company background image
LHN

Letshego Holdings (Namibia)NMSE:LHN Stock Report

Market Cap

R1.0b

7D

0%

1Y

-24.8%

Updated

20 Oct, 2021

Data

Company Financials
LHN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends3/6

LHN Overview

Letshego Holdings (Namibia) Limited, through with its subsidiaries, provides banking and other financial services to government employees, low and middle income earners, and micro and small entrepreneurs in Namibia.

Price History & Performance

Summary of all time highs, changes and price drops for Letshego Holdings (Namibia)
Historical stock prices
Current Share PriceR2.00
52 Week HighR1.45
52 Week LowR2.40
Beta0.036
1 Month Change0%
3 Month Change14.94%
1 Year Change-24.81%
3 Year Change-49.24%
5 Year Changen/a
Change since IPO-50.62%

Recent News & Updates

Shareholder Returns

LHNNA Consumer FinanceNA Market
7D0%3.0%-1.3%
1Y-24.8%66.4%-2.2%

Return vs Industry: LHN underperformed the NA Consumer Finance industry which returned 65.5% over the past year.

Return vs Market: LHN underperformed the NA Market which returned -3% over the past year.

Price Volatility

Is LHN's price volatile compared to industry and market?
LHN volatility
LHN Beta0.036
Industry Beta1.35
Market Beta1

Stable Share Price: Insufficient data to determine LHN's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine LHN's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997n/aDumisani Ndebelehttps://www.letshego.com/namibia

Letshego Holdings (Namibia) Limited, through with its subsidiaries, provides banking and other financial services to government employees, low and middle income earners, and micro and small entrepreneurs in Namibia. The company also provides short term and long term loans; and micro-lending services. It operates through a network of 3 branches and 13 access points.

Letshego Holdings (Namibia) Fundamentals Summary

How do Letshego Holdings (Namibia)'s earnings and revenue compare to its market cap?
LHN fundamental statistics
Market CapN$999.99m
Earnings (TTM)N$354.05m
Revenue (TTM)N$734.98m

2.8x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LHN income statement (TTM)
RevenueN$734.98m
Cost of RevenueN$0
Gross ProfitN$734.98m
ExpensesN$380.93m
EarningsN$354.05m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.71
Gross Margin100.00%
Net Profit Margin48.17%
Debt/Equity Ratio48.6%

How did LHN perform over the long term?

See historical performance and comparison

Dividends

11.3%

Current Dividend Yield

32%

Payout Ratio

Valuation

Is Letshego Holdings (Namibia) undervalued compared to its fair value and its price relative to the market?

19.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LHN (ZAR2) is trading below our estimate of fair value (ZAR2.48)

Significantly Below Fair Value: LHN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LHN is good value based on its PE Ratio (2.8x) compared to the African Consumer Finance industry average (32.6x).

PE vs Market: LHN is good value based on its PE Ratio (2.8x) compared to the NA market (7.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LHN is good value based on its PB Ratio (0.4x) compared to the XF Consumer Finance industry average (1.5x).


Future Growth

How is Letshego Holdings (Namibia) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Letshego Holdings (Namibia) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Letshego Holdings (Namibia) performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LHN has high quality earnings.

Growing Profit Margin: LHN's current net profit margins (48.2%) are lower than last year (51.4%).


Past Earnings Growth Analysis

Earnings Trend: LHN's earnings have declined by 4% per year over the past 5 years.

Accelerating Growth: LHN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LHN had negative earnings growth (-2.6%) over the past year, making it difficult to compare to the Consumer Finance industry average (-50.8%).


Return on Equity

High ROE: LHN's Return on Equity (13.4%) is considered low.


Financial Health

How is Letshego Holdings (Namibia)'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


Financial Institutions Analysis

Asset Level: LHN's Assets to Equity ratio (1.7x) is low.

Allowance for Bad Loans: LHN has a low allowance for bad loans (28%).

Low Risk Liabilities: 83% of LHN's liabilities are made up of primarily higher risk sources of funding.

Loan Level: LHN has an appropriate level of Loans to Assets ratio (87%).

Low Risk Deposits: LHN's Loans to Deposits ratio (1288%) is high.

Level of Bad Loans: LHN has a high level of bad loans (6.9%).


Dividend

What is Letshego Holdings (Namibia) current dividend yield, its reliability and sustainability?

11.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LHN's dividend (11.25%) is higher than the bottom 25% of dividend payers in the NA market (3.29%).

High Dividend: LHN's dividend (11.25%) is in the top 25% of dividend payers in the NA market (7.88%)


Stability and Growth of Payments

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

Growing Dividend: LHN's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.8%), LHN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Dumisani Ndebele (55 yo)

2.75yrs

Tenure

Mr. Dumiasni Ndebele served as Group Chief Executive Officer & Director of Letshego Holdings Ltd. since January 30, 2020 and served as its Interim Chief Executive Officer since March 27, 2019 until 2019. H...


Leadership Team

Experienced Management: LHN's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: LHN's board of directors are considered experienced (5.7 years average tenure).


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

Letshego Holdings (Namibia) Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Letshego Holdings (Namibia) Limited
  • Ticker: LHN
  • Exchange: NMSE
  • Founded: 1997
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: R1.000b
  • Shares outstanding: 500.00m
  • Website: https://www.letshego.com/namibia

Number of Employees


Location

  • Letshego Holdings (Namibia) Limited
  • 18 Schwerinsburg Street
  • PO Box 11600
  • Windhoek
  • Namibia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 17:03
End of Day Share Price2021/10/15 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.