Here's Why We Think Investec Group (JSE:INL) Might Deserve Your Attention Today
Aug 31
South African (JSE) Capital Markets Industry Analysis
UpdatedSep 21, 2023
DataAggregated Company Financials
Companies22
- 7D-0.9%
- 3M1.3%
- 1Y16.5%
- YTD-0.7%
Over the last 7 days, the Capital Markets industry has dropped 3.2%, driven by a pullback from Investec Group of 4.9%. This takes the industry's 12 month performance to a gain of 16%. In the next few years, earnings are forecast to decline by 9.8% annually.
Industry Valuation and Performance
Has the South African Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Sep 2023 | R169.6b | R79.8b | R17.8b | 10.2x | 9.5x | 2.1x |
| Sat, 19 Aug 2023 | R160.2b | R79.7b | R16.8b | 10.3x | 9.6x | 2x |
| Mon, 17 Jul 2023 | R161.1b | R78.9b | R16.5b | 11.6x | 9.7x | 2x |
| Wed, 14 Jun 2023 | R159.3b | R78.2b | R17.8b | 15.6x | 8.9x | 2x |
| Fri, 12 May 2023 | R152.2b | R76.8b | R17.5b | 9.9x | 8.7x | 2x |
| Sun, 09 Apr 2023 | R151.0b | R73.7b | R19.1b | 9.9x | 7.9x | 2x |
| Tue, 07 Mar 2023 | R176.4b | R74.6b | R20.6b | 9x | 8.6x | 2.4x |
| Thu, 02 Feb 2023 | R176.2b | R72.9b | R20.0b | 9.5x | 8.8x | 2.4x |
| Sat, 31 Dec 2022 | R170.6b | R71.3b | R19.5b | 8.9x | 8.7x | 2.4x |
| Mon, 28 Nov 2022 | R172.1b | R72.1b | R24.8b | 8.7x | 6.9x | 2.4x |
| Wed, 26 Oct 2022 | R154.1b | R69.9b | R21.2b | 8x | 7.3x | 2.2x |
| Fri, 23 Sep 2022 | R148.3b | R67.6b | R20.7b | 7.8x | 7.2x | 2.2x |
| Sun, 21 Aug 2022 | R155.4b | R68.1b | R21.0b | 7.8x | 7.4x | 2.3x |
| Tue, 19 Jul 2022 | R154.1b | R68.3b | R21.0b | 8x | 7.3x | 2.3x |
| Thu, 16 Jun 2022 | R159.7b | R67.4b | R19.8b | 9.3x | 8x | 2.4x |
| Sat, 14 May 2022 | R165.4b | R65.7b | R18.1b | 10.2x | 9.1x | 2.5x |
| Mon, 11 Apr 2022 | R182.9b | R63.8b | R19.0b | 10.2x | 9.6x | 2.9x |
| Wed, 09 Mar 2022 | R154.6b | R65.1b | R18.3b | 9.9x | 8.4x | 2.4x |
| Fri, 04 Feb 2022 | R180.3b | R66.3b | R18.6b | 10.7x | 9.7x | 2.7x |
| Sun, 02 Jan 2022 | R175.5b | R67.8b | R17.9b | 10.8x | 9.8x | 2.6x |
| Tue, 30 Nov 2021 | R159.8b | R68.3b | R17.8b | 10.9x | 9x | 2.3x |
| Thu, 28 Oct 2021 | R150.4b | R60.5b | R13.6b | 11.6x | 11x | 2.5x |
| Sat, 25 Sep 2021 | R136.1b | R59.3b | R12.8b | 11.5x | 10.6x | 2.3x |
| Mon, 23 Aug 2021 | R132.5b | R61.3b | R12.8b | 11.3x | 10.3x | 2.2x |
| Sat, 10 Jul 2021 | R129.2b | R61.3b | R12.8b | 11.3x | 10.1x | 2.1x |
| Fri, 02 Apr 2021 | R116.3b | R61.1b | R12.8b | 9.8x | 9.1x | 1.9x |
| Mon, 04 Jan 2021 | R101.0b | R57.5b | R9.6b | 9.5x | 10.5x | 1.8x |
| Thu, 08 Oct 2020 | R85.6b | R59.8b | R6.7b | 8.1x | 12.8x | 1.4x |
Price to Earnings Ratio
12.8x
Current Industry PE
- Investors are relatively neutral on the South African Capital Markets 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 9.8x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have grown 39% per year over the last three years.
- Revenues for these companies have grown 10% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Financials industry?
| ZA Market | 1.99% | |
| Financials | -0.098% | |
| Capital Markets | -0.93% | |
| Asset Management | 0.25% | |
| Investment Banking and Brokerage | 0% | |
| Financial Exchanges and Data | -0.22% | |
| Diversified Capital Markets | -1.80% | |
Industry PE
- Investors are most optimistic about the Financial Exchanges and Data industry even though it's trading below its 3-year average PE ratio of 12.5x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Despite it being negative, analysts are least pessimistic on the Diversified Capital Markets industry since they expect its earnings to decline by only 9.8% per year over the next 5 years, which isn't as bad as the other industries.
- This is a reversal from its past annual earnings growth rate of 23% per year.
- In contrast, the Diversified Capital Markets industry is expected to see its earnings decline by 9.8% 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 | |
|---|---|---|---|---|---|
| CML Coronation Fund Managers | R32.34 | 2.4% +R269.3m | 3.5% | PE18.7x | |
| ZED Zeder Investments | R1.76 | 4.8% +R122.8m | -9.3% | PE117.5x | |
| BAT Brait | R2.74 | 3.4% +R118.8m | -32.8% | PB0.4x | |
| KST PSG Financial Services | R13.40 | 0.4% +R63.7m | 25.0% | PE18x | |
| SBP Sabvest Capital | R69.00 | 1.5% +R39.4m | -5.5% | PE7.9x |