OTCPK:AGRP.F

Stock Analysis Report

Executive Summary

Absa Group Limited provides various financial products and services in South Africa and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.

Risks

  • Absa Group's last earnings update was 210 days ago.

Similar Companies

Share Price & News

How has Absa Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:AGRP.F

-2.6%

US Banks

-1.0%

US Market


1 Year Return

n/a

OTCPK:AGRP.F

-14.2%

US Banks

-0.4%

US Market

No trading data on AGRP.F.

No trading data on AGRP.F.


Share holder returns

AGRP.FIndustryMarket
7 Day0%-2.6%-1.0%
30 Day0%-6.3%-3.3%
90 Day0%-3.5%0.8%
1 Yearn/a-11.8%-14.2%1.9%-0.4%
3 Yearn/a42.2%32.4%39.4%30.4%
5 Yearn/a53.3%36.7%54.2%37.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

30%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Absa Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Absa Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Absa Group is good value based on earnings compared to the US Banks industry average.

Absa Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Absa Group is poor value based on expected growth next year.


Price Based on Value of Assets

Absa Group is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Absa Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Absa Group's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).

Absa Group's earnings are expected to grow by 8.9% yearly, however this is not considered high growth (20% yearly).

Absa Group's revenue growth is expected to exceed the United States of America market average.

Absa Group's earnings growth is positive but not above the United States of America market average.

Absa Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Absa Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Absa Group performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Absa Group's year on year earnings growth rate has been positive over the past 5 years.

Absa Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Absa Group's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

Absa Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Absa Group used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Absa Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Absa Group'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

Absa Group has an acceptable proportion of non-loan assets held.

Absa Group has a low allowance for bad loans.

Absa Group's liabilities are made up of primarily low risk sources of funding.

Absa Group's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Loans at Absa Group are broadly funded by customer deposits.

Absa Group has a high level of bad loans (greater than 2%).


Next Steps

Dividend

What is Absa Group's current dividend yield, its reliability and sustainability?

7.18%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Absa Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).

Absa Group's dividend is above the markets top 25% of dividend payers in United States of America (3.58%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

René van Wyk (62yo)

Mr. Rene van Wyk, BCom, BCompt (Hons), CA(SA), AMP has been Interim Chief Executive Officer at Absa Group Ltd. since March 01, 2019. Mr. van Wyk serves as the Chief Executive Officer and Executive Director ...


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

The average tenure for the Absa Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

The tenure for the Absa Group board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

BuyUS$5,069,81324 Oct 18
Barclays Africa Group Employee Incentive Trust
EntityCompany
Shares500,000
Max PriceUS$10.21
BuyUS$8,026,85610 Sep 18
Barclays Africa Group Employee Incentive Trust
EntityCompany
Shares780,000
Max PriceUS$10.29
BuyUS$8,756,21003 Sep 18
Barclays Africa Group Employee Incentive Trust
EntityCompany
Shares780,000
Max PriceUS$11.23

Ownership Breakdown


Management Team

  • René van Wyk (62yo)

    Interim CEO & Executive Director

  • Alan Hartdegen

    Head of Investor Relations

  • Yasmin Masithela (44yo)

    Chief Executive of Group Strategic Services

    • Tenure: 0.5yrs
  • Charles Wheeler (53yo)

    General Counsel & Acting Head of Compliance

    • Tenure: 6.2yrs
  • Arrie Rautenbach (52yo)

    Chief Executive of Retail & Business Banking - South Africa

    • Tenure: 1.0yrs
  • Paul O'Flaherty (55yo)

    Chief Executive of Engineering Services

    • Tenure: 0.3yrs
    • Compensation: ZAR1.54m
  • Nomkhita Nqweni (43yo)

    Chief Executive Officer of Wealth

    • Tenure: 3.4yrs
    • Compensation: ZAR16.36m
  • Peter Matlare (58yo)

    Deputy CEO - Rest of Africa Banking & Executive Director

    • Tenure: 2.6yrs
    • Compensation: ZAR20.01m
  • Charles Russon (51yo)

    Chief Executive of Corporate & Investment Bank

    • Tenure: 0.7yrs
  • Jason Quinn (58yo)

    Group Finance Director & Executive Director

    • Tenure: 2.5yrs
    • Compensation: ZAR16.16m

Board Members

  • Mohamed Husain (58yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: ZAR2.06m
  • René van Wyk (62yo)

    Interim CEO & Executive Director

    • Tenure: 2.1yrs
  • Alex Darko (65yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: ZAR1.10m
  • Yolanda Cuba (41yo)

    Independent Non-Executive Director

    • Tenure: 12.3yrs
    • Compensation: ZAR1.07m
  • Peter Matlare (58yo)

    Deputy CEO - Rest of Africa Banking & Executive Director

    • Tenure: 7.3yrs
    • Compensation: ZAR20.01m
  • WE Lucas-Bull (64yo)

    Independent Non-Executive Chairman

    • Tenure: 5.9yrs
    • Compensation: ZAR5.28m
  • Colin Beggs (70yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: ZAR2.74m
  • Mark Merson (49yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: ZAR876.36k
  • Francis Okomo-Okello (68yo)

    Independent Non-Executive Director

    • Tenure: 4.4yrs
    • Compensation: ZAR628.01k
  • Jason Quinn (58yo)

    Group Finance Director & Executive Director

    • Tenure: 2.5yrs
    • Compensation: ZAR16.16m

Company Information

Absa Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Absa Group Limited
  • Ticker: AGRP.F
  • Exchange: OTCPK
  • Founded:
  • Industry: diversified banks
  • Sector: banks
  • Market Cap: SAR146.995b
  • Listing Market Cap: SAR10.373b
  • Shares outstanding: 831.37m
  • Website: Click here

Number of Employees


Location

  • Absa Group Limited
  • Absa Towers West
  • 7th Floor
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABGJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
AGRP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
AU61DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
AGRP.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2003

Biography

Absa Group Limited provides various financial products and services in South Africa and internationally. It offers retail and business banking, corporate and investment banking, wealth and investment manag ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/04 00:32
End of Day Share Price2018/12/04 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.