Steadfast Group Limited (SDF) AI Stock Analysis

• Market Cap: AU$6.54B
• Dividend Yield: 3.39%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 27.8
• Beta (1Y): 0.54
• Revenue Growth: 16.37%
• EPS Growth: 7.50%
• Country: AU
• Employees: 415
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Brokers
• EPS (TTM): 0.21
• Shares Outstanding: 1,106,290,600
• 10 Day Avg. Volume: 1,756,114
• 30 Day Avg. Volume: 1,943,995
• PEG Ratio: N/A
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.10
• 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: AU$6.69
• Price Target Upside: 13.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ―

Steadfast Group Limited has a strong financial foundation with significant revenue growth and efficient cost management. However, potential risks such as fluctuations in free cash flow growth and rising debt levels necessitate careful monitoring. Technical indicators show slight short-term weakness, and the valuation suggests the stock might be overvalued. The dividend yield offers some attractiveness to investors, balancing out the high P/E ratio.

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 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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.89B	1.76B	1.46B	885.50M	902.00M	676.96M
	Gross Profit
945.20M	862.00M	696.00M	423.00M	539.40M	292.68M
	EBIT
667.50M	600.80M	476.60M	269.40M	205.00M	-678.23M
	EBITDA
653.70M	587.00M	463.60M	362.50M	265.90M	146.13M
	Net Income Common Stockholders
234.00M	228.00M	189.20M	171.60M	143.00M	-32.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
375.90M	1.33B	1.14B	945.00M	737.30M	659.60M
	Total Assets
5.87B	5.71B	4.89B	3.92B	3.01B	2.76B
	Total Debt
1.59B	1.30B	1.04B	938.70M	790.00M	762.25M
	Net Debt
1.22B	-29.90M	-101.10M	-6.30M	52.70M	102.65M
	Total Liabilities
3.38B	3.14B	2.64B	2.10B	1.74B	1.56B
	Stockholders Equity
2.29B	2.33B	2.04B	1.68B	1.16B	1.12B
Cash Flow		Free Cash Flow
466.40M	287.40M	408.40M	64.70M	239.10M	197.76M
	Operating Cash Flow
477.30M	298.70M	424.60M	73.20M	250.30M	221.65M
	Investing Cash Flow
-227.00M	-441.20M	-348.20M	-262.40M	-114.00M	-104.69M
	Financing Cash Flow
-6.70M	331.30M	117.60M	223.40M	-58.90M	2.77M

Steadfast Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 5.89 is above the 20-day moving average (MA) of 5.86, above the 50-day MA of 5.80, and above the 200-day MA of 5.71, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.21 is Neutral, neither overbought nor oversold. The STOCH value of 79.46 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	75 Outperform	AU$6.54B	27.77	10.23%	3.39%	16.37%	7.50%
Sector *	64 Neutral	$12.77B	9.77	7.59%	16985.66%	12.31%	-7.69%
A5H		€2.37B	33.00	7.96%	2.53%	―	―
IAUGF		$13.66B	16.37	18.88%	3.33%	―	―
MDBPF		$8.74B	16.95	20.97%	5.70%	―	―
QBEIF		$23.52B	13.35	17.21%	3.70%	―	―
SNMYF		$15.00B	14.03	9.52%	5.46%	―	―