company background image
REM

RemgroJSE:REM Stock Report

Market Cap

R76.0b

7D

-0.3%

1Y

42.5%

Updated

20 Oct, 2021

Data

Company Financials +
REM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance1/6
Financial Health6/6
Dividends0/6

REM Overview

Remgro Limited is a principal investment firm.

Price History & Performance

Summary of all time highs, changes and price drops for Remgro
Historical stock prices
Current Share PriceR135.02
52 Week HighR85.50
52 Week LowR141.87
Beta0.58
1 Month Change6.33%
3 Month Change22.77%
1 Year Change42.52%
3 Year Change-26.62%
5 Year Change-39.82%
Change since IPO238.40%

Recent News & Updates

Shareholder Returns

REMZA Diversified FinancialZA Market
7D-0.3%-1.6%0.9%
1Y42.5%36.2%19.9%

Return vs Industry: REM matched the ZA Diversified Financial industry which returned 42.3% over the past year.

Return vs Market: REM exceeded the ZA Market which returned 20.8% over the past year.

Price Volatility

Is REM's price volatile compared to industry and market?
REM volatility
REM Beta0.58
Industry Beta0.67
Market Beta1

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

Volatility Over Time: REM's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194827,298Jannie Durandhttps://www.remgro.com

Remgro Limited is a principal investment firm. The firm prefers to invest in financial services, food, liquor and home care, banking, insurance, industrial, healthcare, infrastructure, information technology infrastructure services, media, and sport. It considers investments in Africa, UAE, UK, Switzerland and other international countries though investee companies.

Remgro Fundamentals Summary

How do Remgro's earnings and revenue compare to its market cap?
REM fundamental statistics
Market CapR75.96b
Earnings (TTM)R3.55b
Revenue (TTM)R65.80b

21.4x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REM income statement (TTM)
RevenueR65.80b
Cost of RevenueR40.09b
Gross ProfitR25.72b
ExpensesR22.17b
EarningsR3.55b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.31
Gross Margin39.08%
Net Profit Margin5.39%
Debt/Equity Ratio15.0%

How did REM perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

14%

Payout Ratio

Does REM pay a reliable dividends?

See REM dividend history and benchmarks
When do you need to buy REM by to receive an upcoming dividend?
Remgro dividend dates
Ex Dividend DateNov 17 2021
Dividend Pay DateNov 22 2021
Days until Ex dividend27 days
Days until Dividend pay date32 days

Does REM pay a reliable dividends?

See REM dividend history and benchmarks

Valuation

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

21.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: REM is poor value based on its PE Ratio (21.4x) compared to the ZA Diversified Financial industry average (9.8x).

PE vs Market: REM is poor value based on its PE Ratio (21.4x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: REM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: REM is overvalued based on its PB Ratio (0.9x) compared to the ZA Diversified Financial industry average (0.7x).


Future Growth

How is Remgro forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REM's forecast earnings growth (26.7% per year) is above the savings rate (8.8%).

Earnings vs Market: REM's earnings (26.7% per year) are forecast to grow faster than the ZA market (13.3% per year).

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

Revenue vs Market: REM's revenue is expected to decline over the next 3 years (-11.8% per year).

High Growth Revenue: REM's revenue is forecast to decline over the next 3 years (-11.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: REM's Return on Equity is forecast to be very high in 3 years time (315.3%).


Past Performance

How has Remgro performed over the past 5 years?

-47.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REM has a large one-off gain of ZAR1.1B impacting its June 30 2021 financial results.

Growing Profit Margin: REM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: REM's earnings have declined by 47.1% per year over the past 5 years.

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

Earnings vs Industry: REM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Diversified Financial industry (32.9%).


Return on Equity

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


Financial Health

How is Remgro's financial position?


Financial Position Analysis

Short Term Liabilities: REM's short term assets (ZAR37.4B) exceed its short term liabilities (ZAR17.1B).

Long Term Liabilities: REM's short term assets (ZAR37.4B) exceed its long term liabilities (ZAR20.1B).


Debt to Equity History and Analysis

Debt Level: REM's debt to equity ratio (15%) is considered satisfactory.

Reducing Debt: REM's debt to equity ratio has reduced from 23.6% to 15% over the past 5 years.

Debt Coverage: REM's debt is well covered by operating cash flow (37.8%).

Interest Coverage: REM's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

What is Remgro current dividend yield, its reliability and sustainability?

0.67%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 21 2021Ex Dividend DateNov 17 2021Dividend Pay DateNov 22 20215 days from Ex DividendBuy in the next 27 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: REM's dividend (0.67%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.11%).

High Dividend: REM's dividend (0.67%) is low compared to the top 25% of dividend payers in the ZA market (8.07%).


Stability and Growth of Payments

Stable Dividend: REM is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: REM is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of REM'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?

5.5yrs

Average management tenure


CEO

Jannie Durand (54 yo)

9.42yrs

Tenure

R14,804,000

Compensation

Mr. Jan Jonathan Durand, also known as Jannie, BAcc Hons, MPhil (Oxon), C.A. (SA), serves as the Chairman of Management Board at Remgro Limited. He joined the Rembrandt Group in 1996. He also serves as the...


CEO Compensation Analysis

Compensation vs Market: Jannie's total compensation ($USD1.02M) is below average for companies of similar size in the ZA market ($USD1.70M).

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


Leadership Team

Experienced Management: REM's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: REM's board of directors are considered experienced (8.5 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

Remgro Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Remgro Limited
  • Ticker: REM
  • Exchange: JSE
  • Founded: 1948
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: R75.961b
  • Shares outstanding: 562.59m
  • Website: https://www.remgro.com

Number of Employees


Location

  • Remgro Limited
  • Millennia Park
  • 16 Stellentia Avenue
  • Stellenbosch
  • Western Cape
  • 7600
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 22:02
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.