Ninety One Group (LSE:N91) - Share price, News & Analysis

N91 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	4/6

N91 Stock Overview

Ninety One Group operates as an independent global asset manager worldwide.

Rewards

Trading at 55.1% below our estimate of its fair value

Earnings have grown 8.7% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 3% per year for the next 3 years

Unstable dividend track record

Ninety One Group Competitors

Schroders

LSE:SDR

UK£7.6b

St. James's Place

LSE:STJ

UK£6.7b

abrdn

LSE:ABDN

UK£4.0b

Hargreaves Lansdown

LSE:HL.

UK£3.9b

Price History & Performance

Summary of all time highs, changes and price drops for Ninety One Group
Historical stock prices
Current Share Price	UK£2.21
52 Week High	UK£2.89
52 Week Low	UK£2.15
Beta	0.47
1 Month Change	-13.67%
3 Month Change	-7.30%
1 Year Change	-8.30%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	46.16%

Shareholder Returns

	N91	GB Capital Markets	GB Market
7D	-3.9%	-0.6%	1.0%
1Y	-8.3%	-12.2%	-2.8%

Return vs Industry: N91 exceeded the UK Capital Markets industry which returned -12.6% over the past year.

Return vs Market: N91 underperformed the UK Market which returned -3% over the past year.

Price Volatility

Is N91's price volatile compared to industry and market?
N91 volatility
N91 Average Weekly Movement	5.2%
Capital Markets Industry Average Movement	4.8%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.4%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: N91 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: N91's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1991	1,182	Hendrik du Toit	https://ninetyone.com

Ninety One Group operates as an independent global asset manager worldwide. It serves private and public sector pension funds, sovereign wealth funds, insurers, corporates, foundations, and central banks, as well as large retail financial groups, wealth managers, public and private equity as well as debt, private banks, and intermediaries. It seeks to invest in South African companies struggling with the economic fallout from the spread of coronavirus.

Ninety One Group Fundamentals Summary

How do Ninety One Group's earnings and revenue compare to its market cap?
N91 fundamental statistics
Market Cap	UK£2.02b
Earnings (TTM)	UK£205.30m
Revenue (TTM)	UK£663.90m

9.8x

P/E Ratio

3.0x

P/S Ratio

Is N91 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
N91 income statement (TTM)
Revenue	UK£663.90m
Cost of Revenue	UK£279.70m
Gross Profit	UK£384.20m
Other Expenses	UK£178.90m
Earnings	UK£205.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.23
Gross Margin	57.87%
Net Profit Margin	30.92%
Debt/Equity Ratio	0%

How did N91 perform over the long term?

See historical performance and comparison

Dividends

7.0%

Current Dividend Yield

65%

Payout Ratio

Does N91 pay a reliable dividends?

See N91 dividend history and benchmarks

When do you need to buy N91 by to receive an upcoming dividend?
Ninety One Group dividend dates
Ex Dividend Date	Jul 14 2022
Dividend Pay Date	Aug 05 2022
Days until Ex dividend	49 days
Days until Dividend pay date	71 days

Does N91 pay a reliable dividends?

See N91 dividend history and benchmarks

Valuation

Is Ninety One Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: N91 (£2.21) is trading below our estimate of fair value (£4.92)

Significantly Below Fair Value: N91 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: N91 is poor value based on its Price-To-Earnings Ratio (9.8x) compared to the UK Capital Markets industry average (9.3x).

PE vs Market: N91 is good value based on its Price-To-Earnings Ratio (9.8x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: N91's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: N91 is overvalued based on its Price-To-Book Ratio (5.9x) compared to the GB Capital Markets industry average (1.2x).

Future Growth

How is Ninety One Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-3.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: N91's earnings are forecast to decline over the next 3 years (-3% per year).

Earnings vs Market: N91's earnings are forecast to decline over the next 3 years (-3% per year).

High Growth Earnings: N91's earnings are forecast to decline over the next 3 years.

Revenue vs Market: N91's revenue (3% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: N91's revenue (3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: N91's Return on Equity is forecast to be very high in 3 years time (41.3%).

Past Performance

How has Ninety One Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

8.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: N91 has high quality earnings.

Growing Profit Margin: N91's current net profit margins (30.9%) are higher than last year (24.7%).

Past Earnings Growth Analysis

Earnings Trend: N91's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: N91's earnings growth over the past year (33%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: N91 earnings growth over the past year (33%) underperformed the Capital Markets industry 62.1%.

Return on Equity

High ROE: N91's Return on Equity (60.1%) is considered outstanding.

Financial Health

How is Ninety One Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: N91's short term assets (£11.5B) exceed its short term liabilities (£11.2B).

Long Term Liabilities: N91's short term assets (£11.5B) exceed its long term liabilities (£160.2M).

Debt to Equity History and Analysis

Debt Level: N91 is debt free.

Reducing Debt: N91 has not had any debt for past 5 years.

Debt Coverage: N91 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: N91 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Ninety One Group current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.97%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: N91's dividend (6.97%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: N91's dividend (6.97%) is in the top 25% of dividend payers in the UK market (4.82%)

Stability and Growth of Payments

Stable Dividend: N91 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: N91's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (64.6%), N91's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (21.5%), N91's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.5yrs

Average board tenure

CEO

Hendrik du Toit (60 yo)

2.17yrs

Tenure

UK£4,866,000

Compensation

Mr. Hendrik Jacobus du Toit, B.Com. Law, B.Com. (Hons), M.Com., M.Phil., serves as Lead Independent Non-Executive Director at Naspers Limited since April 01, 2020 and its Independent Non-Executive Director...

CEO Compensation Analysis

Compensation vs Market: Hendrik's total compensation ($USD6.11M) is above average for companies of similar size in the UK market ($USD2.96M).

Compensation vs Earnings: Hendrik's compensation has increased by more than 20% in the past year.

Board Members

Experienced Board: N91's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31