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South African (JSE) Financials Sector Analysis

UpdatedDec 06, 2022
DataAggregated Company Financials
Companies40
  • 7D-5.3%
  • 3M0.5%
  • 1Y6.2%
  • YTD-0.2%

Over the last 7 days, the Financials industry has dropped 5.3%, driven by FirstRand declining 6.8%. In contrast, Sygnia has gained 13%. This takes the industry's 12 month performance to a gain of 6.2%. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

Has the South African Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 06 Dec 2022R1.7tR1.1tR173.4b9.4x10x1.7x
Thu, 03 Nov 2022R1.7tR1.0tR175.2b8.4x10x1.7x
Sat, 01 Oct 2022R1.6tR1.0tR175.0b8.1x9x1.5x
Mon, 29 Aug 2022R1.8tR1.3tR158.1b9.3x11.3x1.4x
Wed, 27 Jul 2022R1.7tR1.3tR151.7b9.5x11.3x1.4x
Fri, 24 Jun 2022R1.7tR1.3tR149.4b10.3x11.7x1.4x
Sun, 22 May 2022R1.8tR1.3tR150.4b9.9x11.9x1.4x
Tue, 19 Apr 2022R1.9tR1.3tR147.9b10.7x12.9x1.5x
Thu, 17 Mar 2022R2.1tR1.4tR153.7b11x13.6x1.6x
Sat, 12 Feb 2022R2.0tR1.3tR134.5b12.2x14.6x1.5x
Mon, 10 Jan 2022R1.9tR1.3tR134.8b12x14x1.5x
Wed, 08 Dec 2021R1.7tR1.3tR133.7b11.3x13x1.4x
Fri, 05 Nov 2021R1.8tR1.3tR126.7b12.4x13.9x1.4x
Sun, 03 Oct 2021R1.8tR1.3tR125.9b12.4x14.2x1.4x
Tue, 31 Aug 2021R1.8tR1.2tR100.7b12.3x17.6x1.4x
Wed, 07 Jul 2021R1.6tR1.2tR100.7b12.4x15.9x1.3x
Sat, 10 Apr 2021R1.5tR1.1tR77.8b12.5x19.2x1.3x
Fri, 01 Jan 2021R1.5tR978.5bR50.6b12.3x28.9x1.5x
Mon, 05 Oct 2020R1.2tR955.9bR54.7b10.4x22.4x1.3x
Thu, 09 Jul 2020R1.1tR928.5bR61.5b12.4x18.5x1.2x
Wed, 01 Apr 2020R1.1tR1.0tR98.4b10.1x11.1x1x
Sat, 04 Jan 2020R1.8tR1.1tR136.4b11.5x13.1x1.6x
Price to Earnings Ratio

13.1x


Total Market Cap: R1.8tTotal Earnings: R136.4bTotal Revenue: R1.1tTotal Market Cap vs Earnings and Revenue0%0%0%
South African Financials Sector Price to Earnings3Y Average 16x20212022
Current Industry PE
  • Investors are pessimistic on the South African Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 10.0x which is lower than its 3-year average PE of 16.0x.
  • The 3-year average PS ratio of 1.4x is lower than the industry's current PS ratio of 1.7x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 8.3% per year over the last three years.
  • Meanwhile revenues for these companies have declined 2.5% per year.
  • This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.

Industry Trends

Which industries have driven the changes within the South African Financials sector?

ZA Market-1.05%
Financials-5.28%
Mortgage Finance6.25%
Mortgage REITs0%
Capital Markets-0.92%
Insurance-4.21%
Banks-5.93%
Diversified Financial-6.42%
Consumer Finance-7.93%
Industry PE
  • Investors are most optimistic about the Consumer Finance industry even though it's trading below its 3-year average PE ratio of 33.0x.
    • Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings decline of 27.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 16% over the next 5 years.
  • However this is lower than its past earnings growth rate of 72% per year.
  • In contrast, the Capital Markets industry is expected to see its earnings decline by 5.0% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
AIL African Rainbow Capital InvestmentsR5.305.8%
+R382.2m
-2.8%PE5.2x
SYG SygniaR18.9911.2%
+R287.3m
5.5%PE10x
CML Coronation Fund ManagersR34.650.7%
+R80.5m
-34.6%PE9.5x
EPE EPE Capital PartnersR5.654.4%
+R61.8m
12.1%PE3.1x
ACT AfroCentric InvestmentR5.162.0%
+R57.7m
-5.8%PE9.5x
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Latest News

SYG

R18.99

Sygnia

7D

11.2%

1Y

5.5%

NED

R219.00

Nedbank Group

7D

-2.7%

1Y

27.2%

SBK

R174.99

Standard Bank Group

7D

-1.7%

1Y

29.6%

CML

R34.65

Coronation Fund Managers

7D

0.7%

1Y

-34.6%

VUN

R2.90

Vunani

7D

3.6%

1Y

1.8%

SLM

R53.07

Sanlam

7D

-3.4%

1Y

-8.3%

OMU

R10.59

Old Mutual

7D

-3.2%

1Y

-13.4%

EPE

R5.65

EPE Capital Partners

7D

4.4%

1Y

12.1%

CLI

R10.85

Clientèle

7D

0.5%

1Y

8.5%

ACT

R5.16

AfroCentric Investment

7D

2.0%

1Y

-5.8%

FGL

R0.34

Finbond Group

7D

6.3%

1Y

-67.0%

ABG

R194.85

Absa Group

7D

-3.6%

1Y

29.8%

AIL

R5.30

African Rainbow Capital Investments

7D

5.8%

1Y

-2.8%