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Apr 10
South African (JSE) Financials Sector Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies38
- 7D0.9%
- 3M-2.3%
- 1Y9.1%
- YTD-5.4%
Over the last 7 days, the Financials industry has risen 1.1%, driven by gains from Standard Bank Group of 3.3%. This means that the industry has gained 8.1% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the South African Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 08 May 2024 | R1.8t | R1.2t | R182.3b | 9.6x | 10x | 1.5x |
| Fri, 05 Apr 2024 | R1.8t | R1.2t | R181.4b | 9.2x | 9.8x | 1.5x |
| Sun, 03 Mar 2024 | R1.9t | R1.2t | R180.2b | 9.6x | 10.5x | 1.6x |
| Tue, 30 Jan 2024 | R1.9t | R1.2t | R178.8b | 9.9x | 10.5x | 1.6x |
| Thu, 28 Dec 2023 | R1.9t | R1.2t | R178.5b | 9.8x | 10.9x | 1.7x |
| Sat, 25 Nov 2023 | R1.9t | R1.2t | R177.2b | 10.5x | 10.7x | 1.6x |
| Mon, 23 Oct 2023 | R1.7t | R1.2t | R179.8b | 9.9x | 9.6x | 1.5x |
| Wed, 20 Sep 2023 | R1.8t | R1.2t | R184.9b | 10x | 9.7x | 1.5x |
| Fri, 18 Aug 2023 | R1.8t | R997.0b | R178.0b | 10.1x | 10.3x | 1.8x |
| Sun, 16 Jul 2023 | R1.8t | R1.0t | R176.2b | 10.2x | 10.2x | 1.8x |
| Tue, 13 Jun 2023 | R1.7t | R1.0t | R177.7b | 10.3x | 9.5x | 1.7x |
| Thu, 11 May 2023 | R1.6t | R1.0t | R177.5b | 9.4x | 9.2x | 1.6x |
| Sat, 08 Apr 2023 | R1.7t | R1.0t | R180.7b | 9.3x | 9.5x | 1.7x |
| Mon, 06 Mar 2023 | R1.8t | R1.1t | R174.7b | 9.7x | 10.5x | 1.7x |
| Wed, 01 Feb 2023 | R1.8t | R1.1t | R172.9b | 9.6x | 10.4x | 1.7x |
| Fri, 30 Dec 2022 | R1.7t | R1.0t | R172.2b | 8.7x | 10x | 1.6x |
| Sun, 27 Nov 2022 | R1.8t | R1.1t | R178.1b | 8.9x | 10.3x | 1.7x |
| Tue, 25 Oct 2022 | R1.7t | R1.0t | R175.0b | 8.5x | 9.6x | 1.6x |
| Thu, 22 Sep 2022 | R1.6t | R1.0t | R169.2b | 9.2x | 9.7x | 1.6x |
| Sat, 20 Aug 2022 | R1.8t | R1.3t | R154.0b | 9.5x | 11.5x | 1.4x |
| Mon, 18 Jul 2022 | R1.7t | R1.3t | R151.6b | 9x | 10.9x | 1.3x |
| Wed, 15 Jun 2022 | R1.7t | R1.3t | R149.7b | 10.2x | 11.5x | 1.4x |
| Fri, 13 May 2022 | R1.8t | R1.3t | R148.2b | 10.7x | 11.9x | 1.4x |
| Sun, 10 Apr 2022 | R2.0t | R1.3t | R149.2b | 11.4x | 13.5x | 1.5x |
| Tue, 08 Mar 2022 | R1.9t | R1.3t | R141.8b | 10.7x | 13.3x | 1.5x |
| Thu, 03 Feb 2022 | R1.9t | R1.3t | R134.7b | 12.1x | 14.2x | 1.5x |
| Sat, 01 Jan 2022 | R1.8t | R1.3t | R133.9b | 12.1x | 13.6x | 1.4x |
| Mon, 29 Nov 2021 | R1.6t | R1.3t | R133.9b | 11x | 12.1x | 1.3x |
| Wed, 27 Oct 2021 | R1.7t | R1.3t | R126.5b | 12.2x | 13.7x | 1.4x |
| Fri, 24 Sep 2021 | R1.8t | R1.3t | R115.0b | 11.7x | 15.2x | 1.4x |
| Sun, 22 Aug 2021 | R1.7t | R1.2t | R100.7b | 11.6x | 16.8x | 1.4x |
| Fri, 09 Jul 2021 | R1.6t | R1.2t | R100.7b | 12.4x | 15.9x | 1.3x |
Price to Earnings Ratio
21.1x
Current Industry PE
- Investors are pessimistic on the South African Financials industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 9.9x which is lower than its 3-year average PE of 11.8x.
- The industry is trading close to its 3-year average PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 33% per year over the last three years.
- Revenues for these companies have grown 2.6% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Financials sector?
| ZA Market | 1.41% | |
| Financials | 0.88% | |
| Capital Markets | 1.94% | |
| Banks | 1.08% | |
| Diversified Financial | 0.65% | |
| Insurance | 0.26% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -6.67% | |
Industry PE
- Investors are most optimistic about the Diversified Financial industry even though it's trading below its 3-year average PE ratio of 13.2x.
- Analysts are expecting annual earnings growth of 15.8%, which is higher than its past year's earnings decline of 5.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Diversified Financial industry, expecting annual earnings growth of 16% over the next 5 years.
- This is better than its past earnings decline of 5.5% per year.
- In contrast, the Capital Markets industry is expected to see its earnings grow by 3.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SBK Standard Bank Group | R182.91 | 3.3% +R9.6b | 10.8% | PB1.2x | |
| FSR FirstRand | R65.74 | 0.9% +R3.3b | 3.3% | PE9.7x | |
| INL Investec Group | R122.74 | 2.3% +R2.5b | 18.8% | PE7.5x | |
| SLM Sanlam | R69.18 | 1.7% +R2.3b | 27.0% | PE12.3x | |
| ABG Absa Group | R147.55 | 1.4% +R1.7b | -10.7% | PB0.8x |
