South African (JSE) Financials Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies41
- 7D-1.2%
- 3M-10.3%
- 1Y-1.5%
- YTD-0.3%
Over the last 7 days, the Financials industry has dropped 1.2%, driven by Standard Bank Group declining 2.4%. Over the last year, the industry has been flat overall. 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 |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R1.7t | R1.2t | R179.6b | 9.9x | 9.5x | 1.5x |
| Thu, 28 Sep 2023 | R1.8t | R1.1t | R180.0b | 10x | 10x | 1.6x |
| Sat, 26 Aug 2023 | R1.9t | R1.0t | R182.8b | 9.9x | 10.1x | 1.8x |
| Mon, 24 Jul 2023 | R1.8t | R1.0t | R175.7b | 10.1x | 10.3x | 1.8x |
| Wed, 21 Jun 2023 | R1.7t | R1.0t | R176.4b | 10.5x | 9.9x | 1.7x |
| Fri, 19 May 2023 | R1.6t | R1.0t | R180.0b | 9.1x | 8.8x | 1.6x |
| Sun, 16 Apr 2023 | R1.7t | R1.0t | R177.9b | 8.8x | 9.8x | 1.7x |
| Tue, 14 Mar 2023 | R1.7t | R934.4b | R183.2b | 8.4x | 9.5x | 1.9x |
| Thu, 09 Feb 2023 | R1.8t | R1.1t | R172.9b | 9.5x | 10.5x | 1.7x |
| Sat, 07 Jan 2023 | R1.7t | R1.1t | R172.5b | 9.2x | 10.1x | 1.7x |
| Mon, 05 Dec 2022 | R1.7t | R1.1t | R173.6b | 9.3x | 9.9x | 1.6x |
| Wed, 02 Nov 2022 | R1.7t | R1.0t | R175.2b | 8.5x | 9.9x | 1.7x |
| Fri, 30 Sep 2022 | R1.6t | R1.0t | R174.1b | 8.1x | 9x | 1.5x |
| Sun, 28 Aug 2022 | R1.8t | R1.3t | R158.1b | 9.3x | 11.3x | 1.4x |
| Tue, 26 Jul 2022 | R1.7t | R1.3t | R151.6b | 9.5x | 11.2x | 1.3x |
| Thu, 23 Jun 2022 | R1.7t | R1.3t | R149.4b | 10.2x | 11.6x | 1.4x |
| Sat, 21 May 2022 | R1.8t | R1.3t | R151.2b | 9.9x | 11.8x | 1.4x |
| Mon, 18 Apr 2022 | R1.9t | R1.3t | R147.9b | 10.7x | 12.9x | 1.5x |
| Wed, 16 Mar 2022 | R2.0t | R1.4t | R153.7b | 10.7x | 13x | 1.5x |
| Fri, 11 Feb 2022 | R2.0t | R1.3t | R134.5b | 11.6x | 14.6x | 1.5x |
| Sun, 09 Jan 2022 | R1.9t | R1.3t | R133.8b | 12x | 14.1x | 1.5x |
| Tue, 07 Dec 2021 | R1.7t | R1.3t | R133.7b | 11.3x | 13x | 1.4x |
| Thu, 04 Nov 2021 | R1.8t | R1.3t | R126.9b | 12.3x | 13.8x | 1.4x |
| Sat, 02 Oct 2021 | R1.8t | R1.3t | R125.9b | 12.4x | 14.2x | 1.4x |
| Mon, 30 Aug 2021 | R1.7t | R1.2t | R100.7b | 12.1x | 17.3x | 1.4x |
| Tue, 06 Jul 2021 | R1.6t | R1.2t | R100.7b | 12.4x | 15.9x | 1.3x |
| Fri, 09 Apr 2021 | R1.5t | R1.1t | R77.8b | 12.5x | 19.2x | 1.3x |
| Thu, 31 Dec 2020 | R1.5t | R978.5b | R50.6b | 12.3x | 28.9x | 1.5x |
Price to Earnings Ratio
21.4x
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 9.5x which is lower than its 3-year average PE of 14.5x.
- 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 49% per year over the last three years.
- Revenues for these companies have grown 6.6% 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 | -1.18% | |
| Financials | -1.22% | |
| Consumer Finance | 5.71% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Diversified Financial | -0.28% | |
| Capital Markets | -1.07% | |
| Insurance | -1.55% | |
| Banks | -1.62% | |
Industry PE
- Investors are most optimistic about the Insurance industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (16.2%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Insurance industry, expecting annual earnings growth of 16% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Capital Markets industry is expected to see its earnings decline by 9.8% 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 | |
|---|---|---|---|---|---|
| FSR FirstRand | R61.19 | 0.6% +R2.1b | -4.9% | PE9.4x | |
| MTM Momentum Metropolitan Holdings | R20.67 | 1.8% +R501.3m | 20.3% | PE6.5x | |
| OUT OUTsurance Group | R40.15 | 0.6% +R367.8m | 40.8% | PE21.1x | |
| ACT AfroCentric Investment | R3.59 | 8.1% +R219.8m | -30.0% | PE16x | |
| YYLBEE YeboYethu (RF) | R30.01 | 11.1% +R159.3m | -23.1% | PS1.8x |