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SLM

Sanlam JSE:SLM Stock Report

Last Price

R51.59

Market Cap

R105.7b

7D

-1.7%

1Y

-19.9%

Updated

01 Oct, 2022

Data

Company Financials +
SLM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends5/6

SLM Stock Overview

Sanlam Limited provides various financial solutions to individual, business, and institutional clients in South Africa, rest of Africa, and internationally.

Sanlam Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sanlam
Historical stock prices
Current Share PriceR51.59
52 Week HighR73.20
52 Week LowR50.00
Beta1.01
1 Month Change-3.66%
3 Month Change-1.43%
1 Year Change-19.93%
3 Year Change-31.89%
5 Year Change-24.36%
Change since IPO761.27%

Recent News & Updates

Shareholder Returns

SLMZA InsuranceZA Market
7D-1.7%-1.9%0.7%
1Y-19.9%-23.5%-5.6%

Return vs Industry: SLM exceeded the ZA Insurance industry which returned -23.5% over the past year.

Return vs Market: SLM underperformed the ZA Market which returned -5.6% over the past year.

Price Volatility

Is SLM's price volatile compared to industry and market?
SLM volatility
SLM Average Weekly Movement3.9%
Insurance Industry Average Movement4.0%
Market Average Movement5.5%
10% most volatile stocks in ZA Market10.2%
10% least volatile stocks in ZA Market3.1%

Stable Share Price: SLM is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SLM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191821,180Paul Hanrattyhttps://www.sanlam.co.za

Sanlam Limited provides various financial solutions to individual, business, and institutional clients in South Africa, rest of Africa, and internationally. The company operates through Sanlam Life and Savings, Sanlam Emerging Markets, Sanlam Investment Group, and Santam segments. It offers life, disability, severe illness, income protection, funeral, credit life, health, short-term, medical, and group risk benefits, business debt, commercial insurance products; reinsurance products; financial planning and retirement, personal motor and property, solutions; investment products; wealth, and professionals and graduates insurance services; and personal and home loans, and credit cards.

Sanlam Fundamentals Summary

How do Sanlam's earnings and revenue compare to its market cap?
SLM fundamental statistics
Market CapR105.73b
Earnings (TTM)R11.42b
Revenue (TTM)R135.93b

9.3x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SLM income statement (TTM)
RevenueR135.93b
Cost of RevenueR82.32b
Gross ProfitR53.61b
Other ExpensesR42.20b
EarningsR11.42b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Mar 09, 2023

Earnings per share (EPS)5.57
Gross Margin39.44%
Net Profit Margin8.40%
Debt/Equity Ratio18.4%

How did SLM perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

60%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SLM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SLM?

Other financial metrics that can be useful for relative valuation.

SLM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA3.4x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does SLM's PE Ratio compare to its peers?

SLM PE Ratio vs Peers
The above table shows the PE ratio for SLM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average15.4x
DSY Discovery
12.7x21.3%R68.9b
OMU Old Mutual
5.2x17.6%R46.0b
RMI Rand Merchant Investment Holdings
37.1x35.2%R44.9b
MTM Momentum Metropolitan Holdings
6.4x0.1%R23.9b
SLM Sanlam
9.3x10.7%R105.7b

Price-To-Earnings vs Peers: SLM is good value based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (15.4x).


Price to Earnings Ratio vs Industry

How does SLM's PE Ratio compare vs other companies in the African Insurance Industry?

Price-To-Earnings vs Industry: SLM is expensive based on its Price-To-Earnings Ratio (9.3x) compared to the African Insurance industry average (7.7x)


Price to Earnings Ratio vs Fair Ratio

What is SLM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SLM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: SLM is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).


Share Price vs Fair Value

What is the Fair Price of SLM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SLM (ZAR51.59) is trading above our estimate of fair value (ZAR14.25)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLM's forecast earnings growth (10.7% per year) is above the savings rate (9%).

Earnings vs Market: SLM's earnings (10.7% per year) are forecast to grow faster than the ZA market (-1.7% 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 (-6% per year).

High Growth Revenue: SLM's revenue is forecast to decline over the next 3 years (-6% 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 (16.4%).


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Past Performance

How has Sanlam performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-10.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SLM has high quality earnings.

Growing Profit Margin: SLM's current net profit margins (8.4%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: SLM's earnings have declined by 10.2% per year over the past 5 years.

Accelerating Growth: SLM's earnings growth over the past year (50.1%) exceeds its 5-year average (-10.2% per year).

Earnings vs Industry: SLM earnings growth over the past year (50.1%) underperformed the Insurance industry 71.7%.


Return on Equity

High ROE: SLM's Return on Equity (16.9%) is considered low.


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Financial Health

How is Sanlam's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SLM's short term assets (ZAR238.8B) exceed its short term liabilities (ZAR143.4B).

Long Term Liabilities: SLM's short term assets (ZAR238.8B) do not cover its long term liabilities (ZAR752.5B).


Debt to Equity History and Analysis

Debt Level: SLM has more cash than its total debt.

Reducing Debt: SLM's debt to equity ratio has increased from 12.5% to 18.4% over the past 5 years.

Debt Coverage: SLM's debt is well covered by operating cash flow (113.5%).

Interest Coverage: SLM's interest payments on its debt are well covered by EBIT (23.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.47%

Current Dividend Yield

Dividend Yield vs Market

Sanlam Dividend Yield vs Market
How does Sanlam dividend yield compare to the market?
SegmentDividend Yield
Company (Sanlam)6.5%
Market Bottom 25% (ZA)3.5%
Market Top 25% (ZA)9.0%
Industry Average (Insurance)5.9%
Analyst forecast in 3 Years (Sanlam)7.8%

Notable Dividend: SLM's dividend (6.47%) is higher than the bottom 25% of dividend payers in the ZA market (3.49%).

High Dividend: SLM's dividend (6.47%) is low compared to the top 25% of dividend payers in the ZA market (8.97%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (60.1%), SLM's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (43.9%), SLM's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure


CEO

Paul Hanratty (61 yo)

5.42yrs

Tenure

R6,130,000

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 and Executive Director of S...


CEO Compensation Analysis

Paul Hanratty's Compensation vs Sanlam Earnings
How has Paul Hanratty's remuneration changed compared to Sanlam's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

R11b

Mar 31 2022n/an/a

R10b

Dec 31 2021R6mR6m

R9b

Sep 30 2021n/an/a

R8b

Jun 30 2021n/an/a

R8b

Mar 31 2021n/an/a

R4b

Dec 31 2020R7mR3m

R718m

Sep 30 2020n/an/a

R450m

Jun 30 2020n/an/a

R182m

Mar 31 2020n/an/a

R4b

Dec 31 2019R3mn/a

R7b

Compensation vs Market: Paul's total compensation ($USD340.24K) is below average for companies of similar size in the ZA market ($USD2.30M).

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


Leadership Team

Experienced Management: SLM's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: SLM's board of directors are considered experienced (5.7 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.


Recent Insider Transactions

JSE:SLM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Jun 22BuyR6,459,631Heinie WerthIndividual117,812R54.83
28 Jun 22BuyR3,024,971Jeanett ModiseIndividual55,170R54.83
28 Jun 22BuyR2,053,548Abigail MukhubaIndividual37,453R54.83
17 Jun 22BuyR205,994,995Sanlam Limited Share Incentive TrustCompany3,737,500R56.19
15 Jun 22SellR1,439,085Heinie WerthIndividual25,643R56.12
15 Jun 22BuyR3,169,770Heinie WerthIndividual56,482R56.12
13 Jun 22BuyR237,796,099Sanlam Limited Share Incentive TrustCompany4,013,190R63.69
04 May 22BuyR29,205,003Sanlam Limited Share Incentive TrustCompany450,000R64.90

Ownership Breakdown

What is the ownership structure of SLM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders7,896,7210.4%
Employee Share Scheme35,152,3711.7%
Private Companies292,471,80614.3%
Institutions838,234,71440.9%
General Public875,744,38842.7%

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


Top Shareholders

Top 25 shareholders own 52.02% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.48%
Public Investment Corporation Limited
337,787,478ZAR17.4b0%2.23%
14.27%
Ubuntu-Botho Investments Pty Ltd.
292,471,806ZAR15.1b0%no data
3.77%
BlackRock, Inc.
77,318,924ZAR4.0b0.36%0.01%
3.53%
The Vanguard Group, Inc.
72,313,710ZAR3.7b1.39%no data
1.72%
Sanlam Limited Share Incentive Trust
35,152,371ZAR1.8b18.75%no data
1.62%
Comgest S.A.
33,169,662ZAR1.7b-1.67%0.47%
1.59%
Norges Bank Investment Management
32,537,097ZAR1.7b0%0.01%
1.08%
Handelsbanken Asset Management
22,102,421ZAR1.1b-0.5%0.14%
1%
abrdn plc
20,548,837ZAR1.1b0.05%0.06%
0.88%
Seafarer Capital Partners, LLC
18,000,000ZAR928.6m-8.86%3.1%
0.81%
Coronation Fund Managers Limited
16,512,110ZAR851.9m0%0.38%
0.74%
Ninety One UK Limited
15,137,048ZAR780.9m0%0.07%
0.56%
Dimensional Fund Advisors LP
11,461,959ZAR591.3m1.25%0.01%
0.55%
Sanlam Investment Management (Pty) Ltd.
11,372,298ZAR586.7m0%0.5%
0.5%
J.P. Morgan Asset Management, Inc.
10,170,799ZAR524.7m9.7%0.01%
0.47%
Lazard Asset Management LLC
9,567,472ZAR493.6m-0.21%0.03%
0.39%
Janus Henderson Group plc
8,054,717ZAR415.5m0%0.01%
0.33%
Geode Capital Management, LLC
6,677,921ZAR344.5m0.5%no data
0.32%
Caisse de dépôt et placement du Québec
6,559,483ZAR338.4m0%0.03%
0.31%
STANLIB Collective Investments Limited
6,389,041ZAR329.6m0%2.67%
0.24%
State Street Global Advisors, Inc.
4,979,240ZAR256.9m6.9%no data
0.24%
Paul Hanratty
4,901,044ZAR252.8m-1.98%no data
0.24%
Charles Schwab Investment Management, Inc.
4,817,915ZAR248.6m0.64%no data
0.21%
UBS Asset Management
4,309,954ZAR222.4m5.17%no data
0.18%
Nordea Investment Management AB
3,734,443ZAR192.7m0.48%0.01%

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
  • Implied Market Cap: R105.734b
  • Shares outstanding: 2.05b
  • Website: https://www.sanlam.co.za

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLMA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1998
SLMJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARNov 1998
SLANMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARNov 1998
LA6ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1998
SLLD.YOTCPK (Pink Sheets LLC)ADR EACH REPR 2 SHSUSUSDMar 2009
LA6SDB (Deutsche Boerse AG)ADR EACH REPR 2 SHSDEEURMar 2009

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.