Insurance Australia Group Limited
Insurance Australia Group Limited Fundamental Analysis
Insurance Australia Group Limited (IAUGF) shows moderate financial fundamentals with a PE ratio of 10.77, profit margin of 5.86%, and ROE of 14.85%. The company generates $27.7B in annual revenue with weak year-over-year growth of -7.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IAUGF's fundamental strength across five key dimensions:
Efficiency Score
WeakIAUGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIAUGF trades at attractive valuation levels.
Growth Score
ModerateIAUGF shows steady but slowing expansion.
Financial Health Score
ModerateIAUGF shows balanced financial health with some risks.
Profitability Score
WeakIAUGF struggles to sustain strong margins.
Key Financial Metrics
Is IAUGF Expensive or Cheap?
P/E Ratio
IAUGF trades at 10.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IAUGF's PEG of -0.36 indicates potential undervaluation.
Price to Book
The market values Insurance Australia Group Limited at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.44 times EBITDA. This is generally considered low.
How Well Does IAUGF Make Money?
Net Profit Margin
For every $100 in sales, Insurance Australia Group Limited keeps $5.86 as profit after all expenses.
Operating Margin
Core operations generate 9.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.85 in profit for every $100 of shareholder equity.
ROA
Insurance Australia Group Limited generates $3.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Insurance Australia Group Limited generates limited operating cash flow of $1.58B, signaling weaker underlying cash strength.
Free Cash Flow
Insurance Australia Group Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
IAUGF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How IAUGF Stacks Against Its Sector Peers
| Metric | IAUGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.77 | 18.50 | Better (Cheaper) |
| ROE | 14.85% | 809.00% | Weak |
| Net Margin | 5.86% | 2211.00% | Weak |
| Debt/Equity | 0.50 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.04 | Weak Liquidity |
| ROA | 3.93% | -24328.00% (disorted) | Weak |
IAUGF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Insurance Australia Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
99.38%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
204.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
246.00%
Industry Style: Value, Dividend, Cyclical
High Growth