NIB Holdings Ltd (NHF) AI Stock Analysis

• Market Cap: €3.29B
• Dividend Yield: 4.57%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.27
• Revenue Growth: 8.40%
• EPS Growth: -22.95%
• Country: AU
• Employees: 1,870
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Specialty
• EPS (TTM): 0.17
• Shares Outstanding: 487,017,030
• 10 Day Avg. Volume: 1,025,049
• 30 Day Avg. Volume: 1,081,464
• PEG Ratio: -1.61
• Price to Book (P/B): 3.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.85
• 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: €7.13
• Price Target Upside: 7.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 78 Outperform
• Price Target: ―

NIB Holdings Ltd demonstrates solid financial performance with strong revenue growth and cash flow management, providing a robust foundation for future growth. The positive technical indicators support an upward trend, although the valuation suggests caution due to a high P/E ratio. The stock is fundamentally sound but may be slightly overvalued.

NIB Holdings Ltd Business Overview & Revenue Model

Company Description

NIB Holdings Ltd (NHF) is an Australian company operating in the health insurance sector. It provides health and medical insurance products to residents, international students, and workers in Australia. The company is also involved in life insurance, travel insurance, and related health services, contributing to its diverse portfolio aimed at supporting the health and well-being of its customers.

How the Company Makes Money

NIB Holdings Ltd makes money primarily through the sale of health insurance policies. Premiums paid by policyholders are the main source of revenue, with the company offering a range of products tailored to different demographics, including domestic residents, international students, and temporary workers. The company also earns income from its various insurance products like travel and life insurance. Additionally, NIB benefits from investments and partnerships with healthcare providers, which help manage costs and enhance service offerings, further contributing to its revenue stream. Factors such as regulatory changes, healthcare costs, and demographic shifts can significantly impact earnings.

NIB Holdings Ltd Financial Statement Overview

Summary

NIB Holdings Ltd exhibits strong financial health with consistent revenue growth, excellent cost management, and effective cash flow generation. The company maintains a balanced capital structure, though there's room for improvement in operational efficiency to enhance margins further.

Income Statement

NIB Holdings Ltd has demonstrated solid revenue growth with a Revenue Growth Rate of approximately 10.25% from 2023 to 2024, indicating strong performance in its sector. The Gross Profit Margin remains robust at 99.19%, showcasing excellent cost management. However, a decline in EBIT Margin from 9.86% in 2023 to 6.44% in 2024 suggests increased operational expenses impacting profitability. Despite this, the Net Profit Margin is relatively healthy at 5.39% for 2024.

Balance Sheet

The company maintains a stable financial structure with a Debt-to-Equity Ratio of 0.29, indicating conservative leverage. The Return on Equity (ROE) for 2024 is 17.80%, reflecting efficient use of equity to generate profits. An Equity Ratio of 49.32% suggests a balanced approach between debt and equity financing, though slightly lower than the previous year, pointing to an increase in liabilities.

Cash Flow

NIB Holdings Ltd shows a strong Free Cash Flow to Net Income Ratio of 1.12, highlighting effective cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is robust at 1.39, indicating healthy cash conversion. The Free Cash Flow Growth Rate from 2023 to 2024 is 7.24%, displaying positive cash flow growth, although slightly below revenue growth, suggesting room for improvement in cash efficiency.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
3.57B	3.44B	3.12B	2.79B	2.60B	2.54B
	Gross Profit
3.57B	3.40B	3.12B	2.79B	2.60B	2.54B
	EBIT
179.60M	221.50M	307.90M	205.00M	242.70M	137.20M
	EBITDA
267.60M	287.20M	220.60M	236.80M	274.80M	169.90M
	Net Income Common Stockholders
162.10M	185.60M	191.10M	133.80M	160.50M	89.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
203.70M	459.80M	243.00M	206.90M	213.90M	198.00M
	Total Assets
2.09B	2.11B	2.19B	1.94B	1.75B	1.74B
	Total Debt
274.80M	306.80M	291.80M	311.70M	289.90M	315.50M
	Net Debt
71.10M	31.50M	48.80M	104.80M	76.00M	117.50M
	Total Liabilities
1.03B	1.07B	1.21B	1.21B	1.05B	1.14B
	Stockholders Equity
1.06B	1.04B	967.20M	720.10M	690.10M	586.40M
Cash Flow		Free Cash Flow
160.90M	208.50M	194.40M	311.00M	85.10M	184.60M
	Operating Cash Flow
170.70M	257.10M	246.70M	337.60M	108.70M	207.60M
	Investing Cash Flow
-87.00M	-98.10M	-236.50M	-259.30M	-23.50M	-59.40M
	Financing Cash Flow
-113.20M	-125.20M	26.00M	-84.40M	-69.30M	-114.50M

NIB Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.65
• 50DMA: Negative
• 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:NHF, the sentiment is Neutral. The current price of 6.65 is below the 20-day moving average (MA) of 6.83, below the 50-day MA of 6.84, and above the 200-day MA of 6.06, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBE	80 Outperform	AU$35.67B	13.52	17.21%	3.74%	6.01%	31.57%
NHF	78 Outperform	€3.29B	20.13	15.78%	4.57%	8.40%	-22.95%
IAG	76 Outperform	$20.98B	16.60	18.88%	3.31%	34.77%	―
SUN	76 Outperform	$23.07B	16.26	9.52%	5.46%	-11.75%	―
PNI	74 Outperform	AU$4.34B	29.72	20.18%	2.94%	36.76%	70.74%
MPL	73 Outperform	$13.44B	27.56	20.97%	5.70%	5.21%	-21.15%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.30%	-7.71%

NIB Holdings Ltd Corporate Events

NIB Director Sells Shares to Meet Tax Obligation

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

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.

NIB Holdings Updates Dividend Distribution Details

NIB Holdings Limited has announced an update to its previous notification regarding the dividend distribution for its ordinary fully paid shares. The update specifically pertains to the Dividend Reinvestment Plan (DRP) price. The dividend relates to a six-month period ending on December 31, 2024, with a record date of March 7, 2025, and an ex-date of March 6, 2025. This update may impact stakeholders who are participating in the DRP as it adjusts the terms of the dividend distribution.