Fact based stock research
Medibank Private (ASX:MPL)

AU000000MPL3

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Medibank Private stock research in summary

medibank.com.au

ANALYSIS: With an Obermatt Combined Rank of 66 (better than 66% compared with investment alternatives), Medibank Private (Life & Health Insurance, Australia) shares have above-average financial characteristics compared with similar stocks. Shares of Medibank Private are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 54, which means low debt burdens), but show below-average growth (Growth Rank of 43). ...read more

RECOMMENDATION: A Combined Rank of 66, is a buy recommendation based on Medibank Private's financial characteristics. As the company Medibank Private's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 43) while being safely financed (Obermatt Safety Rank of 54), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	63
Growth Rank	43
Safety Rank	54
Combined Rank	66

Country	Australia
Industry	Life & Health Insurance
Index	ASX 100, ASX 200, ASX 300, ASX 50
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Medibank Private

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	53	55	63
GROWTH
GROWTH	20	49	81	43
SAFETY
SAFETY	86	54	54	54
SENTIMENT
SENTIMENT	n/a	88	100	^new
360° VIEW
360° VIEW	n/a	81	87	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Medibank Private is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	38	53	55	63
GROWTH
GROWTH	20	49	81	43
SAFETY
SAFETY	86	54	54	54
COMBINED
COMBINED	53	66	66	66

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Medibank Private the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), Medibank Private shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Medibank Private. Price-to-Sales (P/S) is 75, which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value concerning Medibank Private's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 75, which means that dividends are expected to be higher than for 75% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 88% of alternatives (only 12% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 53% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on Medibank Private's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	42	69	72	75
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	32	34	47
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	4	21	12	12
DIVIDEND YIELD
DIVIDEND YIELD	66	69	66	75
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	38	53	55	63

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Medibank Private; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 43 (better than 43% compared with alternatives), Medibank Private shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Medibank Private. Only Capital Growth has a good rank of 63, which means that currently professionals expect the company to grow its invested capital more than 40% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 33 which means that currently professionals expect the company to grow less than 67% of its competitors. Profit Growth with a rank of 40 and Stock Returns with a rank of 49 are also low (below 51% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 43, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Medibank Private is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	47	51	33
PROFIT GROWTH
PROFIT GROWTH	45	35	49	40
CAPITAL GROWTH
CAPITAL GROWTH	n/a	41	59	63
STOCK RETURNS
STOCK RETURNS	40	75	87	49
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	20	49	81	43

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Medibank Private.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 54 (better than 54% compared with alternatives), the company Medibank Private has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Medibank Private is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Medibank Private. Leverage is at 89, meaning the company has a below-average debt-to-equity ratio. It has less debt than 89% of its competitors. Refinancing is at a rank of 50, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 50% of its competitors. Finally, Liquidity is also good at a rank of 90, which means that the company generates more profit to service its debt than 90% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 54 (better than 54% compared with alternatives), Medibank Private has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Medibank Private but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	83	85	94	89
REFINANCING
REFINANCING	48	50	50	50
LIQUIDITY
LIQUIDITY	72	86	91	90
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	86	54	54	54

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Medibank Private and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	41	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	82	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	86	97	^new
MARKET PULSE
MARKET PULSE	n/a	72	96	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	88	100	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Medibank Private.
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