JSE:SFN

Stock Analysis Report

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Executive Summary

Sasfin Holdings Limited operates as a bank controlling company that provides various financial products and services in South Africa and Hong Kong.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-27.2%

SFN

5.8%

ZA Banks

-0.7%

ZA Market


1 Year Return

-57.6%

SFN

-48.1%

ZA Banks

-23.8%

ZA Market

Return vs Industry: SFN underperformed the ZA Banks industry which returned -47.8% over the past year.

Return vs Market: SFN underperformed the ZA Market which returned -23.6% over the past year.


Shareholder returns

SFNIndustryMarket
7 Day-27.2%5.8%-0.7%
30 Day-33.3%-2.5%-0.6%
90 Day-49.1%-34.6%-8.1%
1 Year-55.8%-57.6%-44.3%-48.1%-13.0%-23.8%
3 Year-66.7%-70.7%-18.3%-31.3%0.3%-18.8%
5 Year-69.8%-75.7%-10.1%-32.7%9.9%-17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sasfin Holdings undervalued compared to its fair value and its price relative to the market?

2.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFN (ZAR14) is trading above our estimate of fair value (ZAR0.12)

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


Price To Earnings Ratio

PE vs Industry: SFN is good value based on its PE Ratio (3x) compared to the Banks industry average (4.4x).

PE vs Market: SFN is good value based on its PE Ratio (3x) compared to the ZA market (8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SFN is good value based on its PB Ratio (0.3x) compared to the ZA Banks industry average (0.6x).


Next Steps

Future Growth

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

10.9%

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 Sasfin Holdings 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 Sasfin Holdings performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFN has high quality earnings.

Growing Profit Margin: SFN's current net profit margins (13%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: SFN's earnings have declined by -7.7% per year over the past 5 years.

Accelerating Growth: SFN's earnings growth over the past year (6.2%) exceeds its 5-year average (-7.7% per year).

Earnings vs Industry: SFN earnings growth over the past year (6.2%) exceeded the Banks industry -1.9%.


Return on Equity

High ROE: SFN's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Sasfin 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


Financial Institutions Analysis

Asset Level: SFN's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: SFN has a low allowance for bad loans (59%).

Low Risk Liabilities: 61% of SFN's liabilities are made up of primarily higher risk sources of funding.

Loan Level: SFN has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: SFN's Loans to Deposits ratio (147%) is high.

Level of Bad Loans: SFN has a high level of bad loans (9.5%).


Next Steps

Dividend

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

7.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFN's dividend (7.05%) is higher than the bottom 25% of dividend payers in the ZA market (4.59%).

High Dividend: SFN's dividend (7.05%) is low compared to the top 25% of dividend payers in the ZA market (12.95%).


Stability and Growth of Payments

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

Growing Dividend: SFN's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.9%), SFN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Michael E. Sassoon (37yo)

2.33yrs

Tenure

R4,643,639

Compensation

Mr. Michael E. E. Sassoon has been the Chief Executive Officer of Sasfin Holdings Limited since January 1, 2018 and its Executive Director since October 23, 2015. Mr. Sassoon is Co-Owner of Sassoon Childre ...


CEO Compensation Analysis

Compensation vs Market: Michael E.'s total compensation ($USD263.15K) is about average for companies of similar size in the ZA market ($USD282.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael E. Sassoon
CEO & Executive Director2.33yrsR4.64mno data
Angela Pillay
Group Financial Director & Executive Director2.17yrsR2.82mno data
Andrew Souchon
Chief Information Officerno dataR3.02mno data
Howard Brown
Head of Legalno dataR2.83mno data
Linda Fröhlich
Head of Asset Finance6.58yrsR3.54mno data
Stewart Tomlinson
Chief Risk Officerno dataR2.19mno data
Erol Zeki
Chief Executive Officer of Sasfin Wealth2.58yrsR3.43mno data
Maston Lane
Chief Operating Officer of Banking Pillarno dataR3.66mno data
Francois Otto
Head of Capital Pillar2yrsR3.25mno data
Michael Blackbeard
Head of Complianceno datano datano data

2.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: SFN's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael E. Sassoon
CEO & Executive Director2.33yrsR4.64mno data
Angela Pillay
Group Financial Director & Executive Director2.17yrsR2.82mno data
Roland. D. E. Sassoon
Non-Executive Director0.33yrR4.45mno data
Mark Thompson
Independent Non-Executive Director0.83yrno datano data
Roy Andersen
Independent & Non-Executive Chairman6.42yrsR996.20kno data
Richard W. Buchholz
Lead Independent Non-Executive Director0.42yrR631.64kno data
Gugulethu Dingaan
Non-Independent Non-Executive Director2.17yrsno datano data
Grant Dunnington
Independent Non Executive Director10.17yrsR866.91kno data
Eileen Wilton
Independent Non-Executive Director0.75yrno datano data
T. Magare
Independent Non-Executive Director0.42yrno datano data

1.5yrs

Average Tenure

59yo

Average Age

Experienced Board: SFN's board of directors are not considered experienced ( 1.5 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

Sasfin Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sasfin Holdings Limited
  • Ticker: SFN
  • Exchange: JSE
  • Founded: 1951
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: R450.714m
  • Shares outstanding: 32.19m
  • Website: https://www.sasfin.com

Number of Employees


Location

  • Sasfin Holdings Limited
  • 29 Scott Street
  • Waverley
  • Johannesburg
  • Gauteng
  • 2090
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFNJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARSep 1992
SFNPJSE (The Johannesburg Securities Exchange)PFD ZAR0.01ZAZARNov 2004

Biography

Sasfin Holdings Limited operates as a bank controlling company that provides various financial products and services in South Africa and Hong Kong. It operates through three segments: Banking, Wealth, and Capital. The Banking segment engages in the business banking, transactional banking, and treasury businesses. Its services include transactional banking, digital banking platform, direct feed integration, treasury, forex, trade finance, digital capital market, debtor finance, and equipment finance, as well as investment, and business and personal accounts. The Wealth segment offers online investment, asset management, portfolio management and stockbroking, asset consulting, healthcare consulting, wealth advisory, and fixed income products and services. The Capital segment offers corporate finance, private equity, property equity, short-term insurance, cyber insurance, trade, incentive, and logistics services. The company serves entrepreneurs, corporates, institutions, high-net-worth individuals, and business and wealth clients. Sasfin Holdings Limited was founded in 1951 and is headquartered in Johannesburg, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 18:37
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
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.