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SLM

SanlamJSE:SLM Stock Report

Market Cap

R124.6b

7D

-1.6%

1Y

19.8%

Updated

15 Oct, 2021

Data

Company Financials +
SLM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends5/6

SLM Overview

Sanlam Limited provides various financial solutions to individual, business, and institutional clients.

Sanlam Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sanlam
Historical stock prices
Current Share PriceR60.35
52 Week HighR46.47
52 Week LowR65.46
Beta0.94
1 Month Change-3.01%
3 Month Change1.67%
1 Year Change19.77%
3 Year Change-15.90%
5 Year Change-6.90%
Change since IPO907.51%

Recent News & Updates

Shareholder Returns

SLMZA InsuranceZA Market
7D-1.6%-2.5%1.3%
1Y19.8%26.2%21.2%

Return vs Industry: SLM underperformed the ZA Insurance industry which returned 26.2% over the past year.

Return vs Market: SLM underperformed the ZA Market which returned 21.2% over the past year.

Price Volatility

Is SLM's price volatile compared to industry and market?
SLM volatility
SLM Beta0.94
Industry Beta0.88
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
191820,920Paul Hanrattyhttps://www.sanlam.co.za

Sanlam Limited provides various financial solutions to individual, business, and institutional clients. The company operates through Sanlam Life and Savings, Sanlam Emerging Markets, Sanlam Investment Group, and Santam segments. It offers life, disability cover, income protection, severe illness, medical, short-term, and group risk benefits insurances; financial planning and retirement solutions; investment products; wealth, and professionals and graduates insurance services; and personal loans.

Sanlam Fundamentals Summary

How do Sanlam's earnings and revenue compare to its market cap?
SLM fundamental statistics
Market CapR124.63b
Earnings (TTM)R10.11b
Revenue (TTM)R178.23b

12.3x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLM income statement (TTM)
RevenueR178.23b
Cost of RevenueR133.17b
Gross ProfitR45.06b
ExpensesR34.95b
EarningsR10.11b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)4.89
Gross Margin25.28%
Net Profit Margin5.67%
Debt/Equity Ratio18.4%

How did SLM perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

61%

Payout Ratio

Valuation

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

12.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SLM (ZAR60.35) is trading above our estimate of fair value (ZAR20.49)

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


Price To Earnings Ratio

PE vs Industry: SLM is good value based on its PE Ratio (12.3x) compared to the ZA Insurance industry average (20.8x).

PE vs Market: SLM is poor value based on its PE Ratio (12.3x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: SLM is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

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


Future Growth

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

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLM's forecast earnings growth (10.8% per year) is above the savings rate (8.8%).

Earnings vs Market: SLM's earnings (10.8% per year) are forecast to grow slower than the ZA market (12.5% per year).

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

Revenue vs Market: SLM's revenue is expected to decline over the next 3 years (-17.5% per year).

High Growth Revenue: SLM's revenue is forecast to decline over the next 3 years (-17.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLM's Return on Equity is forecast to be low in 3 years time (14.8%).


Past Performance

How has Sanlam performed over the past 5 years?

-15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLM has a high level of non-cash earnings.

Growing Profit Margin: SLM's current net profit margins (5.7%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: SLM's earnings have declined by 15.5% per year over the past 5 years.

Accelerating Growth: SLM's earnings growth over the past year (5453.8%) exceeds its 5-year average (-15.5% per year).

Earnings vs Industry: SLM earnings growth over the past year (5453.8%) exceeded the Insurance industry 117.2%.


Return on Equity

High ROE: SLM's Return on Equity (15.9%) is considered low.


Financial Health

How is Sanlam's financial position?


Financial Position Analysis

Short Term Liabilities: SLM's short term assets (ZAR188.5B) exceed its short term liabilities (ZAR122.3B).

Long Term Liabilities: SLM's short term assets (ZAR188.5B) do not cover its long term liabilities (ZAR773.2B).


Debt to Equity History and Analysis

Debt Level: SLM's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: SLM's debt to equity ratio has increased from 11.1% to 18.4% over the past 5 years.

Debt Coverage: SLM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SLM's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet


Dividend

What is Sanlam current dividend yield, its reliability and sustainability?

4.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLM's dividend (4.97%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: SLM's dividend (4.97%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

Stable Dividend: SLM's dividends per share have been stable in the past 10 years.

Growing Dividend: SLM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.2%), SLM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLM's dividends in 3 years are forecast to be covered by earnings (64.9% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Paul Hanratty (60 yo)

1.25yrs

Tenure

R7,103,000

Compensation

Mr. Paul Brendan Hanratty, B.Bus. Sc. (Hons), F.I.A, serves as a Non-Executive Director at Santam Ltd. Since August 11, 2020.Mr. Hanratty has been Group Chief Executive Officer of Sanlam Limited since Jul...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD485.76K) is below average for companies of similar size in the ZA market ($USD1.93M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SLM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: SLM's board of directors are considered experienced (5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Sanlam Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sanlam Limited
  • Ticker: SLM
  • Exchange: JSE
  • Founded: 1918
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: R124.627b
  • Shares outstanding: 2.07b
  • Website: https://www.sanlam.co.za

Number of Employees


Location

  • Sanlam Limited
  • 2 Strand Road
  • Bellville
  • Western Cape
  • 7530
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:38
End of Day Share Price2021/10/15 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.