Should Weakness in nib holdings limited's (ASX:NHF) Stock Be Seen As A Sign That Market Will Correct The Share Price Given Decent Financials?

Simply Wall St.

Feb 13

With its stock down 14% over the past three months, it is easy to disregard nib holdings (ASX:NHF). However, stock prices are usually driven by a company’s financials over the long term, which in ...

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However, stock prices are usually driven by a company’s financials over the long term, which in ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/insurance/asx-nhf/nib-holdings-shares/news/should-weakness-in-nib-holdings-limiteds-asxnhf-stock-be-see\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7089","symbol_name":"人寿与健康保险","start_time":0,"source_url":"https://simplywall.st/stocks/au/insurance/asx-nhf/nib-holdings-shares/news/should-weakness-in-nib-holdings-limiteds-asxnhf-stock-be-see","article_id":"2611901468","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7212000-choice2-main-header/1585186560665"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/insurance/asx-nhf/nib-holdings-shares/news/should-weakness-in-nib-holdings-limiteds-asxnhf-stock-be-see","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2611901468","pubTimestamp":1770928047,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"With its stock down 14% over the past three months, it is easy to disregard nib holdings (ASX:NHF). However, stock...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7089":"人寿与健康保险","NHF.AU":"NIB HOLDINGS LTD"},"translate_title":"鉴于财务状况良好，nib holdings limited(ASX：NHF)股票的疲软是否应被视为市场将调整股价的迹象？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NHF.AU":1.5},"content_text":"With its stock down 14% over the past three months, it is easy to disregard nib holdings (ASX:NHF).   However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable.     Specifically, we decided to study nib holdings'  ROE in this article.    ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.Advertisement How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for nib holdings is:17% = AU$194m ÷ AU$1.1b (Based on the trailing twelve months to June 2025). The 'return' is the amount earned after tax over the last twelve months.  That means that for every A$1 worth of shareholders' equity, the company generated A$0.17 in profit.  See our latest analysis for nib holdings   What Is The Relationship Between ROE And Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.  A Side By Side comparison of nib holdings' Earnings Growth And 17% ROE  To start with, nib holdings' ROE looks acceptable.   Further, the company's ROE is similar to the industry average of 15%.   This certainly adds some context to nib holdings' moderate 8.6% net income growth seen over the past five years.     Next, on comparing with the industry net income growth, we found that nib holdings' reported growth was lower than the industry growth of 19% over the last few years, which is not something we like to see.   ASX:NHF Past Earnings Growth February 12th 2026 Earnings growth is a huge factor in stock valuation.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.   This then helps them determine if the stock is placed for a bright or bleak future.    What is NHF worth today? The  intrinsic value infographic in our free research report  helps visualize whether NHF is currently mispriced by the market.    Is nib holdings Using Its Retained Earnings Effectively?    The high three-year median payout ratio of 79% (or a retention ratio of 21%) for nib holdings suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders.      Moreover, nib holdings is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years.      Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 65% of its profits over the next three years.   As a result, nib holdings' ROE is not expected to change by much either, which we inferred from the analyst estimate of 20% for future ROE.      Summary    On the whole, we do feel that nib holdings has some positive attributes.      The company has grown its earnings moderately as previously discussed. Still, the high ROE could have been even more beneficial to investors had the company been reinvesting more of its profits. As highlighted earlier, the current reinvestment rate appears to be quite low.       We also studied the latest analyst forecasts and found that the company's earnings growth is expected be similar to its current growth rate.     To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}