LSE:OMU

Stock Analysis Report

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Executive Summary

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia. More Details


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Old Mutual's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OMU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

OMU

-2.6%

GB Insurance

-1.9%

GB Market


1 Year Return

-56.8%

OMU

-22.6%

GB Insurance

-16.2%

GB Market

Return vs Industry: OMU underperformed the UK Insurance industry which returned -20.7% over the past year.

Return vs Market: OMU underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

OMUIndustryMarket
7 Day1.2%-2.6%-1.9%
30 Day2.1%-2.6%0.7%
90 Day-20.5%-6.7%-4.8%
1 Year-53.5%-56.8%-19.6%-22.6%-13.0%-16.2%
3 Year-70.6%-75.8%-20.6%-34.6%-9.4%-20.6%
5 Year-71.7%-78.5%-1.1%-26.9%13.5%-12.0%

Price Volatility Vs. Market

How volatile is Old Mutual's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Old Mutual undervalued compared to its fair value and its price relative to the market?

0.7x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: OMU (£0.46) is trading above our estimate of fair value (£0.33)

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


Price To Earnings Ratio

PE vs Industry: OMU is unprofitable, so we can't compare its PE Ratio to the GB Insurance industry average.

PE vs Market: OMU is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OMU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OMU is good value based on its PB Ratio (0.7x) compared to the GB Insurance industry average (1.1x).


Next Steps

Future Growth

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

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMU is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: OMU is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: OMU's is expected to become profitable in the next 3 years.

Revenue vs Market: OMU's revenue is expected to decline over the next 3 years (-12.4% per year).

High Growth Revenue: OMU's revenue is forecast to decline over the next 3 years (-12.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMU's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Old Mutual performed over the past 5 years?

-26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMU is currently unprofitable.

Growing Profit Margin: OMU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OMU is unprofitable, and losses have increased over the past 5 years at a rate of 26.5% per year.

Accelerating Growth: Unable to compare OMU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OMU is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-7.6%).


Return on Equity

High ROE: OMU has a negative Return on Equity (-3.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is Old Mutual's financial position?


Financial Position Analysis

Short Term Liabilities: OMU's short term assets (ZAR70.7B) do not cover its short term liabilities (ZAR144.0B).

Long Term Liabilities: OMU's short term assets (ZAR70.7B) do not cover its long term liabilities (ZAR685.9B).


Debt to Equity History and Analysis

Debt Level: OMU's debt to equity ratio (24%) is considered satisfactory.

Reducing Debt: OMU's debt to equity ratio has reduced from 37.8% to 24% over the past 5 years.

Debt Coverage: OMU's debt is well covered by operating cash flow (44.9%).

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


Balance Sheet


Next Steps

Dividend

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

10.76%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate OMU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OMU's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OMU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OMU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: OMU is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OMU's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Iain Williamson (50 yo)

1.42yrs

Tenure

R9,156,000

Compensation

Mr. Iain George Williamson serves as Chief Executive Officer at Old Mutual Life Assurance Company (South Africa) Ltd. since July 03, 2020 and serves as its Executive Director since May 27, 2019. Mr. Willia ...


CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD561.86K) is below average for companies of similar size in the UK market ($USD2.07M).

Compensation vs Earnings: Iain's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Iain Williamson
CEO & Director1.42yrsR9.16mno data
Casparus Troskie
CFO & Executive Director2.58yrsR8.79mno data
Heloise Van Der Mescht
Acting Chief Operating Officer1.33yrsR4.46mno data
Clement Chinaka
Managing Director of Rest of Africano dataR6.19mno data
Clarence Nethengwe
Managing Director of Mass & Foundation Clusterno dataR5.94mno data
Garth Napier
Managing Director of Old Mutual Insure1.92yrsR6.60mno data
Gcinikhaya Gobodo
Managing Director of Old Mutual Investment Group Holdings0.58yrR15.68mno data
Prabashini Moodley
Managing Director of Old Mutual Corporate1.75yrsR1.94mno data
Sizwe Ndlovu
Head of Investor Relationsno datano datano data
Tabby Tsengiwe
Head of Communicationsno datano datano data
Maserame Mouyeme
Marketing & Corporate Affairs Director0.083yrno datano data
Celiwe Ross
Human Capital Directorno datano datano data

1.4yrs

Average Tenure

49yo

Average Age

Experienced Management: OMU's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Iain Williamson
CEO & Director1.42yrsR9.16mno data
Casparus Troskie
CFO & Executive Director2.58yrsR8.79mno data
Matthys du Toit
Independent Non-Executive Director2.58yrsR1.24mno data
Bahleli Rapiya
Non Executive Director2.58yrsR1.21mno data
Peter de Beyer
Lead Independent Director0.58yrR2.71mno data
Itumeleng Kgaboesele
Independent Non-Executive Director2.58yrsR1.41mno data
Albert Essien
Independent Non-Executive Director2.58yrsR1.19mno data
Thoko Mokgosi-Mwantembe
Non Executive Director2.58yrsR1.32mno data
Sizeka Magwentshu-Rensburg
Independent Non-Executive Director2.58yrsR1.52mno data
Carol Winifred Molope
Independent Non-Executive Director2.58yrsR1.91mno data
Trevor Manuel
Independent Chairperson of the Boardno dataR5.03mno data
John Lister
Independent Non-Executive Director2.58yrsR4.08mno data

2.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: OMU's board of directors are not considered experienced ( 2.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Old Mutual Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Old Mutual Limited
  • Ticker: OMU
  • Exchange: LSE
  • Founded: 1845
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R47.086b
  • Listing Market Cap: R2.199b
  • Shares outstanding: 4.71b
  • Website: https://www.oldmutual.com

Number of Employees


Location

  • Old Mutual Limited
  • Mutualpark
  • Jan Smuts Drive
  • Cape Town
  • Western Cape
  • 7405
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OMUJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJul 1999
OMMNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJul 1999
OMUZMSE (Zimbabwe Stock Exchange)YesOrdinary SharesZWZWLJul 1999
OMUMAL (Malawi Stock Exchange)YesOrdinary SharesMWMWKJul 1999
OMULSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 1999
2KSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
ODMU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
OMULBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 1999

Biography

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia. The company offers life and savings, property and casualty insurance, asse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:13
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.