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South African (JSE) Financials Sector Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies39
- 7D1.6%
- 3M6.8%
- 1Y28.3%
- YTD22.9%
In the last week, Financials has been flat. The past year has been better, since the industry has gained 26% in that time. Earnings are forecast to grow by 11% annually.
Sector Valuation and Performance
Has the South African Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | R2.4t | R1.1t | R192.4b | 11.4x | 12.3x | 2.1x |
| Sat, 19 Oct 2024 | R2.4t | R1.1t | R191.3b | 12.2x | 12.4x | 2.1x |
| Mon, 16 Sep 2024 | R2.2t | R1.2t | R186.0b | 11.1x | 12.1x | 1.9x |
| Wed, 14 Aug 2024 | R2.1t | R1.2t | R182.5b | 9.8x | 11.6x | 1.8x |
| Fri, 12 Jul 2024 | R2.1t | R1.2t | R182.6b | 9.9x | 11.5x | 1.8x |
| Sun, 09 Jun 2024 | R1.8t | R1.2t | R183.3b | 9x | 9.7x | 1.5x |
| Tue, 07 May 2024 | R1.8t | R1.2t | R182.4b | 9.5x | 9.9x | 1.5x |
| Thu, 04 Apr 2024 | R1.7t | R1.2t | R181.3b | 9x | 9.6x | 1.5x |
| Sat, 02 Mar 2024 | R1.9t | R1.2t | R180.2b | 9.6x | 10.5x | 1.6x |
| Mon, 29 Jan 2024 | R1.9t | R1.2t | R178.7b | 9.9x | 10.7x | 1.6x |
| Wed, 27 Dec 2023 | R1.9t | R1.2t | R178.5b | 9.9x | 10.7x | 1.6x |
| Fri, 24 Nov 2023 | R1.9t | R1.2t | R177.1b | 10.3x | 10.6x | 1.6x |
| Sun, 22 Oct 2023 | R1.7t | R1.2t | R179.8b | 9.9x | 9.6x | 1.5x |
| Tue, 19 Sep 2023 | R1.8t | R1.2t | R185.1b | 9.9x | 9.6x | 1.5x |
| Thu, 17 Aug 2023 | R1.8t | R996.9b | R177.9b | 10x | 10.3x | 1.8x |
| Sat, 15 Jul 2023 | R1.8t | R1.0t | R176.2b | 10.2x | 10.2x | 1.8x |
| Mon, 12 Jun 2023 | R1.7t | R1.0t | R177.9b | 10.3x | 9.6x | 1.7x |
| Wed, 10 May 2023 | R1.7t | R1.0t | R179.1b | 8.9x | 9.3x | 1.6x |
| Fri, 07 Apr 2023 | R1.7t | R903.9b | R180.7b | 9.3x | 9.5x | 1.9x |
| Sun, 05 Mar 2023 | R1.8t | R1.0t | R174.7b | 9.7x | 10.5x | 1.8x |
| Tue, 31 Jan 2023 | R1.8t | R1.1t | R172.9b | 9.5x | 10.5x | 1.7x |
| Thu, 29 Dec 2022 | R1.7t | R1.0t | R172.3b | 8.7x | 10.1x | 1.7x |
| Sat, 26 Nov 2022 | R1.8t | R1.1t | R178.1b | 8.9x | 10.3x | 1.7x |
| Mon, 24 Oct 2022 | R1.7t | R1.0t | R175.0b | 8.5x | 9.6x | 1.6x |
| Wed, 21 Sep 2022 | R1.6t | R1.0t | R169.3b | 9.3x | 9.7x | 1.6x |
| Fri, 19 Aug 2022 | R1.8t | R1.3t | R154.0b | 9.6x | 11.9x | 1.4x |
| Sun, 17 Jul 2022 | R1.7t | R1.3t | R151.6b | 9x | 10.9x | 1.3x |
| Tue, 14 Jun 2022 | R1.7t | R1.3t | R149.9b | 10.3x | 11.4x | 1.3x |
| Thu, 12 May 2022 | R1.8t | R1.3t | R148.2b | 10.7x | 11.9x | 1.4x |
| Sat, 09 Apr 2022 | R2.0t | R1.3t | R150.1b | 11x | 13.5x | 1.5x |
| Mon, 07 Mar 2022 | R2.0t | R1.3t | R142.0b | 10.8x | 13.8x | 1.5x |
| Wed, 02 Feb 2022 | R1.9t | R1.3t | R134.6b | 11.9x | 14.2x | 1.5x |
| Fri, 31 Dec 2021 | R1.8t | R1.3t | R133.9b | 12.2x | 13.7x | 1.4x |
| Sun, 28 Nov 2021 | R1.6t | R1.3t | R133.9b | 11x | 12.1x | 1.3x |
Price to Earnings Ratio
12.1x
Current Industry PE
- Investors are optimistic on the South African Financials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 12.2x which is higher than its 3-year average PE of 11.0x.
- The 3-year average PS ratio of 1.6x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 13% per year over the last three years.
- Meanwhile revenues for these companies have declined 4.5% 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 | 1.70% | |
| Financials | 1.61% | |
| Insurance | 2.89% | |
| Banks | 1.61% | |
| Diversified Financial | 0.86% | |
| Capital Markets | 0.16% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -12.86% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 93.6x.
- 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, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 9.5x.
Forecasted Growth
- Analysts are most optimistic on the Banks industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings growth rate of 8.6% per year.
- In contrast, the Insurance industry is expected to see its earnings grow by 7.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CPI Capitec Bank Holdings | R3.34k | 1.8% +R7.0b | 69.3% | PB8.4x | |
| DSY Discovery | R194.93 | 4.0% +R5.0b | 44.1% | PE18.1x | |
| SBK Standard Bank Group | R244.70 | 1.2% +R5.0b | 25.4% | PB1.6x | |
| OUT OUTsurance Group | R65.00 | 4.7% +R4.5b | 49.2% | PE24.8x | |
| FSR FirstRand | R77.37 | 1.0% +R4.3b | 17.5% | PE11.4x |
