LSE:OMU

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential second-rate dividend payer.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

OMU

-3.1%

GB Insurance

-1.5%

GB Market


1 Year Return

-14.9%

OMU

-6.3%

GB Insurance

3.5%

GB Market

Return vs Industry: OMU underperformed the UK Insurance industry which returned -6.3% over the past year.

Return vs Market: OMU underperformed the UK Market which returned 3.5% over the past year.


Shareholder returns

OMUIndustryMarket
7 Day-0.5%-3.1%-1.5%
30 Day0.8%-4.7%1.0%
90 Day11.3%1.9%4.3%
1 Year-10.1%-14.9%4.5%-6.3%9.0%3.5%
3 Yearn/a14.8%-5.8%21.8%6.4%
5 Yearn/a29.1%-4.1%33.8%3.5%

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?

17.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OMU (£1.07) is trading above our estimate of fair value (£0.17)

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


Price To Earnings Ratio

PE vs Industry: OMU is poor value based on its PE Ratio (17.6x) compared to the Insurance industry average (12.8x).

PE vs Market: OMU is poor value based on its PE Ratio (17.6x) compared to the UK market (17x).


Price to Earnings Growth Ratio

PEG Ratio: OMU is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: OMU is good value based on its PB Ratio (1.3x) compared to the GB Insurance industry average (1.7x).


Next Steps

Future Growth

How is Old Mutual forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMU's forecast earnings growth (20.9% per year) is above the savings rate (1.2%).

Earnings vs Market: OMU's earnings (20.9% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: Insufficient data to determine if OMU's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if OMU's revenue is forecast to grow faster than 20% 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 (15.4%).


Next Steps

Past Performance

How has Old Mutual performed over the past 5 years?

-47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMU has high quality earnings.

Growing Profit Margin: OMU's current net profit margins (3.7%) are higher than last year (-1.9%).


Past Earnings Growth Analysis

Earnings Trend: OMU's earnings have declined by -47.7% per year over the past 5 years.

Accelerating Growth: OMU has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OMU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (21.9%).


Return on Equity

High ROE: OMU's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Old Mutual's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OMU has a low level of unsold assets or inventory.

Debt Coverage by Assets: OMU's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: OMU's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if OMU has a sufficient allowance for bad loans.

Low Risk Liabilities: OMU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OMU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OMU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OMU has an appropriate level of bad loans.


Next Steps

Dividend

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

7.14%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.0%markettop25%5.3%industryaverage5.2%forecastin3Years6.4%

Current dividend yield vs market & industry

Notable Dividend: OMU's dividend (7.14%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: OMU's dividend (7.14%) is in the top 25% of dividend payers in the UK market (5.33%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether OMU's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if OMU's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.1%), OMU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OMU's dividends in 3 years are forecast to be covered by earnings (51.6% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Iain Williamson (49yo)

0.5yrs

Tenure

SAR12,375,310

Compensation

Mr. Iain George Williamson is Acting Chief Executive Officer at Old Mutual Life Assurance since June 2019. Mr. Williamson is the Acting Chief Executive Officer at Old Mutual Ltd. since April 24, 2019 and s ...


CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD834.95K) is below average for companies of similar size in the UK market ($USD3.49M).

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


Management Age and Tenure

1.0yrs

Average Tenure

48yo

Average Age

Experienced Management: OMU's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: OMU's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Khaya Gobodo (41yo)

    Managing Director of Wealth & Investments

    • Tenure: 0yrs
  • Casparus Troskie (55yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: SAR11.67m
  • Iain Williamson (49yo)

    Acting Chief Executive Officer & Director

    • Tenure: 0.5yrs
    • Compensation: SAR12.38m
  • Garth Napier (40yo)

    Managing Director of Old Mutual Insure

    • Tenure: 1yrs
    • Compensation: SAR6.36m
  • Jonas Mushosho (61yo)

    MD of Rest of Africa segment & CEO of Zimbabwe Operations

    • Tenure: 7.2yrs
    • Compensation: SAR994.63k
  • Karabo Morule (37yo)

    Executive Officer

    • Tenure: 0yrs
    • Compensation: SAR9.46m
  • Clement Chinaka (49yo)

    Managing Director of Old Mutual Corporate

    • Tenure: 0yrs
    • Compensation: SAR9.14m
  • Clarence Nethengwe (47yo)

    Managing Director of Mass & Foundation Cluster

    • Tenure: 0yrs
    • Compensation: SAR9.34m
  • Sizwe Ndlovu

    Head of Investor Relations

    • Tenure: 0yrs
  • Heloise Van Der Mescht

    Acting Chief Operating Officer

    • Tenure: 0.4yrs

Board Members

  • Thys du Toit (60yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: SAR834.00k
  • Bahleli Rapiya (66yo)

    Non Executive Director

    • Tenure: 1.3yrs
    • Compensation: SAR1.25m
  • Itumeleng Kgaboesele (48yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR1.11m
  • Casparus Troskie (55yo)

    CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: SAR11.67m
  • Iain Williamson (49yo)

    Acting Chief Executive Officer & Director

    • Tenure: 0.5yrs
    • Compensation: SAR12.38m
  • Sizeka Magwentshu-Rensburg (59yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: SAR1.28m
  • Carol Winifred Molope (54yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: SAR1.29m
  • Trevor Manuel (63yo)

    Independent Chairperson of the Board

    • Tenure: 0yrs
    • Compensation: SAR7.06m
  • Stewart van Graan (64yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: SAR1.06m
  • John Lister (60yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: SAR2.63m

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: SAR94.972b
  • Listing Market Cap: SAR4.975b
  • 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 SharesZAZARJun 2018
OMMNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJun 2018
OMUZMSE (Zimbabwe Stock Exchange)YesOrdinary SharesZWZWLJun 2018
OMUMAL (Malawi Stock Exchange)YesOrdinary SharesMWMWKJun 2018
OMULSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2018
OMULBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 2018

Biography

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 22:33
End of Day Share Price2019/11/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.