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LBH

Liberty HoldingsJSE:LBH Stock Report

Market Cap

R24.1b

7D

0.02%

1Y

66.9%

Updated

18 Oct, 2021

Data

Company Financials +
LBH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends0/6

LBH Overview

Liberty Holdings Limited, a financial services company, engages in the insurance business in South Africa.

Liberty Holdings Competitors

Santam

JSE:SNT

R28.3b

Coronation Fund Managers

JSE:CML

R18.0b

Price History & Performance

Summary of all time highs, changes and price drops for Liberty Holdings
Historical stock prices
Current Share PriceR91.58
52 Week HighR52.59
52 Week LowR96.73
Beta0.55
1 Month Change-0.33%
3 Month Change13.91%
1 Year Change66.87%
3 Year Change-16.51%
5 Year Change-19.36%
Change since IPO189.20%

Recent News & Updates

May 06
Should Shareholders Worry About Liberty Holdings Limited's (JSE:LBH) CEO Compensation Package?

Should Shareholders Worry About Liberty Holdings Limited's (JSE:LBH) CEO Compensation Package?

The disappointing performance at Liberty Holdings Limited ( JSE:LBH ) will make some shareholders rather disheartened...

Shareholder Returns

LBHZA InsuranceZA Market
7D0.02%-1.3%1.6%
1Y66.9%26.8%21.3%

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

Return vs Market: LBH exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is LBH's price volatile compared to industry and market?
LBH volatility
LBH Beta0.55
Industry Beta0.88
Market Beta1

Stable Share Price: LBH is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: LBH's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19575,791David Munrohttps://www.libertyholdings.co.za

Liberty Holdings Limited, a financial services company, engages in the insurance business in South Africa. The company offers critical illness, disability, income and life protection, car, home, personal liability, medical, and salary protection insurance products, as well as funeral cover; and annuities, group risk, umbrella fund solutions, investment products, asset management, and consulting and actuarial services. It serves individuals, corporates, and retirement funds.

Liberty Holdings Fundamentals Summary

How do Liberty Holdings's earnings and revenue compare to its market cap?
LBH fundamental statistics
Market CapR24.12b
Earnings (TTM)R995.00m
Revenue (TTM)R81.27b

24.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LBH income statement (TTM)
RevenueR81.27b
Cost of RevenueR63.95b
Gross ProfitR17.33b
ExpensesR16.33b
EarningsR995.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.78
Gross Margin21.32%
Net Profit Margin1.22%
Debt/Equity Ratio62.6%

How did LBH perform over the long term?

See historical performance and comparison

Valuation

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

24.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LBH (ZAR91.58) is trading above our estimate of fair value (ZAR9.41)

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


Price To Earnings Ratio

PE vs Industry: LBH is poor value based on its PE Ratio (24.2x) compared to the ZA Insurance industry average (20.5x).

PE vs Market: LBH is poor value based on its PE Ratio (24.2x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: LBH is good value based on its PB Ratio (1.1x) compared to the ZA Insurance industry average (2.1x).


Future Growth

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

-21.1%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if LBH's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if LBH'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: LBH's revenue is expected to decline over the next 3 years (-21.1% per year).

High Growth Revenue: LBH's revenue is forecast to decline over the next 3 years (-21.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LBH's Return on Equity is forecast to be low in 3 years time (8.5%).


Past Performance

How has Liberty Holdings performed over the past 5 years?

-32.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LBH has high quality earnings.

Growing Profit Margin: LBH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LBH's earnings have declined by 32.3% per year over the past 5 years.

Accelerating Growth: LBH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LBH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (117.2%).


Return on Equity

High ROE: LBH's Return on Equity (4.7%) is considered low.


Financial Health

How is Liberty Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: LBH's short term assets (ZAR47.0B) do not cover its short term liabilities (ZAR87.8B).

Long Term Liabilities: LBH's short term assets (ZAR47.0B) do not cover its long term liabilities (ZAR370.1B).


Debt to Equity History and Analysis

Debt Level: LBH's debt to equity ratio (62.6%) is considered high.

Reducing Debt: LBH's debt to equity ratio has reduced from 68.5% to 62.6% over the past 5 years.

Debt Coverage: LBH's debt is well covered by operating cash flow (22.9%).

Interest Coverage: LBH's interest payments on its debt are well covered by EBIT (26.7x coverage).


Balance Sheet


Dividend

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

4.96%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

4.6yrs

Average management tenure


CEO

David Munro (50 yo)

4.42yrs

Tenure

R11,675,000

Compensation

Mr. David Charles Munro, BCom PDGA (UCT), CA(SA), AMP, has been Chief Executive of Liberty at The Standard Bank of South Africa Limited since July 17, 2017. He serves as Group Chief Executive Officer of Li...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD794.93K) is about average for companies of similar size in the ZA market ($USD922.82K).

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


Leadership Team

Experienced Management: LBH's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: LBH's board of directors are considered experienced (3.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Liberty Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Liberty Holdings Limited
  • Ticker: LBH
  • Exchange: JSE
  • Founded: 1957
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R24.123b
  • Shares outstanding: 263.41m
  • Website: https://www.libertyholdings.co.za

Number of Employees


Location

  • Liberty Holdings Limited
  • Liberty Centre
  • 1 Ameshoff Street
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:33
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.