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Old Mutual

OTCPK:ODMU.F
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ODMU.F
OTCPK
ZAR146B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Old Mutual Ltd provides financial services to retail and corporate customers in South Africa and the rest of Africa, Latin America, and Asia. The last earnings update was 40 days ago. More info.


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ODMU.F Share Price and Events
Price Volatility
Industry
5yr Volatility vs Market

ODMU.F Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Old Mutual to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Old Mutual.

OTCPK:ODMU.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ZAR28.97 * 5%
ZAR1.45
Book Value of Equity per Share Median Book Value from the past 5 years. ZAR28.97
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:ODMU.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.79
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.795 (1 + (1- 28%) (14.51%))
0.878
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.878 * 7.05%)
9.14%

Discounted Cash Flow Calculation for OTCPK:ODMU.F using Excess Returns Model Model

The calculations below outline how an intrinsic value for Old Mutual is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

OTCPK:ODMU.F Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5% – 9.14%) * ZAR28.97)
ZAR-1.19
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR-1.19 / (9.14% - 2.95%)
ZAR-19.28
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR28.97 + ZAR-19.28
ZAR9.69
OTCPK:ODMU.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:ODMU.F represents 0.09412x of JSE:OMU
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.09412x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 9.69 x 0.09412
$0.91
Value per share (USD) From above. $0.91
Current discount Discount to share price of $2.03
= -1 x ($2.03 - $0.91) / $0.91
-122.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Old Mutual is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Old Mutual's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Old Mutual's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:ODMU.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in ZAR ZAR0.68
JSE:OMU Share Price ** JSE (2018-10-04) in ZAR ZAR21.55
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 19.38x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 20.13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Old Mutual.

OTCPK:ODMU.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:OMU Share Price ÷ EPS (both in ZAR)

= 21.55 ÷ 0.68

31.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is overvalued based on earnings compared to the US Insurance industry average.
  • Old Mutual is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Old Mutual's expected growth come at a high price?
Raw Data
OTCPK:ODMU.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
18.8%per year
United States of America Insurance Industry PEG Ratio Median Figure of 68 Publicly-Listed Insurance Companies 1.35x
United States of America Market PEG Ratio Median Figure of 2,115 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

OTCPK:ODMU.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.8x ÷ 18.8%

1.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Old Mutual's assets?
Raw Data
OTCPK:ODMU.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in ZAR ZAR21.17
JSE:OMU Share Price * JSE (2018-10-04) in ZAR ZAR21.55
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.33x
United States of America Market PB Ratio Median Figure of 5,285 Publicly-Listed Companies 1.95x
OTCPK:ODMU.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:OMU Share Price ÷ Book Value per Share (both in ZAR)

= 21.55 ÷ 21.17

1.02x

* Primary Listing of Old Mutual.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is good value based on assets compared to the US Insurance industry average.
X
Value checks
We assess Old Mutual's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Old Mutual has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ODMU.F Future Performance

 How is Old Mutual expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Old Mutual expected to grow at an attractive rate?
  • Old Mutual's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Old Mutual's earnings growth is expected to exceed the United States of America market average.
  • Old Mutual's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:ODMU.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:ODMU.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 18.8%
OTCPK:ODMU.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.6%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:ODMU.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:ODMU.F Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 14,192
2019-12-31 201,372 10,736 1
2018-12-31 188,825 14,389 1
OTCPK:ODMU.F Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-06-30 179,237 136,396 3,124
2018-03-31 167,638 119,884 1,660
2017-12-31 172,831 114,496 217
2017-09-30 178,692 108,485 1,513
2017-06-30 51,329 87,162 -6,113
2017-03-31 76,651 83,646 -4,073
2016-12-31 102,465 81,233 -2,116
2016-06-30 246,461 110,528 9,141
2016-03-31 272,474 120,261 10,450
2015-12-31 299,736 130,257 11,858
2015-09-30 304,435 115,622 13,345

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Old Mutual's earnings are expected to grow by 18.8% yearly, however this is not considered high growth (20% yearly).
  • Old Mutual's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:ODMU.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Old Mutual Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ODMU.F Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 4.28 4.28 4.28 1.00
2019-12-31 3.88 3.88 3.88 1.00
2018-12-31 2.49 2.49 2.49 1.00
OTCPK:ODMU.F Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-06-30 0.68
2018-03-31 0.36
2017-12-31 0.05
2017-09-30 0.33
2017-06-30 -1.32
2017-03-31 -0.88
2016-12-31 -0.46
2016-06-30 1.95
2016-03-31 2.24
2015-12-31 2.56
2015-09-30 2.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Old Mutual is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Old Mutual's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Old Mutual has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ODMU.F Past Performance

  How has Old Mutual performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Old Mutual's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Old Mutual's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Old Mutual has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Old Mutual has become profitable in the last year making it difficult to compare the US Insurance industry average.
Earnings and Revenue History
Old Mutual's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Old Mutual Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:ODMU.F Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 179,236.68 3,124.21 27,559.00
2018-03-31 167,638.07 1,660.25 25,009.84
2017-12-31 172,830.69 217.42 24,877.65
2017-09-30 178,692.26 1,512.65 28,966.84
2017-06-30 51,329.14 -6,112.68 3,452.09
2017-03-31 76,650.60 -4,072.60 11,869.41
2016-12-31 102,464.50 -2,116.34 20,350.68
2016-06-30 246,461.33 9,140.52 60,910.71
2016-03-31 272,474.29 10,449.65 68,785.57
2015-12-31 299,735.92 11,858.09 77,191.58
2015-09-30 304,434.84 13,345.43 77,782.12
2015-06-30 295,655.12 12,704.23 70,723.39
2015-03-31 278,345.14 11,466.25 65,227.85
2014-12-31 277,250.40 10,926.57 63,615.30
2014-09-30 306,213.57 9,867.80 65,562.17
2014-06-30 327,073.01 8,527.75 65,730.98
2014-03-31 330,325.20 9,946.86 63,505.52
2013-12-31 341,655.93 11,550.06 62,960.84
2013-09-30 331,689.49 10,803.32 59,312.49
2013-06-30 318,455.94 10,005.51 55,324.59
2013-03-31 288,255.45 8,689.74 51,766.75
2012-12-31 275,730.25 7,941.83 51,222.02
2012-09-30 213,704.32 5,086.92 50,165.49
2012-06-30 152,618.76 2,349.36 48,399.46
2012-03-31 133,321.61 3,800.26 46,718.65
2011-12-31 124,037.84 5,495.75 48,443.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Old Mutual has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Old Mutual used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • Old Mutual has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Old Mutual's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Old Mutual has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ODMU.F Health

 How is Old Mutual's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Old Mutual's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Old Mutual is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Old Mutual's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Old Mutual's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 51.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Old Mutual Company Filings, last reported 3 months ago.

OTCPK:ODMU.F Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 151,957.00 21,132.00 27,542.00
2018-03-31 151,957.00 21,132.00 27,542.00
2017-12-31 183,082.79 23,330.64 102,403.94
2017-09-30 198,311.45 25,271.26 110,921.81
2017-06-30 181,785.38 82,408.69 87,985.35
2017-03-31 179,648.74 81,440.09 86,951.20
2016-12-31 186,626.94 100,280.44 168,240.21
2016-06-30 193,516.77 82,812.73 77,860.80
2016-03-31 209,352.92 89,589.58 84,232.42
2015-12-31 203,731.04 112,492.19 174,291.06
2015-09-30 186,877.89 103,186.55 164,140.46
2015-06-30 182,157.64 68,125.24 96,170.06
2015-03-31 171,903.68 64,290.35 90,756.49
2014-12-31 171,818.93 73,803.83 147,337.65
2014-09-30 175,070.89 75,200.70 150,126.27
2014-06-30 161,300.01 50,039.19 77,986.22
2014-03-31 155,623.62 48,278.23 75,241.76
2013-12-31 156,959.21 67,702.45 146,433.89
2013-09-30 147,032.49 63,420.68 137,172.84
2013-06-30 145,374.19 38,678.92 75,984.54
2013-03-31 135,122.37 35,951.28 70,626.09
2012-12-31 134,749.06 60,845.96 133,866.63
2012-09-30 130,999.95 59,153.05 130,142.08
2012-06-30 133,194.79 45,395.35 52,481.96
2012-03-31 127,186.04 43,347.45 50,114.36
2011-12-31 136,551.03 59,384.23 97,590.35
  • Old Mutual's level of debt (13.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (26.8% vs 13.9% today).
  • Debt is well covered by operating cash flow (645.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.7x coverage).
X
Financial health checks
We assess Old Mutual's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Old Mutual has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ODMU.F Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.18%
Current annual income from Old Mutual dividends. Estimated to be 6.89% next year.
If you bought $2,000 of Old Mutual shares you are expected to receive $84 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Old Mutual's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.33%).
  • Old Mutual's dividend is above the markets top 25% of dividend payers in United States of America (3.41%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:ODMU.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 85 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2037 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.3%
United States of America Top 25% Dividend Yield 75th Percentile 3.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:ODMU.F Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.49 3.00
2019-12-31 1.33 3.00
2018-12-31 1.72 2.00
OTCPK:ODMU.F Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2018-09-11 0.900 3.074
2018-06-26 1.228 4.445

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Old Mutual has stable dividend payments.
  • Old Mutual only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Old Mutual's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Old Mutual's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Old Mutual afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Old Mutual has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ODMU.F Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mthandazo Moyo, image provided by Google.
Mthandazo Moyo
AGE 55
CEO Bio

Mr. Mthandazo Peter Moyo, B.Compt (Hons), CA(SA), HDip Tax Law (Wits), AMP (Harvard), AIBZ ACIS, serves as the Chief Executive Officer of Old Mutual Ltd. and serves as its Director. Mr. Moyo has been Chief Executive Officer of Old Mutual Life Assurance Company (South Africa) Limited since July 1, 2017. He has been a Director of Old Mutual Insure Limited since June 1, 2017. Mr. Moyo served as Managing Director of Africa at Alexander Forbes Limited. Mr. Moyo served as Managing Director of CBZ Building Society. Mr. Moyo served as Group Chief Executive of Alexander Forbes Limited since July 1, 2006. He served as Deputy Managing Director of Old Mutual Life Assurance Company (South Africa) Limited since October 2000. He served as Executive General Manager of Employee Benefits, where his tasks included repositioning EB to ensure the sustainable growth of the business since 1998. He is Founder of Amabubesi Investments (Pty) Limited. He joined Ernst & Young in 1991 and served as a Partner from 1994 to 1997. He joined Alexander Forbes on November 1, 2005 and Old Mutual in 1997 and was responsible for liaison with the trade unions' businesses. He serves as as Chairman of OMSA and Lethimvula Healthcare (Pty) Limited. He has been a Non-Executive Director of Nedbank Ltd., and Nedbank Group Ltd. since June 11, 2018. He serves as a Director of Liberty Group Limited, Vodacom Group Limited and Transnet Limited. Mr. Moyo served as an Independent of Liberty Holdings Ltd. of Liberty Group Limited since February 2009 until April 5, 2017. He served as a Non-Executive Director at Pinnacle Technology Holdings Ltd. from May 30, 2006 to February 2012. He served as an Executive Director of Alexander Forbes Ltd. He has been a Director of Old Mutual Life Assurance Company (South Africa) Limited since July 1, 2017. He served as a Director of Old Mutual Healthcare Pty Ltd. He served as a Director of Telkom SA Limited. He served as Non Executive Director of Alviva Holdings Limited. He is a Chartered Accountant in South Africa and Zimbabwe qualifying first in Zimbabwe in 1986 with KPMG. He obtained his Higher Diploma in Tax Law from Wits in 1996. He received his B. Compt. (Hons.) from UNISA in 1986. Mr. Moyo holds an AMP from Harvard university. He also studied CA(SA), CA(Z), HDipTax (Law).

CEO Compensation
  • Insufficient data for Mthandazo to compare compensation growth.
  • Insufficient data for Mthandazo to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team

Mthandazo Moyo

TITLE
CEO & Director
AGE
55

Casper Troskie

TITLE
CFO & Director
AGE
55

Iain Williamson

TITLE
Chief Operating Officer

Vuyo Lee

TITLE
Chief Marketing Officer
AGE
40

Celiwe Ross

TITLE
Human Capital Director

Charlene Clayton

TITLE
Head of Media for Old Mutual South Africa

Kevin Stacey

TITLE
Head of Remuneration

Steve Lock

TITLE
Head of Financial Crime Prevention & Security

Helen Wilson

TITLE
Head of Corporate Responsibility

Bongani Madikiza

TITLE
Managing Director
TENURE
8.1 yrs
Board of Directors

Trevor Manuel

TITLE
Chairperson of the Board
COMPENSATION
ZAR420K
AGE
62

Mthandazo Moyo

TITLE
CEO & Director
AGE
55

Casper Troskie

TITLE
CFO & Director
AGE
55

Thys du Toit

TITLE
Independent Non-Executive Director
AGE
59

Sizeka Magwentshu-Rensburg

TITLE
Independent Non-Executive Director
AGE
58

Pinky Moholi

TITLE
Independent Non-Executive Director
AGE
58

Thoko Mokgosi-Mwantembe

TITLE
Independent Non-Executive Director
AGE
57

Marshall Rapiya

TITLE
Non Executive Director
AGE
65
TENURE
0.3 yrs

Peter de Beyer

TITLE
Non-Executive Director
AGE
62

Ingrid Johnson

TITLE
Non-Executive Director
COMPENSATION
ZAR3M
AGE
52
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Old Mutual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
05. Oct 18 Sell Ingrid Johnson Individual 01. Oct 18 03. Oct 18 -1,533,443 $-3,215,016.67
12. Sep 18 Buy Vassi Naidoo Individual 10. Sep 18 10. Sep 18 16,500 $31,964.20
28. Jun 18 Buy Vassi Naidoo Individual 27. Jun 18 27. Jun 18 21,000 $43,270.54
X
Management checks
We assess Old Mutual's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Old Mutual has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ODMU.F News

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ODMU.F Company Info

Map
Description

Old Mutual Ltd provides financial services to retail and corporate customers in South Africa and the rest of Africa, Latin America, and Asia. The company offers life and savings, property and casualty insurance, asset management, and banking and lending products and services. It distributes its products through independent advisers, branches, bancassurance, direct and digital channels, and worksites. Old Mutual Ltd was founded in 1845 and is headquartered in Cape Town, South Africa.

Details
Name: Old Mutual Ltd
ODMU.F
Exchange: OTCPK
Founded: 1845
ZAR9,925,875,684
4,942,048,355
Website: http://www.oldmutual.com
Address: Old Mutual Ltd
Mutualpark,
Jan Smuts Drive,
Cape Town,
Western Cape, 7405,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE OMU Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 26. Jun 2018
OTCPK ODMU.F Ordinary Shares Pink Sheets LLC US USD 26. Jun 2018
LSE OMU Ordinary Shares London Stock Exchange GB GBP 26. Jun 2018
MAL OMU Ordinary Shares Malawi Stock Exchange MW MWK 26. Jun 2018
NMSE OMM Ordinary Shares Namibian Stock Exchange NA ZAR 26. Jun 2018
ZMSE OMU Ordinary Shares Zimbabwe Stock Exchange ZW USD 26. Jun 2018
BATS-CHIXE OMUL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Jun 2018
Number of employees
Current staff
Staff numbers
1,024,524
Old Mutual employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/10 21:40
End of day share price update: 2018/10/04 00:00
Last estimates confirmation: 2018/10/09
Last earnings filing: 2018/08/31
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.