NIB Holdings Ltd (NHF) AI Stock Analysis

• Market Cap: €3.14B
• Dividend Yield: 4.02%
• Average Volume (3M): 937.50K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.25
• Revenue Growth: 8.40%
• EPS Growth: -22.95%
• Country: AU
• Employees: 1,870
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Specialty
• EPS (TTM): 0.17
• Shares Outstanding: 487,017,030
• 10 Day Avg. Volume: 1,071,217
• 30 Day Avg. Volume: 937,495
• PEG Ratio: -1.55
• Price to Book (P/B): 3.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.10
• 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: €7.14
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 71 Outperform
• Price Target: AU$7.00 ▲(8.19%Upside)

NIB Holdings Ltd's overall score reflects strong financial performance and reasonable valuation, though slightly offset by technical analysis signals indicating potential near-term pressure. The company's robust cash flow and stable capital structure position it well for future growth, but operational efficiency improvements are needed to enhance profitability margins. With no recent earnings call or corporate events affecting the score, the stock remains attractive for long-term investors.

NIB Holdings Ltd Business Overview & Revenue Model

Company Description

nib 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 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
EBITDA	267.60M	287.20M	220.60M	236.80M	274.80M	169.90M
Net Income	162.10M	185.60M	191.10M	133.80M	160.50M	89.20M
Balance Sheet
Total Assets	1.75B	2.11B	2.19B	1.94B	1.75B	1.74B
Cash, Cash Equivalents and Short-Term Investments	194.60M	459.80M	243.00M	206.90M	213.90M	198.00M
Total Debt	288.00M	306.80M	291.80M	311.70M	289.90M	315.50M
Total Liabilities	1.01B	1.07B	1.21B	1.21B	1.05B	1.14B
Stockholders Equity	715.30M	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: Negative
• Last Price: 6.47
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 6.47 is below the 20-day moving average (MA) of 6.60, below the 50-day MA of 6.76, and above the 200-day MA of 6.09, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.74 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	€3.14B	19.35	15.78%	4.02%	8.40%	-22.95%
Sector *	60 Neutral	C$14.55B	5.45	20.17%	6.14%	26.88%	-38.18%
IAUGF		$13.73B	16.54	18.88%	1.68%	―	―
MDBPF		$8.96B	27.39	20.97%	3.14%	―	―
QBEIF		$22.93B	13.17	17.21%	5.26%	―	―
SNMYF		$15.09B	16.07	9.52%	2.75%	―	―
PNI	67 Neutral	AU$4.31B	29.51	20.18%	3.29%	36.76%	70.74%

NIB Holdings Ltd Corporate Events

Vanguard Group Increases Stake in nib holdings Limited

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

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

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.