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South African (JSE) Financials Sector Analysis

UpdatedDec 21, 2024
DataAggregated Company Financials
Companies39
  • 7D-2.9%
  • 3M-0.1%
  • 1Y22.6%
  • YTD20.4%

Over the last 7 days, the Financials industry has dropped 2.5%, driven by FirstRand declining 5.3%. On the other hand African Rainbow Capital Investments is actually up 27%. In the past year, the industry has gained 25%. As for the next few years, earnings are expected to grow by 11% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 21 Dec 2024R2.3tR1.1tR192.9b11.3x12x2.1x
Mon, 18 Nov 2024R2.3tR1.1tR191.6b11.2x12.1x2.1x
Wed, 16 Oct 2024R2.4tR1.1tR191.3b12x12.4x2.1x
Fri, 13 Sep 2024R2.3tR1.2tR185.8b11.1x12.2x1.9x
Sun, 11 Aug 2024R2.1tR1.2tR182.5b9.9x11.6x1.8x
Tue, 09 Jul 2024R2.1tR1.2tR182.5b10x11.4x1.8x
Thu, 06 Jun 2024R1.8tR1.2tR183.4b9.2x9.7x1.5x
Sat, 04 May 2024R1.8tR1.2tR182.4b9.6x9.9x1.5x
Mon, 01 Apr 2024R1.8tR1.2tR181.5b9.1x9.8x1.5x
Wed, 28 Feb 2024R1.9tR1.2tR178.6b9.7x10.5x1.6x
Fri, 26 Jan 2024R1.9tR1.2tR178.8b9.9x10.5x1.6x
Sun, 24 Dec 2023R1.9tR1.2tR178.5b9.9x10.7x1.6x
Tue, 21 Nov 2023R1.9tR1.2tR176.6b10.1x10.5x1.6x
Thu, 19 Oct 2023R1.8tR1.2tR179.8b9.9x9.8x1.5x
Sat, 16 Sep 2023R1.8tR1.2tR182.4b9.9x9.9x1.6x
Mon, 14 Aug 2023R1.9tR993.4bR177.2b10x10.6x1.9x
Wed, 12 Jul 2023R1.7tR1.0tR176.4b10.1x9.8x1.7x
Fri, 09 Jun 2023R1.7tR1.0tR178.0b10.2x9.4x1.7x
Sun, 07 May 2023R1.7tR1.0tR179.0b9.1x9.3x1.6x
Tue, 04 Apr 2023R1.7tR1.0tR181.1b9.5x9.6x1.7x
Thu, 02 Mar 2023R1.9tR1.1tR172.8b9.6x10.7x1.8x
Sat, 28 Jan 2023R1.8tR1.1tR172.7b9.6x10.5x1.7x
Mon, 26 Dec 2022R1.8tR1.0tR172.2b8.9x10.2x1.7x
Wed, 23 Nov 2022R1.8tR1.0tR178.2b8.9x10.2x1.7x
Fri, 21 Oct 2022R1.7tR1.0tR175.1b8.5x9.6x1.6x
Sun, 18 Sep 2022R1.6tR1.0tR167.9b9.2x9.7x1.6x
Tue, 16 Aug 2022R1.8tR1.3tR151.6b9.6x12.1x1.4x
Thu, 14 Jul 2022R1.7tR1.3tR150.3b9.8x11x1.3x
Sat, 11 Jun 2022R1.7tR1.3tR150.0b10.3x11.5x1.4x
Mon, 09 May 2022R1.7tR1.3tR148.1b10.5x11.8x1.4x
Wed, 06 Apr 2022R2.1tR1.3tR149.2b11.5x13.7x1.5x
Fri, 04 Mar 2022R2.0tR1.3tR135.9b12.3x15x1.6x
Sun, 30 Jan 2022R1.9tR1.3tR134.7b11.9x14x1.5x
Tue, 28 Dec 2021R1.8tR1.3tR133.6b11.9x13.4x1.4x
Price to Earnings Ratio

13.4x


Total Market Cap: R1.8tTotal Earnings: R133.6bTotal Revenue: R1.3tTotal Market Cap vs Earnings and Revenue0%0%0%
South African Financials Sector Price to Earnings3Y Average 11x202220232024
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 11.0x.
  • 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 4.4% 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-2.74%
Financials-2.95%
Capital Markets0.46%
Mortgage Finance0%
Mortgage REITs0%
Consumer Finance0%
Insurance-2.47%
Banks-2.92%
Diversified Financial-4.78%
Industry PE
  • Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 105x.
    • 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 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 8.1% 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 InvestmentsR9.5026.7%
+R3.0b		90.0%PE6.2x
AFH Alexander Forbes Group HoldingsR8.3014.5%
+R1.3b		24.1%PE17.8x
SBP Sabvest CapitalR91.244.9%
+R166.3m		23.3%PE30.8x
CML Coronation Fund ManagersR39.040.4%
+R54.2m		26.8%PE6.9x
TRE TrencorR7.551.3%
+R17.4m		13.5%PE45.2x
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Latest News

SBP

R91.24

Sabvest Capital

7D

4.9%

1Y

23.3%

AIL

R9.50

African Rainbow Capital Investments

7D

26.7%

1Y

90.0%

SBK

R225.44

Standard Bank Group

7D

-1.9%

1Y

12.1%

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CPI

R3,176.39

Capitec Bank Holdings

7D

-4.6%

1Y

60.0%

FSR

R77.09

FirstRand

7D

-5.3%

1Y

8.6%

With EPS Growth And More, FirstRand (JSE:FSR) Makes An Interesting Case

Dec 17
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CML

R39.04

Coronation Fund Managers

7D

0.4%

1Y

26.8%

AFH

R8.30

Alexander Forbes Group Holdings

7D

14.5%

1Y

24.1%

NED

R284.63

Nedbank Group

7D

-2.4%

1Y

35.3%

RHB

R2.94

RH Bophelo

7D

0.7%

1Y

-2.0%

INL

R124.00

Investec Group

7D

-2.3%

1Y

0%

With EPS Growth And More, Investec Group (JSE:INL) Makes An Interesting Case

Nov 29
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OMU

R12.44

Old Mutual

7D

-5.6%

1Y

0.8%

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Nov 20
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SLM

R85.73

Sanlam

7D

-4.2%

1Y

21.6%

Here's Why We Think Sanlam (JSE:SLM) Is Well Worth Watching

Nov 04
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ABG

R193.69

Absa Group

7D

-1.6%

1Y

22.0%

TRE

R7.55

Trencor

7D

1.3%

1Y

13.5%