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South African (JSE) Financials Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies46
  • 7D-6.4%
  • 3M-6.3%
  • 1Y15.5%
  • YTD12.3%

Over the last 7 days, the Financials industry has dropped 6.4%, driven by a pullback from FirstRand of 7.2%. Meanwhile, AfroCentric Investment actually outperformed within the industry, gaining 9.8% in the last week. This takes the industry's 12 month performance to a gain of 15%.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sun, 28 Nov 2021R1.6tR1.3tR133.9b11x
Tue, 26 Oct 2021R1.7tR1.3tR126.4b12x
Thu, 23 Sep 2021R1.7tR1.2tR114.8b11.9x
Sat, 21 Aug 2021R1.7tR1.2tR100.7b11.6x
Sat, 05 Jun 2021R1.6tR1.1tR77.8b13.3x
Tue, 09 Mar 2021R1.5tR978.8bR50.8b13x
Mon, 30 Nov 2020R1.4tR954.0bR55.0b11.3x
Thu, 03 Sep 2020R1.2tR935.2bR64.1b11.5x
Sun, 07 Jun 2020R1.1tR1.0tR98.5b10.3x
Sat, 29 Feb 2020R1.5tR1.1tR136.7b9.4x
Tue, 03 Dec 2019R1.8tR1.1tR139.1b12.2x
Fri, 06 Sep 2019R1.8tR1.0tR140.4b11.4x
Mon, 10 Jun 2019R1.9tR966.5bR149.3b13.6x
Sun, 03 Mar 2019R1.9tR905.3bR153.1b13.2x
Wed, 05 Dec 2018R1.9tR954.5bR152.1b12.4x
PE Ratio

12.4x

Total Market Cap: R1.9tTotal Earnings: R152.1bTotal Revenue: R954.5b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.0x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Financials industry have declined 4.1% per year over the last three years, while revenues for these companies have grown 10% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

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

Consumer Finance-1.81%
Capital Markets-2.89%
Diversified Financial-5.63%
Banks-6.10%
Insurance-9.29%
Mortgage Finance-20.90%

Industry PE: Investors are most optimistic about the Insurance industry even though it's trading below its 3-year average PE ratio of 25.0x. However analysts are expecting annual earnings growth of 26%, which is lower than the prior year's growth of 117% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 13.0x.

Forecasted Growth: Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 26% over the next 5 years. However this is lower than its past earnings growth rate of 117% per year. Meanwhile, the Consumer Finance industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
ACT AfroCentric Investment9.8%+R287.4m70.7%PE9.9x
CND Conduit Capital11.9%+R55.1m341.2%PS0.5x
TMT Trematon Capital Investments7.7%+R52.3m45.8%PS1.8x
RMH RMB Holdings2.1%+R41.8m9.8%PB0.4x
AEE African Equity Empowerment Investments1.1%+R4.9m1.1%PS0.1x
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