Transaction Capital Limited provides non-deposit taking financial services in South Africa and Australia.
Price History & Performance
|Historical stock prices|
|Current Share Price||R41.72|
|52 Week High||R19.01|
|52 Week Low||R43.90|
|1 Month Change||6.54%|
|3 Month Change||17.62%|
|1 Year Change||84.19%|
|3 Year Change||126.74%|
|5 Year Change||225.94%|
|Change since IPO||421.50%|
Recent News & Updates
|TCP||ZA Consumer Finance||ZA Market|
Return vs Industry: TCP exceeded the ZA Consumer Finance industry which returned 59.8% over the past year.
Return vs Market: TCP exceeded the ZA Market which returned 20.7% over the past year.
Stable Share Price: TCP is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: TCP's weekly volatility (5%) has been stable over the past year.
About the Company
Transaction Capital Limited provides non-deposit taking financial services in South Africa and Australia. The company offers vehicle procurement, retail, repossession, and refurbishment capabilities, such as asset-backed developmental finance and insurance services for various vehicles; and customer management solutions through its fintech platform that enables its clients to mitigate risk through their customer engagement lifecycle. It also provides business support and working capital finance to SMEs; accounts receivables collection services; payroll, human resources management, access controls, biometrics, employee self-service, recruitment, and outsourcing services, as well as time and attendance solutions; payment solutions; payroll-related services; legal and administrative services; and personal credit information services.
Transaction Capital Fundamentals Summary
|TCP fundamental statistics|
Is TCP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TCP income statement (TTM)|
|Cost of Revenue||R3.65b|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
Nov 16, 2021
|Earnings per share (EPS)||0.55|
|Net Profit Margin||9.80%|
How did TCP perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is Transaction Capital undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TCP (ZAR41.72) is trading above our estimate of fair value (ZAR2.64)
Significantly Below Fair Value: TCP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TCP is poor value based on its PE Ratio (75.2x) compared to the African Consumer Finance industry average (32.3x).
PE vs Market: TCP is poor value based on its PE Ratio (75.2x) compared to the ZA market (11.1x).
Price to Earnings Growth Ratio
PEG Ratio: TCP is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: TCP is overvalued based on its PB Ratio (4.7x) compared to the XF Consumer Finance industry average (1.4x).
How is Transaction Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TCP's forecast earnings growth (48.2% per year) is above the savings rate (8.8%).
Earnings vs Market: TCP's earnings (48.2% per year) are forecast to grow faster than the ZA market (12.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TCP's revenue (21.2% per year) is forecast to grow faster than the ZA market (6.2% per year).
High Growth Revenue: TCP's revenue (21.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TCP's Return on Equity is forecast to be high in 3 years time (21.1%)
How has Transaction Capital performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TCP has high quality earnings.
Growing Profit Margin: TCP's current net profit margins (9.8%) are lower than last year (17.6%).
Past Earnings Growth Analysis
Earnings Trend: TCP's earnings have grown by 0.3% per year over the past 5 years.
Accelerating Growth: TCP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TCP had negative earnings growth (-45%) over the past year, making it difficult to compare to the Consumer Finance industry average (-50.8%).
Return on Equity
High ROE: TCP's Return on Equity (6.4%) is considered low.
How is Transaction Capital's financial position?
Financial Position Analysis
Short Term Liabilities: TCP's short term assets (ZAR19.3B) exceed its short term liabilities (ZAR1.1B).
Long Term Liabilities: TCP's short term assets (ZAR19.3B) exceed its long term liabilities (ZAR16.1B).
Debt to Equity History and Analysis
Debt Level: TCP's debt to equity ratio (214.5%) is considered high.
Reducing Debt: TCP's debt to equity ratio has reduced from 245.2% to 214.5% over the past 5 years.
Debt Coverage: TCP's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if TCP's interest payments on its debt are well covered by EBIT.
What is Transaction Capital current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TCP's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.05%).
High Dividend: TCP's dividend (0.91%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).
Stability and Growth of Payments
Stable Dividend: TCP is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.
Growing Dividend: TCP 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: TCP is not paying a notable dividend for the ZA market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TCP's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dave Hurwitz (49 yo)
Mr. David M. Hurwitz, also known as Dave, BCom (Hon) (Wits), CA (SA), H Dip Tax (Wits), has been the Chief Executive Officer at Transaction Capital Limited since January 16, 2014. Mr. Hurwitz served as the...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD614.08K) is below average for companies of similar size in the ZA market ($USD909.96K).
Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.
Experienced Management: TCP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Experienced Board: TCP's board of directors are considered experienced (6.5 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.
Transaction Capital Limited's employee growth, exchange listings and data sources
- Name: Transaction Capital Limited
- Ticker: TCP
- Exchange: JSE
- Founded: 2007
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: R29.995b
- Shares outstanding: 718.96m
- Website: https://www.transactioncapital.co.za
Number of Employees
- Transaction Capital Limited
- 342 Jan Smuts Avenue
- Hyde Park
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/14 21:26|
|End of Day Share Price||2021/10/14 00:00|
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.