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Steadfast Group Limited (AU:SDF)
ASX:SDF

Steadfast Group Limited (SDF) AI Stock Analysis

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AU

Steadfast Group Limited

(Sydney:SDF)

Rating:76Outperform
Price Target:
AU$7.00
▲(15.51%Upside)
Steadfast Group Limited has a solid overall stock score driven by strong financial performance and positive technical indicators. While the valuation is on the higher side, the company's robust revenue growth and efficient cost management make it an attractive investment. Investors should monitor debt levels and free cash flow fluctuations.
Positive Factors
Growth Potential
SDF is stating its case as a growing insurance ecosystem with potential for a global reach.
Valuation
SDF presents compelling value, and is cheaper than many insurers and financials with more limited growth profiles.
Negative Factors
Regulatory Risks
There are risks of increased regulation and managing community expectations.

Steadfast Group Limited (SDF) vs. iShares MSCI Australia ETF (EWA)

Steadfast Group Limited Business Overview & Revenue Model

Company DescriptionSteadfast Group Limited (SDF) is a leading provider of insurance brokerage services in Australasia. The company operates in the insurance and financial services sectors, offering a comprehensive range of products and services including insurance broking, underwriting agencies, and risk management solutions. With a vast network across Australia and New Zealand, Steadfast supports a large number of brokerages and agencies, helping them deliver tailored insurance solutions to their clients.
How the Company Makes MoneySteadfast Group Limited generates revenue primarily through commission fees from its insurance brokerage services. The company earns commissions by facilitating insurance policy sales between insurers and clients, receiving a percentage of the premium paid. Additionally, Steadfast operates underwriting agencies, which allow it to earn underwriting fees by designing and selling niche insurance products. The company also benefits from its scale and network, which enable it to negotiate favorable terms with insurers and provide value-added services to its network members. Important partnerships with major insurers and a strong market presence further contribute to its earnings.

Steadfast Group Limited Financial Statement Overview

Summary
Steadfast Group Limited exhibits strong financial performance characterized by robust revenue and profit growth, efficient cost management, and a solid balance sheet. Although free cash flow growth shows fluctuations and there is an increase in debt levels, the overall financial health remains positive.
Income Statement
85
Very Positive
Steadfast Group Limited has demonstrated strong revenue growth over the past years, with a notable increase from AUD 676.96 million in 2020 to AUD 1.76 billion in 2024. The gross profit margin remains healthy, reflecting efficient cost management. The net profit margin has also improved, showcasing enhanced profitability. EBIT and EBITDA margins are substantial, indicating robust operating performance. However, the company's net income was negative in 2020 due to significant EBIT loss, which represents a risk factor.
Balance Sheet
80
Positive
The company's balance sheet is solid with a healthy equity position. The debt-to-equity ratio is manageable, indicating prudent leverage practices. Steadfast has consistently grown its stockholders' equity, reflecting strong financial health. The equity ratio is stable, suggesting a balanced asset structure. However, the total debt has gradually increased, which could pose a potential risk if not managed carefully.
Cash Flow
78
Positive
Steadfast Group's cash flow position is strong, with consistent free cash flow generation. The operating cash flow to net income ratio is favorable, highlighting efficient cash generation from operations. However, the free cash flow growth rate has fluctuated, and investing activities have consistently resulted in cash outflows, which could indicate challenges in capital allocation.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.89B1.76B1.46B885.50M902.00M676.96M
Gross Profit945.20M862.00M696.00M423.00M539.40M292.68M
EBITDA653.70M587.00M463.60M362.50M265.90M146.13M
Net Income234.00M228.00M189.20M171.60M143.00M-32.75M
Balance Sheet
Total Assets5.87B5.71B4.89B3.92B3.01B2.76B
Cash, Cash Equivalents and Short-Term Investments375.90M1.33B1.14B945.00M737.30M659.60M
Total Debt1.59B1.30B1.04B938.70M790.00M762.25M
Total Liabilities3.38B3.14B2.64B2.10B1.74B1.56B
Stockholders Equity2.29B2.33B2.04B1.68B1.16B1.12B
Cash Flow
Free Cash Flow466.40M287.40M408.40M64.70M239.10M197.76M
Operating Cash Flow477.30M298.70M424.60M73.20M250.30M221.65M
Investing Cash Flow-227.00M-441.20M-348.20M-262.40M-114.00M-104.69M
Financing Cash Flow-6.70M331.30M117.60M223.40M-58.90M2.77M

Steadfast Group Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.06
Price Trends
50DMA
5.86
Positive
100DMA
5.75
Positive
200DMA
5.68
Positive
Market Momentum
MACD
0.04
Negative
RSI
61.07
Neutral
STOCH
78.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SDF, the sentiment is Positive. The current price of 6.06 is above the 20-day moving average (MA) of 5.90, above the 50-day MA of 5.86, and above the 200-day MA of 5.68, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 78.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SDF.

Steadfast Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUSDF
76
Outperform
€6.64B28.2410.23%2.60%16.37%7.50%
AUAUB
75
Outperform
€4.15B35.397.96%1.40%6.53%-8.63%
AUAFG
74
Outperform
AU$587.57M20.0715.01%3.50%9.49%-0.36%
62
Neutral
AU$9.71B8.0510.79%5.19%31.14%38.26%
AUCGF
61
Neutral
$5.50B37.313.85%3.63%17.95%-34.24%
AUIFL
56
Neutral
$2.39B-7.21%2.61%-8.26%-259.91%
AURMC
54
Neutral
€327.84M11.91
8.43%3.02%-41.58%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SDF
Steadfast Group Limited
6.06
0.06
1.07%
AU:CGF
Challenger
8.01
1.31
19.61%
AU:AUB
AUB Group
35.61
4.77
15.46%
AU:IFL
Insignia Financial Ltd
3.52
1.23
53.71%
AU:RMC
Resimac Group Limited
0.86
0.15
21.79%
AU:AFG
Australian Finance Group Ltd.
2.19
0.88
67.18%
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: Jun 21, 2025