SDF - Steadfast Group

[System]

Steadfast Group Limited (SDF) is a provider of services to a network of approximately 280 insurance broking businesses across Australia. Steadfast also has a number of investments in insurance brokers within that network as well as underwriting agencies and a joint venture originating premium funding products. Steadfast has developed into Australia's largest general insurance broking network measured by annual premiums placed and number of licensed brokers in its network.

https://www.steadfast.com.au

Steadfast Group Limited is scheduled to list on the ASX on Friday, August 2nd, 2013.

 

[Knobby22]

Raising has occurred. SPP now for us small guys. Only going to buy 2K. Anyone else own?

 

[rnr]

Made a new high on Friday August 17th (although Bearish A divergence is of concern).

 

[rnr]

Bearish divergence has since played out a couple of times since the last post and now price is within striking distance of the ATH.

 

[Trav.]

View attachment 90208

Bearish divergence has since played out a couple of times since the last post and now price is within striking distance of the ATH.

Hi @rnr

With the AGM news causing the price to gap up on the 18/10, what are your thoughts that the price will retrace to fill that gap?

Extract from chairman's address

**Edit - or is there any indicator that you look at to give you confidence the SP will not retrace...Cheers

 

[barney]

With the AGM news causing the price to gap up on the 18/10, what are your thoughts that the price will retrace to fill that gap?
is there any indicator that you look at to give you confidence the SP will not retrace...Cheers

These guys are turning over some serious cash at $75 million NPAT ……

But …. they have a Market Cap of almost $2.5 billion

Paid a fully franked divi of 7.5 cents 2018

Technically the recent sharp rise into what looks a double top looks like close to top of the range …. but there are no rules of course.

Not my kind of Stock to play around with, but I'd expect a period of ranging and won't be surprised to see a retrace from here @Trav.

I wouldn't be a buyer at these levels although it looks a solid Company at a glance ….

 

[rnr]

Hi @rnr

With the AGM news causing the price to gap up on the 18/10, what are your thoughts that the price will retrace to fill that gap?

**Edit - or is there any indicator that you look at to give you confidence the SP will not retrace...Cheers

Hi @trav,

I have no idea whether the gap will be filled at some later point in time, although it was a positive to see price retrace the following week and find support at the low of the gap bar.

In relation to your "edit" question....if @Porper was to post an Elliott Wave chart I would find that info very informative.

Cheers, Rob

 

[rnr]

!!!

 

[rnr]

Hi @trav,

I have no idea whether the gap will be filled at some later point in time, although it was a positive to see price retrace the following week and find support at the low of the gap bar.

In relation to your "edit" question....if @Porper was to post an Elliott Wave chart I would find that info very informative.

Cheers, Rob

Hi @trav

A revised answer to your question from this morning....yes the gap will be filled today

Cheers, Rob

 

[rnr]

 

[Trav.]

LOL well there you go. I didn't think that it would happen that quick !!

Thanks for getting back to me with the answer nice one Rob

 

[barney]

Hi @trav

A revised answer to your question from this morning....yes the gap will be filled today

Cheers, Rob

LOL … I hadn't taken another look at this this arvo … but …. in a word ….. ….

I did suggest earlier I wouldn't be a buyer at "these" levels ….. those buying at near $2.70 however will probably do OK

 

[Porper]

Hi @trav,

I have no idea whether the gap will be filled at some later point in time, although it was a positive to see price retrace the following week and find support at the low of the gap bar.

In relation to your "edit" question....if @Porper was to post an Elliott Wave chart I would find that info very informative.

Cheers, Rob

A relatively newly listed company so not loads of data to work with. My take is that a high is near as wave 5 should be in place shortly if it isn't already. A healthy retracement would offer a good buying opportunity though. Lack of volume is an issue for me as it causes volatility like yesterday, although it was a positive close on increased volume which is good.

 

[rnr]

Hi @Porper

Many thanks for taking the time to provide an EW perspective on Steadfast, very interesting and really appreciated.

Cheers, Rob

 

[$20shoes]

It has been a while since we've had a post on SDF. Price has been ranging for a few weeks now but there's a bit of churn in there. Some might find a reasonable R/R on a breakout above 3.26 and shortly above that she'd be trading at blue sky highs. One to watch.

 

[rnr]

Steadfast Group making a new ATH again. Where to from here?

 

[rnr]

Follow up from April 30th:-

The next day saw Steadfast make a further push higher to record an ATH of $3.46.
An a-b-c wave saw price retrace to a low of $3.02.
Price then reversed from here to close on Friday at $3.23.

 

[rnr]

Well back again as this stock has raised its head yet again in a daily scan that I generally look at over the weekend. Basically if the value of the indicator 7-HH30-ATR(10)x is under 1 (as shown by the green bar on the pic) then the high of that bar is less than 1 x ATR(10) from the highest high value of the last 30 bars (HH30) and may be worth watching as a potential breakout.

 

[Value Hunter]

SDF currently at $3.69 is trading at over 23 times forecast FY2020 underlying earnings per share. FY2019 underlying e.p.s. was 14.42 cents and the company's guidance was for 5-10% growth in FY2020. Therefore at the top end of guidance you get underlying e.p.s. of 15.862 cents per share.

This is a huge multiple for a company that is forecasting only 5-10% growth and is an industry roll up (i.e. growth by acquisition story) story. As I have previously discussed in other threads for various reasons these sorts of roll up stories in general do not have a good track record. If you do buy this type of business (very risky) you should never pay a huge multiple for it.

Never mind the fact that this type of insurance broking is old school and is slowly becoming less relevant over time due to the younger generation using the internet to compare and purchase such things and also more comparison type sites, etc popping up. I think there are still more parts of the process which in the long-term can be automated and or off-shored making these types of brokers less relevant.

 

[Dona Ferentes]

Steadfast Group announces full year 2021 results with underlying EBITA up 17.6% and underlying NPAT up 20.2%, the acquisition of Coverforce and a $200m fully underwritten Institutional Placement

FY21 financial highlights
▪ Underlying revenue of $899.9m, up 8.9%
▪ Underlying EBITA of $262.7m, up 17.6%
▪ Underlying NPAT of $130.7m, up 20.2%
▪ Underlying EPS (NPAT) of 15.1 cents per share (cps), up 18.8%
▪ Final dividend (fully franked) of 7.0 cents per share (cps), up 16.7%
▪ Total dividend (fully franked) of 11.4 cents per share (cps), up 18.8%

Steadfast Group acquired insurance broker Coverforce for $411.5 million in a deal that will be fully funded through an institutional placement and a scrip consideration. The $200 million institutional placement will be raised at an issue price of at least $4.35 a share.

The $217.8 million scrip consideration will be issued to the vendors of Coverforce and will be escrowed until after the release of Steadfast’s 2022 financial year results.

Steadfast Group continues to provide insurance brokers with the opportunity to unlock the capital that has been built up over many years. Steadfast was the natural acquirer of Coverforce which is one of Australias largest insurance brokers, said Steadfast managing director and chief executive Robert Kelly.

The merger of Coverforce into Steadfast represents a unique opportunity to further strengthen Steadfast as the largest general insurance broker network and largest group of insurance underwriting agencies in Australasia.

The combination of both businesses is highly complementary with exceptional strategic and cultural alignment. Coverforce is an established insurance broker that has consistently delivered double digit revenue growth rates, excellent operating efficiencies and consistent market leading margins.