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RMI

Rand Merchant Investment HoldingsJSE:RMI Stock Report

Market Cap

R57.9b

7D

-1.1%

1Y

26.0%

Updated

18 Oct, 2021

Data

Company Financials +
RMI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health4/6
Dividends0/6

RMI Overview

Rand Merchant Investment Holdings Limited, an investment holding company, provides various financial products and services in South Africa, rest of Africa, the United Kingdom, China, Singapore, Australia, Japan, Europe, the United States, and New Zealand.

Rewards

PE ratio (20x) is below the Insurance industry average (20.5x)

Earnings are forecast to grow 36.52% per year

Risk Analysis

No risks detected for RMI from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Rand Merchant Investment Holdings
Historical stock prices
Current Share PriceR37.83
52 Week HighR28.24
52 Week LowR39.00
Beta0.65
1 Month Change22.79%
3 Month Change23.43%
1 Year Change26.02%
3 Year Change5.55%
5 Year Change-4.66%
Change since IPO202.40%

Recent News & Updates

Shareholder Returns

RMIZA InsuranceZA Market
7D-1.1%-1.3%1.6%
1Y26.0%26.8%21.3%

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

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

Price Volatility

Is RMI's price volatile compared to industry and market?
RMI volatility
RMI Beta0.65
Industry Beta0.88
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1977n/aHerman Bosmanhttps://www.rmih.co.za

Rand Merchant Investment Holdings Limited, an investment holding company, provides various financial products and services in South Africa, rest of Africa, the United Kingdom, China, Singapore, Australia, Japan, Europe, the United States, and New Zealand. It operates through Discovery, Momentum Metropolitan, OUTsurance, and Hastings segments. The company’s Discovery segment develops integrated financial products and services for healthcare funding, insurance, and banking markets under the Discovery Health, Discovery Life, Discovery Insure, Discovery Invest, Discovery Vitality, VitalityHealth, VitalityLife, Ping An Health, and Discovery Bank brand names.

Rand Merchant Investment Holdings Fundamentals Summary

How do Rand Merchant Investment Holdings's earnings and revenue compare to its market cap?
RMI fundamental statistics
Market CapR57.87b
Earnings (TTM)R2.89b
Revenue (TTM)R19.02b

20.0x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RMI income statement (TTM)
RevenueR19.02b
Cost of RevenueR9.50b
Gross ProfitR9.52b
ExpensesR6.63b
EarningsR2.89b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin50.04%
Net Profit Margin15.21%
Debt/Equity Ratio39.6%

How did RMI perform over the long term?

See historical performance and comparison

Valuation

Is Rand Merchant Investment Holdings undervalued compared to its fair value and its price relative to the market?

20x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMI (ZAR37.83) is trading above our estimate of fair value (ZAR16.16)

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


Price To Earnings Ratio

PE vs Industry: RMI is good value based on its PE Ratio (20x) compared to the ZA Insurance industry average (20.5x).

PE vs Market: RMI is poor value based on its PE Ratio (20x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: RMI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: RMI's PB Ratio (2.1x) is in line with the ZA Insurance industry average.


Future Growth

How is Rand Merchant Investment Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

36.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMI's forecast earnings growth (36.5% per year) is above the savings rate (8.8%).

Earnings vs Market: RMI's earnings (36.5% 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 RMI's revenue is forecast to grow faster than the ZA market.

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMI's Return on Equity is forecast to be low in 3 years time (18.2%).


Past Performance

How has Rand Merchant Investment Holdings performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMI has high quality earnings.

Growing Profit Margin: RMI's current net profit margins (15.2%) are higher than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: RMI's earnings have declined by 8% per year over the past 5 years.

Accelerating Growth: RMI's earnings growth over the past year (94.4%) exceeds its 5-year average (-8% per year).

Earnings vs Industry: RMI earnings growth over the past year (94.4%) underperformed the Insurance industry 117.2%.


Return on Equity

High ROE: RMI's Return on Equity (11.1%) is considered low.


Financial Health

How is Rand Merchant Investment Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RMI's short term assets (ZAR12.6B) exceed its short term liabilities (ZAR10.6B).

Long Term Liabilities: RMI's short term assets (ZAR12.6B) do not cover its long term liabilities (ZAR14.4B).


Debt to Equity History and Analysis

Debt Level: RMI's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: RMI's debt to equity ratio has increased from 12% to 39.6% over the past 5 years.

Debt Coverage: RMI's debt is well covered by operating cash flow (31.2%).

Interest Coverage: RMI's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

What is Rand Merchant Investment Holdings's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RMI's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: RMI's dividend (1.19%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

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


Future Payout to Shareholders

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

7.4yrs

Average board tenure


CEO

Herman Bosman (51 yo)

7.08yrs

Tenure

R13,723,000

Compensation

Mr. Hermanus Lambertus Bosman, also known as Herman, BCom (Law), LLB, LLM, CFA has been Non-Independent & Non-Executive Chairman at OUTsurance Holdings Limited since July 1, 2020. Mr. Bosman has been the C...


CEO Compensation Analysis

Compensation vs Market: Herman's total compensation ($USD934.38K) is about average for companies of similar size in the ZA market ($USD1.28M).

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


Board Members

Experienced Board: RMI's board of directors are considered experienced (7.4 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

Rand Merchant Investment Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Rand Merchant Investment Holdings Limited
  • Ticker: RMI
  • Exchange: JSE
  • Founded: 1977
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R57.866b
  • Shares outstanding: 1.53b
  • Website: https://www.rmih.co.za

Number of Employees


Location

  • Rand Merchant Investment Holdings Limited
  • The Bank Building
  • 12th Floor
  • Johannesburg
  • Gauteng
  • 2196
  • 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 21:44
End of Day Share Price2021/10/18 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.