Company Descriptionnib holdings limited, together with its subsidiaries, underwrites and distributes private health insurance to residents, international students, and visitors in Australia and New Zealand. The company operates through Australian Residents Health Insurance, New Zealand Insurance, International (Inbound) Health Insurance, and nib Travel segments. It offers health insurance products, including singles, couples, single parent, and family health insurance; and travel insurance products. nib holdings limited was founded in 1952 and is headquartered in Newcastle, Australia.

How the Company Makes Money

NIB Holdings Ltd Financial Statement Overview

Summary

NIB Holdings Ltd exhibits strong financial health with consistent revenue growth, excellent cost management, and effective cash flow generation. The company maintains a balanced capital structure, though there's room for improvement in operational efficiency to enhance margins further.

Income Statement

Very Positive

NIB Holdings Ltd has demonstrated solid revenue growth with a Revenue Growth Rate of approximately 10.25% from 2023 to 2024, indicating strong performance in its sector. The Gross Profit Margin remains robust at 99.19%, showcasing excellent cost management. However, a decline in EBIT Margin from 9.86% in 2023 to 6.44% in 2024 suggests increased operational expenses impacting profitability. Despite this, the Net Profit Margin is relatively healthy at 5.39% for 2024.

Balance Sheet

Positive

The company maintains a stable financial structure with a Debt-to-Equity Ratio of 0.29, indicating conservative leverage. The Return on Equity (ROE) for 2024 is 17.80%, reflecting efficient use of equity to generate profits. An Equity Ratio of 49.32% suggests a balanced approach between debt and equity financing, though slightly lower than the previous year, pointing to an increase in liabilities.

Cash Flow

Very Positive

NIB Holdings Ltd shows a strong Free Cash Flow to Net Income Ratio of 1.12, highlighting effective cash generation relative to net income. The Operating Cash Flow to Net Income Ratio is robust at 1.39, indicating healthy cash conversion. The Free Cash Flow Growth Rate from 2023 to 2024 is 7.24%, displaying positive cash flow growth, although slightly below revenue growth, suggesting room for improvement in cash efficiency.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
3.57B	3.44B	3.12B	2.79B	2.60B	2.54B
	Gross Profit
3.57B	3.40B	3.12B	2.79B	2.60B	2.54B
	EBIT
179.60M	221.50M	307.90M	205.00M	242.70M	137.20M
	EBITDA
267.60M	287.20M	220.60M	236.80M	274.80M	169.90M
	Net Income Common Stockholders
162.10M	185.60M	191.10M	133.80M	160.50M	89.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.60M	459.80M	243.00M	206.90M	213.90M	198.00M
	Total Assets
1.75B	2.11B	2.19B	1.94B	1.75B	1.74B
	Total Debt
288.00M	306.80M	291.80M	311.70M	289.90M	315.50M
	Net Debt
93.40M	31.50M	48.80M	104.80M	76.00M	117.50M
	Total Liabilities
1.01B	1.07B	1.21B	1.21B	1.05B	1.14B
	Stockholders Equity
715.30M	1.04B	967.20M	720.10M	690.10M	586.40M
Cash Flow		Free Cash Flow
160.90M	208.50M	194.40M	311.00M	85.10M	184.60M
	Operating Cash Flow
170.70M	257.10M	246.70M	337.60M	108.70M	207.60M
	Investing Cash Flow
-87.00M	-98.10M	-236.50M	-259.30M	-23.50M	-59.40M
	Financing Cash Flow
-113.20M	-125.20M	26.00M	-84.40M	-69.30M	-114.50M

NIB Holdings Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3GU		€1.84B	17.37	15.78%	4.65%	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
IAUGF		$13.46B	16.21	18.88%	3.35%	―	―
MDBPF		$8.70B	16.95	20.97%	5.70%	―	―
QBEIF		$23.25B	13.35	17.21%	3.74%	―	―
SNMYF		$14.93B	16.07	9.52%	4.77%	―	―
PNI	74 Outperform	AU$4.32B	29.57	20.18%	2.95%	36.76%	70.74%

* Financial Sector Average

Performance Comparison

DE:3GU

NIB Holdings Ltd

3.54

-0.75

-17.48%

IAUGF

Insurance Australia Group Limited

5.72

1.55

37.17%

MDBPF

Medibank Private

1.99

0.09

4.74%

QBEIF

QBE Insurance Group Limited

15.38

3.63

30.89%

SNMYF

Suncorp Group

13.80

3.94

39.96%

AU:PNI

Pinnacle Investment Management Group Limited

20.12

7.32

57.19%

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.

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