OTCPK:JSEJ.F

Stock Analysis Report

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Executive Summary

JSE Limited operates as a securities exchange in South Africa. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JSEJ.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.1%

JSEJ.F

-0.2%

US Capital Markets

0.4%

US Market


1 Year Return

-20.6%

JSEJ.F

8.3%

US Capital Markets

17.8%

US Market

Return vs Industry: JSEJ.F underperformed the US Capital Markets industry which returned 8.9% over the past year.

Return vs Market: JSEJ.F underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

JSEJ.FIndustryMarket
7 Day6.1%-0.2%0.4%
30 Day6.4%6.5%6.1%
90 Dayn/a3.7%8.9%
1 Year-20.6%-20.6%11.0%8.3%20.5%17.8%
3 Year-24.1%-24.1%22.9%13.5%42.3%32.9%
5 Year-25.8%-25.8%70.3%49.0%84.2%63.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

12.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JSEJ.F ($7.16) is trading above our estimate of fair value ($6.91)

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


Price To Earnings Ratio

PE vs Industry: JSEJ.F is good value based on its PE Ratio (12.5x) compared to the US Capital Markets industry average (22.7x).

PE vs Market: JSEJ.F is good value based on its PE Ratio (12.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: JSEJ.F is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: JSEJ.F is good value based on its PB Ratio (2.6x) compared to the US Capital Markets industry average (4.7x).


Next Steps

Future Growth

How is JSE forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSEJ.F's forecast earnings growth (2.3% per year) is above the savings rate (2.2%).

Earnings vs Market: JSEJ.F's earnings (2.3% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: JSEJ.F's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: JSEJ.F's revenue is forecast to decline over the next 3 years (-1.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JSEJ.F's Return on Equity is forecast to be low in 3 years time (18.7%).


Next Steps

Past Performance

How has JSE performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JSEJ.F has high quality earnings.

Growing Profit Margin: JSEJ.F's current net profit margins (32.4%) are lower than last year (34.5%).


Past Earnings Growth Analysis

Earnings Trend: JSEJ.F's earnings have declined by 3.1% per year over the past 5 years.

Accelerating Growth: JSEJ.F's earnings growth over the past year (6.3%) exceeds its 5-year average (-3.1% per year).

Earnings vs Industry: JSEJ.F earnings growth over the past year (6.3%) underperformed the Capital Markets industry 14.1%.


Return on Equity

High ROE: JSEJ.F's Return on Equity (21.2%) is considered high.


Next Steps

Financial Health

How is JSE's financial position?


Financial Position Analysis

Short Term Liabilities: JSEJ.F's short term assets (ZAR51.2B) exceed its short term liabilities (ZAR48.8B).

Long Term Liabilities: JSEJ.F's short term assets (ZAR51.2B) exceed its long term liabilities (ZAR301.2M).


Debt to Equity History and Analysis

Debt Level: JSEJ.F is debt free.

Reducing Debt: JSEJ.F had no debt 5 years ago.

Debt Coverage: JSEJ.F has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: JSEJ.F has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is JSE current dividend yield, its reliability and sustainability?

7.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JSEJ.F's dividend (7.28%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: JSEJ.F's dividend (7.28%) is in the top 25% of dividend payers in the US market (4.56%)


Stability and Growth of Payments

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

Growing Dividend: JSEJ.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.7%), JSEJ.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JSEJ.F's dividends in 3 years are forecast to be covered by earnings (81.8% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Leila Fourie (51 yo)

1

Tenure

R8,287,000

Compensation

Dr. Leila Fourie, M.Com., Ph.D. has been Chief Executive Officer of JSE Ltd. since October 1, 2019 and also serves as its Executive Director since October 1, 2019. Dr. Fourie served as Director of Post-Tra ...


CEO Compensation Analysis

Compensation vs Market: Leila's total compensation ($USD510.98K) is below average for companies of similar size in the US market ($USD2.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leila Fourie
Group CEO & Executive Director1yrR8.29m0.074%
ZAR 450.6k
Aarti Takoordeen
CFO & Executive Director7.58yrsR7.97m0.084%
ZAR 513.3k
Hendrik Kotze
Group Chief Information Officer1.83yrsR4.80mno data
Zanele Luhabe-Morrison
Director of Marketing & Corporate Affairs1.67yrsR2.90mno data
Donald Khumalo
Director of Human Resources3.92yrsR4.74mno data
Romy Foltan
Investor Relations Officerno datano datano data
Maryke Vreulink
Head of Cape Town Office4.75yrsno datano data
Graeme Brookes
Group Company Secretary and Director of Governance & Assurance6.17yrsR3.14m0.059%
ZAR 358.0k

3.9yrs

Average Tenure

47.5yo

Average Age

Experienced Management: JSEJ.F's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leila Fourie
Group CEO & Executive Director1yrR8.29m0.074%
ZAR 450.6k
Aarti Takoordeen
CFO & Executive Director7.58yrsR7.97m0.084%
ZAR 513.3k
Victoria Fakude
Independent Non-Executive Director2.92yrsR790.00kno data
Ian Kirk
Non-Executive Directorno datano datano data
Faith Khanyile
Independent Non-Executive Director1.92yrsR875.00kno data
Nonkululeko Cheryl Nyembezi-Heita
Independent Non-Executive Chairman6.42yrsR2.30m0.0024%
ZAR 14.6k
Barend Kruger
Non-Executive Director2.33yrsR760.00k0.0029%
ZAR 17.8k
Suresh Kana
Lead Independent Non-Executive Directorno dataR1.50mno data
Zarina Bibi Bassa
Independent Non-Executive Director1.92yrsR950.00kno data
Siobhan Cleary
Independent Non-Executive Director0.67yrR546.00kno data
Mantsika Matooane
Independent Non-Executive Director8.17yrsR895.00kno data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: JSEJ.F's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: JSE Limited
  • Ticker: JSEJ.F
  • Exchange: OTCPK
  • Founded: 1887
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: R9.864b
  • Listing Market Cap: R608.231m
  • Shares outstanding: 85.52m
  • Website: https://www.jse.co.za

Number of Employees


Location

  • JSE Limited
  • One Exchange Square
  • 2 Gwen Lane
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JSEJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2006
JSEJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2006

Biography

JSE Limited operates as a securities exchange in South Africa. It offers capital markets, post-trade, and information services. The company also provides trading services for equities and indices; debt, in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 23:35
End of Day Share Price2020/10/23 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.