OTCPK:AGRP.Y

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Very undervalued established dividend payer.


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

-3.5%

AGRP.Y

2.7%

US Banks

0.4%

US Market


1 Year Return

5.3%

AGRP.Y

2.7%

US Banks

6.9%

US Market

Return vs Industry: AGRP.Y exceeded the US Banks industry which returned 2.7% over the past year.

Return vs Market: AGRP.Y underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

AGRP.YIndustryMarket
7 Day-3.5%2.7%0.4%
30 Day-7.5%0.2%-1.2%
90 Day-12.7%2.9%-0.4%
1 Year11.2%5.3%5.7%2.7%9.3%6.9%
3 Year14.8%-2.2%52.1%41.6%45.8%36.4%
5 Year-5.3%-27.3%69.2%50.7%62.9%45.1%

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 compared to its fair value and its price relative to the market?

40.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AGRP.Y ($21.04) is trading below our estimate of fair value ($35.53)

Significantly Undervalued: AGRP.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AGRP.Y is good value based on its PE Ratio (9.2x) compared to the Banks industry average (12.6x).

PE vs Market: AGRP.Y is good value based on its PE Ratio (9.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: AGRP.Y is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AGRP.Y is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGRP.Y's forecast earnings growth (9.4% per year) is above the savings rate (2.7%).

Earnings vs Market: AGRP.Y's earnings (9.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: AGRP.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGRP.Y's revenue (8.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AGRP.Y's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AGRP.Y's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Absa Group performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AGRP.Y's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: AGRP.Y's earnings growth over the past year (4.3%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: AGRP.Y earnings growth over the past year (4.3%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: AGRP.Y's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: AGRP.Y's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate AGRP.Y's Return on Capital Employed to determine if it has improved over the past 3 years.


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

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

Debt Coverage by Assets: AGRP.Y's debt is covered by short term assets (assets are 1.282810x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: AGRP.Y has a low allowance for bad loans.

Low Risk Liabilities: AGRP.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: AGRP.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AGRP.Y's loans are broadly funded by customer deposits.

Level of Bad Loans: AGRP.Y has a high level of bad loans (5.05%)


Next Steps

Dividend

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

7.02%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years7.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AGRP.Y's dividend (7.02%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AGRP.Y's dividend (7.02%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: AGRP.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: AGRP.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.3%), AGRP.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGRP.Y's dividends in 3 years are forecast to be covered by earnings (57.5% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

René van Wyk (63yo)

0.6yrs

Tenure

0

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


Management Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

Experienced Management: AGRP.Y's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

61yo

Average Age

Experienced Board: AGRP.Y's board of directors are considered experienced (5 years average tenure).


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


Management Team

  • Jason Quinn (59yo)

    Group Finance Director & Executive Director

    • Tenure: 3.1yrs
    • Compensation: SAR16.16m
  • Paul O'Flaherty (56yo)

    Chief Executive of Engineering Services

    • Tenure: 0.9yrs
    • Compensation: SAR1.54m
  • Peter Matlare (59yo)

    Deputy CEO of Regional Operations & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR20.01m
  • Alan Hartdegen

    Head of Investor Relations

    • Tenure: 0yrs
  • René van Wyk (63yo)

    Interim CEO & Executive Director

    • Tenure: 0.6yrs
  • Nomkhita Nqweni (44yo)

    Chief Executive Officer of Wealth

    • Tenure: 4yrs
    • Compensation: SAR16.36m
  • Charles Wheeler (54yo)

    General Counsel & Acting Head of Compliance

    • Tenure: 6.8yrs
  • Charles Russon (52yo)

    Chief Executive of Corporate & Investment Bank

    • Tenure: 1.3yrs
  • Arrie Rautenbach (53yo)

    Chief Executive of Retail & Business Banking - South Africa

    • Tenure: 1.6yrs
  • Roze Phillips (49yo)

    Group Executive of People & Culture

    • Tenure: 0.5yrs

Board Members

  • Alex Darko (66yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: SAR1.10m
  • Jason Quinn (59yo)

    Group Finance Director & Executive Director

    • Tenure: 3.1yrs
    • Compensation: SAR16.16m
  • WE Lucas-Bull (65yo)

    Independent Non-Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: SAR5.28m
  • Mark Merson (50yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: SAR876.36k
  • Francis Okomo-Okello (69yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: SAR628.01k
  • Colin Beggs (71yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: SAR2.74m
  • Peter Matlare (59yo)

    Deputy CEO of Regional Operations & Executive Director

    • Tenure: 7.8yrs
    • Compensation: SAR20.01m
  • Mohamed Husain (59yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: SAR2.06m
  • René van Wyk (63yo)

    Interim CEO & Executive Director

    • Tenure: 0.6yrs
  • Daisy Naidoo (47yo)

    Independent Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: SAR600.12k

Company Information

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


Key Information

  • Name: Absa Group Limited
  • Ticker: AGRP.Y
  • Exchange: OTCPK
  • Founded: 1986
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: SAR131.355b
  • Listing Market Cap: SAR8.874b
  • Shares outstanding: 830.84m
  • Website: https://www.absa.africa

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 personal and business banking, corporate and investment banking, wealth and investment man ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:30
End of Day Share Price2019/10/16 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.