Unfortunately it's an ugly time for investors at the moment, with the S&P/ASX 200 Index (ASX: XJO) hitting 52-week lows.
It seems a combination of stubborn inflation and violence in the Middle East has the market racked with anxiety.
The interest rate relief that was previously thought to be coming very soon now feels like it will be a while away. "Higher for longer" is the expression permeating financial markets.
Amid this pessimism, there is one member of the ASX 200 just pushing up against the tide.
The stock has actually rocketed 41% over the past 12 months, all while paying a 2.3% dividend yield.
This type of resilience, one could argue, is what you might need in your stock portfolio during uncertain times.
Take a look at what Fairmont Equities managing director Michael Gable had to say about this fascinating business:
What does this ASX 200 company do?
AUB Group Ltd (ASX: AUB) is an insurance broker network operating across Australia and New Zealand.
The way AUB operates is unique in that it's not exposed to the cyclicality of standard insurance companies.
"The company operates an 'owner-driver' partner model, where it holds equity stakes in partner businesses," Gable said on the Fairmont blog.
"AUB's business model is highly cash flow generative and carries no insurance risk, unlike the general insurers."
The company has decent market share, holding about 11% of the intermediated general insurance market and roughly 22% of the small-to-medium enterprise general insurance clientele in Australia.
Why AUB Group is still cheap despite all the gains this year
Despite the huge gains in share price over the past year, Gable is bullish on AUB.
"AUB shares are still trading on a multiple which is at the bottom end of the trading range over the last three years," he said.
"We do not consider the current multiple to be overly demanding."
There are three reasons why Gable reckons AUB can continue to power ahead.
Firstly, the business has an underlying EBIT growth potential of 12% each year heading to 2026.
"Further, there is upside risk to EBIT estimates should AUB achieve its medium-term margin targets in FY25."
And the company guidance itself seems to be conservative. Gable cited how, in the last financial year, net profit landed above expectations despite multiple guidance upgrades.
Lastly, corporate activity is not out of the question.
"A deleveraged balance sheet that underpins the potential for EPS-accretive bolt-on M&A acquisition opportunities.
"Notably, unlisted acquisition multiples [are] still at levels where they can be accretive."
Gable is not alone in his bullishness for AUB Group.
According to CMC Markets, all 10 analysts that cover the stock currently rate it as a buy.
