Medibank Private Limited
Medibank Private Limited Fundamental Analysis
Medibank Private Limited (MPL.AX) shows moderate financial fundamentals with a PE ratio of 25.91, profit margin of 5.29%, and ROE of 19.79%. The company generates $8.8B in annual revenue with moderate year-over-year growth of 6.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MPL.AX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMPL.AX demonstrates superior asset utilization.
Valuation Score
ModerateMPL.AX shows balanced valuation metrics.
Growth Score
ModerateMPL.AX shows steady but slowing expansion.
Financial Health Score
ModerateMPL.AX shows balanced financial health with some risks.
Profitability Score
ModerateMPL.AX maintains healthy but balanced margins.
Key Financial Metrics
Is MPL.AX Expensive or Cheap?
P/E Ratio
MPL.AX trades at 25.91 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MPL.AX's PEG of -4.66 indicates potential undervaluation.
Price to Book
The market values Medibank Private Limited at 5.12 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.25 times EBITDA. This signals the market has high growth expectations.
How Well Does MPL.AX Make Money?
Net Profit Margin
For every $100 in sales, Medibank Private Limited keeps $5.29 as profit after all expenses.
Operating Margin
Core operations generate 48.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.79 in profit for every $100 of shareholder equity.
ROA
Medibank Private Limited generates $10.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Medibank Private Limited generates limited operating cash flow of $355.90M, signaling weaker underlying cash strength.
Free Cash Flow
Medibank Private Limited produces free cash flow of $343.30M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.12 in free cash annually.
FCF Yield
MPL.AX converts 2.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.91
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.66
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
1.002
vs 25 benchmark
How MPL.AX Stacks Against Its Sector Peers
| Metric | MPL.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.91 | 18.66 | Worse (Expensive) |
| ROE | 19.79% | 804.00% | Weak |
| Net Margin | 5.29% | 2258.00% | Weak |
| Debt/Equity | 0.21 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 662.03 | Weak Liquidity |
| ROA | 10.87% | -24049.00% (disorted) | Strong |
MPL.AX outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Medibank Private Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.23%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
58.98%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-36.54%
Industry Style: Value, Dividend, Cyclical
Declining