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South African (JSE) Financials Sector Analysis

UpdatedJul 26, 2024
DataAggregated Company Financials
Companies38
  • 7D2.5%
  • 3M20.8%
  • 1Y12.5%
  • YTD10.2%

Over the last 7 days, the Financials industry has risen 2.5%, driven by gains from Standard Bank Group of 5.3%. In the last 12 months, the industry was up 13%. Earnings are forecast to grow by 13% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 26 Jul 2024R2.1tR1.2tR182.8b10x11.5x1.8x
Sun, 23 Jun 2024R2.1tR1.2tR182.4b9.8x11.4x1.7x
Tue, 21 May 2024R1.9tR1.2tR182.3b9.8x10.3x1.6x
Thu, 18 Apr 2024R1.7tR1.2tR181.0b9.1x9.2x1.4x
Sat, 16 Mar 2024R1.8tR1.2tR183.2b9.4x9.9x1.5x
Mon, 12 Feb 2024R1.9tR1.2tR178.5b9.7x10.4x1.6x
Wed, 10 Jan 2024R1.9tR1.2tR178.6b10.3x10.7x1.6x
Fri, 08 Dec 2023R1.8tR1.2tR178.9b10.1x10.3x1.6x
Sun, 05 Nov 2023R1.8tR1.2tR179.4b10.2x10.3x1.6x
Tue, 03 Oct 2023R1.8tR1.2tR179.8b9.9x9.9x1.5x
Thu, 31 Aug 2023R1.9tR1.0tR183.0b9.9x10.2x1.9x
Sat, 29 Jul 2023R1.9tR1.0tR175.4b10.4x10.8x1.9x
Mon, 26 Jun 2023R1.7tR1.0tR176.6b10.2x9.6x1.7x
Wed, 24 May 2023R1.6tR1.0tR178.9b9.3x8.9x1.6x
Fri, 21 Apr 2023R1.7tR1.0tR178.4b8.5x9.5x1.7x
Sun, 19 Mar 2023R1.7tR1.0tR180.4b8.7x9.2x1.6x
Tue, 14 Feb 2023R1.8tR1.1tR173.0b9.5x10.5x1.7x
Thu, 12 Jan 2023R1.8tR1.0tR172.3b9.4x10.2x1.7x
Sat, 10 Dec 2022R1.7tR1.1tR173.5b8.7x9.9x1.6x
Mon, 07 Nov 2022R1.8tR1.0tR174.9b8.8x10.1x1.7x
Wed, 05 Oct 2022R1.6tR1.0tR175.0b8.2x9.1x1.6x
Fri, 02 Sep 2022R1.7tR1.2tR162.1b8.8x10.4x1.4x
Sun, 31 Jul 2022R1.7tR1.3tR151.6b9.5x11.4x1.4x
Tue, 28 Jun 2022R1.7tR1.3tR149.3b10.5x11.7x1.4x
Thu, 26 May 2022R1.8tR1.3tR150.2b10.6x11.7x1.4x
Sat, 23 Apr 2022R1.9tR1.3tR148.3b10.8x12.7x1.5x
Mon, 21 Mar 2022R2.1tR1.4tR154.2b11.2x13.5x1.5x
Wed, 16 Feb 2022R2.0tR1.3tR134.5b12.6x14.8x1.6x
Fri, 14 Jan 2022R1.9tR1.3tR134.8b12.2x14.3x1.5x
Sun, 12 Dec 2021R1.7tR1.3tR133.7b11.1x13x1.4x
Tue, 09 Nov 2021R1.7tR1.3tR126.7b12.2x13.8x1.4x
Thu, 07 Oct 2021R1.8tR1.3tR126.0b13x14.1x1.4x
Sat, 04 Sep 2021R1.7tR1.2tR100.7b11.8x17.2x1.4x
Mon, 02 Aug 2021R1.6tR1.2tR100.7b11.8x15.7x1.3x
Price to Earnings Ratio

15.7x


Total Market Cap: R1.6tTotal Earnings: R100.7bTotal Revenue: R1.2tTotal Market Cap vs Earnings and Revenue0%0%0%
South African Financials Sector Price to Earnings3Y Average 11.3x202220232024
Current Industry PE
  • Investors are relatively neutral on the South African Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 11.3x.
  • The 3-year average PS ratio of 1.6x is lower than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 22% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

ZA Market1.28%
Financials2.49%
Banks4.52%
Consumer Finance3.45%
Diversified Financial2.47%
Capital Markets0.30%
Mortgage Finance0%
Mortgage REITs0%
Insurance-0.65%
Industry PE
  • Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 36.4x.
    • It looks like they are confident that earnings will grow faster in the future than they have historically.
  • Investors are most pessimistic about the Capital Markets industry, which is trading close to its 3-year average of 9.5x.
Forecasted Growth
  • Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is better than its past earnings decline of 5.5% per year.
  • In contrast, the Capital Markets industry is expected to see its earnings grow by 10% 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
SBK Standard Bank GroupR218.365.3%
+R18.2b		13.7%PB1.4x
FSR FirstRandR80.083.0%
+R13.1b		10.7%PE11.8x
CPI Capitec Bank HoldingsR2.77k3.2%
+R10.0b		57.5%PB7.4x
ABG Absa GroupR163.296.0%
+R7.7b		-13.3%PB0.9x
NED Nedbank GroupR265.424.1%
+R4.8b		12.5%PB1.1x
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