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nib holdings limited
Financial Services · Insurance - Specialty
Updated 4 hours ago
$6.40
MARKET CAP
$3.12B
P/E RATIO
15.6
DIV. YIELD
4.5%
FRANKING
100%
nib holdings limited, together with its subsidiaries, engages in the underwriting and distribution of private health, life, and living insurance to residents, international students, and visitors in Australia and New Zealand.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$11.03
Discounted cash flow estimate
$4.03
For 6% dividend yield
Business quality and balance-sheet durability.
Profit generated per $1 of shareholder investment
Strong 21.8% average with no year below 12%. Consistent performance signals durable competitive advantage.
Current Snapshot
10Y Avg
21.8%
Threshold
12.0%
Worst Year
17.8%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 21.8%, meaning each $1 of shareholder equity generates $0.22 in annual profit. The threshold is 12%, and the worst single year was 17.8%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
At 21.8% ROE, every $1 retained by this company generates $0.22 in annual profit. This compounding power drives long-term wealth - and for dividend investors, it typically means sustainable dividend growth without needing debt.
Sources
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$112M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $112M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Sources
Price versus estimated intrinsic value and required return thresholds.
How current price compares with estimated intrinsic value
Consistency of profits over time
Is the business growing or shrinking over time?
Revenue has grown 97% over 10 years — the business is expanding, which supports growing dividend capacity.
Current Snapshot
Revenue Change
+97.3%
Debt Change
N/A (financials)
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +97.3% across the displayed period.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue has grown 97% over 10 years — the business is expanding, which supports growing dividend capacity.
Sources
Annual dividends as percentage of stock price
3.78% yield is well below the 6% target. Not suitable for Barsi's income strategy.
Current Snapshot
6Y Avg Yield
3.8%
6% Requirement
6.0%
Gross Yield
5.4%
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.24 and a share price of $6.40, the Barsi yield is 3.8%. The minimum requirement is 6%. Including franking credits, the gross yield is 5.4%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
Low yield means you need significant capital to generate meaningful income. Barsi's strategy focuses on stocks that provide substantial cash flow from day one.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 5 Mar 2026Interim | 8 Apr 2026 | $0.19 | 100% | $0.13 | $0.06 |
| ~4 Sept 2026Est | ~7 Oct 2026 | ~$0.18 | 100% | ~$0.13 | $0.05 |
Highest price to lock in 6% yield
Industry category of the business
Banking is an essential service sector with stable, predictable cash flows - ideal for dividend investing.
Current Snapshot
Industry
Insurance - Specialty
BESST Match
Yes
Score Impact
+3 points
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in Insurance - Specialty (Financial Services sector). It matches the Banking category — an essential service sector with stable demand, earning a +3 point scoring advantage.
How to Interpret
Sources
How much of a company's earnings are paid out as dividends
A 73% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
73.0%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.29 dividend / $0.41 EPS equals 70.6% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 73% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
nib holdings limited, together with its subsidiaries, engages in the underwriting and distribution of private health, life, and living insurance to residents, international students, and visitors in Australia and New Zealand. The company operates in six segments: Australian Residents Health Insurance, International (Inbound) Health Insurance, New Zealand Insurance, nib Travel, nib Thrive, and nib Health Services. It is also involved in the sale and distribution of travel and disability insurance products; and provision of health management programs. In addition, it provides digital marketplace platform under the national disability insurance scheme (NDIS).
The company was founded in 1952 and is based in Newcastle, Australia.
Who owns the company's shares and how much leadership has at stake
Leadership has very little personal money riding on the stock price
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
Professional fund managers hold a solid 31.8% — they see value in the business. However, company leadership owns very little (0.8%). While low insider ownership is common in large companies, it means management’s financial interests aren’t strongly tied to yours as a shareholder.
Current Snapshot
Insider %
0.8%
Institutional %
31.8%
Float %
67.4%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 0.8% and institutions own 31.8%, public float is 67.4%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Professional fund managers hold a solid 31.8% — they see value in the business. However, company leadership owns very little (0.8%). While low insider ownership is common in large companies, it means management’s financial interests aren’t strongly tied to yours as a shareholder.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 6 Nov 2025 | O'Dwyer (Donal Paul) Former | Unknown | 44K | — |
| 24 Sept 2025 | Close (Edward) Chief Executive Officer | Unknown | 54K | — |
| 4 Sept 2025 | Watts (Jill Margaret) Independent Non-Executive Director | Purchase at price 4.83 per share. | 2K | $10K |
| 2 Sept 2025 | Watts (Jill Margaret) Independent Non-Executive Director | Purchase at price 4.90 per share. | 5K | $23K |
| 1 Sept 2025 | Close (Edward) Chief Executive Officer | Unknown | 80K | — |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Stock is trading 17% BELOW the fair-value threshold (includes 30% margin of safety).
Current Snapshot
Current Margin
42.0%
Industry Threshold
30%
Status
17% Undervalued
Why It Matters
Margin of safety provides a valuation buffer against modelling uncertainty and adverse business outcomes.
Formula
(Estimated Intrinsic Value per Share - Current Price) / Estimated Intrinsic Value per Share x 100Method
Estimate intrinsic value using a two-stage DCF (10-year projection plus terminal value), then compare with current price.
Worked Example
For this stock now: intrinsic value is $11.03 per share, current price is $6.40, and margin of safety is 42.0%.
How to Interpret
Positive margin indicates price below modelled value; negative margin indicates price above modelled value. Compare against the industry's required buffer.
Price is below your required threshold, so you retain a margin-of-safety buffer against normal valuation error and market volatility.
Sources
What percentage of the stock price comes back as earnings each year
6.4% earnings yield is below the 7.0% threshold. You'd earn nearly as much from safer government bonds, which means the extra risk of owning shares isn't being compensated.
Current Snapshot
Current Yield
6.4%
Required Yield
7.0%
Spread
-0.6pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.41 and a share price of $6.40, earnings yield is 6.4%. The required yield for this industry is 7.0% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Returns don't justify the added risk compared to safe bonds. Consider whether the dividend yield alone compensates, or wait for a better price.
Sources
10/10 positive EPS years demonstrates highly predictable earnings through multiple economic cycles.
Current Snapshot
Positive Years
10/10
Allowed Losses
1
EPS CAGR
7.7%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 10 of the last 10 years. The allowed loss tolerance for this industry is 1 year. EPS growth rate (CAGR) is 7.7%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
A perfect track record through multiple economic cycles means this company generates profits in good times and bad. Your dividend has a solid foundation.
Sources
Percentage of revenue that becomes profit after all expenses
5.6% net margin is below the 8% threshold. May reflect this sector's structural characteristics.
Current Snapshot
Current Margin
5.6%
Threshold
8.0%
Relative Position
-2.4%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 5.6% — it keeps 6 cents of every revenue dollar as profit after all expenses. The insurance — health/specialty threshold is 8%, putting it 2.4% below the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Lower margins in this sector are common, but they leave less cushion if costs rise or revenue drops. Monitor whether margins are stable over time — consistency matters more than the absolute level.
Sources
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 4 Sept 2025Final | 7 Oct 2025 | $0.23 | 100% | $0.16 | $0.07 |
| 6 Mar 2025Interim | 9 Apr 2025 | $0.19 | 100% | $0.13 | $0.06 |
| 5 Sept 2024Final | 10 Oct 2024 | $0.20 | 100% | $0.14 | $0.06 |
| 7 Mar 2024Interim | 10 Apr 2024 | $0.21 | 100% | $0.15 | $0.06 |
| 4 Sept 2023Final | 3 Oct 2023 | $0.21 | 100% | $0.15 | $0.06 |
| 2 Mar 2023Interim | 3 Apr 2023 | $0.19 | 100% | $0.13 | $0.06 |
| 5 Sept 2022Final | 4 Oct 2022 | $0.16 | 100% | $0.11 | $0.05 |
| 3 Mar 2022Interim | 4 Apr 2022 | $0.16 | 100% | $0.11 | $0.05 |
| 2 Sept 2021Final | 5 Oct 2021 | $0.20 | 100% | $0.14 | $0.06 |
| 4 Mar 2021Interim | 6 Apr 2021 | $0.14 | 100% | $0.10 | $0.04 |
11 years of consistent dividends. A dividend cut during a systemic event was excused. Dividends have since grown to 122% of pre-event levels.
Current Snapshot
History
11yr
Predictability
Moderate
Payout Health
Elevated
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 11 years of dividend history (2016–2026). No suspensions detected — 11 consecutive years of payments. Predictability: Moderate. Payout health: Elevated. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
The dividend cut occurred during a systemic event, and the company demonstrated resilience by recovering dividends. This suggests management remains committed to shareholder income.
Sources
Current price ($6.40) is 59% above the ceiling. Wait for a drop to lock in 6% yield.
Current Snapshot
Current Price
$6.40
Max Buy Price
$4.03
Delta
-58.8%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $6.40 and a ceiling of $4.03, the entry is 58.8% above the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
At this price, you won't achieve Barsi's target 6% yield. Consider waiting for a pullback — market volatility often creates more favourable valuations for patient investors.
Sources
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Essential services maintain demand regardless of economic conditions - people always need electricity, banking, and telecommunications. Your income is protected by inelastic demand.
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