Should You Buy Australian NIB Holdings Limited At This Share Price?

What to do with NHF shares?

NIB Holdings Limited [ASX:NHF] was up marginally today. The Aussie market was slightly down today, and it was fairly easy to have some fundamentally strong companies to do a little better than the index for the day.

How about adding an insurer to your portfolio?

Yes, the company has been a growing one, but it has been completely smooth-sailing for NIB. Based on what the market is expecting, we are still looking at a company that will be growing its top and bottom lines. The long term growth rate for the company’s earning is 9.76%

NIB Holdings is a growing company. Although its earnings growth is not as top-notch as other growth companies, it is still able to bring back positive growth. NIB’s margin is comparable to others in the sector.

Return on equity has been surprisingly high at more than 21% for NIB, which means it is a great investment for equity investors. The company is not terribly leveraged, only 18.53% debt to 100% equity. But they pay a dividend, which is great news for investors.

PE is a problem. It is not that cheap at more than 22 times.

Ken Wangdong
Emerging Market Analyst, New Frontier Investor

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