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SNT

SantamJSE:SNT Stock Report

Market Cap

R28.3b

7D

2.0%

1Y

7.9%

Updated

16 Oct, 2021

Data

Company Financials +
SNT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance3/6
Financial Health4/6
Dividends4/6

SNT Overview

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

Santam Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Santam
Historical stock prices
Current Share PriceR250.39
52 Week HighR220.00
52 Week LowR299.94
Beta0.31
1 Month Change4.56%
3 Month Change7.00%
1 Year Change7.94%
3 Year Change-12.59%
5 Year Change0.96%
Change since IPO5,791.53%

Recent News & Updates

Shareholder Returns

SNTZA InsuranceZA Market
7D2.0%-1.3%1.6%
1Y7.9%26.8%21.3%

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

Return vs Market: SNT underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is SNT's price volatile compared to industry and market?
SNT volatility
SNT Beta0.31
Industry Beta0.88
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1918n/aLize Lambrechtshttps://www.santam.co.za

Santam Ltd provides various general insurance products in South Africa, rest of Africa, Southeast Asia, India, the Middle East, and internationally. The company offers personal insurance products, including car, building, home contents, drone, executive, and watercraft insurance; and SOS services, such as road side and medical emergency, household emergency, and legal advice services. It also provides commercial insurance products comprising business, dental, guesthouse, medical, tourism, leisure, and small business insurance products.

Santam Fundamentals Summary

How do Santam's earnings and revenue compare to its market cap?
SNT fundamental statistics
Market CapR28.27b
Earnings (TTM)R1.47b
Revenue (TTM)R29.84b

19.3x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SNT income statement (TTM)
RevenueR29.84b
Cost of RevenueR22.66b
Gross ProfitR7.18b
ExpensesR5.71b
EarningsR1.47b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)13.00
Gross Margin24.05%
Net Profit Margin4.92%
Debt/Equity Ratio32.0%

How did SNT perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

32%

Payout Ratio

Valuation

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

19.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SNT (ZAR250.39) is trading above our estimate of fair value (ZAR169.14)

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


Price To Earnings Ratio

PE vs Industry: SNT is good value based on its PE Ratio (19.3x) compared to the ZA Insurance industry average (20.5x).

PE vs Market: SNT is poor value based on its PE Ratio (19.3x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: SNT is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SNT is overvalued based on its PB Ratio (2.8x) compared to the ZA Insurance industry average (2.1x).


Future Growth

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

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNT's forecast earnings growth (20.3% per year) is above the savings rate (8.8%).

Earnings vs Market: SNT's earnings (20.3% per year) are forecast to grow faster than the ZA market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

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 (24.7%)


Past Performance

How has Santam performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNT has high quality earnings.

Growing Profit Margin: SNT's current net profit margins (4.9%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: SNT's earnings have declined by 4.7% per year over the past 5 years.

Accelerating Growth: SNT's earnings growth over the past year (29.8%) exceeds its 5-year average (-4.7% per year).

Earnings vs Industry: SNT earnings growth over the past year (29.8%) underperformed the Insurance industry 117.2%.


Return on Equity

High ROE: SNT's Return on Equity (14.8%) is considered low.


Financial Health

How is Santam's financial position?


Financial Position Analysis

Short Term Liabilities: SNT's short term assets (ZAR51.2B) exceed its short term liabilities (ZAR37.1B).

Long Term Liabilities: SNT's short term assets (ZAR51.2B) exceed its long term liabilities (ZAR10.1B).


Debt to Equity History and Analysis

Debt Level: SNT's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: SNT's debt to equity ratio has increased from 24.8% to 32% over the past 5 years.

Debt Coverage: SNT's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: SNT's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SNT's dividend (3.45%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: SNT's dividend (3.45%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


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 reasonably low payout ratio (32.5%), SNT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SNT's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Lize Lambrechts (57 yo)

6.75yrs

Tenure

R10,816,440

Compensation

Ms. Lize Lambrechts, BSc (Hons), FIA (1992), EDP (Manchester), serves as an Executive Director of Sanlam Life Insurance Limited. Ms. Lambrechts had been the Chief Executive Officer and Executive Director o...


CEO Compensation Analysis

Compensation vs Market: Lize's total compensation ($USD739.71K) is about average for companies of similar size in the ZA market ($USD922.82K).

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


Leadership Team

Experienced Management: SNT's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: SNT's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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 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: R28.269b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:04
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.