Medibank Private (MPL) AI Stock Analysis

• Market Cap: AU$13.08B
• Dividend Yield: 5.7%
• Average Volume (3M): 7.29M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.22
• Revenue Growth: 5.21%
• EPS Growth: -21.15%
• Country: AU
• Employees: 3,220
• Sector: Financial
• Sector Strength: 87
• Industry: Insurance - Diversified
• EPS (TTM): 0.18
• Shares Outstanding: 2,754,003,200
• 10 Day Avg. Volume: 7,174,135
• 30 Day Avg. Volume: 7,293,012
• PEG Ratio: N/A
• Price to Book (P/B): 5.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.03
• 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$4.64
• Price Target Upside: -2.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Medibank Private Ltd. scores well due to its solid financial performance, characterized by strong revenue growth and a robust balance sheet. The positive technical trend further supports the stock's outlook. However, the relatively high P/E ratio and lack of detailed earnings call data or corporate events provide a balanced view of potential growth and valuation risks.

Medibank Private Business Overview & Revenue Model

Company Description

Medibank Private Limited provides private health insurance and health services in Australia. The company operates in two segments, Health Insurance and Medibank Health. The Health Insurance segment provides private health insurance products, including hospital cover that offers members with health cover for hospital treatments; and ancillary cover, which provides members with health cover for healthcare services, such as dental, optical, and physiotherapy. This segment also offers health insurance products to overseas visitors and overseas students. The Medibank Health segment provides health management and in-home care services, as well as a range of telehealth services to government and corporate customers; and distributes travel, life, and pet insurance products. The company underwrites its health insurance products under the Medibank and ahm brands Medibank Private Limited was founded in 1976 and is based in Docklands, Australia.

How the Company Makes Money

Medibank Private Ltd. generates revenue primarily through the sale of health insurance policies to individuals, families, and businesses. The company's key revenue streams include premium income from hospital and extras cover policies, which provide coverage for medical treatments, hospital stays, and additional health services such as dental and optical care. Medibank also earns income from its overseas health cover offerings, catering to international students and visitors in Australia. Additionally, the company has diversified its revenue sources by providing pet insurance and travel insurance. Medibank's earnings are further supported by strategic partnerships with healthcare providers and wellness programs that enhance customer engagement and policy retention.

Medibank Private Financial Statement Overview

Summary

Medibank Private Ltd. demonstrates a solid financial performance with strong revenue growth and profitability, despite challenges in operational efficiency. The balance sheet is robust with low leverage and efficient equity utilization, while cash flow generation shows significant improvement. The company is well-positioned to leverage its financial stability for future growth, though attention to operating expenses is advised.

Income Statement

Medibank Private Ltd. shows consistent revenue growth with a 7.52% increase in the latest year. The gross profit margin remains strong at 100%, indicating effective cost management. However, the decline in EBIT margin from 9.79% to 0.09% and net profit margin from 6.85% to 6.14% suggests pressure on operational efficiency. Despite these challenges, the company's EBITDA margin improved significantly, reflecting better underlying profitability.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 49.21%. The debt-to-equity ratio is low at 0.09, indicating low financial leverage, and ROE is solid at 21.37%, showing effective utilization of equity. Overall, the balance sheet reflects stability and a conservative financial structure, minimizing potential risk from debt.

Cash Flow

Medibank's free cash flow grew substantially by 274.7%, highlighting improved cash generation. The operating cash flow to net income ratio is robust at 1.76, indicating strong cash conversion. However, the free cash flow to net income ratio of 1.65 suggests a potential need to optimize capital expenditures to maintain this positive trend.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
8.34B	8.02B	7.46B	7.20B	6.98B	6.83B
	Gross Profit
8.32B	8.02B	7.46B	7.20B	6.98B	6.83B
	EBIT
7.71B	7.00B	730.30M	557.90M	636.10M	453.60M
	EBITDA
777.40M	724.20M	520.60M	635.10M	0.00	0.00
	Net Income Common Stockholders
1.00M	492.50M	511.10M	393.90M	441.20M	315.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
454.00M	927.90M	420.60M	596.70M	671.70M	871.40M
	Total Assets
4.21B	4.69B	4.39B	4.55B	3.92B	3.75B
	Total Debt
0.00	218.30M	55.30M	76.90M	93.40M	109.20M
	Net Debt
-454.00M	-472.70M	-365.30M	-519.80M	-578.30M	-762.20M
	Total Liabilities
1.82B	2.38B	2.30B	2.61B	2.02B	1.95B
	Stockholders Equity
2.39B	2.31B	2.08B	1.95B	1.91B	1.80B
Cash Flow		Free Cash Flow
616.80M	810.90M	216.30M	927.60M	463.10M	570.90M
	Operating Cash Flow
629.50M	868.50M	258.20M	962.70M	498.20M	600.20M
	Investing Cash Flow
-136.60M	-110.80M	-15.20M	-637.80M	-322.10M	81.40M
	Financing Cash Flow
-524.00M	-487.30M	-419.10M	-399.90M	-375.80M	-466.70M

Medibank Private Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.75
• 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:MPL, the sentiment is Positive. The current price of 4.75 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.47, and above the 200-day MA of 3.90, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MPL.

Medibank Private Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPL	73 Outperform	AU$13.08B	26.72	20.97%	5.70%	5.21%	-21.15%
Sector *	64 Neutral	$12.73B	9.82	7.91%	17015.08%	12.18%	-5.69%

Medibank Private Corporate Events

Medibank to Appeal Court Decision on Cybercrime Reports

Medibank Private Ltd. is responding to a Federal Court decision regarding a consumer class action linked to a 2022 cybercrime event. The court ruled that Deloitte’s reports were not protected by legal professional privilege, while Medibank’s claims for privilege on other reports were upheld. Medibank plans to appeal the decision concerning the Deloitte reports, which could impact its legal strategy and stakeholder relations.

Medibank Announces Cessation of Performance Rights

Medibank Private Limited announced the cessation of 119,145 performance rights due to the lapse of conditional rights, as the conditions were not met by the end of March 2025. This announcement may impact the company’s capital structure and could have implications for stakeholders regarding the company’s performance and future securities management.

AustralianSuper Acquires Substantial Stake in Medibank Private

AustralianSuper Pty Ltd has become a substantial holder in Medibank Private Limited, acquiring a 5.57% voting power with 153,401,934 ordinary shares. This acquisition signifies a significant investment in Medibank, potentially influencing its strategic direction and impacting stakeholders, including shareholders and policyholders.

Medibank Private Limited Releases Half-Year Financial Results

Medibank Private Limited has released its half-year financial results presentation, highlighting the company’s current activities and financial condition as of December 31, 2024. The announcement underscores the company’s strategic positioning within the Australian health insurance market and its ongoing efforts to navigate economic and regulatory challenges. Stakeholders are advised to consider the inherent risks and uncertainties that may impact future performance, as outlined in the presentation.

Medibank Reports Robust Growth and Strategic Investments in Health Transition

Medibank Private Ltd. reported strong financial results for the first half of 2025, highlighting its focus on customer satisfaction and strategic growth in the health insurance sector. The company announced a total COVID-19 financial support package of $1.62 billion, the largest among Australian health insurers, and a further $160 million cash give-back to customers. Medibank’s growth is driven by an increase in both resident and non-resident policyholders, with significant contributions from the student segment. The company is investing in health transition initiatives, including a new short stay surgical center and virtual psychology clinic, to address healthcare system challenges and enhance customer experience. Medibank’s financial performance includes a 13.8% increase in underlying net profit after tax and a fully franked interim dividend of 7.8 cents per share.

Medibank Announces $160 Million Customer Give Back Amid COVID-19 Support

Medibank Private Ltd. has announced a $160 million return to its customers as part of its COVID-19 support package, bringing the total give back to a record $1.62 billion. This initiative is the largest financial give back by any Australian health insurer and is aimed at providing relief to customers amid rising living costs. The give back is funded from COVID-19 permanent net claims savings and will not impact the company’s operating profit for the fiscal year ending June 2025.

Medibank Announces Health Insurance Premium Increase Amid Rising Costs

Medibank Private Ltd. announced a 3.99% increase in health insurance premiums effective April 1, 2025, following approval from the Federal Health Minister. This increase is attributed to rising healthcare costs, particularly in New South Wales, where premiums will rise by 4.81%. Despite these increases, Medibank emphasizes its commitment to affordability, having returned $1.46 billion to customers through various programs. The company continues to focus on cost management and providing value through services like 24/7 health support and rewards programs.