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DSY

DiscoveryJSE:DSY Stock Report

Market Cap

R88.8b

7D

-0.03%

1Y

10.8%

Updated

17 Oct, 2021

Data

Company Financials +
DSY fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends0/6

DSY Overview

Discovery Limited provides various insurance products and services primarily in South Africa, the United Kingdom, and the United States.

Rewards

Earnings are forecast to grow 44.38% per year

Earnings grew by 3154.6% over the past year

Risk Analysis

No risks detected for DSY from our risk checks.

Discovery Competitors

Santam

JSE:SNT

R28.3b

Coronation Fund Managers

JSE:CML

R17.6b

Price History & Performance

Summary of all time highs, changes and price drops for Discovery
Historical stock prices
Current Share PriceR135.27
52 Week HighR106.50
52 Week LowR158.80
Beta1.03
1 Month Change4.00%
3 Month Change15.03%
1 Year Change10.76%
3 Year Change-10.90%
5 Year Change18.83%
Change since IPO1,612.29%

Recent News & Updates

Shareholder Returns

DSYZA InsuranceZA Market
7D-0.03%-1.3%1.6%
1Y10.8%26.8%21.3%

Return vs Industry: DSY underperformed the ZA Insurance industry which returned 26.8% over the past year.

Return vs Market: DSY underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is DSY's price volatile compared to industry and market?
DSY volatility
DSY Beta1.03
Industry Beta0.88
Market Beta1

Stable Share Price: DSY is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: DSY's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1992n/aAdrian Gorehttps://www.discovery.co.za

Discovery Limited provides various insurance products and services primarily in South Africa, the United Kingdom, and the United States. It operates through Health South Africa, Life South Africa, Invest South Africa, Vitality South Africa, Insure South Africa, Bank South Africa, Health United Kingdom, Life United Kingdom, and All Other segments. The company offers health, life, car, and home insurance products; motor, building, household content, and portable possessions insurance products; and commercial short-term risk insurance products.

Discovery Fundamentals Summary

How do Discovery's earnings and revenue compare to its market cap?
DSY fundamental statistics
Market CapR88.85b
Earnings (TTM)R3.16b
Revenue (TTM)R78.13b

28.1x

P/E Ratio

1.1x

P/S Ratio

Is DSY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
DSY income statement (TTM)
RevenueR78.13b
Cost of RevenueR51.79b
Gross ProfitR26.34b
ExpensesR23.18b
EarningsR3.16b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.81
Gross Margin33.71%
Net Profit Margin4.04%
Debt/Equity Ratio34.1%

How did DSY perform over the long term?

See historical performance and comparison

Valuation

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

28.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DSY (ZAR135.27) is trading above our estimate of fair value (ZAR41.51)

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


Price To Earnings Ratio

PE vs Industry: DSY is poor value based on its PE Ratio (28.1x) compared to the ZA Insurance industry average (20.5x).

PE vs Market: DSY is poor value based on its PE Ratio (28.1x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: DSY is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DSY is good value based on its PB Ratio (1.9x) compared to the ZA Insurance industry average (2.1x).


Future Growth

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

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSY's forecast earnings growth (44.4% per year) is above the savings rate (8.8%).

Earnings vs Market: DSY's earnings (44.4% per year) are forecast to grow faster than the ZA market (12.2% per year).

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

Revenue vs Market: DSY's revenue is expected to decline over the next 3 years (-7.4% per year).

High Growth Revenue: DSY's revenue is forecast to decline over the next 3 years (-7.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DSY's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

How has Discovery performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSY has high quality earnings.

Growing Profit Margin: DSY's current net profit margins (4%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: DSY's earnings have declined by 14.1% per year over the past 5 years.

Accelerating Growth: DSY's earnings growth over the past year (3154.6%) exceeds its 5-year average (-14.1% per year).

Earnings vs Industry: DSY earnings growth over the past year (3154.6%) exceeded the Insurance industry 117.2%.


Return on Equity

High ROE: DSY's Return on Equity (6.9%) is considered low.


Financial Health

How is Discovery's financial position?


Financial Position Analysis

Short Term Liabilities: DSY's short term assets (ZAR163.5B) exceed its short term liabilities (ZAR51.2B).

Long Term Liabilities: DSY's short term assets (ZAR163.5B) exceed its long term liabilities (ZAR149.1B).


Debt to Equity History and Analysis

Debt Level: DSY's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: DSY's debt to equity ratio has increased from 17.2% to 34.1% over the past 5 years.

Debt Coverage: DSY's debt is well covered by operating cash flow (65.8%).

Interest Coverage: DSY's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

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

1.90%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate DSY'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 DSY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

12.8yrs

Average board tenure


CEO

Adrian Gore (56 yo)

22.75yrs

Tenure

R17,170,000

Compensation

Mr. Adrian Gore, BSc (Hons), FFA, ASA, MAAA, FASSA, is the Founder of Discovery Health Proprietary Limited and serves as its Executive Director. Mr. Gore Founder of Discovery Limited and serves as the Grou...


CEO Compensation Analysis

Compensation vs Market: Adrian's total compensation ($USD1.17M) is below average for companies of similar size in the ZA market ($USD1.71M).

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


Board Members

Experienced Board: DSY's board of directors are seasoned and experienced ( 12.8 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

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


Key Information

  • Name: Discovery Limited
  • Ticker: DSY
  • Exchange: JSE
  • Founded: 1992
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R88.846b
  • Shares outstanding: 656.80m
  • Website: https://www.discovery.co.za

Number of Employees


Location

  • Discovery Limited
  • 1 Discovery Place
  • Sandton
  • Gauteng
  • 2146
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:03
End of Day Share Price2021/10/15 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.