NHF -NIB holdings

 NHF

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ASX:NHF (nib holdings) has sustained strong revenue growth over the last five years but has grappled with volatile operating margins and earnings fluctuations. Revenue climbed from about A$2.6 billion to A$3.7 billion, while Net Profit After Tax (NPAT) and Return on Equity (ROE) have generally remained healthy, though heavily reliant on underlying market conditions. [1, 2, 3]

5-Year Financial Summary

Profit & Revenue: Top-line growth has been consistent, pushing group revenue to A$3.73 billion. However, net income has experienced volatility due to fluctuations in claims inflation and underwriting margins. For instance, recent results showed NPAT fluctuating, dropping from FY24 to FY25, before flattening out in the most recent half-year results. [1, 2, 3, 4, 5]





Debt & Leverage: The balance sheet has remained robust. NIB holds moderate debt, with a debt-to-equity ratio of approximately 22%. The company boasts healthy liquidity and a strong interest coverage ratio. [1, 2]
Return on Equity (ROE): Historically, NIB has delivered strong capital efficiency, with 5-year average ROE hovering around 18%, although it occasionally dipped below 15% during peak claims years. [1, 2]

Strategic Updates & Outlook

Productivity: NIB has successfully tackled increasing claims costs and expenses by focusing on digital-first strategies, process automation, and a strategic pivot to pure-play health insurance (highlighted by the recent sale of its travel insurance arm). [1, 2]
Dividends: The company has maintained its reputation for reliable shareholder distributions, continuing to offer fully franked dividends with a historical payout ratio often ranging between 60% and 70%.

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As of July 2026, the 10-year mean historical Price-to-Earnings (P/E) ratio for nib holdings limited (ASX: NHF) sits at 21.04, with its current trailing 12-month (TTM) P/E ratio trading lower at approximately 17.99. [1]

The stock's valuation has cooled down from the elevated levels seen between 2021 and 2023, which were driven by fluctuating post-pandemic insurance claims and premium adjustments. [1, 2]

Interactive price chart for NIB Holdings Limited (ASX: NHF) showing long term market trends alongside its current 17.99 P/E ratio.

Annual P/E Ratio Breakdown (Past 10 Years)

Historical financial data from platforms like Companies Market Cap and Market Index highlights the year-end P/E ratios for NHF: [1, 2, 3]

Year	P/E Ratio	Valuation Context
2025	17.80	Stabilized underlying operating profit; tracking closer to historical baseline.
2024	18.70	Steady earnings growth offsets policy management costs.
2023	20.10	Rebound in post-lockdown medical procedures slightly compresses multiple.
2022	22.30	Spiked over 56% due to high pandemic-induced premium retention and deferred claims.
2021	24.94	Higher range peak as risk margins temporarily expanded during initial Covid rollouts.
2020	35.70	Extreme cyclical high caused by sharp, temporary net profit compression at the pandemic's onset.
2019	19.20	Moderate, consistent private health sector growth.
2018	17.23	Broadly aligned with the historical Australian specialty insurance sector average.
2017	17.45	Stable operating expense margins and steady policyholder additions.
2016	18.46	Underpins long-term trend lines preceding subsequent macro volatility cycles.

Track Key Financial Indicators

Sector Benchmarking: At ~18.0x, NHF trades roughly in line with the broader ASX specialty insurance sector average (~18.4x), signaling a fair relative valuation compared to core market peers like Medibank. [1, 2]
Growth Outlook: According to consensus expectations reported on Simply Wall St, NHF's EPS is forecasted to expand over the coming three years, providing solid earnings cover for its current ~4% dividend yield

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