings guidance for the fiscal year 2025, forecasting its underlying net profit after tax (UNPAT) to be at the higher end of the AUD 190.0 million to AUD 200.0 million range. This positive outlook is attributed to favorable trading momentum and strategic financial assumptions, including a hedging program for USD operational flows. The announcement suggests a strong financial performance that could enhance AUB’s industry positioning and potentially benefit stakeholders.

AUB Group Director Increases Shareholding

AUB Group Limited has announced a change in the director’s interest, specifically involving Melanie Susan Laing. On March 11, 2025, Laing acquired 1,034 ordinary fully paid shares through an on-market trade, increasing her total holdings to 4,244 shares. This transaction reflects a continued investment in the company by its leadership, potentially signaling confidence in the company’s future performance.

AUB Group Releases 1H25 Investor Presentation

AUB Group Limited has released its 1H25 Investor Presentation, authorized by the AUB Board, highlighting the company’s financial performance and strategic initiatives for the first half of 2025. This announcement is significant for stakeholders as it provides insights into the company’s operational strategies and market positioning, potentially impacting its future growth and industry standing.

AUB Group Reports Strong 1H25 Performance with Global Expansion

AUB Group Limited reported a strong performance for the first half of the fiscal year 2025, with an underlying NPAT of AUD 79.3 million, up from AUD 70.2 million in the previous year. The company saw growth in revenue and profit across its Australian and international operations, with significant contributions from its broking and underwriting segments. The interim dividend was increased to 25.0 cents per share, reflecting the company’s robust financial health. The strategic expansion into international markets and investment in Tysers have enhanced the value of its broking network, positioning AUB for continued growth and profitability.

AUB Group Limited Declares AUD 0.25 Dividend for H2 2024

AUB Group Limited has announced a dividend distribution of AUD 0.25 per share for the six-month period ending December 31, 2024. The ex-dividend date is set for March 6, 2025, with a record date of March 7, 2025, and payment scheduled for April 4, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may impact its financial positioning and stakeholder interests.

AUB Group Limited Reports Mixed Half-Year Financial Results

AUB Group Limited announced its half-year financial results for the period ending December 31, 2024, reporting an 8.43% increase in revenue to AUD 547.7 million. Despite a significant drop in profit from ordinary activities by 50.34% to AUD 26.4 million, the company saw a substantial rise in total comprehensive income by 146.76% to AUD 82.9 million. The underlying NPAT increased by 13.03% to AUD 79.3 million, and an interim dividend of 25.0 cents per security was declared, fully franked at a 30% tax rate.

Mitsubishi UFJ Financial Group Increases Stake in AUB Group Ltd

Mitsubishi UFJ Financial Group, Inc. has increased its relevant interest in voting securities of AUB Group Ltd, now holding a total of 8,319,139 fully paid ordinary shares, representing a voting power increase from 6.09% to 7.14%. This change in substantial holding highlights Mitsubishi UFJ Financial Group’s strengthening position and influence within AUB Group Ltd, potentially affecting the company’s market dynamics and stakeholder relations.

AUB Group Sees Shift in Substantial Shareholder Interest

AUB Group Limited has experienced a change in the interests of one of its substantial holders, First Sentier Investors Holdings Pty Limited, which now holds a significant voting power in the company. This change, effective February 13, 2025, highlights the dynamic nature of shareholder interests and could influence the strategic directions and decision-making processes within AUB Group Limited.