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ABG

Absa GroupJSE:ABG Stock Report

Market Cap

R117.3b

7D

-0.9%

1Y

37.0%

Updated

22 Oct, 2021

Data

Company Financials +
ABG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends4/6

ABG Overview

Absa Group Limited, together with its subsidiaries, provides various financial products and services in South Africa and internationally.

Absa Group Competitors

Standard Bank Group

JSE:SBK

R216.2b

Capitec Bank Holdings

JSE:CPI

R195.9b

Nedbank Group

JSE:NED

R84.5b

Macquarie Group

ASX:MQG

AU$70.4b

Price History & Performance

Summary of all time highs, changes and price drops for Absa Group
Historical stock prices
Current Share PriceR141.38
52 Week HighR85.79
52 Week LowR160.00
Beta1.06
1 Month Change-1.39%
3 Month Change5.51%
1 Year Change37.00%
3 Year Change-2.36%
5 Year Change-6.99%
Change since IPO1,313.80%

Recent News & Updates

Shareholder Returns

ABGZA BanksZA Market
7D-0.9%-0.6%-0.7%
1Y37.0%34.7%19.0%

Return vs Industry: ABG exceeded the ZA Banks industry which returned 34.7% over the past year.

Return vs Market: ABG exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is ABG's price volatile compared to industry and market?
ABG volatility
ABG Beta1.06
Industry Beta0.91
Market Beta1

Stable Share Price: ABG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ABG's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198636,737Jason Quinnhttps://www.absa.africa

Absa Group Limited, together with its subsidiaries, provides various financial products and services in South Africa and internationally. It offers personal and business banking, corporate and investment banking, wealth and investment management, and insurance services. The company offers retail and business banking products and services to individual, enterprise, and commercial customers, including residential property-related finance solutions; vehicle and asset finance products and services; credit cards; personal loans; short-term insurance products; and transactional banking, savings, and investment products and services.

Absa Group Fundamentals Summary

How do Absa Group's earnings and revenue compare to its market cap?
ABG fundamental statistics
Market CapR117.29b
Earnings (TTM)R13.56b
Revenue (TTM)R71.83b

8.7x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABG income statement (TTM)
RevenueR71.83b
Cost of RevenueR0
Gross ProfitR71.83b
ExpensesR58.27b
EarningsR13.56b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 14, 2022

Earnings per share (EPS)16.34
Gross Margin100.00%
Net Profit Margin18.87%
Debt/Equity Ratio116.1%

How did ABG perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

8.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABG (ZAR141.38) is trading above our estimate of fair value (ZAR115.48)

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


Price To Earnings Ratio

PE vs Industry: ABG is good value based on its PE Ratio (8.7x) compared to the ZA Banks industry average (10.9x).

PE vs Market: ABG is good value based on its PE Ratio (8.7x) compared to the ZA market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: ABG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ABG's PB Ratio (1x) is in line with the ZA Banks industry average.


Future Growth

How is Absa Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABG's forecast earnings growth (15.3% per year) is above the savings rate (8.8%).

Earnings vs Market: ABG's earnings (15.3% per year) are forecast to grow faster than the ZA market (12.3% per year).

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

Revenue vs Market: ABG's revenue (7.7% per year) is forecast to grow faster than the ZA market (6.4% per year).

High Growth Revenue: ABG's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABG's Return on Equity is forecast to be low in 3 years time (15.1%).


Past Performance

How has Absa Group performed over the past 5 years?

-10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABG has high quality earnings.

Growing Profit Margin: ABG's current net profit margins (18.9%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: ABG's earnings have declined by 10.1% per year over the past 5 years.

Accelerating Growth: ABG's earnings growth over the past year (90.9%) exceeds its 5-year average (-10.1% per year).

Earnings vs Industry: ABG earnings growth over the past year (90.9%) exceeded the Banks industry 24.9%.


Return on Equity

High ROE: ABG's Return on Equity (11%) is considered low.


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


Financial Institutions Analysis

Asset Level: ABG's Assets to Equity ratio (11.4x) is moderate.

Allowance for Bad Loans: ABG has a low allowance for bad loans (71%).

Low Risk Liabilities: 77% of ABG's liabilities are made up of primarily low risk sources of funding.

Loan Level: ABG has an appropriate level of Loans to Assets ratio (65%).

Low Risk Deposits: ABG's Loans to Deposits ratio (93%) is appropriate.

Level of Bad Loans: ABG has a high level of bad loans (5.7%).


Dividend

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

4.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABG's dividend (4.39%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: ABG's dividend (4.39%) is low compared to the top 25% of dividend payers in the ZA market (7.7%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.9%), ABG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABG's dividends in 3 years are forecast to be well covered by earnings (48.4% payout ratio).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Jason Quinn (47 yo)

0.50

Tenure

R20,809,313

Compensation

Mr. Jason Paul Quinn, CA (SA) had been the Group Finance Director of Absa Group Limited since September 01, 2016. He has been an Executive Director of Absa Group Limited (formerly, Absa Group Ltd. (formerl...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.41M) is about average for companies of similar size in the ZA market ($USD1.71M).

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


Leadership Team

Experienced Management: ABG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: ABG's board of directors are considered experienced (4.4 years average tenure).


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

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


Key Information

  • Name: Absa Group Limited
  • Ticker: ABG
  • Exchange: JSE
  • Founded: 1986
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R117.290b
  • Shares outstanding: 829.61m
  • Website: https://www.absa.africa

Number of Employees


Location

  • Absa Group Limited
  • Absa Towers West
  • 7th Floor
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 20:57
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.