NIB Holdings Ltd (NHF) AI Stock Analysis

• Market Cap: €3.33B
• Dividend Yield: 4.42%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.25
• Revenue Growth: 8.40%
• EPS Growth: -22.95%
• Country: AU
• Employees: 1,870
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Specialty
• EPS (TTM): 0.17
• Shares Outstanding: 487,017,030
• 10 Day Avg. Volume: 969,144
• 30 Day Avg. Volume: 1,220,640
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: €7.10
• Price Target Upside: 2.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

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

NIB Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.90
• 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:NHF, the sentiment is Positive. The current price of 6.9 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.70, and above the 200-day MA of 6.07, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 70.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:NHF.

NIB Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NHF	78 Outperform	€3.33B	20.55	15.78%	4.42%	8.40%	-22.95%
QBE	77 Outperform	$32.24B	12.21	17.21%	4.25%	6.01%	31.57%
IAG	74 Outperform	$20.10B	15.91	18.88%	3.53%	34.77%	―
MPL	73 Outperform	$12.97B	26.49	20.97%	5.70%	5.21%	-21.15%
SUN	70 Outperform	$22.04B	15.44	9.52%	4.96%	-11.75%	―
AHX	65 Neutral	AU$75.42M	512.50	0.11%	4.88%	2.00%	-94.63%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%

NIB Holdings Ltd Corporate Events

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.

NIB Holdings Announces 5.79% Premium Increase Amid Rising Healthcare Costs

NIB Holdings Ltd announced a 5.79% increase in health insurance premiums, effective from April 1, 2025, due to rising healthcare costs and increased service utilization. The company has renewed major contracts with private hospitals to ensure service access and limit out-of-pocket expenses for members. Additionally, NIB is expanding its provider networks with initiatives like ‘Known Gap’ and ‘No Gap’ services to offer capped or zero out-of-pocket costs for eligible members. The premium increase also accounts for higher payments for private rooms in public hospitals in NSW, expected to cost over $20 million annually. NIB aims to balance increased costs with delivering member value and supporting the private healthcare sector.

NIB Holdings Reports Revenue Growth Amidst Market Challenges

NIB Holdings Ltd reported a 7.7% increase in total group revenue to $1.8 billion for the first half of 2025, driven by strong growth in its core health insurance business. While the company saw a decline in underlying operating profit and net profit after tax due to high claims inflation and economic challenges in New Zealand, its Australian health insurance margins have stabilized. NIB is focused on delivering value for its members by managing claims inflation and enhancing its service offerings. The company also reported solid growth in its international students and workers health insurance business and a reduction in operating expenses. Strategic investments and new contracts with private hospitals are expected to support future growth and member value.

NIB Holdings Announces Dividend Distribution for Shareholders

NIB Holdings Limited has announced a new dividend distribution of AUD 0.13 per share for the six-month period ending December 31, 2024. The ex-dividend date is set for March 6, 2025, with the record date on March 7, 2025, and payment scheduled for April 9, 2025. This announcement reflects NIB’s stable financial performance and commitment to providing returns to shareholders, potentially reinforcing its strong position in the health insurance sector.

NIB Holdings Reports Revenue Growth but Decline in Profit for Half-Year 2024

NIB Holdings Ltd reported its financial results for the half-year ended December 31, 2024, revealing an 8% increase in revenue from ordinary activities to $1,837 million compared to the previous year. However, the company’s net profit attributable to members dropped by 22% to $82.9 million, which might reflect operational challenges. The interim dividend was reduced from 15 cents per share to 13 cents, highlighting a more conservative financial strategy amid the profit decline.