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NIB Holdings Ltd (AU:NHF)
ASX:NHF

NIB Holdings Ltd (NHF) AI Stock Analysis

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AU:NHF

NIB Holdings Ltd

(Sydney:NHF)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
AU$7.50
▲(11.44% Upside)
NIB Holdings Ltd demonstrates strong financial performance with robust revenue growth and operational efficiency. The stock's valuation is fair, with an attractive dividend yield. However, technical indicators suggest a short-term bearish trend, which could impact investor sentiment. The absence of recent earnings call data and corporate events limits additional insights.
Positive Factors
Strong revenue growth
A 51.5% revenue increase demonstrates durable premium and membership expansion, delivering scale to spread fixed costs. Strong top-line growth supports investment in distribution and health services, improving long-term competitive positioning and revenue diversification.
Operational efficiency and margins
High gross and robust EBIT/EBITDA margins indicate efficient cost management in core insurance operations. Sustainable operating margins enhance underwriting resilience through claim cycles, fund reinvestment in digital/wellness offerings, and support durable cash generation.
Prudent balance sheet and ROE
Low leverage and a near-18% ROE reflect disciplined capital allocation and effective use of shareholder funds. This balance sheet strength reduces solvency risk, preserves capacity for claims and regulatory capital, and provides flexibility for dividends, M&A or shock absorbency.
Negative Factors
Declining free cash flow growth
A 30.3% drop in free cash flow growth weakens internal funding for technology, member acquisition, or reserve strengthening. Reduced FCF increases reliance on external funding or investment income, potentially limiting strategic initiatives and pressuring payout or reinvestment choices.
Modest net profit margin
A 5.6% net margin is relatively thin given the insurance context, leaving limited buffer against adverse claims, medical cost inflation, or regulatory expense increases. Narrow net margins make reported earnings more sensitive to cyclical shocks and reduce margin for error.
Reliance on underwriting and investment returns
Core profitability depends on underwriting margins and investment returns from the insurance float. This structural dependence exposes results to claim volatility, reserve/regulatory changes, and interest rate cycles, constraining predictable earnings growth without active risk management.

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

NIB Holdings Ltd Business Overview & Revenue Model

Company Descriptionnib holdings limited, together with its subsidiaries, underwrites and distributes private health insurance to residents, international students, and visitors in Australia and New Zealand. The company operates through Australian Residents Health Insurance, New Zealand Insurance, International (Inbound) Health Insurance, and nib Travel segments. It offers health insurance products, including singles, couples, single parent, and family health insurance; and travel insurance products. nib holdings limited was founded in 1952 and is headquartered in Newcastle, Australia.
How the Company Makes MoneyNib Holdings generates revenue primarily through the sale of health insurance policies to individuals and families, which includes premiums paid by policyholders for hospital and extras cover. The company also earns income from investment returns on its premium reserves and other financial assets. Key revenue streams include direct premiums from members, ancillary services related to health management, and fees from partnerships with healthcare providers. Additionally, Nib has established partnerships with various organizations to offer tailored insurance solutions, which help in expanding its customer base and enhancing its service offerings.

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
EBITDA277.80M324.60M324.50M220.60M236.80M274.80M
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 Price6.73
Price Trends
50DMA
6.89
Negative
100DMA
7.17
Negative
200DMA
7.05
Negative
Market Momentum
MACD
-0.07
Negative
RSI
47.88
Neutral
STOCH
68.09
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 6.73 is above the 20-day moving average (MA) of 6.70, below the 50-day MA of 6.89, and below the 200-day MA of 7.05, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.09 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
€3.28B16.2318.51%4.17%5.90%7.22%
71
Outperform
$12.72B25.4121.28%3.73%6.37%1.73%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$29.72B9.8018.97%4.68%5.93%14.80%
65
Neutral
$18.41B11.9712.51%26.88%-0.54%26.37%
63
Neutral
AU$17.98B13.2019.09%3.91%8.47%54.09%
61
Neutral
AU$3.67B26.9119.56%3.45%37.42%38.37%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:NHF
NIB Holdings Ltd
6.73
1.18
21.33%
AU:IAG
Insurance Australia Group Limited
7.60
-1.27
-14.27%
AU:MPL
Medibank Private
4.62
0.77
20.06%
AU:QBE
QBE Insurance Group Limited
19.74
-0.29
-1.46%
AU:SUN
Suncorp Group
17.00
-2.55
-13.02%
AU:PNI
Pinnacle Investment Management Group Limited
16.98
-7.89
-31.73%

NIB Holdings Ltd Corporate Events

nib Grants Long-Term Incentive Performance Rights to Director Edward Close
Jan 28, 2026

nib holdings limited has notified the ASX of a change in director Edward Close’s interests following the issue of 178,768 performance rights to him on 21 January 2026 under the company’s FY26–29 Long Term Incentive Plan. The grant forms part of nib’s ongoing executive remuneration framework, aligning the director’s interests with long-term shareholder value and signalling continued use of performance-based equity incentives at board level.

The most recent analyst rating on (AU:NHF) stock is a Buy with a A$7.50 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

NIB Issues 577,819 Unquoted Performance Rights Under Employee Incentive Scheme
Jan 28, 2026

NIB Holdings Limited has issued 577,819 unquoted performance rights under its employee incentive scheme, effective 21 January 2026. The new equity-based awards, which will not be quoted on the ASX, are designed to support the company’s remuneration and retention strategy by aligning employee interests with long-term shareholder value, modestly increasing the pool of potential shares on issue without an immediate impact on its listed capital structure.

The most recent analyst rating on (AU:NHF) stock is a Buy with a A$7.50 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

nib to Release 2026 Half-Year Results and Host Investor Webcast
Jan 22, 2026

nib holdings limited has announced it will release its 2026 half-year results for the period ended 31 December 2025 to the market on 23 February 2026. Following the announcement, the company will host a webcast presentation for analysts and investors at 9:30am AEDT the same day, led by Chief Executive Officer and Managing Director Ed Close and Group Chief Financial Officer Nick Freeman, with live access, as well as a recording and transcript, available via nib’s shareholder website, underscoring its emphasis on transparency and communication with the investment community.

The most recent analyst rating on (AU:NHF) stock is a Buy with a A$7.50 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

nib flags $21.5m in one-off 1H26 charges but says underlying profit on track
Dec 18, 2025

nib holdings limited has warned that its first half FY26 statutory operating profit will be impacted by approximately $21.5 million in non-recurring expenses, although underlying operating profit remains on track with expectations. The bulk of the one-off items comprises about $17 million in non-recurring cash costs, including roughly $8 million in 1H26 related to historical adjustments to the Australian Government Rebate on private health insurance and the NSW Hospital Insurance Levy, as well as restructuring expenses tied to a group-wide productivity program and a strategic review of its nib Travel business. In addition, nib will recognise a non-cash charge of around $4.5 million to write down redundant acquired software in its nib Thrive unit following consolidation of multiple NDIS-related acquisitions onto a single technology platform, a move intended to boost automation and efficiency even as it temporarily depresses reported statutory profit.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$8.60 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 Releases 2025 Tax Transparency Report
Dec 4, 2025

NIB Holdings Ltd has released its 2025 Tax Transparency Report, which is now accessible to shareholders on their website. This report is part of NIB’s commitment to transparency and provides insights into the company’s tax contributions, reflecting their dedication to responsible corporate governance.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$8.60 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 Appoints New Director with No Initial Securities Interest
Dec 1, 2025

NIB Holdings Ltd has announced the appointment of Hisham El-Ansary as a director, effective December 2, 2025. The initial director’s interest notice reveals that El-Ansary currently holds no relevant interests in securities, indicating a neutral impact on the company’s immediate financial operations.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$8.60 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 Appoints Hisham El-Ansary as Non-Executive Director
Dec 1, 2025

NIB Holdings Ltd has appointed Hisham El-Ansary as an independent Non-Executive Director to its Board, effective from December 2, 2025. El-Ansary brings over 30 years of experience in healthcare, insurance, and other industries, having previously served as CEO of Bupa Asia Pacific. His appointment is part of NIB’s strategy for Board renewal and succession planning, following the retirement of Donal O’Dwyer.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$8.60 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

Leadership Change at NIB Holdings Ltd as Roslyn Toms Steps Down
Dec 1, 2025

NIB Holdings Ltd announced that Roslyn Toms has stepped down from her role as Company Secretary, effective December 1, 2025. Her departure marks the end of a significant 14-year tenure during which she contributed greatly to the company’s operations. Jordan French will continue as Company Secretary, ensuring continuity in the role. This change in leadership is part of a transitional phase for the company, potentially impacting its strategic direction and stakeholder relationships.

The most recent analyst rating on (AU:NHF) stock is a Hold with a A$8.60 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 Releases 2026 Shareholder Calendar
Nov 9, 2025

NIB Holdings Ltd has released its shareholder calendar for 2026, detailing key dates for financial results and dividend payments. The announcement outlines important dates such as the half-year and full-year results, interim and final dividend dates, and the Annual General Meeting, providing stakeholders with a timeline for financial and corporate events.

The most recent analyst rating on (AU:NHF) stock is a Sell with a A$5.60 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 2025 AGM: Resolutions Passed with Strong Shareholder Support
Nov 6, 2025

NIB Holdings Ltd held its 2025 Annual General Meeting, where all items of business were passed by shareholders. Key resolutions included the adoption of the Remuneration Report, the re-election of Mr. David Gordon as a Non-Executive Director, and the approval of participation in the Long-Term Incentive Plan. The overwhelming support for these resolutions indicates strong shareholder confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (AU:NHF) stock is a Sell with a A$5.60 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

NIB Holdings Announces Retirement of Non-Executive Director Donal O’Dwyer
Nov 5, 2025

NIB Holdings Ltd announced the retirement of Donal O’Dwyer as a Non-Executive Director, effective at the close of the Annual General Meeting on 6 November 2025. O’Dwyer, who has been with the company since March 2016, has significantly contributed to the company, particularly in his roles on various committees. The company is in the process of recruiting a new director to fill the vacancy left by O’Dwyer’s departure, which may influence the company’s strategic direction and governance.

The most recent analyst rating on (AU:NHF) stock is a Sell with a A$5.60 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

nib Holdings Limited Reports Strong FY25 Performance Amidst Competitive Market
Nov 5, 2025

nib holdings limited reported a successful fiscal year 2025, with a focus on strengthening its core private health insurance business in a competitive market. The company achieved a 3.2% growth in policyholders, surpassing the industry average, and supported a significant number of hospital admissions and ancillary health care visits. Despite high costs and claims inflation in the health sector, nib has invested in partnerships with major private hospital groups to drive down costs and ensure better outcomes for its members.

The most recent analyst rating on (AU:NHF) stock is a Sell with a A$5.60 price target. To see the full list of analyst forecasts on NIB Holdings Ltd stock, see the AU:NHF Stock Forecast page.

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: Oct 28, 2025