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INL

Investec GroupJSE:INL Stock Report

Market Cap

R61.0b

7D

1.0%

1Y

95.2%

Updated

21 Oct, 2021

Data

Company Financials +
INL fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health4/6
Dividends2/6

INL Overview

Investec Group provides various financial products and services in the United Kingdom South Africa, and internationally.

Investec Group Competitors

Tesco

LSE:TSCO

UK£20.8b

Nedbank Group

JSE:NED

R84.5b

Virgin Money UK

LSE:VMUK

UK£2.9b

Quilter

LSE:QLT

UK£2.4b

Price History & Performance

Summary of all time highs, changes and price drops for Investec Group
Historical stock prices
Current Share PriceR66.69
52 Week HighR29.20
52 Week LowR69.71
Beta1.19
1 Month Change17.00%
3 Month Change23.34%
1 Year Change95.17%
3 Year Change-24.09%
5 Year Change-21.36%
Change since IPO1,365.72%

Recent News & Updates

Shareholder Returns

INLZA Capital MarketsZA Market
7D1.0%2.0%0.9%
1Y95.2%56.0%19.9%

Return vs Industry: INL exceeded the ZA Capital Markets industry which returned 56% over the past year.

Return vs Market: INL exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is INL's price volatile compared to industry and market?
INL volatility
INL Beta1.19
Industry Beta0.89
Market Beta1

Stable Share Price: INL is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19747,889Fani Titihttps://www.investec.com

Investec Group provides various financial products and services in the United Kingdom South Africa, and internationally. The company offers wealth and investment products and services, including portfolio management, discretionary wealth management, financial planning, stockbroking/execution, pensions and retirement, and investment advisory services for private clients, charities, pension funds and trusts. It also provides specialist banking products and services comprising private banking products, such as lending, savings, foreign exchange, private capital, and transactional banking services; corporate and investment banking products, including lending, advisory, hedging, cash deposits and savings, and equity placement services to government, institutions, corporates, and intermediaries.

Investec Group Fundamentals Summary

How do Investec Group's earnings and revenue compare to its market cap?
INL fundamental statistics
Market CapUK£3.03b
Earnings (TTM)UK£225.34m
Revenue (TTM)UK£1.48b

13.6x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
INL income statement (TTM)
RevenueUK£1.48b
Cost of RevenueUK£0
Gross ProfitUK£1.48b
ExpensesUK£1.26b
EarningsUK£225.34m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 18, 2021

Earnings per share (EPS)0.24
Gross Margin100.00%
Net Profit Margin15.20%
Debt/Equity Ratio128.7%

How did INL perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

53%

Payout Ratio

Valuation

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

13.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INL (ZAR66.69) is trading above our estimate of fair value (ZAR18.56)

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


Price To Earnings Ratio

PE vs Industry: INL is poor value based on its PE Ratio (13.6x) compared to the ZA Capital Markets industry average (11.5x).

PE vs Market: INL is poor value based on its PE Ratio (13.6x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: INL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: INL's PB Ratio (0.7x) is in line with the ZA Capital Markets industry average.


Future Growth

How is Investec Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INL's forecast earnings growth (29.6% per year) is above the savings rate (8.8%).

Earnings vs Market: INL's earnings (29.6% per year) are forecast to grow faster than the ZA market (12.2% per year).

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

Revenue vs Market: INL's revenue (13.2% per year) is forecast to grow faster than the ZA market (6.3% per year).

High Growth Revenue: INL's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INL's Return on Equity is forecast to be low in 3 years time (12.4%).


Past Performance

How has Investec Group performed over the past 5 years?

-16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INL has high quality earnings.

Growing Profit Margin: INL's current net profit margins (15.2%) are higher than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: INL's earnings have declined by 16.4% per year over the past 5 years.

Accelerating Growth: INL's earnings growth over the past year (36.3%) exceeds its 5-year average (-16.4% per year).

Earnings vs Industry: INL earnings growth over the past year (36.3%) exceeded the Capital Markets industry 35.2%.


Return on Equity

High ROE: INL's Return on Equity (4.9%) is considered low.


Financial Health

How is Investec 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: INL's Assets to Equity ratio (9.7x) is low.

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

Low Risk Liabilities: 80% of INL's liabilities are made up of primarily low risk sources of funding.

Loan Level: INL has an appropriate level of Loans to Assets ratio (52%).

Low Risk Deposits: INL's Loans to Deposits ratio (72%) is appropriate.

Level of Bad Loans: INL has a high level of bad loans (2.6%).


Dividend

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

4.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INL's dividend (4.35%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: INL's dividend (4.35%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.1%), INL's dividend payments are 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?

2.2yrs

Average board tenure


CEO

Fani Titi (59 yo)

3yrs

Tenure

UK£3,426,000

Compensation

Mr. Fani Titi, BSc Hons (Mathematics), MA (Mathematics), MBA, serves as Non-Executive Director at Ninety One PLC since November 19, 2019. He served as Non-Executive Director at Ninety One Group since Novem...


CEO Compensation Analysis

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

Compensation vs Earnings: Fani's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: INL's board of directors are not considered experienced ( 2.2 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: INL insiders have only sold shares 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

Investec Group's employee growth, exchange listings and data sources


Key Information

  • Name: Investec Group
  • Ticker: INL
  • Exchange: JSE
  • Founded: 1974
  • Industry: Diversified Capital Markets
  • Sector: Diversified Financials
  • Market Cap: R61.042b
  • Shares outstanding: 922.09m
  • Website: https://www.investec.com

Number of Employees


Location

  • Investec Group
  • 100 Grayston Drive
  • Sandown
  • 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 Analysis2021/10/21 20:55
End of Day Share Price2021/10/21 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.