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NIB Holdings Ltd (AU:NHF)
ASX:NHF
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NIB Holdings Ltd (NHF) AI Stock Analysis

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AU:NHF

NIB Holdings Ltd

(Sydney:NHF)

Rating:72Outperform
Price Target:
AU$8.50
▲(12.73% Upside)
NIB Holdings Ltd demonstrates strong financial performance with robust revenue growth and operational efficiency, supported by a stable balance sheet. The technical analysis indicates a positive trend, although momentum is limited. The valuation is reasonable, with a moderate P/E ratio and an attractive dividend yield. These factors collectively contribute to a solid overall stock score.

NIB Holdings Ltd (NHF) vs. iShares MSCI Australia ETF (EWA)

NIB Holdings Ltd Business Overview & Revenue Model

Company DescriptionNIB Holdings Ltd (NHF) is an Australian health insurance company primarily focused on providing health and medical insurance products to residents in Australia and New Zealand. The company operates through various segments, including Australian Residents Health Insurance, New Zealand Residents Health Insurance, International (Inbound) Health Insurance, and World Nomads Group Travel Insurance. NIB Holdings Ltd is dedicated to offering a range of health insurance policies tailored to individuals, families, and corporate clients, aiming to provide financial protection and access to quality healthcare services.
How the Company Makes MoneyNIB Holdings Ltd generates revenue primarily through the sale of health insurance policies. The company's key revenue streams include premium income from individual and group health insurance plans for Australian and New Zealand residents, which form the core of its earnings. Additionally, NIB Holdings earns revenue from international health insurance policies, targeting inbound travelers and expatriates. The World Nomads Group contributes to its earnings through travel insurance products. NIB Holdings also benefits from investment income derived from the reserves held to cover future claims. Strategic partnerships with healthcare providers and a focus on digital distribution channels further enhance its market reach and profitability.

NIB Holdings Ltd Financial Statement Overview

Summary
NIB Holdings Ltd exhibits strong revenue growth and operational efficiency, supported by a solid balance sheet with manageable leverage. While profitability margins are healthy, there is potential for improvement in net profit margins. Cash flow management shows some challenges, particularly in free cash flow growth, but overall cash conversion remains effective. The company is well-positioned for continued growth, with a stable financial foundation.
Income Statement
85
Very Positive
NIB Holdings Ltd has demonstrated strong revenue growth with a 51.5% increase in the latest year, indicating robust business expansion. The gross profit margin remains high, reflecting efficient cost management. However, the net profit margin is relatively modest at 5.6%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, supporting operational efficiency.
Balance Sheet
78
Positive
The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.28, indicating prudent leverage management. Return on equity is strong at 17.98%, reflecting effective use of shareholder funds. The equity ratio is moderate, suggesting a balanced capital structure. Overall, the balance sheet reflects financial stability with manageable debt levels.
Cash Flow
70
Positive
Cash flow analysis reveals a decline in free cash flow growth, which decreased by 30.3%, highlighting potential challenges in cash generation. However, the operating cash flow to net income ratio is favorable, indicating good cash conversion. The free cash flow to net income ratio is also strong, suggesting efficient cash utilization despite recent growth challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.62B3.59B3.44B3.12B2.79B2.60B
Gross Profit3.13B3.13B3.40B3.12B2.79B2.60B
EBITDA277.80M324.60M287.20M220.60M236.80M274.80M
Net Income199.80M199.80M185.60M191.10M133.80M160.50M
Balance Sheet
Total Assets2.19B2.19B2.11B2.19B1.94B1.75B
Cash, Cash Equivalents and Short-Term Investments404.60M404.60M459.80M243.00M206.90M213.90M
Total Debt310.20M310.20M306.80M291.80M311.70M289.90M
Total Liabilities1.08B1.08B1.07B1.21B1.21B1.05B
Stockholders Equity1.11B1.11B1.04B967.20M720.10M690.10M
Cash Flow
Free Cash Flow112.10M112.10M208.50M194.40M311.00M85.10M
Operating Cash Flow165.70M165.70M257.10M246.70M337.60M108.70M
Investing Cash Flow-79.30M-74.20M-98.10M-236.50M-259.30M-23.50M
Financing Cash Flow-123.10M-128.20M-125.20M26.00M-84.40M-69.30M

NIB Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.54
Price Trends
50DMA
7.34
Positive
100DMA
7.06
Positive
200DMA
6.47
Positive
Market Momentum
MACD
0.07
Positive
RSI
50.85
Neutral
STOCH
27.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NHF, the sentiment is Neutral. The current price of 7.54 is below the 20-day moving average (MA) of 7.61, above the 50-day MA of 7.34, and above the 200-day MA of 6.47, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 27.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:NHF.

NIB Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€3.73B18.6918.51%3.58%5.90%7.22%
68
Neutral
$17.95B11.5410.27%3.74%9.64%1.17%
$13.52B15.2619.09%2.33%
$8.97B26.9121.28%3.59%
$21.40B10.9318.97%4.29%
$14.99B13.6312.51%24.45%
60
Neutral
AU$4.40B31.8619.56%2.93%37.42%38.37%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NHF
NIB Holdings Ltd
7.46
1.47
24.50%
IAUGF
Insurance Australia Group Limited
5.68
0.66
13.15%
MDBPF
Medibank Private
3.17
1.23
63.40%
QBEIF
QBE Insurance Group Limited
14.15
3.94
38.59%
SNMYF
Suncorp Group
12.38
1.56
14.42%
AU:PNI
Pinnacle Investment Management Group Limited
19.43
3.39
21.13%

NIB Holdings Ltd Corporate Events

NIB Holdings Ltd to Announce 2025 Full-Year Financial Results
Jul 17, 2025

NIB Holdings Ltd is set to release its full-year financial results for the period ending June 30, 2025, on August 25, 2025. Following the announcement, the company’s CEO and CFO will present the results to analysts and investors via a webcast. This event is significant as it provides insights into the company’s financial performance and strategic direction, potentially impacting investor perceptions and market positioning.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$6.40 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

NIB Holdings Ltd Submits Gender Equality Report to WGEA
Jul 14, 2025

NIB Holdings Ltd has submitted its annual compliance report to the Workplace Gender Equality Agency (WGEA) as required by the Workplace Gender Equality Act 2012. This submission underscores the company’s ongoing commitment to promoting gender equality and diversity within its operations, reflecting its dedication to creating an inclusive workplace environment.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$6.40 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

Vanguard Group Increases Stake in nib holdings Limited
Jun 25, 2025

Vanguard Group, a major investment management company, has increased its stake in nib holdings Limited, an Australian health insurance provider. The change in Vanguard’s interest, which now stands at 6.086% of voting power, reflects a significant increase from its previous 5.001% stake. This adjustment in shareholding could potentially influence nib holdings’ market dynamics and stakeholder interests, given Vanguard’s substantial influence in the financial markets.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$6.40 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

NIB Holdings Ltd Updates Share Registry Address
Jun 10, 2025

NIB Holdings Ltd has announced a change in the address of its share registry provider, Computershare Investor Services Pty Limited, effective from 10 June 2025. The new location is at Level 4, 44 Martin Place, Sydney, NSW 2000, with telephone numbers and postal addresses remaining unchanged. This change is part of the company’s routine operational updates and is not expected to have any significant impact on its operations or stakeholders.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$6.40 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

NIB Director Sells Shares to Meet Tax Obligation
May 12, 2025

NIB Holdings Ltd announced that Mr. Edward Close, a director of the company, has sold 32,000 shares on the market to meet a personal income tax obligation. This transaction reflects a change in Mr. Close’s interest in the company’s securities, which is a routine disclosure required by ASX regulations.

NIB Holdings Updates FY25 Performance and Strategic Plans at Conference
May 5, 2025

NIB Holdings Ltd’s CEO, Ed Close, presented at the Macquarie Australia Conference, providing an update on the company’s FY25 business performance. The company remains within its projected FY25 Group Underlying Operating Profit guidance range of $235 million to $250 million and is exploring strategic options for its nib Travel segment, indicating potential shifts in its business strategy.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025