OTCPK:RMRH.F

Stock Analysis Report

Rand Merchant Investment Holdings

Executive Summary

Rand Merchant Investment Holdings Limited, an investment holding company, provides a range of financial products and services in South Africa, Australia, New Zealand, and the United Kingdom.

Snowflake

Fundamentals

Good value with acceptable track record.

Share Price & News

How has Rand Merchant Investment Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

RMRH.F

1.5%

US Insurance

2.3%

US Market


1 Year Return

n/a

RMRH.F

12.8%

US Insurance

5.6%

US Market

Return vs Industry: Insufficient data to determine how RMRH.F performed against the US Insurance industry.

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


Shareholder returns

RMRH.FIndustryMarket
7 Day0%1.5%2.3%
30 Day0%-1.5%-1.0%
90 Dayn/a-2.6%-0.7%
1 Yearn/a15.6%12.8%7.9%5.6%
3 Yearn/a42.2%31.2%45.6%36.3%
5 Yearn/a72.0%51.5%65.8%47.6%

Price Volatility Vs. Market

How volatile is Rand Merchant Investment Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rand Merchant Investment Holdings undervalued compared to its fair value and its price relative to the market?

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RMRH.F ($2) is trading below our estimate of fair value ($2.74)

Significantly Undervalued: RMRH.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RMRH.F is good value based on its PE Ratio (11.3x) compared to the Insurance industry average (15.5x).

PE vs Market: RMRH.F is good value based on its PE Ratio (11.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: RMRH.F is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: RMRH.F is overvalued based on its PB Ratio (2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Rand Merchant Investment Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMRH.F's forecast earnings growth (15.6% per year) is above the savings rate (2.7%).

Earnings vs Market: RMRH.F's earnings (15.6% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: Insufficient data to determine if RMRH.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if RMRH.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: RMRH.F's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has Rand Merchant Investment Holdings performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RMRH.F's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: RMRH.F's earnings growth over the past year (3.8%) is below its 5-year average (5.6% per year).

Earnings vs Industry: RMRH.F earnings growth over the past year (3.8%) exceeded the Insurance industry 3.1%.


Return on Equity

High ROE: RMRH.F's Return on Equity (17.7%) is considered low.


Return on Assets

ROA vs Industry: RMRH.F has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: RMRH.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Rand Merchant Investment Holdings'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: RMRH.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: RMRH.F's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: RMRH.F's level of assets compared to its equity is low.

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

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

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

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

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


Next Steps

Dividend

What is Rand Merchant Investment Holdings's current dividend yield, its reliability and sustainability?

3.67%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: RMRH.F's dividend (3.67%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: RMRH.F's dividend (3.67%) is low compared to the top 25% of dividend payers in the US market (3.76%).

Stable Dividend: Whilst dividend payments have been stable, RMRH.F has been paying a dividend for less than 10 years.

Growing Dividend: RMRH.F's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.5%), RMRH.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RMRH.F's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

What is the CEO of Rand Merchant Investment Holdings's salary, the management and board of directors tenure and is there insider trading?

6.1yrs

Average board tenure


CEO

Herman Bosman (51yo)

5.1yrs

Tenure

SAR8,332,000

Compensation

Mr. Hermanus Lambertus Bosman, also known as Herman, BCom (Law), LLB, LLM, CFA has been the Chief Executive Officer and Financial Director of Rand Merchant Investment Holdings Limited since September 11, 2 ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Herman's total compensation is reasonable compared to companies of similar size in the US market.

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


Board Age and Tenure

6.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RMRH.F's board of directors are considered experienced (6.1 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

BuySAR180,00224 Oct 18
Hermanus Bosman
EntityIndividual
Role
Chief Executive Officer
CEO & Financial Director
Shares75,000
Max PriceSAR2.40

Ownership Breakdown


Management Team

  • Herman Bosman (51yo)

    CEO & Financial Director

    • Tenure: 5.1yrs
    • Compensation: SAR8.33m
  • Jacobus Human

    Company Secretary

    • Tenure: 8yrs

Board Members

  • Herman Bosman (51yo)

    CEO & Financial Director

    • Tenure: 5.1yrs
    • Compensation: SAR8.33m
  • Paul Harris (69yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: SAR355.00k
  • Laurie Dippenaar (70yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: SAR355.00k
  • Jannie Durand (52yo)

    Chairman of the Board

    • Tenure: 1.6yrs
    • Compensation: SAR425.00k
  • Sen De Bruyn Sebotsa (47yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: SAR356.00k
  • Johan Burger (61yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: SAR397.00k
  • Peter Cooper (63yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: SAR355.00k
  • Murphy Morobe (62yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: SAR257.00k
  • Albertina Kekana (46yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: SAR314.00k
  • Obakeng Phetwe (41yo)

    Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: SAR252.00k

Company Information

Rand Merchant Investment Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rand Merchant Investment Holdings Limited
  • Ticker: RMRH.F
  • Exchange: OTCPK
  • Founded: 1977
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: SAR45.872b
  • Listing Market Cap: SAR3.072b
  • Shares outstanding: 1.53b
  • Website: https://www.rmih.co.za

Location

  • Rand Merchant Investment Holdings Limited
  • 2 Merchant Place
  • 3rd Floor
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMIJSE (The Johannesburg Securities Exchange)ZAR0.0001ZAZARNo data
RMIJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 2011
RMRH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2011

Biography

Rand Merchant Investment Holdings Limited, an investment holding company, provides a range of financial products and services in South Africa, Australia, New Zealand, and the United Kingdom. It offers fina ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:46
End of Day Share Price2019/08/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.