Steadfast Group Limited (SDF) AI Stock Analysis

• Market Cap: €4.53B
• Dividend Yield: 3.7%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.64
• Revenue Growth: 9.16%
• EPS Growth: 43.16%
• Country: AU
• Employees: 415
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Brokers
• EPS (TTM): 0.12
• Shares Outstanding: 1,111,991,600
• 10 Day Avg. Volume: 1,745,503
• 30 Day Avg. Volume: 2,288,821
• PEG Ratio: 0.46
• Price to Book (P/B): 2.77
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 13.52
• 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: €5.65
• Price Target Upside: 38.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): €2.00B

• Rating: 63 Neutral
• Price Target: AU$5.00 ▲(22.25% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial performance—especially strong cash flow and profitability—partly offset by slowing revenue growth. Technical analysis meaningfully drags the score due to clear downtrend signals and bearish momentum. Valuation is supportive with a reasonable P/E and a strong dividend yield.

Positive Factors

Cash generation

Persistent high free cash flow and growth in free cash flow versus net income indicate durable internal funding. This strengthens the firm's ability to fund distributions, reinvest in network services, and absorb underwriting or market shocks without relying heavily on external financing.

Profitability & margins

Consistently strong gross and operating margins reflect scalable service economics across the broker network and efficient cost structure. Robust EBIT/EBITDA margins support long-term earnings resilience and provide buffer to fund technology, compliance, and growth initiatives.

Network-driven business model

A large broker network and diversified service offering create recurring fee and commission streams, scale benefits, and sticky client relationships. This distribution-led model tends to produce stable recurring revenues and competitive advantages through market access and partner integration.

Negative Factors

Slowing revenue growth

Declining top-line growth reduces the margin of safety for earnings and puts pressure on long-term expansion prospects. If revenue momentum continues to weaken, fixed-cost absorption and future investment capacity could be constrained, limiting durable earnings growth.

Moderate leverage clarity

A moderate debt position can be manageable but incomplete balance sheet detail (no explicit equity ratio) raises uncertainty about leverage headroom. Limited transparency on asset financing reduces confidence in the company’s capacity to take on large strategic investments or absorb shocks.

Revenue sensitivity to premiums

Revenue tied to premium volumes and insurance market pricing exposes Steadfast to cyclical industry dynamics. Downturns in premium renewal rates or lower industry pricing can materially reduce commission-related income and network activity over multiple quarters.

Steadfast Group Limited Business Overview & Revenue Model

Company Description

Steadfast Group Limited provides general insurance brokerage services Australasia, Asia, and Europe. It also provides insurance underwriting services and related services. The company offers business insurance products, such as aviation, business pack, business interruption, contract works, corporate travel, cyber, events, farm, marine, management liability, product liability, professional indemnity, public liability, trade credit, and workers' compensation insurance. It also provides personal insurance products, including home and contents, landlord, life, motor, and strata insurance. The company operates a network of 427 general insurance brokers and 28 underwriting agencies. Steadfast Group Limited was incorporated in 1996 and is based in Sydney, Australia.

How the Company Makes Money

Steadfast Group generates revenue primarily through its brokerage services, where it earns commissions from insurers for placing business with them. The company also generates income from its underwriting operations, where it retains a portion of premiums for risks it underwrites directly. Additionally, Steadfast benefits from membership fees paid by its network of brokerages, which provide access to shared resources, training, and support. Significant partnerships with various insurers enhance its competitive positioning and revenue potential, allowing the company to negotiate favorable terms and improve its overall profitability.

Steadfast Group Limited Financial Statement Overview

Summary

Solid overall fundamentals supported by strong cash flow generation (high free cash flow to net income and positive free cash flow growth) and robust profitability (healthy EBIT/EBITDA margins). The main offset is slowing recent revenue growth, which raises top-line durability risk.

Income Statement

Steadfast Group Limited shows strong profitability with a consistent gross profit margin and improving net profit margin over the years. However, the recent decline in revenue growth rate indicates potential challenges in maintaining top-line growth. The EBIT and EBITDA margins are robust, reflecting efficient operations.

Balance Sheet

The company's balance sheet is stable with a moderate debt-to-equity ratio, suggesting a balanced approach to leverage. Return on equity has been improving, indicating effective use of shareholder funds. However, the equity ratio is not explicitly provided, which limits a comprehensive assessment of asset financing.

Cash Flow

Steadfast Group Limited demonstrates strong cash flow management with a positive free cash flow growth rate and high free cash flow to net income ratio. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.97B	1.82B	1.76B	1.46B	885.50M	902.00M
Gross Profit	1.47B	1.32B	862.00M	696.00M	423.00M	539.40M
EBITDA	573.10M	665.00M	587.00M	463.60M	362.50M	265.90M
Net Income	355.50M	334.90M	228.00M	189.20M	171.60M	143.00M
Balance Sheet
Total Assets	6.86B	6.43B	5.71B	4.89B	3.92B	3.01B
Cash, Cash Equivalents and Short-Term Investments	1.75B	1.60B	1.33B	1.14B	945.00M	737.30M
Total Debt	2.07B	1.63B	1.30B	1.04B	938.70M	790.00M
Total Liabilities	4.29B	3.80B	3.14B	2.64B	2.10B	1.74B
Stockholders Equity	2.32B	2.40B	2.33B	2.04B	1.68B	1.16B
Cash Flow
Free Cash Flow	524.60M	490.30M	287.40M	408.40M	64.70M	239.10M
Operating Cash Flow	530.20M	498.50M	298.70M	424.60M	73.20M	250.30M
Investing Cash Flow	-269.60M	-196.30M	-441.20M	-348.20M	-262.40M	-114.00M
Financing Cash Flow	-700.00K	-26.90M	331.30M	117.60M	223.40M	-58.90M

Steadfast Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SDF, the sentiment is Negative. The current price of 4.09 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 4.61, and below the 200-day MA of 5.38, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SDF.

Steadfast Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SDF	63 Neutral	€4.53B	11.48	15.06%	3.70%	9.16%	43.16%
AUB	60 Neutral	AU$2.95B	25.45	11.17%	2.95%	10.98%	23.05%
CGF	60 Neutral	AU$5.48B	4.78	11.51%	3.10%	11.78%	47.53%
IFL	53 Neutral	AU$3.14B	9.67	0.72%	―	-15.63%	―
AFG	52 Neutral	AU$500.04M	6.60	18.57%	4.21%	14.37%	20.75%