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SYG

SygniaJSE:SYG Stock Report

Market Cap

R2.5b

7D

0.9%

1Y

20.6%

Updated

20 Oct, 2021

Data

Company Financials
SYG fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends2/6

SYG Overview

Sygnia Limited provides investment management and administration services to institutional and retail clients in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Sygnia
Historical stock prices
Current Share PriceR16.99
52 Week HighR13.15
52 Week LowR21.25
Beta0.58
1 Month Change-2.91%
3 Month Change-5.61%
1 Year Change20.58%
3 Year Change99.88%
5 Year Change6.19%
Change since IPO11.05%

Recent News & Updates

Jun 09
Sygnia (JSE:SYG) Is Paying Out A Larger Dividend Than Last Year

Sygnia (JSE:SYG) Is Paying Out A Larger Dividend Than Last Year

The board of Sygnia Limited ( JSE:SYG ) has announced that it will be increasing its dividend on the 28th of June to...

Mar 24
Is Sygnia Limited (JSE:SYG) A Smart Pick For Income Investors?

Is Sygnia Limited (JSE:SYG) A Smart Pick For Income Investors?

Is Sygnia Limited ( JSE:SYG ) a good dividend stock? How can we tell? Dividend paying companies with growing earnings...

Shareholder Returns

SYGZA Capital MarketsZA Market
7D0.9%4.2%1.0%
1Y20.6%57.5%20.8%

Return vs Industry: SYG underperformed the ZA Capital Markets industry which returned 57.5% over the past year.

Return vs Market: SYG matched the ZA Market which returned 20.8% over the past year.

Price Volatility

Is SYG's price volatile compared to industry and market?
SYG volatility
SYG Beta0.58
Industry Beta0.89
Market Beta1

Stable Share Price: SYG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
2007248David Huftonhttps://www.sygnia.co.za

Sygnia Limited provides investment management and administration services to institutional and retail clients in South Africa. The company offers multi-manager investment, index-tracking investment, and umbrella retirement funds; and transition management, and stockbroking and securities lending services, as well as manages and administers custom-designed investment strategies. It also provides investment administration services, such as multi-tier unitization, monthly administration reporting, consolidated financial accounting information, monitoring of compliance with mandates and legislation, regulatory reporting, performance and risk analysis reporting, and asset liability modelling.

Sygnia Fundamentals Summary

How do Sygnia's earnings and revenue compare to its market cap?
SYG fundamental statistics
Market CapR2.54b
Earnings (TTM)R220.66m
Revenue (TTM)R703.46m

11.5x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYG income statement (TTM)
RevenueR703.46m
Cost of RevenueR360.83m
Gross ProfitR342.63m
ExpensesR121.97m
EarningsR220.66m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.47
Gross Margin48.71%
Net Profit Margin31.37%
Debt/Equity Ratio24.4%

How did SYG perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

80%

Payout Ratio

Valuation

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

11.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SYG (ZAR16.99) is trading above our estimate of fair value (ZAR6.94)

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


Price To Earnings Ratio

PE vs Industry: SYG's PE Ratio (11.5x) is in line with the ZA Capital Markets industry average.

PE vs Market: SYG's PE Ratio (11.5x) is in line with the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SYG is overvalued based on its PB Ratio (3.5x) compared to the ZA Capital Markets industry average (0.7x).


Future Growth

How is Sygnia forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

7.6%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sygnia has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Sygnia performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYG has a large one-off loss of ZAR15.1B impacting its March 31 2021 financial results.

Growing Profit Margin: SYG's current net profit margins (31.4%) are higher than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: SYG's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: SYG's earnings growth over the past year (27.6%) exceeds its 5-year average (25.7% per year).

Earnings vs Industry: SYG earnings growth over the past year (27.6%) underperformed the Capital Markets industry 35.2%.


Return on Equity

High ROE: SYG's Return on Equity (30.7%) is considered high.


Financial Health

How is Sygnia's financial position?


Financial Position Analysis

Short Term Liabilities: SYG's short term assets (ZAR688.5M) exceed its short term liabilities (ZAR493.2M).

Long Term Liabilities: SYG's short term assets (ZAR688.5M) do not cover its long term liabilities (ZAR117.1B).


Debt to Equity History and Analysis

Debt Level: SYG's debt to equity ratio (24.4%) is considered satisfactory.

Reducing Debt: SYG's debt to equity ratio has increased from 0% to 24.4% over the past 5 years.

Debt Coverage: SYG's debt is well covered by operating cash flow (218.3%).

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


Balance Sheet


Dividend

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

6.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYG's dividend (6.06%) is higher than the bottom 25% of dividend payers in the ZA market (3.11%).

High Dividend: SYG's dividend (6.06%) is low compared to the top 25% of dividend payers in the ZA market (8.07%).


Stability and Growth of Payments

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

Growing Dividend: SYG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.5%), SYG's 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?

4.8yrs

Average management tenure


CEO

David Hufton

0.33

Tenure

R8,000,000

Compensation

Mr. David Roy Hufton has been the Chief Executive Officer of Sygnia Limited since April 3, 2020 and its Executive Director since September 01, 2018. He served as Deputy Chief Executive Officer of Sygnia Lt...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD553.61K) is about average for companies of similar size in the ZA market ($USD473.63K).

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


Leadership Team

Experienced Management: SYG's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: SYG's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: Sygnia Limited
  • Ticker: SYG
  • Exchange: JSE
  • Founded: 2007
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: R2.536b
  • Shares outstanding: 149.63m
  • Website: https://www.sygnia.co.za

Number of Employees


Location

  • Sygnia Limited
  • The Foundry
  • 7th Floor
  • Cape Town
  • Western Cape
  • 8001
  • 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 17:04
End of Day Share Price2021/10/20 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.