OTCPK:JSEJ.F

Stock Analysis Report

Executive Summary

JSE Limited operates as a securities exchange in South Africa.


Snowflake Analysis

Established dividend payer and good value.


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

3.7%

JSEJ.F

2.1%

US Capital Markets

1.7%

US Market


1 Year Return

n/a

JSEJ.F

18.8%

US Capital Markets

23.2%

US Market

Return vs Industry: Insufficient data to determine how JSEJ.F performed against the US Capital Markets industry.

Return vs Market: Insufficient data to determine how JSEJ.F performed against the US Market.


Shareholder returns

JSEJ.FIndustryMarket
7 Day3.7%2.1%1.7%
30 Day-2.8%4.1%4.2%
90 Day-3.8%14.5%11.9%
1 Yearn/a21.2%18.8%25.8%23.2%
3 Year-24.9%-24.9%48.7%40.3%52.8%42.9%
5 Year-14.1%-14.1%95.7%77.5%75.2%55.8%

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?

11.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JSEJ.F ($8.25) is trading below our estimate of fair value ($9.55)

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


Price To Earnings Ratio

PE vs Industry: JSEJ.F is good value based on its PE Ratio (13.6x) compared to the Capital Markets industry average (36.1x).

PE vs Market: JSEJ.F is good value based on its PE Ratio (13.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: JSEJ.F is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: JSEJ.F is good value based on its PB Ratio (2.8x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

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

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSEJ.F's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).

Earnings vs Market: JSEJ.F's earnings (8.1% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: JSEJ.F's revenue (6.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: JSEJ.F's revenue (6.8% per year) is forecast to grow slower than 20% 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 (19%).


Next Steps

Past Performance

How has JSE performed over the past 5 years?

5.7%

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 (34.9%) are lower than last year (43.7%).


Past Earnings Growth Analysis

Earnings Trend: JSEJ.F's earnings have grown by 5.7% per year over the past 5 years.

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

Earnings vs Industry: JSEJ.F had negative earnings growth (-25.9%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: JSEJ.F's Return on Equity (20.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is JSE'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: JSEJ.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if JSEJ.F's debt is covered by short term assets.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.41%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: JSEJ.F's dividend (5.54%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: JSEJ.F's dividend (5.54%) is in the top 25% of dividend payers in the US market (3.66%)


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: At its current payout ratio (75.4%), JSEJ.F's 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 (71.5% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Leila Fourie (50yo)

0.3yrs

Tenure

R6,239,000

Compensation

Ms. Leila Fourie, M.Com., Ph.D. has been Chief Executive Officer of JSE Ltd. since October 1, 2019 and alos Serves as its Executive Director since 2019. Ms. Fourie served as Director of Post-Trade & Inform ...


CEO Compensation Analysis

Compensation vs Market: Leila's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD2.53M).

Compensation vs Earnings: Leila's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.2yrs

Average Tenure

50yo

Average Age

Experienced Management: JSEJ.F's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

52yo

Average Age

Experienced Board: JSEJ.F's board of directors are considered experienced (6.4 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.


Recent Insider Transactions

SellUS$120,97602 Oct 19
John Burke
EntityIndividual
Role
Alternate Director
Director of Issuer Regulation
Shares14,000
Max PriceUS$8.64
SellUS$20,52022 May 19
Aarti Takoordeen
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares2,054
Max PriceUS$9.99
SellUS$51,68122 May 19
John Burke
EntityIndividual
Role
Alternate Director
Director of Issuer Regulation
Shares5,173
Max PriceUS$9.99
SellUS$127,68922 May 19
Nicky Newton-King
EntityIndividual
Shares12,781
Max PriceUS$9.99
SellUS$38,71322 May 19
Graeme Brookes
EntityIndividual
Role
Alternate Director
Director of Governance
Shares3,875
Max PriceUS$9.99
BuyUS$206,97108 Mar 19
John Burke
EntityIndividual
Role
Alternate Director
Director of Issuer Regulation
Shares18,420
Max PriceUS$11.24
BuyUS$187,75708 Mar 19
Aarti Takoordeen
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares16,710
Max PriceUS$11.24
BuyUS$88,24908 Mar 19
Graeme Brookes
EntityIndividual
Role
Alternate Director
Director of Governance
Shares7,854
Max PriceUS$11.24
BuyUS$585,54008 Mar 19
Nicky Newton-King
EntityIndividual
Shares52,112
Max PriceUS$11.24
BuyUS$71707 Mar 19
Aarti Takoordeen
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares65
Max PriceUS$11.04
BuyUS$71707 Mar 19
Graeme Brookes
EntityIndividual
Role
Alternate Director
Director of Governance
Shares65
Max PriceUS$11.04
BuyUS$71707 Mar 19
Nicky Newton-King
EntityIndividual
Shares65
Max PriceUS$11.04
BuyUS$71707 Mar 19
John Burke
EntityIndividual
Role
Alternate Director
Director of Issuer Regulation
Shares65
Max PriceUS$11.04

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Burke (53yo)

    Director of Issuer Regulation

    • Tenure: 15yrs
    • Compensation: R8.34m
  • Graeme Brookes (51yo)

    Director of Governance

    • Compensation: R3.14m
  • Leila Fourie (50yo)

    Executive Director & Group CEO

    • Tenure: 0.3yrs
    • Compensation: R6.24m
  • Aarti Takoordeen (39yo)

    CFO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: R7.90m
  • Maryke Vreulink

    Head of Cape Town Office

    • Tenure: 4yrs
  • Donald Khumalo (42yo)

    Director of Human Resources

    • Tenure: 3.2yrs
    • Compensation: R4.50m
  • Hendrik Kotze (54yo)

    Group Chief Information Officer

    • Tenure: 1.1yrs
    • Compensation: R2.89m
  • Zanele Morrison (44yo)

    Director of Marketing & Corporate Affairs

    • Tenure: 0.9yrs

Board Members

  • John Burke (53yo)

    Director of Issuer Regulation

    • Tenure: 15yrs
    • Compensation: R8.34m
  • David Lawrence (67yo)

    Non Executive Director

    • Tenure: 11.8yrs
    • Compensation: R805.00k
  • Nku Cheryl Nyembezi-Heita (59yo)

    Independent Non-Executive Chairman

    • Tenure: 5.7yrs
    • Compensation: R2.15m
  • Michael Jordaan (51yo)

    Independent Non-Executive Director

    • Tenure: 6yrs
    • Compensation: R495.00k
  • Suresh Kana (64yo)

    Lead Independent Non-Executive Director

    • Compensation: R1.24m
  • Graeme Brookes (51yo)

    Director of Governance

    • Compensation: R3.14m
  • Victoria Fakude (55yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: R822.00k
  • Leila Fourie (50yo)

    Executive Director & Group CEO

    • Tenure: 0.3yrs
    • Compensation: R6.24m
  • Mantsika Matooane (43yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: R861.00k
  • Aarti Takoordeen (39yo)

    CFO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: R7.90m

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: R10.348b
  • Listing Market Cap: R718.942m
  • 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 a range of securities with post-trade and regulatory services to primary and secondary capital markets. The company trades in bonds, bonds derivatives, debentures, equities, warrants, exchange traded products, and gold coins, as well as agricultural, currency, energy, equity, metal, and interest rate derivatives. It also offers clearing, settlement, and assurance services; index services; funds management services; technology services; and information services, including market data, as well as sells live, statistical, historical, and end-of-day data. The company was founded in 1887 and is based in Sandton, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 01:52
End of Day Share Price2020/01/15 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.