How to buy IAG shares | A$4.6
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Insurance Australia Group Limited is an insurance—property & casualty business based in Australia. IAG shares (IAG) are listed on the Australian Securities Exchange (ASX) and all prices are listed in Australian Dollars. Its last market close was $4.6 – a decrease of 2.34% over the previous week. IAG has a trailing 12-month revenue of around $7.2 billion.
How to buy shares in IAG
- Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
- Search for IAG. Find the share by name or ticker symbol: IAG. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until IAG reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At today's price of $4.6, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
- Check in on your investment. Congratulations, you own a part of IAG. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
How has coronavirus impacted IAG's share price?
Since the stock market crash in March caused by coronavirus, IAG's share price has had significant negative movement.
Its last market close was $4.6, which is 32.25% down on its pre-crash value of $6.79 and 8.70% down on the lowest point reached during the March crash when the shares fell as low as $5.
If you had bought $1,000 worth of IAG shares at the start of February 2020, those shares would have been worth $754.62 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $656.19.
IAG share priceUse our graph to track the performance of IAG stocks over time.
IAG shares at a glance
|Latest market close||AUDA$4.6|
|52-week range||AUDA$4.67 - AUDA$8.17|
|50-day moving average||AUDA$4.9823|
|200-day moving average||AUDA$5.6769|
|Dividend yield||AUDA$0.3 (6.37%)|
|Earnings per share (TTM)||AUDA$0.185|
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Competitive broker fees on Australian and international shares
- Brokerage - AU shares: From AUD 5 or 0.05%
- Brokerage - US shares: USD 0
- Sign-up process: Instant
- Support - After hours: Yes
Important: Share trading carries risk of capital loss.
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Is it a good time to buy IAG stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
IAG price performance over time
|1 week (2020-09-11)||-2.34%|
|1 month (2020-08-18)||-9.45%|
|3 months (2020-06-18)||-22.30%|
|6 months (2020-03-18)||-22.69%|
|1 year (2019-09-18)||-41.70%|
|2 years (2018-09-18)||-37.92%|
|3 years (2017-09-18)||-27.33%|
|5 years (2015-09-18)||-8.00%|
Is IAG under- or over-valued?
Valuing IAG stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of IAG's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
IAG's P/E ratio
IAG's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 27x. In other words, IAG shares trade at around 27x recent earnings.
That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
IAG's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $662 million (£373 million).
The EBITDA is a measure of a IAG's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||$7.2 billion|
|Operating margin TTM||8.02%|
|Gross profit TTM||$-870,000,000|
|Return on assets TTM||1.23%|
|Return on equity TTM||7.43%|
|Market capitalisation||$10.9 billion|
TTM: trailing 12 months
IAG's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like IAG.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
IAG's total ESG risk score
Total ESG risk: 23.75
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and IAG's overall score of 23.75 (as at 07/31/2020) is pretty good – landing it in it in the 29th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like IAG is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
IAG's environmental score
Environmental score: 2.97/100
IAG's environmental score of 2.97 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that IAG is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
IAG's social score
Social score: 11.75/100
IAG's social score of 11.75 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that IAG is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
IAG's governance score
Governance score: 14.03/100
IAG's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that IAG is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
IAG's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. IAG scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that IAG has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||23.75|
|Total ESG percentile||28.64|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||2|
IAG share dividends
Dividend payout ratio: 171.83% of net profits
Recently IAG has paid out, on average, around 171.83% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 6.37% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), IAG shareholders could enjoy a 6.37% return on their shares, in the form of dividend payments. In IAG's case, that would currently equate to about A$0.3 per share.
IAG's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
The latest dividend was paid out to all shareholders who bought their shares by 17 February 2020 (the "ex-dividend date").
Have IAG's shares ever split?
IAG's shares were split on 30 October 2018. This wouldn't directly have changed the overall worth of your IAG shares – just the quantity. However, indirectly, the new INF% higher share price could have impacted the market appetite for IAG shares which in turn could have impacted IAG's share price.
IAG share price volatility
Over the last 12 months, IAG's shares have ranged in value from as little as $4.67 up to $8.17. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while IAG's is 0.4952. This would suggest that IAG's shares are less volatile than average (for this exchange).
Insurance Australia Group Limited underwrites general insurance products in Australia and New Zealand. The company offers consumer insurance products, including motor vehicle, home and contents, business packages, farm and crop, commercial property, construction and engineering, and commercial motor and fleet motor, as well as lifestyle and leisure, such as boat, veteran and classic car, and caravan insurance. It also provides business insurance products comprising compulsory third party, workers' compensation, professional indemnity, directors' and officers', and public and products liability insurance. In addition, the company offers pleasure craft, travel, rural, marine, personal liability and commercial liability, and life insurance, as well as income protection and reinsurance products. It sells its products through branches, call centers, internet, representatives, brokers, agents, and financial institutions, as well as directly through call center and online channels; and third parties under the NRMA Insurance, SGIO, SGIC, RACV, Coles Insurance, CGU Insurance, WFI, Swann Insurance, NZI, State, AMI, and Lumley. The company was formerly known as NRMA Insurance Group Limited and changed its name to Insurance Australia Group Limited in 2002. Insurance Australia Group Limited was founded in 1925 and is based in Sydney, Australia.
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