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Old Mutual

LSE:OMU
Snowflake Description

Mediocre balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OMU
LSE
ZAR113B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, Latin America, and Asia. The last earnings update was 25 days ago. More info.


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OMU Share Price and Events
7 Day Returns
-0.3%
LSE:OMU
2.6%
GB Insurance
0.5%
GB Market
1 Year Returns
-
LSE:OMU
-5.9%
GB Insurance
0.8%
GB Market
OMU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Old Mutual (OMU) -0.3% 11.2% 3% - - -
GB Insurance 2.6% 7.8% 10.2% -5.9% 16.1% 24.1%
GB Market 0.5% 3.6% 7.6% 0.8% 15.9% 6.2%
1 Year Return vs Industry and Market
  • No trading data on OMU.
  • No trading data on OMU.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Old Mutual undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Old Mutual to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Old Mutual.

LSE:OMU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ZAR18.27 * 3%
ZAR0.55
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. ZAR18.27
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:OMU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.723 (1 + (1- 28%) (19.23%))
0.882
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.882 * 5.96%)
6.48%

Discounted Cash Flow Calculation for LSE:OMU using Excess Returns Model Model

The calculations below outline how an intrinsic value for Old Mutual is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:OMU Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (3% – 6.48%) * ZAR18.27)
ZAR-0.63
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR-0.63 / (6.48% - 1.23%)
ZAR-12.05
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR18.27 + ZAR-12.05
ZAR6.21
LSE:OMU Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:OMU represents 0.05433x of JSE:OMU
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.05433x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 6.21 x 0.05433
£0.34
Value per share (GBP) From above. £0.34
Current discount Discount to share price of £1.26
= -1 x (£1.26 - £0.34) / £0.34
-274.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Old Mutual is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Old Mutual's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Old Mutual's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:OMU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in ZAR ZAR-0.25
JSE:OMU Share Price ** JSE (2019-04-23) in ZAR ZAR23.25
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Old Mutual.

LSE:OMU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:OMU Share Price ÷ EPS (both in ZAR)

= 23.25 ÷ -0.25

-94.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is loss making, we can't compare its value to the GB Insurance industry average.
  • Old Mutual is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Old Mutual's expected growth come at a high price?
Raw Data
LSE:OMU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -94.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
53.4%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Old Mutual, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Old Mutual's assets?
Raw Data
LSE:OMU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in ZAR ZAR15.79
JSE:OMU Share Price * JSE (2019-04-23) in ZAR ZAR23.25
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:OMU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:OMU Share Price ÷ Book Value per Share (both in ZAR)

= 23.25 ÷ 15.79

1.47x

* Primary Listing of Old Mutual.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Old Mutual's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Old Mutual has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Old Mutual expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
53.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Old Mutual expected to grow at an attractive rate?
  • Old Mutual's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Old Mutual's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Old Mutual's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:OMU Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:OMU Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 53.4%
LSE:OMU Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -5.4%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:OMU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:OMU Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 90,837 13,948 1
2020-12-31 83,337 12,687 1
2019-12-31 77,164 11,317 1
LSE:OMU Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-12-31 109,005 -46,326 -1,145
2018-09-30 138,405 40,633 -560
2018-06-30 179,237 136,396 3,124
2018-03-31 167,638 119,884 1,660
2017-12-31 175,546 115,064 -2,864
2017-09-30 112,642 102,467 -4,677
2017-06-30 51,329 87,162 -6,113
2017-03-31 76,651 83,646 -4,073
2016-12-31 102,465 81,233 -2,116
2016-06-30 246,461 110,528 9,141
2016-03-31 272,474 120,261 10,450

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Old Mutual's earnings are expected to grow significantly at over 20% yearly.
  • Old Mutual's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:OMU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Old Mutual Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:OMU Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.65 4.33 2.98 2.00
2020-12-31 3.10 3.91 2.67 3.00
2019-12-31 2.82 3.56 2.43 3.00
LSE:OMU Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-12-31 -0.25
2018-09-30 -0.12
2018-06-30 0.68
2018-03-31 0.36
2017-12-31 -0.62
2017-09-30 -1.01
2017-06-30 -1.32
2017-03-31 -0.88
2016-12-31 -0.46
2016-06-30 1.95
2016-03-31 2.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Old Mutual is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Old Mutual's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Old Mutual has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Old Mutual performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Old Mutual's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Old Mutual does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Old Mutual's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Old Mutual's 1-year growth to the GB Insurance industry average as it is not currently profitable.
Earnings and Revenue History
Old Mutual's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Old Mutual Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:OMU Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 109,005.00 -1,145.00 24,028.00
2018-09-30 138,405.00 -560.00 24,143.00
2018-06-30 179,236.68 3,124.21 27,559.00
2018-03-31 167,638.07 1,660.25 25,009.84
2017-12-31 175,546.00 -2,864.00 23,613.00
2017-09-30 112,642.46 -4,677.09 13,280.32
2017-06-30 51,329.14 -6,112.68 3,452.09
2017-03-31 76,650.60 -4,072.60 11,869.41
2016-12-31 102,464.50 -2,116.34 20,350.68
2016-06-30 246,461.33 9,140.52 60,910.71
2016-03-31 272,474.29 10,449.65 68,785.57
2015-12-31 299,735.92 11,858.09 77,191.58
2015-09-30 304,434.84 13,345.43 77,782.12
2015-06-30 295,655.12 12,704.23 70,723.39
2015-03-31 278,345.14 11,466.25 65,227.85
2014-12-31 277,250.40 10,926.57 63,615.30
2014-09-30 306,213.57 9,867.80 65,562.17
2014-06-30 327,073.01 8,527.75 65,730.98
2014-03-31 330,325.20 9,946.86 63,505.52
2013-12-31 341,655.93 11,550.06 62,960.84
2013-09-30 331,689.49 10,803.32 59,312.49
2013-06-30 318,455.94 10,005.51 55,324.59
2013-03-31 288,255.45 8,689.74 51,766.75
2012-12-31 275,730.25 7,941.83 51,222.02
2012-09-30 213,704.32 5,086.92 50,165.49
2012-06-30 152,618.76 2,349.36 48,399.46

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Old Mutual has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • It is difficult to establish if Old Mutual has efficiently used its assets last year compared to the GB Insurance industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Old Mutual improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Old Mutual's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Old Mutual has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Old Mutual's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Old Mutual's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Old Mutual is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Old Mutual's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Old Mutual's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Old Mutual Company Filings, last reported 3 months ago.

LSE:OMU Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 81,420.00 21,785.00 102,068.00
2018-09-30 81,420.00 21,785.00 102,068.00
2018-06-30 151,957.00 26,024.00 27,542.00
2018-03-31 151,957.00 26,024.00 27,542.00
2017-12-31 183,445.00 23,386.00 102,591.00
2017-09-30 183,445.00 23,386.00 102,591.00
2017-06-30 181,785.38 82,408.69 87,985.35
2017-03-31 179,648.74 81,440.09 86,951.20
2016-12-31 186,626.94 100,280.44 168,240.21
2016-06-30 193,516.77 82,812.73 77,860.80
2016-03-31 209,352.92 89,589.58 84,232.42
2015-12-31 203,731.04 112,492.19 174,291.06
2015-09-30 186,877.89 103,186.55 164,140.46
2015-06-30 182,157.64 68,125.24 96,170.06
2015-03-31 171,903.68 64,290.35 90,756.49
2014-12-31 171,818.93 73,803.83 147,337.65
2014-09-30 175,070.89 75,200.70 150,126.27
2014-06-30 161,300.01 50,039.19 77,986.22
2014-03-31 155,623.62 48,278.23 75,241.76
2013-12-31 156,959.21 67,702.45 146,433.89
2013-09-30 147,032.49 63,420.68 137,172.84
2013-06-30 145,374.19 38,678.92 75,984.54
2013-03-31 135,122.37 35,951.28 70,626.09
2012-12-31 134,749.06 60,845.96 133,866.63
2012-09-30 130,999.95 59,153.05 130,142.08
2012-06-30 133,194.79 45,395.35 52,481.96
  • Old Mutual's level of debt (26.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (43% vs 26.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Old Mutual is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Old Mutual's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Old Mutual has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Old Mutual's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.19%
Current annual income from Old Mutual dividends. Estimated to be 6.54% next year.
If you bought £2,000 of Old Mutual shares you are expected to receive £124 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Old Mutual's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Old Mutual's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:OMU Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:OMU Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.63 2.00
2020-12-31 1.46 5.00
2019-12-31 1.55 3.00
LSE:OMU Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-03-11 1.440 6.495
2018-09-11 0.900 3.807
2018-06-26 1.228 4.445

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Old Mutual has stable dividend payments.
  • Old Mutual only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Old Mutual's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Old Mutual's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Old Mutual afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Old Mutual has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Old Mutual's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mthandazo Moyo
AGE 55
CEO Bio

Mr. Mthandazo Peter Moyo, B.Compt (Hons), CA (SA), HDip Tax Law (Wits), AMP (Harvard), AIBZ ACIS, serves as the Chief Executive Officer of Old Mutual Ltd. and serves as its Director. Mr. Moyo has been Chief Executive Officer of Old Mutual Life Assurance Company (South Africa) Limited since July 1, 2017. He serves as Chief Executive Officer of Old Mutual Emerging Markets since June 2017. He has been a Director of Old Mutual Insure Limited since June 1, 2017. Mr. Moyo served as Managing Director of Africa at Alexander Forbes Limited. Mr. Moyo served as Managing Director of CBZ Building Society. Mr. Moyo served as Group Chief Executive of Alexander Forbes Limited from 2005 to 2008. He served as Deputy Managing Director of Old Mutual Life Assurance Company (South Africa) Limited since October 2000 until 2005, having joined as Divisional Manager in 1997. He served as Executive General Manager of Employee Benefits, where his tasks included repositioning EB to ensure the sustainable growth of the business since 1998. He is Founder of Amabubesi Investments (Pty) Limited. He joined Ernst & Young in 1991 and served as a Partner from 1994 to 1997. He joined Alexander Forbes on November 1, 2005 and Old Mutual in 1997 and was responsible for liaison with the trade unions' businesses. He serves as Chairman of OMSA and Lethimvula Healthcare (Pty) Limited. He has been a Non-Executive Director of Nedbank Ltd. and Nedbank Group Ltd. since June 11, 2018. He served as the Non-executive Chairman of Vodacom Group. He serves as a Director of Liberty Group Limited, Vodacom Group Limited and Transnet Limited. Mr. Moyo served as an Independent of Liberty Holdings Ltd. of Liberty Group Limited since February 2009 until April 5, 2017. He served as a Non-Executive Director at Pinnacle Technology Holdings Ltd. from May 30, 2006 to February 2012. He served as an Executive Director of Alexander Forbes Ltd and its Chief Executive Officer from 2005 to 2008. He served as Chief Executive Officer of NMT Capital. He has been a Director of Old Mutual Life Assurance Company (South Africa) Limited since July 1, 2017. He served as a Director of Old Mutual Healthcare Pty Ltd. He served as a Director of Telkom SA Limited. He served as Non Executive Director of Alviva Holdings Limited. He is a Chartered Accountant in South Africa and Zimbabwe qualifying first in Zimbabwe in 1986 with KPMG. He obtained his Higher Diploma in Tax Law from Wits in 1996. He received his B. Compt. (Hons.) from UNISA in 1986. Mr. Moyo holds an AMP from Harvard University. He also studied CA (SA), CA (Z), HDipTax (Law).

CEO Compensation
  • Insufficient data for Mthandazo to compare compensation growth.
  • Insufficient data for Mthandazo to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Mthandazo Moyo

TITLE
CEO & Director
AGE
55

Casparus Troskie

TITLE
CFO & Executive Director
AGE
54
TENURE
1.1 yrs

Iain Williamson

TITLE
Chief Operating Officer
AGE
48

Khaya Gobodo

TITLE
Managing Director of Wealth & Investments
AGE
40

Sizwe Ndlovu

TITLE
Head of Investor Relations

Tabby Tsengiwe

TITLE
Head of Communications

Vuyo Lee

TITLE
Chief Marketing Officer
AGE
40

Celiwe Ross

TITLE
Human Capital Director
AGE
39

Charlene Clayton

TITLE
Head of Media for Old Mutual South Africa

Kevin Stacey

TITLE
Head of Remuneration
Board of Directors

Trevor Manuel

TITLE
Chairperson of the Board
COMPENSATION
ZAR420K
AGE
62

Mthandazo Moyo

TITLE
CEO & Director
AGE
55

Casparus Troskie

TITLE
CFO & Executive Director
AGE
54
TENURE
1.1 yrs

Thys du Toit

TITLE
Independent Non-Executive Director
AGE
59

John Lister

TITLE
Independent Non-Executive Director
AGE
59

Sizeka Magwentshu-Rensburg

TITLE
Independent Non-Executive Director
AGE
58

Pinky Moholi

TITLE
Independent Non-Executive Director
AGE
58

Carol Winifred Molope

TITLE
Independent Non-Executive Director
AGE
53

Stewart van Graan

TITLE
Independent Non-Executive Director
AGE
63

Bahleli Rapiya

TITLE
Non Executive Director
AGE
65
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
11. Oct 18 Buy Ingrid Johnson Individual 09. Oct 18 09. Oct 18 110,405 £1.52 £166,902
05. Oct 18 Sell Ingrid Johnson Individual 01. Oct 18 03. Oct 18 -1,533,443 £1.64 £-2,473,344
12. Sep 18 Buy Vassi Naidoo Individual 10. Sep 18 10. Sep 18 16,500 £1.50 £24,539
28. Jun 18 Buy Vassi Naidoo Individual 27. Jun 18 27. Jun 18 21,000 £1.59 £32,915
X
Management checks
We assess Old Mutual's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Old Mutual has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, Latin America, and Asia. The company offers life and savings, property and casualty insurance, asset management, and banking and lending products and services. It distributes its products through independent advisers, branches, bancassurance, direct and digital channels, and worksites. The company was founded in 1845 and is headquartered in Sandton, South Africa.

Details
Name: Old Mutual Limited
OMU
Exchange: LSE
Founded: 1845
ZAR6,120,741,372
4,873,503,280
Website: http://www.oldmutual.com
Address: Old Mutual Limited
No. 1 Mutual Place,
107 Rivonia Road,
Sandton,
Gauteng, 2146,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE OMU Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 26. Jun 2018
LSE OMU Ordinary Shares London Stock Exchange GB GBP 26. Jun 2018
MAL OMU Ordinary Shares Malawi Stock Exchange MW MWK 26. Jun 2018
NMSE OMM Ordinary Shares Namibian Stock Exchange NA ZAR 26. Jun 2018
ZMSE OMU Ordinary Shares Zimbabwe Stock Exchange ZW ZWL 26. Jun 2018
BATS-CHIXE OMUL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Jun 2018
Number of employees
Current staff
Staff numbers
61,259
Old Mutual employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 22:37
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.