Discovery Limited provides various insurance products and services primarily in South Africa, the United Kingdom, and the United States.
Price History & Performance
|Historical stock prices|
|Current Share Price||R135.27|
|52 Week High||R106.50|
|52 Week Low||R158.80|
|1 Month Change||4.00%|
|3 Month Change||15.03%|
|1 Year Change||10.76%|
|3 Year Change||-10.90%|
|5 Year Change||18.83%|
|Change since IPO||1,612.29%|
Recent News & Updates
|DSY||ZA Insurance||ZA Market|
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.
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
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
|DSY fundamental statistics|
Is DSY overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|DSY income statement (TTM)|
|Cost of Revenue||R51.79b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||4.81|
|Net Profit Margin||4.04%|
How did DSY perform over the long term?See historical performance and comparison
Is Discovery 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: 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).
How is Discovery 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: 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%).
How has Discovery performed over the past 5 years?
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.
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).
What is Discovery current dividend yield, its reliability and sustainability?
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.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Adrian Gore (56 yo)
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.
Experienced Board: DSY's board of directors are seasoned and experienced ( 12.8 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 not been meaningfully diluted in the past year.
Discovery Limited's employee growth, exchange listings and data sources
- 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
- Discovery Limited
- 1 Discovery Place
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/17 17:03|
|End of Day Share Price||2021/10/15 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.