South African (JSE) Diversified Financial Industry Analysis

Industry Valuation and Performance

Has the South African Diversified Financial Industry valuation changed over the past few years?

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 24 Apr 2024	R421.4b	R188.2b	R38.1b	9.5x	11.1x	2.2x
Fri, 22 Mar 2024	R427.6b	R188.7b	R38.9b	9.5x	11x	2.3x
Sun, 18 Feb 2024	R452.1b	R182.8b	R43.1b	9.9x	10.5x	2.5x
Tue, 16 Jan 2024	R474.7b	R182.8b	R43.1b	10.5x	11x	2.6x
Thu, 14 Dec 2023	R466.7b	R182.8b	R42.5b	10.8x	11x	2.6x
Sat, 11 Nov 2023	R442.6b	R182.6b	R42.5b	11.6x	10.4x	2.4x
Mon, 09 Oct 2023	R443.3b	R182.2b	R42.2b	14.4x	10.5x	2.4x
Wed, 06 Sep 2023	R501.9b	R210.7b	R47.2b	7.3x	10.6x	2.4x
Fri, 04 Aug 2023	R491.4b	R210.7b	R47.2b	7.6x	10.4x	2.3x
Sun, 02 Jul 2023	R471.5b	R210.6b	R47.6b	8.4x	9.9x	2.2x
Tue, 30 May 2023	R418.5b	R210.6b	R47.5b	9.6x	8.8x	2x
Thu, 27 Apr 2023	R442.5b	R210.5b	R47.6b	10.2x	9.3x	2.1x
Sat, 25 Mar 2023	R421.5b	R210.5b	R47.6b	9.8x	8.9x	2x
Mon, 20 Feb 2023	R444.1b	R195.7b	R46.3b	8x	9.6x	2.3x
Wed, 18 Jan 2023	R441.9b	R195.7b	R46.3b	7.8x	9.5x	2.3x
Fri, 16 Dec 2022	R416.1b	R195.7b	R46.3b	7.7x	9x	2.1x
Sun, 13 Nov 2022	R457.8b	R195.4b	R47.0b	9.2x	9.8x	2.3x
Tue, 11 Oct 2022	R422.8b	R195.4b	R47.0b	7.7x	9x	2.2x
Thu, 08 Sep 2022	R447.8b	R184.6b	R39.7b	7.8x	11.3x	2.4x
Sat, 06 Aug 2022	R459.4b	R184.6b	R39.7b	7.3x	11.6x	2.5x
Mon, 04 Jul 2022	R428.2b	R184.6b	R39.7b	8.4x	10.8x	2.3x
Wed, 01 Jun 2022	R494.1b	R184.5b	R39.1b	9.8x	12.6x	2.7x
Fri, 29 Apr 2022	R473.4b	R184.5b	R39.2b	9.9x	12.1x	2.6x
Sun, 27 Mar 2022	R589.0b	R197.5b	R44.0b	9x	13.4x	3x
Tue, 22 Feb 2022	R543.0b	R184.8b	R35.6b	8.6x	15.2x	2.9x
Thu, 20 Jan 2022	R530.9b	R184.8b	R35.6b	9x	14.9x	2.9x
Sat, 18 Dec 2021	R499.0b	R184.8b	R35.6b	9.3x	14x	2.7x
Mon, 15 Nov 2021	R488.0b	R182.8b	R34.6b	9x	14.1x	2.7x
Wed, 13 Oct 2021	R505.6b	R182.8b	R34.6b	9.5x	14.6x	2.8x
Fri, 10 Sep 2021	R477.9b	R174.2b	R27.2b	10.9x	17.6x	2.7x
Sun, 08 Aug 2021	R468.7b	R155.3b	R14.5b	14x	32.4x	3x
Sat, 01 May 2021	R427.3b	R155.3b	R14.5b	13.7x	29.6x	2.8x

Current Industry PE

Investors are pessimistic on the South African Diversified Financial industry, indicating that they anticipate long term growth rates will be lower than they have historically.

The industry is trading at a PE ratio of 11.1x which is lower than its 3-year average PE of 13.7x.

The 3-year average PS ratio of 2.5x is higher than the industry's current PS ratio of 2.2x.

Past Earnings Growth

The earnings for companies in the Diversified Financial industry have grown 38% per year over the last three years.
Revenues for these companies have grown 6.6% 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	0.30%
Financials	1.99%
Diversified Financial	2.47%
Transaction and Payment Processing Services	4.35%
Other Diversified Financial Services	2.61%
Multi-Sector Holdings	1.79%
Specialized Finance	0%

Industry PE

Investors are most optimistic about the Transaction and Payment Processing Services industry even though it's trading below its 3-year average PE ratio of 15.7x.

It looks like they are confident that earnings will grow faster in the future than they have historically.

Forecasted Growth

Analysts are most optimistic on the Multi-Sector Holdings industry, expecting annual earnings growth of 48% over the next 5 years.
This is better than its past earnings decline of 28% per year.

In contrast, the Other Diversified Financial Services industry is expected to see its earnings grow by 9.5% per year over the next few years.

Company	Last Price	7D	1Y	Valuation
FSR FirstRand	R61.96	4.8% +R15.9b	-2.8%	PE9.1x
REM Remgro	R117.66	0.5% +R322.6m	-15.8%	PS1.3x
CTA Capital Appreciation	R1.17	1.7% +R25.3m	-26.4%	PE11.1x
DNB Deneb Investments	R2.30	0.4% +R4.4m	4.5%	PE9.5x

Company

Last Price

Valuation

FSR FirstRand

R61.96

4.8%
+R15.9b

-2.8%

PE9.1x

REM Remgro

R117.66

0.5%
+R322.6m

-15.8%