Company DescriptionAUB Group Limited engages in the insurance broking and underwriting businesses in Australia and New Zealand. The company provides insurance broking and advisory services primarily to SME clients; distributes ancillary products; and designs, distributes, and manages insurance products on behalf of licensed insurance companies. It also offers support services, such as loss adjustment, investigations, claims management, and claim legal support services; and automated quoting and binding, white-labelling, and technological support services, as well as ExpressCover; and BizCover, a digital SME insurance platform with multi-channel presence and insurance offerings. The company was formerly known as Austbrokers Holdings Limited and changed its name to AUB Group Limited in November 2015. AUB Group Limited was incorporated in 1885 and is headquartered in North Sydney, Australia.

How the Company Makes Money

AUB Group Financial Statement Overview

Summary

AUB Group Limited demonstrates strong revenue growth and improved profitability, with robust financial health reflected in its balance sheet. While operating cash flow has decreased, the overall cash flow remains positive, supporting the company's operations and growth initiatives. The company's prudent debt management and strong equity position contribute to its solid financial standing.

Income Statement

Very Positive

The company shows strong revenue growth with a significant increase from $826M in 2023 to $1.05B in 2024, representing a growth rate of 27.1%. Gross profit margin is robust at 49.5% for 2024, although it has decreased from the previous year's 89.5%. Net profit margin improved to 13.1% in 2024, indicating increased profitability. EBIT margin also showed improvement, suggesting effective cost management and operational efficiencies. Overall, the income statement reflects strong growth and improving profitability metrics.

Balance Sheet

Positive

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.48, showing a conservative leverage approach. Return on equity stands at 9.1%, reflecting efficient use of equity to generate earnings. The equity ratio is healthy at 37.4%, suggesting stability and a strong capital structure. The company's cash position has significantly strengthened over the years, contributing to a robust financial position.

Cash Flow

Positive

Operating cash flow decreased from $202M in 2023 to $82M in 2024, which is a potential concern. However, the company maintains positive free cash flow of $75.6M, indicating the ability to sustain operations and invest in growth. The free cash flow to net income ratio is at 0.55, showing that cash generation from operations aligns with net income. Despite the decline in operating cash flow, the overall cash flow position remains positive.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
1.09B	1.05B	826.34M	336.86M	315.86M	307.75M
	Gross Profit
543.53M	519.53M	739.63M	295.08M	280.50M	274.57M
	EBIT
387.80M	364.17M	181.45M	73.92M	52.27M	58.11M
	EBITDA
331.97M	219.69M	241.81M	97.47M	73.26M	78.89M
	Net Income Common Stockholders
110.33M	137.07M	65.25M	80.84M	70.62M	47.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
210.89M	1.29B	1.20B	593.48M	282.87M	243.68M
	Total Assets
4.43B	4.05B	3.88B	1.64B	1.15B	1.02B
	Total Debt
856.72M	724.69M	661.11M	74.74M	238.15M	261.44M
	Net Debt
645.83M	-561.62M	-535.61M	-517.72M	-43.67M	18.29M
	Total Liabilities
2.57B	2.30B	2.37B	642.80M	547.83M	529.94M
	Stockholders Equity
1.53B	1.51B	1.28B	854.49M	478.75M	429.28M
Cash Flow		Free Cash Flow
282.08M	75.60M	201.49M	93.34M	111.89M	89.60M
	Operating Cash Flow
287.82M	82.00M	202.24M	95.53M	112.59M	90.11M
	Investing Cash Flow
-272.82M	-82.81M	-136.85M	118.45M	23.23M	-153.86M
	Financing Cash Flow
135.22M	89.21M	498.66M	98.80M	-96.99M	87.36M

AUB Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A5H		€2.35B	33.00	7.96%	2.56%	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
CFIGF		$3.50B	32.26	3.85%	4.08%	―	―
3GU		€1.84B	17.37	15.78%	4.65%	―	―
PVQ		€1.20B	―	-24.47%	6.88%	―	―
1S6		€3.70B	25.06	10.23%	3.42%	―	―
FSB		€3.89B	107.14	11.42%	0.56%	―	―

* Financial Sector Average

Performance Comparison

DE:A5H

AUB Group

20.00

1.31

7.01%

CFIGF

Challenger

4.53

0.21

4.86%

DE:3GU

NIB Holdings Ltd

3.54

-0.75

-17.48%

DE:PVQ

Perpetual Limited

10.10

-2.11

-17.28%

DE:1S6

Steadfast Group Limited

3.24

0.04

1.25%

DE:FSB

HUB24 Limited

47.40

20.59

76.80%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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