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OMU

Old MutualJSE:OMU Stock Report

Market Cap

R74.3b

7D

-3.2%

1Y

57.9%

Updated

20 Oct, 2021

Data

Company Financials +
OMU fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends3/6

OMU Overview

Old Mutual Limited, through its subsidiaries, provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia.

Old Mutual Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Old Mutual
Historical stock prices
Current Share PriceR15.79
52 Week HighR9.33
52 Week LowR17.01
Beta1.22
1 Month Change5.27%
3 Month Change22.59%
1 Year Change57.90%
3 Year Change-30.35%
5 Year Change-53.45%
Change since IPO6.28%

Recent News & Updates

Shareholder Returns

OMUZA InsuranceZA Market
7D-3.2%0.2%0.9%
1Y57.9%27.3%19.9%

Return vs Industry: OMU exceeded the ZA Insurance industry which returned 28.2% over the past year.

Return vs Market: OMU exceeded the ZA Market which returned 20.8% over the past year.

Price Volatility

Is OMU's price volatile compared to industry and market?
OMU volatility
OMU Beta1.22
Industry Beta0.88
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
184529,861Iain Williamsonhttps://www.oldmutual.com

Old Mutual Limited, through its subsidiaries, provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia. The company offers life and savings, property and casualty insurance, asset management, and banking and lending products and services. It distributes its products through independent advisers, branches, bancassurance, direct and digital channels, and worksites.

Old Mutual Fundamentals Summary

How do Old Mutual's earnings and revenue compare to its market cap?
OMU fundamental statistics
Market CapR74.35b
Earnings (TTM)R3.51b
Revenue (TTM)R223.26b

21.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OMU income statement (TTM)
RevenueR223.26b
Cost of RevenueR182.27b
Gross ProfitR41.00b
ExpensesR37.49b
EarningsR3.51b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.75
Gross Margin18.36%
Net Profit Margin1.57%
Debt/Equity Ratio24.2%

How did OMU perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

75%

Payout Ratio

Valuation

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

21.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: OMU is poor value based on its PE Ratio (21.2x) compared to the ZA Insurance industry average (20.8x).

PE vs Market: OMU is poor value based on its PE Ratio (21.2x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: OMU is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

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


Future Growth

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

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OMU's forecast earnings growth (13.5% per year) is above the savings rate (8.8%).

Earnings vs Market: OMU's earnings (13.5% per year) are forecast to grow faster than the ZA market (13.3% per year).

High Growth Earnings: OMU's earnings are forecast to grow, but not significantly.

Revenue vs Market: OMU's revenue is expected to decline over the next 3 years (-38.2% per year).

High Growth Revenue: OMU's revenue is forecast to decline over the next 3 years (-38.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OMU's Return on Equity is forecast to be low in 3 years time (11.4%).


Past Performance

How has Old Mutual performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OMU has high quality earnings.

Growing Profit Margin: OMU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: OMU's earnings have grown by 11.9% per year over the past 5 years.

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

Earnings vs Industry: OMU 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: OMU's Return on Equity (5.7%) is considered low.


Financial Health

How is Old Mutual's financial position?


Financial Position Analysis

Short Term Liabilities: OMU's short term assets (ZAR89.5B) do not cover its short term liabilities (ZAR154.2B).

Long Term Liabilities: OMU's short term assets (ZAR89.5B) do not cover its long term liabilities (ZAR763.7B).


Debt to Equity History and Analysis

Debt Level: OMU's debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: OMU's debt to equity ratio has reduced from 42.9% to 24.2% over the past 5 years.

Debt Coverage: OMU's debt is well covered by operating cash flow (63.7%).

Interest Coverage: OMU's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Dividend

What is Old Mutual current dividend yield, its reliability and sustainability?

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OMU's dividend (3.17%) is higher than the bottom 25% of dividend payers in the ZA market (3.11%).

High Dividend: OMU's dividend (3.17%) is low compared to the top 25% of dividend payers in the ZA market (8.07%).


Stability and Growth of Payments

Stable Dividend: OMU's dividend payments have been volatile in the past 10 years.

Growing Dividend: OMU's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.2%), OMU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OMU's dividends in 3 years are forecast to be covered by earnings (51.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Iain Williamson (51 yo)

2.42yrs

Tenure

R9,739,922

Compensation

Mr. Iain George Williamson serves as Non-Executive Director at Old Mutual Insure Ltd. since June 8, 2020. He serves as Chief Executive Officer at Old Mutual Life Assurance Company (South Africa) Ltd.since...


CEO Compensation Analysis

Compensation vs Market: Iain's total compensation ($USD674.02K) is below average for companies of similar size in the ZA market ($USD1.70M).

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


Leadership Team

Experienced Management: OMU's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: OMU's board of directors are considered experienced (3.6 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

Old Mutual Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Old Mutual Limited
  • Ticker: OMU
  • Exchange: JSE
  • Founded: 1845
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R74.348b
  • Shares outstanding: 4.71b
  • Website: https://www.oldmutual.com

Number of Employees


Location

  • Old Mutual Limited
  • Mutualpark
  • Jan Smuts Drive
  • Cape Town
  • Western Cape
  • 7405
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/20 21:58
End of Day Share Price2021/10/20 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.