JSE:RMH

Stock Analysis Report

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Executive Summary

RMB Holdings Limited, an investment holding company, invests in financial services businesses primarily in South Africa.


Snowflake Analysis

Questionable track record with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

16.1%

RMH

9.7%

ZA Diversified Financial

6.1%

ZA Market


1 Year Return

-24.8%

RMH

-30.2%

ZA Diversified Financial

-20.8%

ZA Market

Return vs Industry: RMH exceeded the ZA Diversified Financial industry which returned -30.2% over the past year.

Return vs Market: RMH underperformed the ZA Market which returned -20.8% over the past year.


Shareholder returns

RMHIndustryMarket
7 Day16.1%9.7%6.1%
30 Day17.5%11.9%6.9%
90 Day-10.6%-14.3%-3.0%
1 Year-22.9%-24.8%-26.7%-30.2%-9.3%-20.8%
3 Year19.0%5.3%6.1%-7.4%8.2%-12.5%
5 Year18.8%-4.7%7.7%-14.5%15.2%-13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMH (ZAR61.47) is trading above our estimate of fair value (ZAR34.81)

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


Price To Earnings Ratio

PE vs Industry: RMH is poor value based on its PE Ratio (9.4x) compared to the Diversified Financial industry average (8.9x).

PE vs Market: RMH is poor value based on its PE Ratio (9.4x) compared to the ZA market (8.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RMH is overvalued based on its PB Ratio (1.7x) compared to the ZA Diversified Financial industry average (0.9x).


Next Steps

Future Growth

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

4.8%

Forecasted Diversified Financials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RMH's forecast earnings growth is above the savings rate (9.5%).

Earnings vs Market: Insufficient data to determine if RMH'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: Insufficient data to determine if RMH's revenue is forecast to grow faster than the ZA market.

High Growth Revenue: Insufficient data to determine if RMH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMH's Return on Equity is forecast to be low in 3 years time (14.8%).


Next Steps

Past Performance

How has RMB Holdings performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMH has high quality earnings.

Growing Profit Margin: RMH's current net profit margins (-4176.8%) are lower than last year (-3251%).


Past Earnings Growth Analysis

Earnings Trend: RMH's earnings have grown by 6.4% per year over the past 5 years.

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

Earnings vs Industry: RMH had negative earnings growth (-6.4%) over the past year, making it difficult to compare to the Diversified Financial industry average (16.1%).


Return on Equity

High ROE: RMH's Return on Equity (18.1%) is considered low.


Next Steps

Financial Health

How is RMB Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RMH's short term assets (ZAR968.0M) do not cover its short term liabilities (ZAR1.0B).

Long Term Liabilities: RMH's short term assets (ZAR968.0M) do not cover its long term liabilities (ZAR3.0B).


Debt to Equity History and Analysis

Debt Level: RMH's debt to equity ratio (5.8%) is considered satisfactory.

Reducing Debt: RMH's debt to equity ratio has increased from 3.7% to 5.8% over the past 5 years.

Debt Coverage: RMH's debt is well covered by operating cash flow (203.6%).

Interest Coverage: Insufficient data to determine if RMH's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

6.62%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RMH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RMH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RMH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RMH's dividend payments have been increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

5.8yrs

Average management tenure


CEO

Herman Bosman (49yo)

5.75yrs

Tenure

R4,501,000

Compensation

Mr. Hermanus Lambertus Bosman, also known as Herman, BCom (Law), LLB, LLM, CFA has been the Chief Executive Officer and Financial Director of Rand Merchant Investment Holdings Limited since September 11, 2 ...


CEO Compensation Analysis

Compensation vs Market: Herman's total compensation ($USD267.46K) is below average for companies of similar size in the ZA market ($USD2.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hermanus Bosman
CEO, Financial Director & Executive Director5.75yrsR4.50mno data
Ellen Marais
Company Secretary8.67yrsno datano data
Brian Roberts
Chief Executive Officer of RMH Property3.42yrsno datano data

5.8yrs

Average Tenure

Experienced Management: RMH's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hermanus Bosman
CEO, Financial Director & Executive Director5.75yrsR4.50mno data
Paul Harris
Non-Executive Director32.58yrsR176.00k0.50% ZAR430.3m
Lauritz Dippenaar
Non-Executive Director32.58yrsR176.00k5.34% ZAR4.6b
Jan Durand
Non-Executive Chairman2.25yrsR351.00kno data
Sonja Emilia de Bruyn Sebotsa
Independent Non-Executive Director12.33yrsR283.00kno data
Johan Burger
Non-Executive Director6yrsR176.00k0.087% ZAR75.9m
Peter Cooper
Non-Executive Director5.75yrsR176.00k0.27% ZAR234.3m
Mafison Morobe
Lead Independent Director2.17yrsR209.00kno data
Albertinah Kekana
Non-Executive Director7.33yrsR176.00kno data
Obakeng Phetwe
Non-Executive Director2.75yrsR176.00kno data

6.1yrs

Average Tenure

56.5yo

Average Age

Experienced Board: RMH's board of directors are considered experienced (6.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: RMB Holdings Limited
  • Ticker: RMH
  • Exchange: JSE
  • Founded: 1987
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: R86.767b
  • Shares outstanding: 1.41b
  • Website: https://www.rmh-online.co.za

Location

  • RMB Holdings Limited
  • 2 Merchant Place
  • 3rd Floor
  • Sandton
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RMHJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 1994
R8BDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 1994

Biography

RMB Holdings Limited, an investment holding company, invests in financial services businesses primarily in South Africa. It engages in the retail and commercial banking, corporate and investment banking, instalment credit, fleet management, lender and savings bank, investment management, property investment, and related services. The company was founded in 1987 and is headquartered 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 Analysis2020/06/06 20:03
End of Day Share Price2020/06/05 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.