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SRWA

Contact Financial HoldingECASE:SRWA Stock Report

Market Cap

ج.م4.8b

7D

-4.5%

1Y

11.4%

Updated

26 Oct, 2021

Data

Company Financials +
SRWA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth6/6
Past Performance5/6
Financial Health4/6
Dividends2/6

SRWA Overview

Contact Financial Holding S.A.E. operates as a consumer finance company in Egypt.

Price History & Performance

Summary of all time highs, changes and price drops for Contact Financial HoldingE
Historical stock prices
Current Share Priceج.م4.01
52 Week Highج.م3.15
52 Week Lowج.م4.40
Beta0.72
1 Month Change-3.37%
3 Month Change-0.50%
1 Year Change11.39%
3 Year Change14.37%
5 Year Changen/a
Change since IPO-1.90%

Recent News & Updates

Shareholder Returns

SRWAEG Consumer FinanceEG Market
7D-4.5%0.3%3.0%
1Y11.4%65.7%12.4%

Return vs Industry: SRWA underperformed the EG Consumer Finance industry which returned 65.7% over the past year.

Return vs Market: SRWA underperformed the EG Market which returned 12.4% over the past year.

Price Volatility

Is SRWA's price volatile compared to industry and market?
SRWA volatility
SRWA Beta0.72
Industry Beta1.35
Market Beta1

Stable Share Price: SRWA is less volatile than 75% of EG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SRWA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2001n/aSaid Zaterhttps://www.contact.eg

Contact Financial Holding S.A.E. operates as a consumer finance company in Egypt. The company offers financing solutions for new and used cars, light commercial vehicles, heavy transport trucks, and trailers; home finishing financing products to purchase paints, floorings, décor products, lighting units, electrical supplies, plumbing, and sanitary ware; shopping finance services for purchasing of consumer products; home finance products; financial leasing services for passenger vehicles, busses, vans, medical equipment, and commercial vehicles comprises light, medium, and heavy trucks; and commercial and consumerism, direct and reverse, recourse and non-recourse, and spot or whole ledger factoring services. It also provides insurance brokerage services, which include medical, life, personal accident, home, electronics, machinery, key protection, car, truck, motor, road risk, and small business insurance products, as well as medical discount cards and key replacement coverage products; and marine and cargo transportation, engineering solutions, fire and burglary, business interruption, cash in transit, and non-payment risk insurance products.

Contact Financial HoldingE Fundamentals Summary

How do Contact Financial HoldingE's earnings and revenue compare to its market cap?
SRWA fundamental statistics
Market Capج.م4.79b
Earnings (TTM)ج.م444.13m
Revenue (TTM)ج.م1.60b

10.8x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRWA income statement (TTM)
Revenueج.م1.60b
Cost of Revenueج.م546.52m
Gross Profitج.م1.05b
Expensesج.م608.82m
Earningsج.م444.13m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin65.83%
Net Profit Margin27.77%
Debt/Equity Ratio74.9%

How did SRWA perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

26%

Payout Ratio

Valuation

Is Contact Financial HoldingE undervalued compared to its fair value and its price relative to the market?

10.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRWA (EGP4.01) is trading above our estimate of fair value (EGP1.17)

Significantly Below Fair Value: SRWA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRWA is good value based on its PE Ratio (10.8x) compared to the African Consumer Finance industry average (31.6x).

PE vs Market: SRWA is good value based on its PE Ratio (10.8x) compared to the EG market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: SRWA is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SRWA is overvalued based on its PB Ratio (2.1x) compared to the XF Consumer Finance industry average (1.5x).


Future Growth

How is Contact Financial HoldingE forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

27.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRWA's forecast earnings growth (27% per year) is above the savings rate (9.1%).

Earnings vs Market: SRWA's earnings (27% per year) are forecast to grow faster than the EG market (13.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRWA's revenue (23.5% per year) is forecast to grow faster than the EG market (9.8% per year).

High Growth Revenue: SRWA's revenue (23.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRWA's Return on Equity is forecast to be high in 3 years time (26.5%)


Past Performance

How has Contact Financial HoldingE performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRWA has high quality earnings.

Growing Profit Margin: SRWA's current net profit margins (27.8%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: SRWA's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: SRWA's earnings growth over the past year (33.5%) exceeds its 5-year average (20.7% per year).

Earnings vs Industry: SRWA earnings growth over the past year (33.5%) exceeded the Consumer Finance industry -50.8%.


Return on Equity

High ROE: SRWA's Return on Equity (19.6%) is considered low.


Financial Health

How is Contact Financial HoldingE's financial position?


Financial Position Analysis

Short Term Liabilities: SRWA's short term assets (EGP2.9B) exceed its short term liabilities (EGP916.5M).

Long Term Liabilities: SRWA's short term assets (EGP2.9B) exceed its long term liabilities (EGP1.9B).


Debt to Equity History and Analysis

Debt Level: SRWA's debt to equity ratio (74.9%) is considered high.

Reducing Debt: SRWA's debt to equity ratio has reduced from 176.8% to 74.9% over the past 5 years.

Debt Coverage: SRWA's debt is well covered by operating cash flow (21.1%).

Interest Coverage: Insufficient data to determine if SRWA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Contact Financial HoldingE current dividend yield, its reliability and sustainability?

2.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRWA's dividend (2.49%) isn’t notable compared to the bottom 25% of dividend payers in the EG market (2.63%).

High Dividend: SRWA's dividend (2.49%) is low compared to the top 25% of dividend payers in the EG market (7.87%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SRWA has been paying a dividend for less than 10 years.

Growing Dividend: SRWA has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.4%), SRWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRWA's dividends in 3 years are forecast to be well covered by earnings (35.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Said Zater

1.33yrs

Tenure

Mr. Said Zater serves as Director of Contact Financial Holding S.A.E. (formerly known as Sarwa Capital Holding for Financial Investments (S.A.E)) and served as its Deputy Chief Executive Officer, Chief Ope...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Contact Financial Holding S.A.E.'s employee growth, exchange listings and data sources


Key Information

  • Name: Contact Financial Holding S.A.E.
  • Ticker: SRWA
  • Exchange: CASE
  • Founded: 2001
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ج.م4.788b
  • Shares outstanding: 1.20b
  • Website: https://www.contact.eg

Location

  • Contact Financial Holding S.A.E.
  • 7 Champollion Street
  • Tahrir
  • Cairo
  • 12577
  • Egypt

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:29
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.