AUB Group (AUB) AI Stock Analysis

• Market Cap: AU$4.12B
• Dividend Yield: 2.56%
• Average Volume (3M): 246.50K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.83
• Revenue Growth: 6.53%
• EPS Growth: -8.63%
• Country: AU
• Employees: 2,582
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Brokers
• EPS (TTM): 0.68
• Shares Outstanding: 116,587,430
• 10 Day Avg. Volume: 230,643
• 30 Day Avg. Volume: 246,504
• PEG Ratio: -0.36
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.86
• 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: AU$36.95
• Price Target Upside: 4.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: AU$40.00 ▲(13.22%Upside)

The overall stock score for AUB Group Limited reflects strong financial performance, with significant revenue growth and profitability improvements. Technical analysis indicates a bullish momentum, although caution is advised due to overbought conditions. Valuation concerns due to a high P/E ratio slightly offset the positive financial and technical outlooks.

AUB Group Business Overview & Revenue Model

Company Description

AUB Group Limited engages in the insurance broking and underwriting businesses in Australia and New Zealand. The company provides insurance broking and advisory services primarily to SME clients; distributes ancillary products; and designs, distributes, and manages insurance products on behalf of licensed insurance companies. It also offers support services, such as loss adjustment, investigations, claims management, and claim legal support services; and automated quoting and binding, white-labelling, and technological support services, as well as ExpressCover; and BizCover, a digital SME insurance platform with multi-channel presence and insurance offerings. The company was formerly known as Austbrokers Holdings Limited and changed its name to AUB Group Limited in November 2015. AUB Group Limited was incorporated in 1885 and is headquartered in North Sydney, Australia.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.09B	1.05B	826.34M	336.86M	315.86M	307.75M
	Gross Profit
543.53M	519.53M	739.63M	295.08M	280.50M	274.57M
	EBIT
387.80M	364.17M	181.45M	73.92M	52.27M	58.11M
	EBITDA
331.97M	219.69M	241.81M	97.47M	73.26M	78.89M
	Net Income Common Stockholders
110.33M	137.07M	65.25M	80.84M	70.62M	47.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
210.89M	1.29B	1.20B	593.48M	282.87M	243.68M
	Total Assets
4.43B	4.05B	3.88B	1.64B	1.15B	1.02B
	Total Debt
856.72M	724.69M	661.11M	74.74M	238.15M	261.44M
	Net Debt
645.83M	-561.62M	-535.61M	-517.72M	-43.67M	18.29M
	Total Liabilities
2.57B	2.30B	2.37B	642.80M	547.83M	529.94M
	Stockholders Equity
1.53B	1.51B	1.28B	854.49M	478.75M	429.28M
Cash Flow		Free Cash Flow
282.08M	75.60M	201.49M	93.34M	111.89M	89.60M
	Operating Cash Flow
287.82M	82.00M	202.24M	95.53M	112.59M	90.11M
	Investing Cash Flow
-272.82M	-82.81M	-136.85M	118.45M	23.23M	-153.86M
	Financing Cash Flow
135.22M	89.21M	498.66M	98.80M	-96.99M	87.36M

AUB Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 35.33 is above the 20-day moving average (MA) of 34.76, above the 50-day MA of 32.59, and above the 200-day MA of 31.05, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.90 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
AUB	75 Outperform	AU$4.12B	35.52	7.96%	2.56%	6.53%	-8.63%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%
CFIGF		$3.56B	32.26	3.85%	4.08%	―	―
3GU		€1.86B	17.66	15.78%	4.57%	―	―
PVQ		€1.17B	―	-24.47%	7.09%	―	―
1S6		€3.72B	25.06	10.23%	3.42%	―	―
FSB		€3.88B	107.14	11.42%	0.56%	―	―

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.