Steadfast Group Limited (SDF) AI Stock Analysis

• Market Cap: €6.37B
• Dividend Yield: 3.52%
• Average Volume (3M): 2.44M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.56
• Revenue Growth: 16.37%
• EPS Growth: 7.50%
• Country: AU
• Employees: N/A
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance
• EPS (TTM): 0.21
• Shares Outstanding: 1,106,290,600
• 10 Day Avg. Volume: 1,222,053
• 30 Day Avg. Volume: 2,443,576
• PEG Ratio: 3.63
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.30
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• 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: €6.75
• Price Target Upside: 16.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

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 (SDF) is a leading provider of insurance brokerage services in Australasia. The company operates in the insurance and financial services sectors, offering a comprehensive range of products and services including insurance broking, underwriting agencies, and risk management solutions. With a vast network across Australia and New Zealand, Steadfast supports a large number of brokerages and agencies, helping them deliver tailored insurance solutions to their clients.

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
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
	EBIT
600.80M	476.60M	269.40M	205.00M	-678.23M
	EBITDA
587.00M	463.60M	362.50M	265.90M	146.13M
	Net Income Common Stockholders
228.00M	189.20M	171.60M	143.00M	-32.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.33B	1.14B	945.00M	737.30M	659.60M
	Total Assets
5.71B	4.89B	3.92B	3.01B	2.76B
	Total Debt
1.30B	1.04B	938.70M	790.00M	762.25M
	Net Debt
-29.90M	-101.10M	-6.30M	52.70M	102.65M
	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: 5.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.78 is above the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.64, and above the 200-day MA of 5.75, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.70 is Negative, 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
QBE	77 Outperform	$32.36B	12.27	17.21%	4.21%	6.01%	31.57%
SDF	75 Outperform	€6.37B	27.25	10.23%	3.52%	16.37%	7.50%
IAG	74 Outperform	$18.90B	14.96	18.88%	3.76%	34.77%	―
MPL	73 Outperform	$12.50B	25.53	20.97%	5.70%	5.21%	-21.15%
AUB	72 Outperform	€3.70B	31.90	7.96%	2.88%	6.53%	-8.63%
SUN	70 Outperform	$21.26B	15.07	9.52%	5.59%	-11.75%	―
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%