# SDF - Steadfast Group



## System (30 July 2013)

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.


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## Knobby22 (22 December 2017)

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


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## rnr (19 August 2018)

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


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## rnr (11 November 2018)

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


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## Trav. (12 November 2018)

rnr said:


> 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


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## barney (12 November 2018)

Trav. said:


> 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 ….


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## rnr (12 November 2018)

Trav. said:


> 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


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## rnr (12 November 2018)

!!!


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## rnr (12 November 2018)

rnr said:


> 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.
> 
> ...




Hi @trav

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

Cheers, Rob


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## rnr (12 November 2018)




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## Trav. (12 November 2018)

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


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## barney (12 November 2018)

rnr said:


> 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


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## Porper (13 November 2018)

rnr said:


> 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.
> 
> ...




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.


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## rnr (13 November 2018)

Hi @Porper 

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

Cheers, Rob


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## $20shoes (15 April 2019)

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.


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## rnr (30 April 2019)

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


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## rnr (10 June 2019)

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.


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## rnr (25 August 2019)

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.


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## Value Hunter (25 August 2019)

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.


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## Dona Ferentes (16 August 2021)

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._


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## Dona Ferentes (16 August 2021)

Value Hunter said:


> 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.



- there is something about personal contact.  These comparison sites are all very good, except that the full information is not disclosed, in many cases. And the ulterior action of harvesting data and trying to 'own' a relationship, by putting themselves in the middle and taking a clip must cost someone, along the line.


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## peter2 (15 July 2022)

*SDF* is not a forum fav that's for sure. Since the last post *SDF*'s price has traded sideways in a narrow range. It's clearly stronger than the index with price trading just under all time highs. A long trading range generally predicates a strong break-out and a move to a higher level. Perhaps +20% or so in this case based on prior levels.


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## InsvestoBoy (29 July 2022)

peter2 said:


> *SDF* is not a forum fav that's for sure. Since the last post *SDF*'s price has traded sideways in a narrow range. It's clearly stronger than the index with price trading just under all time highs. A long trading range generally predicates a strong break-out and a move to a higher level. Perhaps +20% or so in this case based on prior levels.




The "hello I'm making new all time highs as soon as the index stops going down" pattern in full effect on SDF.

Last stock I remember making this pattern was ELD in Apr 2020 just before it went on an 80% run.


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## Dona Ferentes (17 August 2022)

JPMorgan and UBS have launched a $225 million equity raising for Steadfast Group, priced at* $5.00 a share.*

Investors were told Steadfast had a binding deal to buy Insurance Brands of Australia, a 41-year-old insurance distribution business focused on the SME sector. IBA had 400 insurance professionals across 70 locations, and expected normalised EBITDA around the $20 million mark for the 2023 financial year.

The total acquisition price was up to $301 million and Steadfast would pay the initial $276 million via scrip and cash.

Following the institutional placement, there will be *a $25 million share purchase plan*


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