JSE:JSE

Stock Analysis Report

Executive Summary

JSE Limited operates as a securities exchange in South Africa.


Snowflake Analysis

Average dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.0%

JSE

3.8%

ZA Capital Markets

3.3%

ZA Market


1 Year Return

-22.4%

JSE

-56.1%

ZA Capital Markets

-31.6%

ZA Market

Return vs Industry: JSE exceeded the ZA Capital Markets industry which returned -57.3% over the past year.

Return vs Market: JSE exceeded the ZA Market which returned -32.3% over the past year.


Shareholder returns

JSEIndustryMarket
7 Day6.0%3.8%3.3%
30 Day5.6%-39.8%-19.4%
90 Day-7.6%-49.1%-26.7%
1 Year-15.8%-22.4%-38.8%-56.1%-22.0%-31.6%
3 Year4.6%-11.8%-58.2%-72.4%-8.4%-25.5%
5 Year8.7%-18.6%-60.8%-75.4%-6.9%-30.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

13.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JSE (ZAR102.75) is trading above our estimate of fair value (ZAR92.28)

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


Price To Earnings Ratio

PE vs Industry: JSE is poor value based on its PE Ratio (12.5x) compared to the Capital Markets industry average (10.8x).

PE vs Market: JSE is poor value based on its PE Ratio (12.5x) compared to the ZA market (8.1x).


Price to Earnings Growth Ratio

PEG Ratio: JSE is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: JSE is overvalued based on its PB Ratio (2.2x) compared to the ZA Capital Markets industry average (0.8x).


Next Steps

Future Growth

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

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JSE's forecast earnings growth (9.1% per year) is above the savings rate (8.6%).

Earnings vs Market: JSE's earnings (9.1% per year) are forecast to grow slower than the ZA market (16.1% per year).

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

Revenue vs Market: JSE's revenue (4.8% per year) is forecast to grow slower than the ZA market (8.6% per year).

High Growth Revenue: JSE's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JSE's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has JSE performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JSE has high quality earnings.

Growing Profit Margin: JSE's current net profit margins (32%) are lower than last year (41%).


Past Earnings Growth Analysis

Earnings Trend: JSE's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: JSE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JSE had negative earnings growth (-22.6%) over the past year, making it difficult to compare to the Capital Markets industry average (2.2%).


Return on Equity

High ROE: JSE's Return on Equity (17.6%) is considered low.


Next Steps

Financial Health

How is JSE'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

Inventory Level: JSE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if JSE's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: JSE's level of assets compared to its equity is moderate.

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

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

Loan Level: Insufficient data to determine if JSE has an acceptable proportion of non-loan assets held.

Low Risk Deposits: JSE has advanced significantly more loans than the customer deposits it holds.

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


Next Steps

Dividend

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

7.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JSE's dividend (8.18%) is higher than the bottom 25% of dividend payers in the ZA market (4.56%).

High Dividend: JSE's dividend (8.18%) is low compared to the top 25% of dividend payers in the ZA market (13.64%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.1%), JSE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JSE's dividends in 3 years are forecast to be covered by earnings (73.2% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Leila Fourie (50yo)

0.50

Tenure

R8,287,000

Compensation

Ms. Leila Fourie, M.Com., Ph.D. has been Chief Executive Officer of JSE Ltd. since October 1, 2019 and alos Serves as its Executive Director since 2019. Ms. Fourie served as Director of Post-Trade & Inform ...


CEO Compensation Analysis

Compensation vs Market: Leila's total compensation ($USD460.29K) is about average for companies of similar size in the ZA market ($USD640.10K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leila Fourie
Executive Director & Group CEO0.50yrR8.29mno data
Aarti Takoordeen
CFO & Executive Director7.08yrsR7.97m0.091% ZAR8.5m
Hendrik Kotze
Group Chief Information Officer1.33yrsR4.80mno data
Zanele Luhabe-Morrison
Director of Marketing & Corporate Affairs1.17yrsR2.90mno data
Donald Khumalo
Director of Human Resources3.42yrsR4.74mno data
Romy Foltan
Investor Relations Officerno datano datano data
Maryke Vreulink
Head of Cape Town Office4.25yrsno datano data
Graeme Brookes
Group Company Secretary and Director of Governance & Assurance5.67yrsR3.14m0.072% ZAR6.7m

3.4yrs

Average Tenure

46.5yo

Average Age

Experienced Management: JSE's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leila Fourie
Executive Director & Group CEO0.50yrR8.29mno data
Aarti Takoordeen
CFO & Executive Director7.08yrsR7.97m0.091% ZAR8.5m
David Lawrence
Non Executive Director12yrsR1.02m0.0035% ZAR327.4k
Nonkululeko Cheryl Nyembezi-Heita
Independent Non-Executive Chairman5.92yrsR2.30m0.0024% ZAR223.9k
Barend Kruger
Non-Executive Director1.83yrsR760.00k0.0029% ZAR272.4k
Michael Jordaan
Independent Non-Executive Director6.25yrsR535.00k0.0069% ZAR643.6k
Suresh Kana
Lead Independent Non-Executive Directorno dataR1.50mno data
Nolitha Fakude
Independent Non-Executive Director2.42yrsR790.00kno data
Siobhan Cleary
Independent Non-Executive Director0.17yrR546.00kno data
Mantsika Matooane
Independent Non-Executive Director7.67yrsR895.00kno data

5.9yrs

Average Tenure

53yo

Average Age

Experienced Board: JSE's board of directors are considered experienced (5.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: JSE Limited
  • Ticker: JSE
  • Exchange: JSE
  • Founded: 1887
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: R9.328b
  • Shares outstanding: 85.52m
  • Website: https://www.jse.co.za

Number of Employees


Location

  • JSE Limited
  • One Exchange Square
  • 2 Gwen Lane
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JSEJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2006
JSEJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2006

Biography

JSE Limited operates as a securities exchange in South Africa. It offers a range of securities with post-trade and regulatory services to primary and secondary capital markets. The company trades in bonds, bonds derivatives, debentures, equities, warrants, exchange traded products, and gold coins, as well as agricultural, currency, energy, equity, metal, and interest rate derivatives. It also offers clearing, settlement, and assurance services; index services; funds management services; technology services; and information services, including market data, as well as sells live, statistical, historical, and end-of-day data. The company was founded in 1887 and is based in Sandton, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 16:37
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.