JSE:FGL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Finbond Group Limited operates as a financial services institution.

Rewards

Earnings grew by 166.3% over the past year

Risk Analysis

No risks detected for FGL from our risk checks.


Snowflake Analysis

Solid track record with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.5%

FGL

-0.8%

ZA Mortgage

-0.7%

ZA Market


1 Year Return

-27.7%

FGL

-22.5%

ZA Mortgage

-23.8%

ZA Market

Return vs Industry: FGL underperformed the ZA Mortgage industry which returned -21.5% over the past year.

Return vs Market: FGL underperformed the ZA Market which returned -22.3% over the past year.


Shareholder returns

FGLIndustryMarket
7 Day-4.5%-0.8%-0.7%
30 Day12.4%1.4%-0.6%
90 Day-9.3%-12.3%-8.1%
1 Year-27.4%-27.7%-22.3%-22.5%-13.0%-23.8%
3 Year-8.4%-19.7%-20.8%-32.7%0.3%-18.8%
5 Year-41.1%-49.3%-36.7%-52.1%9.9%-17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

23.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FGL (ZAR2.53) is trading above our estimate of fair value (ZAR0.71)

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


Price To Earnings Ratio

PE vs Industry: FGL is poor value based on its PE Ratio (24x) compared to the Mortgage industry average (10.4x).

PE vs Market: FGL is poor value based on its PE Ratio (24x) compared to the ZA market (8.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FGL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FGL is overvalued based on its PB Ratio (1.6x) compared to the XF Mortgage industry average (0.8x).


Next Steps

Future Growth

How is Finbond Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.5%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Finbond Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Finbond Group performed over the past 5 years?

4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FGL has high quality earnings.

Growing Profit Margin: FGL's current net profit margins (3.7%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: FGL's earnings have grown by 4.4% per year over the past 5 years.

Accelerating Growth: FGL's earnings growth over the past year (166.3%) exceeds its 5-year average (4.4% per year).

Earnings vs Industry: FGL earnings growth over the past year (166.3%) exceeded the Mortgage industry 6.1%.


Return on Equity

High ROE: FGL's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Finbond 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: FGL's Assets to Equity ratio (2.7x) is low.

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

Low Risk Liabilities: FGL reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if FGL has an appropriate level of Loans to Assets ratio.

Low Risk Deposits: FGL reports no customer deposits, loans are made up entirely of externally borrowed funds.

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


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FGL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FGL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FGL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FGL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: FGL is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FGL's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

1.9yrs

Average board tenure


CEO

Willie Van Aardt (46yo)

no data

Tenure

R35,169,000

Compensation

Dr. Willem Van Aardt, also known as Willie, B. Proc (Cum Laude), LLM, LLD, QLTT (UK) serves as the Finbond Group Limited. Dr. Van Aardt founded Finbond in January 2003. He served as a Secretary of Finbond  ...


CEO Compensation Analysis

Compensation vs Market: Willie's total compensation ($USD1.99M) is above average for companies of similar size in the ZA market ($USD284.59K).

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


Board Members

NamePositionTenureCompensationOwnership
Willem Van Aardt
CEO & Executive Directorno dataR35.17mno data
Greg Labuschagne
CFO, Financial Director & Executive Director1.42yrsR7.37mno data
Herman Kotzé
Independent Non-Executive Director4.08yrsno datano data
Malesela Clement Motlatla
Independent Non-Executive Chairmanno dataR700.00kno data
Danie Pentz
Independent Non Executive Director0.67yrR180.00kno data
Hendrina Wilken-Jonker
Non-Executive Directorno dataR1.82mno data
Neville Melville
Independent Non-Executive Director8.33yrsR569.00kno data
Pieter Naudé
Independent Non-Executive Director1.92yrsR143.00kno data

1.9yrs

Average Tenure

64yo

Average Age

Experienced Board: FGL's board of directors are not considered experienced ( 1.9 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

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


Key Information

  • Name: Finbond Group Limited
  • Ticker: FGL
  • Exchange: JSE
  • Founded: 2001
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: R2.219b
  • Shares outstanding: 877.26m
  • Website: https://www.finbondlimited.co.za

Number of Employees


Location

  • Finbond Group Limited
  • Rigel Office Park
  • 446 Rigel Avenue South
  • Pretoria
  • Gauteng
  • 181
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FGLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2007

Biography

Finbond Group Limited operates as a financial services institution. The company offers short-term unsecured lending, transactional banking, and secured lending services, as well as insurance, and savings and investment products. It also provides mobile phone and Internet banking services. The company operates through 435 branches in South Africa and 259 branches in North America. Finbond Group Limited was incorporated in 2001 and is based in Pretoria, the Republic of South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/30 18:54
End of Day Share Price2020/05/29 00:00
Earnings2020/02/29
Annual Earnings2020/02/29


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.