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AFH

Alexander Forbes Group HoldingsJSE:AFH Stock Report

Market Cap

R5.5b

7D

0.7%

1Y

33.7%

Updated

19 Oct, 2021

Data

Company Financials +
AFH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends3/6

AFH Overview

Alexander Forbes Group Holdings Limited, a financial services company, provides a range of employee benefits, retirements, consulting, investments, and wealth management solutions to corporate clients and individuals in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Alexander Forbes Group Holdings
Historical stock prices
Current Share PriceR4.32
52 Week HighR3.18
52 Week LowR4.83
Beta0.18
1 Month Change7.73%
3 Month Change11.92%
1 Year Change33.75%
3 Year Change-14.96%
5 Year Change-33.44%
Change since IPO-48.63%

Recent News & Updates

Aug 28
Alexander Forbes Group Holdings Limited's (JSE:AFH) CEO Compensation Looks Acceptable To Us And Here's Why

Alexander Forbes Group Holdings Limited's (JSE:AFH) CEO Compensation Looks Acceptable To Us And Here's Why

CEO Dawie de Villiers has done a decent job of delivering relatively good performance at Alexander Forbes Group...

Shareholder Returns

AFHZA Capital MarketsZA Market
7D0.7%4.2%1.0%
1Y33.7%57.5%20.8%

Return vs Industry: AFH underperformed the ZA Capital Markets industry which returned 58.6% over the past year.

Return vs Market: AFH exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is AFH's price volatile compared to industry and market?
AFH volatility
AFH Beta0.18
Industry Beta0.89
Market Beta1

Stable Share Price: AFH is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AFH's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1935n/aDawie de Villiershttps://www.alexanderforbes.co.za

Alexander Forbes Group Holdings Limited, a financial services company, provides a range of employee benefits, retirements, consulting, investments, and wealth management solutions to corporate clients and individuals in South Africa. The company’s solutions for individuals cover money management, budgeting, and savings services; goal based, unit trusts, endowments, and offshore investment; private wealth management services; retirement pension or provident, and annuity funds; healthcare solutions and support, and consulting services; and life and risk cover, as well as wills services. Its solutions for businesses cover consulting and actuarial services; retirement fund services; healthcare consulting, health management, and technical advisory services; group and business insurance services in the areas of assets, earnings, and the legal liabilities of business against loss or damage; services that cover emerging markets in Arica; and trust and beneficiary services that cover the management of death benefits for beneficiaries of deceased retirement fund members and employees.

Alexander Forbes Group Holdings Fundamentals Summary

How do Alexander Forbes Group Holdings's earnings and revenue compare to its market cap?
AFH fundamental statistics
Market CapR5.51b
Earnings (TTM)R426.00m
Revenue (TTM)R4.04b

12.9x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFH income statement (TTM)
RevenueR4.04b
Cost of RevenueR882.00m
Gross ProfitR3.17b
ExpensesR2.74b
EarningsR426.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Dec 06, 2021

Earnings per share (EPS)0.33
Gross Margin78.46%
Net Profit Margin10.56%
Debt/Equity Ratio0.7%

How did AFH perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

67%

Payout Ratio

Valuation

Is Alexander Forbes Group Holdings undervalued compared to its fair value and its price relative to the market?

12.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AFH's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AFH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AFH is poor value based on its PE Ratio (12.9x) compared to the ZA Capital Markets industry average (11.4x).

PE vs Market: AFH is poor value based on its PE Ratio (12.9x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFH is overvalued based on its PB Ratio (1.4x) compared to the ZA Capital Markets industry average (0.7x).


Future Growth

How is Alexander Forbes Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-11.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AFH's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if AFH's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AFH's revenue is expected to decline over the next 3 years (-11.5% per year).

High Growth Revenue: AFH's revenue is forecast to decline over the next 3 years (-11.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFH's Return on Equity is forecast to be low in 3 years time (10.6%).


Past Performance

How has Alexander Forbes Group Holdings performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFH has high quality earnings.

Growing Profit Margin: AFH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AFH's earnings have declined by 45.7% per year over the past 5 years.

Accelerating Growth: AFH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AFH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (35.2%).


Return on Equity

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


Financial Health

How is Alexander Forbes Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AFH's short term assets (ZAR338.4B) exceed its short term liabilities (ZAR1.7B).

Long Term Liabilities: AFH's short term assets (ZAR338.4B) exceed its long term liabilities (ZAR335.2B).


Debt to Equity History and Analysis

Debt Level: AFH's debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: AFH's debt to equity ratio has reduced from 11.5% to 0.7% over the past 5 years.

Debt Coverage: AFH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AFH earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Alexander Forbes Group Holdings's current dividend yield, its reliability and sustainability?

5.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFH's dividend (5.09%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: AFH's dividend (5.09%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

Stable Dividend: AFH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AFH's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), AFH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AFH's dividends in 3 years are forecast to be covered by earnings (75.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Dawie de Villiers (50 yo)

2.92yrs

Tenure

R16,920,000

Compensation

Mr. D.J. de Villiers, also known as Dawie, serves as the Group Chief Executive Officer and Executive Director of Alexander Forbes Group Holdings Limited since November 1, 2018 and served as its Interim Exe...


CEO Compensation Analysis

Compensation vs Market: Dawie's total compensation ($USD1.16M) is above average for companies of similar size in the ZA market ($USD728.25K).

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


Leadership Team

Experienced Management: AFH's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: AFH's board of directors are not considered experienced ( 2.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Alexander Forbes Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Alexander Forbes Group Holdings Limited
  • Ticker: AFH
  • Exchange: JSE
  • Founded: 1935
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: R5.510b
  • Shares outstanding: 1.28b
  • Website: https://www.alexanderforbes.co.za

Location

  • Alexander Forbes Group Holdings Limited
  • Alexander Forbes
  • 115 West Street
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:46
End of Day Share Price2021/10/19 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.