JSE:SNT

Stock Analysis Report

Executive Summary

Santam Ltd provides various general insurance products in South Africa, rest of Africa, Southeast Asia, India, the Middle East, and internationally.


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Santam's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SNT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

SNT

0.2%

ZA Insurance

4.9%

ZA Market


1 Year Return

-20.3%

SNT

-36.5%

ZA Insurance

-32.1%

ZA Market

Return vs Industry: SNT exceeded the ZA Insurance industry which returned -30.8% over the past year.

Return vs Market: SNT exceeded the ZA Market which returned -27.8% over the past year.


Shareholder returns

SNTIndustryMarket
7 Day-2.0%0.2%4.9%
30 Day-7.5%-24.4%-23.0%
90 Day-16.6%-36.6%-29.1%
1 Year-16.7%-20.3%-34.1%-36.5%-22.9%-32.1%
3 Year5.4%-5.7%-26.9%-34.0%-11.7%-28.0%
5 Year31.4%5.5%-32.6%-43.3%-8.7%-31.0%

Price Volatility Vs. Market

How volatile is Santam's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

12.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SNT (ZAR240.06) is trading above our estimate of fair value (ZAR188.51)

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


Price To Earnings Ratio

PE vs Industry: SNT is poor value based on its PE Ratio (12.1x) compared to the Insurance industry average (8.7x).

PE vs Market: SNT is poor value based on its PE Ratio (12.1x) compared to the ZA market (8.1x).


Price to Earnings Growth Ratio

PEG Ratio: SNT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SNT is overvalued based on its PB Ratio (2.8x) compared to the ZA Insurance industry average (1.2x).


Next Steps

Future Growth

How is Santam forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNT's forecast earnings growth (8.7% per year) is above the savings rate (8.6%).

Earnings vs Market: SNT's earnings (8.7% per year) are forecast to grow slower than the ZA market (16.2% per year).

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

Revenue vs Market: Insufficient data to determine if SNT's revenue is forecast to grow faster than the ZA market.

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SNT's Return on Equity is forecast to be high in 3 years time (27.1%)


Next Steps

Past Performance

How has Santam performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNT has high quality earnings.

Growing Profit Margin: SNT's current net profit margins (7.8%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: SNT's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: SNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SNT had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Insurance industry average (10.7%).


Return on Equity

High ROE: SNT's Return on Equity (23.1%) is considered high.


Next Steps

Financial Health

How is Santam's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SNT has a low level of unsold assets or inventory.

Debt Coverage by Assets: SNT's debt is covered by short term assets (assets are 8.1x debt).


Financial Institutions Analysis

Asset Level: SNT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if SNT has a sufficient allowance for bad loans.

Low Risk Liabilities: SNT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if SNT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SNT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if SNT has an appropriate level of bad loans.


Next Steps

Dividend

What is Santam's current dividend yield, its reliability and sustainability?

4.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNT's dividend (4.62%) is higher than the bottom 25% of dividend payers in the ZA market (4.42%).

High Dividend: SNT's dividend (4.62%) is low compared to the top 25% of dividend payers in the ZA market (13.53%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.8%), SNT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNT's dividends in 3 years are forecast to be covered by earnings (53.7% payout ratio).


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Lizé Lambrechts (55yo)

5.17s

Tenure

R16,640,000

Compensation

Ms. Lizé Lambrechts, BSc (Hons), FIA (1992), EDP (Manchester), has been the Chief Executive Officer and Executive Director of Santam Ltd since January 1, 2015. Ms. Lambrechts serves as an Executive Directo ...


CEO Compensation Analysis

Compensation vs Market: Lizé's total compensation ($USD945.25K) is about average for companies of similar size in the ZA market ($USD960.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Lizé Lambrechts
CEO & Director5.17yrsR16.64m0.033% ZAR8.9m
Hendrik Nel
CFO & Executive Director7.5yrsR7.73m0.018% ZAR4.9m
Kevin Wright
Executive Head of Business Information & Technology Services6.17yrsno datano data
Mokaedi Dilotsotlhe
Chief marketing officerno datano datano data
Enid Lizamore
Executive Head of Human Resources1.75yrsno datano data
Edward Gibbens
Executive Head of Commercial & Personal28.17yrsno datano data
Temba Mvusi
Executive Head of Market Development12.17yrsno datano data
John Melville
Chief Underwriting Officerno datano datano data
Quinten Matthew
Executive Head of Specialist Business10.17yrsno datano data
Ebrahim Asmal
Executive Head of Group Sourcing & Transformation8.17yrsno datano data

7.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SNT's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Lizé Lambrechts
CEO & Director5.17yrsR16.64m0.033% ZAR8.9m
Hendrik Nel
CFO & Executive Director7.5yrsR7.73m0.018% ZAR4.9m
Ian Kirk
Non-Executive Director12.75yrsR606.55k0.021% ZAR5.7m
Vusumuzi Khanyile
Independent Non-executive Chairman1.67yrsR627.50k0.00018% ZAR48.8k
Bruce Campbell
Independent Non-Executive Director9.42yrsR767.85k0.0074% ZAR2.0m
Preston Speckmann
Independent Non-Executive Director3.08yrsR1.27m0.00089% ZAR241.2k
Machiel Reyneke
Independent Non-Executive Director16.58yrsR883.95k0.00019% ZAR51.5k
Marion Lesego Marole
Independent Non-Executive Director8.25yrsR745.60kno data
Monwabisi D. Fandeso
Lead Independent Directorno dataR124.38kno data
Junior Ngulube
Non-Executive Director1.92yrsR275.85k0.0023% ZAR612.5k

7.5yrs

Average Tenure

61yo

Average Age

Experienced Board: SNT's board of directors are considered experienced (7.5 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

Santam Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Santam Ltd
  • Ticker: SNT
  • Exchange: JSE
  • Founded: 1918
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: R27.103b
  • Shares outstanding: 112.90m
  • Website: https://www.santam.co.za

Number of Employees


Location

  • Santam Ltd
  • 1 Sportica Crescent
  • Tyger Valley
  • Bellville
  • Western Cape
  • 7530
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNTJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
SNMNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1992

Biography

Santam Ltd provides various general insurance products in South Africa, rest of Africa, Southeast Asia, India, the Middle East, and internationally. It offers personal insurance products, including car, building, home contents, and watercraft insurance; and SOS services, such as road side and medical emergency, household emergency, and legal advice services. The company also provides commercial insurance products comprising business, dental, guesthouse, medical, tourism, leisure and entertainment, and small business insurance products; and credit insurance and alternative risk transfer insurance products. In addition, it offers specialist insurance products, such as aviation, bonds and guarantees, cell captive, corporate property, engineering, heavy haulage, hospitality industry, liability, marine, private client, seamless product, structured, travel, taxi, and specialist real estate insurance products; and agriculture insurance products, such as asset, crop, and fire insurance products, as well as game insurance products. In addition, Santam Ltd engages in the investment and reinsurance activities. The company was founded in 1918 and is headquartered in Bellville, South Africa. Santam Ltd is a subsidiary of Sanlam Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 17:42
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.