company background image
MTM

Momentum Metropolitan HoldingsJSE:MTM Stock Report

Market Cap

R28.4b

7D

-3.3%

1Y

34.7%

Updated

26 Oct, 2021

Data

Company Financials +
MTM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance4/6
Financial Health4/6
Dividends0/6

MTM Overview

Momentum Metropolitan Holdings Limited, together with its subsidiaries, provides insurance-based financial services for individuals, companies, institutions, and organizations in South Africa and internationally.

Momentum Metropolitan Holdings Competitors

Santam

JSE:SNT

R28.7b

Coronation Fund Managers

JSE:CML

R17.8b

Price History & Performance

Summary of all time highs, changes and price drops for Momentum Metropolitan Holdings
Historical stock prices
Current Share PriceR19.97
52 Week HighR12.82
52 Week LowR22.70
Beta0.61
1 Month Change-0.55%
3 Month Change4.01%
1 Year Change34.66%
3 Year Change14.25%
5 Year Change-10.41%
Change since IPO22.14%

Recent News & Updates

Shareholder Returns

MTMZA InsuranceZA Market
7D-3.3%0.3%-0.3%
1Y34.7%19.5%19.5%

Return vs Industry: MTM exceeded the ZA Insurance industry which returned 19.5% over the past year.

Return vs Market: MTM exceeded the ZA Market which returned 19.5% over the past year.

Price Volatility

Is MTM's price volatile compared to industry and market?
MTM volatility
MTM Beta0.61
Industry Beta0.88
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
n/a16,483Hillie Meyerhttps://www.momentummetropolitan.co.za

Momentum Metropolitan Holdings Limited, together with its subsidiaries, provides insurance-based financial services for individuals, companies, institutions, and organizations in South Africa and internationally. It operates through Momentum Life, Momentum Investments, Metropolitan Life, Momentum Corporate, Momentum Metropolitan Health, Non-life Insurance, Momentum Metropolitan Africa, and New Initiatives segments. The company offers long and short-term insurance; employee benefits, including healthcare and retirement provision; asset management, property management, investments, and savings; healthcare administration and health risk management services; and client engagement solutions, such as wellness and rewards programs.

Momentum Metropolitan Holdings Fundamentals Summary

How do Momentum Metropolitan Holdings's earnings and revenue compare to its market cap?
MTM fundamental statistics
Market CapR28.41b
Earnings (TTM)R451.00m
Revenue (TTM)R107.39b

63.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MTM income statement (TTM)
RevenueR107.39b
Cost of RevenueR87.90b
Gross ProfitR19.49b
ExpensesR19.04b
EarningsR451.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 23, 2021

Earnings per share (EPS)0.32
Gross Margin18.15%
Net Profit Margin0.42%
Debt/Equity Ratio50.6%

How did MTM perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

128%

Payout Ratio

Valuation

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

62.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MTM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MTM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MTM is poor value based on its PE Ratio (63x) compared to the ZA Insurance industry average (20.7x).

PE vs Market: MTM is poor value based on its PE Ratio (63x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTM is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MTM is good value based on its PB Ratio (1.4x) compared to the ZA Insurance industry average (2.1x).


Future Growth

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

66.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTM's forecast earnings growth (66.9% per year) is above the savings rate (8.8%).

Earnings vs Market: MTM's earnings (66.9% 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: Insufficient data to determine if MTM's revenue is forecast to grow faster than the ZA market.

High Growth Revenue: Insufficient data to determine if MTM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTM's Return on Equity is forecast to be low in 3 years time (17%).


Past Performance

How has Momentum Metropolitan Holdings performed over the past 5 years?

-23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTM has high quality earnings.

Growing Profit Margin: MTM's current net profit margins (0.4%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: MTM's earnings have declined by 23.7% per year over the past 5 years.

Accelerating Growth: MTM's earnings growth over the past year (139.9%) exceeds its 5-year average (-23.7% per year).

Earnings vs Industry: MTM earnings growth over the past year (139.9%) exceeded the Insurance industry 117.2%.


Return on Equity

High ROE: MTM's Return on Equity (2.5%) is considered low.


Financial Health

How is Momentum Metropolitan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTM's short term assets (ZAR524.4B) exceed its short term liabilities (ZAR247.2B).

Long Term Liabilities: MTM's short term assets (ZAR524.4B) exceed its long term liabilities (ZAR283.7B).


Debt to Equity History and Analysis

Debt Level: MTM's debt to equity ratio (50.6%) is considered high.

Reducing Debt: MTM's debt to equity ratio has increased from 26.3% to 50.6% over the past 5 years.

Debt Coverage: MTM's debt is well covered by operating cash flow (82.9%).

Interest Coverage: MTM's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MTM's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.15%).

High Dividend: MTM's dividend (1.5%) is low compared to the top 25% of dividend payers in the ZA market (7.54%).


Stability and Growth of Payments

Stable Dividend: MTM is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: MTM 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: MTM is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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

4.7yrs

Average management tenure


CEO

Hillie Meyer (61 yo)

3.67yrs

Tenure

R11,113,000

Compensation

Mr. Hillie P. Meyer has been the Chief Executive Officer and Executive Director of Momentum Metropolitan Holdings Ltd. (formerly known as MMI Holdings Ltd.) since February 15, 2018. Mr. Meyerr serves as Ch...


CEO Compensation Analysis

Compensation vs Market: Hillie's total compensation ($USD749.82K) is about average for companies of similar size in the ZA market ($USD927.67K).

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


Leadership Team

Experienced Management: MTM's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: MTM's board of directors are considered experienced (3.7 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

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


Key Information

  • Name: Momentum Metropolitan Holdings Limited
  • Ticker: MTM
  • Exchange: JSE
  • Founded: NaN
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R28.407b
  • Shares outstanding: 1.42b
  • Website: https://www.momentummetropolitan.co.za

Number of Employees


Location

  • Momentum Metropolitan Holdings Limited
  • 268 West Avenue
  • Centurion
  • Gauteng
  • 157
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:19
End of Day Share Price2021/10/26 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.