AUB Group (AUB) AI Stock Analysis

• Market Cap: €3.96B
• Dividend Yield: 2.47%
• Average Volume (3M): 300.51K
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.88
• Revenue Growth: 6.53%
• EPS Growth: -8.63%
• Country: AU
• Employees: 2,582
• Sector: Financial
• Sector Strength: 68
• Industry: Insurance - Brokers
• EPS (TTM): 0.68
• Shares Outstanding: 116,587,430
• 10 Day Avg. Volume: 252,955
• 30 Day Avg. Volume: 300,515
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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: €36.97
• Price Target Upside: 9.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: AU$36.00 ▲(6.95%Upside)

AUB Group Limited shows strong financial performance with robust revenue growth and profitability, supported by a healthy balance sheet. However, technical analysis indicates a bearish trend with potential oversold conditions, and the stock appears overvalued with a high P/E ratio. The absence of earnings call and corporate events data limits the evaluation in those areas.

AUB Group Business Overview & Revenue Model

Company Description

AUB Group (AUB) is a leading Australian insurance broking and underwriting agency group. It operates across various sectors, including insurance brokerage, risk management, and associated services, catering to small and medium-sized enterprises (SMEs). The company provides a range of services that include risk management consulting, general insurance broking, and underwriting agency services, leveraging its extensive network to deliver tailored insurance solutions.

How the Company Makes Money

AUB Group makes money primarily through its insurance broking and underwriting services. The company generates revenue by earning commissions on the insurance policies it brokers for its clients. Additionally, AUB benefits from fees for risk management and consulting services provided to businesses looking to mitigate potential risks. Its underwriting agencies contribute to revenue by utilizing specialized knowledge to assess risks and set premiums for specific types of insurance. AUB Group's earnings are also bolstered by strategic partnerships with insurers and financial institutions, which enhance its service offerings and client base. By maintaining a diversified portfolio of services and leveraging its network, AUB Group sustains its financial growth and stability.

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	740.01M	336.86M	315.86M	307.75M
Gross Profit	519.53M	387.63M	295.08M	169.54M	157.17M
EBITDA	219.69M	241.81M	97.47M	73.26M	78.89M
Net Income	137.07M	65.25M	80.84M	70.62M	47.25M
Balance Sheet
Total Assets	4.05B	3.88B	1.64B	1.15B	1.02B
Cash, Cash Equivalents and Short-Term Investments	1.29B	1.20B	593.48M	282.87M	243.68M
Total Debt	724.69M	661.11M	74.74M	238.15M	261.44M
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: 33.66
• 50DMA: Negative
• 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 33.66 is below the 20-day moving average (MA) of 33.88, below the 50-day MA of 34.58, and above the 200-day MA of 31.86, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 63.59 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
NHF	81 Outperform	€3.59B	22.11	15.78%	3.65%	8.40%	-22.95%
SDF	69 Neutral	€6.54B	27.96	10.23%	3.06%	16.37%	7.50%
HUB	68 Neutral	€8.64B	147.12	11.42%	0.41%	22.81%	32.47%
AUB	66 Neutral	€3.96B	34.17	7.96%	2.47%	6.53%	-8.63%
Sector *	62 Neutral	C$15.13B	6.84	19.06%	5.62%	33.28%	-19.39%
CGF	61 Neutral	$5.63B	38.44	3.85%	3.42%	17.95%	-34.24%
PPT	60 Neutral	€2.40B	―	-24.47%	5.43%	5.36%	-846.00%

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.