Steadfast Group Limited (SDF) AI Stock Analysis

• Market Cap: €6.52B
• Dividend Yield: 2.64%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.59
• Revenue Growth: 16.37%
• EPS Growth: 7.50%
• Country: AU
• Employees: 415
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Brokers
• EPS (TTM): 0.12
• Shares Outstanding: 1,106,290,600
• 10 Day Avg. Volume: 1,554,301
• 30 Day Avg. Volume: 1,937,326
• PEG Ratio: N/A
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.05
• 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: €6.87
• Price Target Upside: 14.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: AU$7.00 ▲(16.86%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 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 Limited makes money primarily through commissions and fees generated by its network of insurance brokerages. These brokerages, which are part of the Steadfast network, earn commissions from insurance companies for policies they sell to clients. Additionally, Steadfast operates underwriting agencies that create specialized insurance products and earn revenue through underwriting fees. The company also generates income from its equity interests in partner businesses and through service fees for providing risk management and other financial services. Key partnerships with insurance providers and a strong network of brokerages are significant factors contributing to Steadfast's revenue, allowing it to leverage economies of scale and negotiate favorable terms with insurers, which enhances its profitability.

Steadfast Group Limited Financial Statement Overview

Summary

Steadfast Group Limited exhibits strong financial performance with robust revenue and profit growth, effective cost management, and a solid balance sheet. However, fluctuations in free cash flow growth and increased debt levels warrant careful monitoring.

Income Statement

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.76B	1.46B	885.50M	902.00M	676.96M
Gross Profit	862.00M	696.00M	423.00M	539.40M	292.68M
EBITDA	587.00M	463.60M	362.50M	265.90M	146.13M
Net Income	228.00M	189.20M	171.60M	143.00M	-32.75M
Balance Sheet
Total Assets	5.71B	4.89B	3.92B	3.01B	2.76B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.14B	945.00M	737.30M	659.60M
Total Debt	1.30B	1.04B	938.70M	790.00M	762.25M
Total Liabilities	3.14B	2.64B	2.10B	1.74B	1.56B
Stockholders Equity	2.33B	2.04B	1.68B	1.16B	1.12B
Cash Flow
Free Cash Flow	287.40M	408.40M	64.70M	239.10M	197.76M
Operating Cash Flow	298.70M	424.60M	73.20M	250.30M	221.65M
Investing Cash Flow	-441.20M	-348.20M	-262.40M	-114.00M	-104.69M
Financing Cash Flow	331.30M	117.60M	223.40M	-58.90M	2.77M

Steadfast Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.99
• 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:SDF, the sentiment is Positive. The current price of 5.99 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.92, and above the 200-day MA of 5.72, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.68 is Neutral, neither overbought nor oversold. The STOCH value of 37.68 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDF	76 Outperform	€6.52B	28.24	10.23%	2.64%	16.37%	7.50%
Sector *	58 Neutral	HK$91.09B	5.21	-3.21%	5.20%	7.36%	-55.21%
A5H	―	€2.23B	31.52	7.96%	1.46%	―	―
CFIGF	―	$3.61B	32.26	3.85%	4.21%	―	―
IOOFF	―	$1.68B	―	-7.21%	2.37%	―	―
HM3	―		―		―	―	―
AFG	63 Neutral	AU$568.61M	19.26	15.01%	3.62%	9.49%	-0.36%