- Nib maintains its full-year underlying operating profit forecast between A$235 million and A$250 million.
- First-half results show an underlying operating profit of A$105.8 million, which is a 27% decrease year-on-year.
- Net income for the first half is A$82.9 million, down 22% compared to the previous year.
- Interim dividend per share reduced to A$0.1300 from A$0.1500 year-on-year.
- The company’s revenue increased by 7.9% to A$1.84 billion.
- The decline in underlying operating profit was anticipated due to high margins in the previous year and a reduction in NZ earnings caused by slow economic growth and high claims inflation.
- Nib has implemented strategies to improve NZ performance, with profitability seen in December and January.
- The second half of the year is expected to benefit from favorable working day impacts, strong performance in Australian residents health insurance and international markets, and improved profitability in NZ.
- Company forecasts a growth of approximately 3% in Australian Residents Health Insurance (ARHI) policyholders.
- ARHI margins are predicted to be at the higher end of the 6-7% range.
- Analyst recommendations include 5 buy ratings, 5 holds, and 1 sell.
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A look at nib holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for NIB Holdings Ltd, the Smartkarma Smart Scores provide a useful insight into different aspects of the company. With a strong emphasis on dividends and growth, NIB Holdings scores well in these areas, indicating promising returns for investors interested in stable income and potential for expansion. Additionally, the company shows resilience in the face of challenges, reflecting its ability to withstand market fluctuations. However, the momentum score suggests a slightly slower pace in terms of market performance, which may be an area to watch for further development.
NIB Holdings Ltd. offers a range of health insurance products, catering to various healthcare needs. From covering ambulance costs to providing reimbursements for services not included in standard healthcare plans, such as dental and physiotherapy, the company aims to offer comprehensive coverage to its customers. With a focus on enhancing customer wellness, NIB Holdings plays a crucial role in providing financial protection and peace of mind in the healthcare sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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