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Old Mutual

BATS-CHIXE:OMUL
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
OMUL
BATS-CHIXE
ZAR92B
Market Cap
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Last updated 2019/12/13 19:56
Company description

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia. The last earnings update was 102 days ago. More info.

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OMUL Share Price and Events
7 Day Returns
1.4%
BATS-CHIXE:OMUL
3.2%
GB Insurance
1.7%
GB Market
1 Year Returns
-17.5%
BATS-CHIXE:OMUL
3.8%
GB Insurance
8.1%
GB Market
OMUL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Old Mutual (OMUL) 1.4% -5.7% -10.6% -17.5% - -
GB Insurance 3.2% 0.9% -2.9% 3.8% -6.2% 0.5%
GB Market 1.7% 0.1% 0.6% 8.1% 4% 8%
1 Year Return vs Industry and Market
  • OMUL underperformed the Insurance industry which returned 3.8% over the past year.
  • OMUL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 8.1% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Old Mutual undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Old Mutual to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Old Mutual.

BATS-CHIXE:OMUL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ZAR18.17 * 2.2% 		ZAR0.39
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. ZAR18.17
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BATS-CHIXE:OMUL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 8.2%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.67
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.665 (1 + (1- 28%) (27.9%)) 		0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.874 * 8.23%) 		7.72%

Discounted Cash Flow Calculation for BATS-CHIXE:OMUL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Old Mutual is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

BATS-CHIXE:OMUL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (2.2% – 7.72%) * ZAR18.17) 		ZAR-1.01
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR-1.01 / (7.72% - 0.53%) 		ZAR-14.05
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR18.17 + ZAR-14.05 		ZAR4.12
BATS-CHIXE:OMUL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:OMUL represents 0.05302x of JSE:OMU
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		0.05302x
Value per Share
(Listing Adjusted, GBP)		 = Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 4.12 x 0.05302 		£0.22
Value per share (GBP) From above. £0.22
Current discount Discount to share price of £1.00
= -1 x (£1.00 - £0.22) / £0.22 		-356.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Old Mutual is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Old Mutual's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Old Mutual's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BATS-CHIXE:OMUL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR1.15
JSE:OMU Share Price ** JSE (2019-12-12) in ZAR ZAR18.8
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 17 Publicly-Listed Insurance Companies 13.44x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 751 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Old Mutual.

BATS-CHIXE:OMUL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:OMU Share Price ÷ EPS (both in ZAR)

= 18.8 ÷ 1.15

 16.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is overvalued based on earnings compared to the GB Insurance industry average.
  • Old Mutual is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Old Mutual's expected growth come at a high price?
Raw Data
BATS-CHIXE:OMUL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts		 20.6%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 17 Publicly-Listed Insurance Companies 1.37x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 560 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:OMUL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.41x ÷ 20.6%

 0.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Old Mutual's assets?
Raw Data
BATS-CHIXE:OMUL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR15.70
JSE:OMU Share Price * JSE (2019-12-12) in ZAR ZAR18.8
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 20 Publicly-Listed Insurance Companies 1.76x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.52x
BATS-CHIXE:OMUL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:OMU Share Price ÷ Book Value per Share (both in ZAR)

= 18.8 ÷ 15.70

 1.2x

* Primary Listing of Old Mutual.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Old Mutual is good value based on assets compared to the GB Insurance industry average.
Show me more potentially undervalued companies in the Insurance industry
X
Value checks
We assess Old Mutual's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
    5. Old Mutual has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Old Mutual expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
20.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Old Mutual expected to grow at an attractive rate?
  • Old Mutual's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Old Mutual's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Unable to compare Old Mutual's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:OMUL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:OMUL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 20.6%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 6.3%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average -0.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BATS-CHIXE:OMUL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BATS-CHIXE:OMUL Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 12,142
2020-12-31 11,609
2019-12-31 10,756
2019-12-13
BATS-CHIXE:OMUL Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 141,355 -35,721 5,275
2019-03-31 125,180 -41,024 2,065
2018-12-31 109,005 -46,326 -1,145
2018-09-30 138,405 -16,261 -3,807
2018-06-30 167,805 70,698 -3,222
2018-03-31 171,676 92,881 -3,043
2017-12-31 175,546 115,064 -2,864
2017-09-30 112,642 102,467 -4,677
2017-06-30 51,329 87,162 -6,113
2017-03-31 76,651 83,646 -4,073
2016-12-31 102,465 81,233 -2,116

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Old Mutual's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Old Mutual is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BATS-CHIXE:OMUL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Old Mutual Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:OMUL Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.71 2.83 2.59 2.00
2020-12-31 2.51 2.57 2.39 3.00
2019-12-31 2.25 2.30 2.21 3.00
2019-12-13
BATS-CHIXE:OMUL Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 1.15
2019-03-31 0.45
2018-12-31 -0.25
2018-09-30 -0.82
2018-06-30 -0.70
2018-03-31 -0.66
2017-12-31 -0.62
2017-09-30 -1.01
2017-06-30 -1.32
2017-03-31 -0.88
2016-12-31 -0.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Old Mutual is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Insurance industry
X
Future performance checks
We assess Old Mutual's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Old Mutual has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Old Mutual performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Old Mutual's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Old Mutual's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Old Mutual has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Old Mutual has become profitable in the last year making it difficult to compare the GB Insurance industry average.
Earnings and Revenue History
Old Mutual's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Old Mutual Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:OMUL Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 141,355.00 5,275.00 23,151.00
2019-03-31 125,180.00 2,065.00 23,589.50
2018-12-31 109,005.00 -1,145.00 24,028.00
2018-09-30 138,405.00 -3,807.00 24,143.00
2018-06-30 167,805.00 -3,222.00 24,258.00
2018-03-31 171,675.50 -3,043.00 23,935.50
2017-12-31 175,546.00 -2,864.00 23,613.00
2017-09-30 112,642.46 -4,677.09 13,280.32
2017-06-30 51,329.14 -6,112.68 3,452.09
2017-03-31 76,650.60 -4,072.60 11,869.41
2016-12-31 102,464.50 -2,116.34 20,350.68
2016-06-30 246,461.33 9,140.52 60,910.71
2016-03-31 272,474.29 10,449.65 68,785.57
2015-12-31 299,735.92 11,858.09 77,191.58
2015-09-30 304,434.84 13,345.43 77,782.12
2015-06-30 295,655.12 12,704.23 70,723.39
2015-03-31 278,345.14 11,466.25 65,227.85
2014-12-31 277,250.40 10,926.57 63,615.30
2014-09-30 306,213.57 9,867.80 65,562.17
2014-06-30 327,073.01 8,527.75 65,730.98
2014-03-31 330,325.20 9,946.86 63,505.52
2013-12-31 341,655.93 11,550.06 62,960.84
2013-09-30 331,689.49 10,803.32 59,312.49
2013-06-30 318,455.94 10,005.51 55,324.59
2013-03-31 288,255.45 8,689.74 51,766.75
2012-12-31 275,730.25 7,941.83 51,222.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Old Mutual has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Old Mutual used its assets less efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Old Mutual has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Old Mutual's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Old Mutual has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Old Mutual's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Old Mutual's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Old Mutual's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Old Mutual's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Old Mutual's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Old Mutual Company Filings, last reported 5 months ago.

BATS-CHIXE:OMUL Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 79,207.00 25,549.00 34,318.00
2019-03-31 79,207.00 25,549.00 34,318.00
2018-12-31 81,420.00 21,785.00 102,068.00
2018-09-30 81,420.00 21,785.00 102,068.00
2018-06-30 151,957.00 26,024.00 27,542.00
2018-03-31 151,957.00 26,024.00 27,542.00
2017-12-31 183,445.00 23,386.00 102,591.00
2017-09-30 183,445.00 23,386.00 102,591.00
2017-06-30 181,785.38 82,408.69 87,985.35
2017-03-31 179,648.74 81,440.09 86,951.20
2016-12-31 186,626.94 100,280.44 168,240.21
2016-06-30 193,516.77 82,812.73 77,860.80
2016-03-31 209,352.92 89,589.58 84,232.42
2015-12-31 203,731.04 112,492.19 174,291.06
2015-09-30 186,877.89 103,186.55 164,140.46
2015-06-30 182,157.64 68,125.24 96,170.06
2015-03-31 171,903.68 64,290.35 90,756.49
2014-12-31 171,818.93 73,803.83 147,337.65
2014-09-30 175,070.89 75,200.70 150,126.27
2014-06-30 161,300.01 50,039.19 77,986.22
2014-03-31 155,623.62 48,278.23 75,241.76
2013-12-31 156,959.21 67,702.45 146,433.89
2013-09-30 147,032.49 63,420.68 137,172.84
2013-06-30 145,374.19 63,172.05 75,984.54
2013-03-31 135,122.37 58,717.14 70,626.09
2012-12-31 134,749.06 60,845.96 133,866.63
  • Old Mutual's level of debt (32.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (31.2% vs 32.3% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).
X
Financial health checks
We assess Old Mutual's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Old Mutual has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.66%
Current annual income from Old Mutual dividends. Estimated to be 6.85% next year.
If you bought £2,000 of Old Mutual shares you are expected to receive £153 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Old Mutual's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).
  • Old Mutual's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BATS-CHIXE:OMUL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 5.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 676 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BATS-CHIXE:OMUL Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.45 2.00
2020-12-31 1.31 3.00
2019-12-31 1.16 3.00
2019-12-13
BATS-CHIXE:OMUL Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-03-11 1.440 7.049
2018-09-11 0.900 3.807

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Old Mutual has stable dividend payments.
  • Old Mutual only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Old Mutual's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Old Mutual's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Old Mutual afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Old Mutual has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Old Mutual's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Iain Williamson
COMPENSATION ZAR12,375,310
AGE 49
TENURE AS CEO 0.6 years
CEO Bio

Mr. Iain George Williamson serves as Interim Chief Executive Officer at Old Mutual Life Assurance since 2019. He served as Acting Chief Executive Officer at Old Mutual Life Assurance since June 2019 until 2019. He serves as Interim Chief Executive Officer at Old Mutual Ltd. since 2019. Mr. Williamson was the Acting Chief Executive Officer at Old Mutual Ltd. since April 24, 2019 until 2019 and served as its Chief Operating Officer. He has been Director of Old Mutual Ltd. since June 2019. He served as a Non-Executive Director at UAP Holdings Ltd. since November 10, 2017 until April 2019. He serves as Interim Chief Executive Officer and Director at Old Mutual Life Assurance Company (South Africa) Ltd. He served as Finance Director of Old Mutual Life Assurance Company (South Africa) Limited and served as its Executive Director from August 1, 2015 to September 30, 2017. Mr. Williamson has many years of experience in the financial services industry. He served as General Manager of Finance of Retail Affluent segment at OMSA. He joined Old Mutual's Employee Benefits division in 1993 and in 1996, he became Actuarial Finance Manager. He served as Senior Manager of Corporate Development at Old Mutual plc in London. Mr. Williamson served as Chief Operating Officer of OMSA Wealth Management. He served as Head of Strategy and Product Platforms for Old Mutual SA Technology division and Finance Actuary at OMSA. He has been Non-Executive Director of acsis Limited since September 2010. Mr. Williamson holds a Bachelor of Business Science degree (Actuarial) from the University of Cape Town and is a Fellow of the Faculty of Actuaries. He holds Post Graduate Diploma Actuarial Science.

CEO Compensation
  • Iain's compensation has increased in line with Old Mutual recently becoming profitable.
  • Iain's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Old Mutual management team in years:

0.8
Average Tenure
47
Average Age
  • The average tenure for the Old Mutual management team is less than 2 years, this suggests a new team.
Management Team

Iain Williamson

TITLE
Interim CEO & Director
COMPENSATION
ZAR12M
AGE
49
TENURE
0.6 yrs

Casparus Troskie

TITLE
CFO & Executive Director
COMPENSATION
ZAR12M
AGE
55
TENURE
1.8 yrs

Clement Chinaka

TITLE
Managing Director of Rest of Africa
COMPENSATION
ZAR9M
AGE
49

Karabo Morule

TITLE
Executive Officer
COMPENSATION
ZAR9M
AGE
37

Clarence Nethengwe

TITLE
Managing Director of Mass & Foundation Cluster
COMPENSATION
ZAR9M
AGE
47

Garth Napier

TITLE
Managing Director of Old Mutual Insure
COMPENSATION
ZAR6M
AGE
40
TENURE
1.1 yrs

Heloise Van Der Mescht

TITLE
Acting Chief Operating Officer
TENURE
0.5 yrs

Khaya Gobodo

TITLE
Managing Director of Wealth & Investments
AGE
41

Sizwe Ndlovu

TITLE
Head of Investor Relations

Tabby Tsengiwe

TITLE
Head of Communications
Board of Directors Tenure

Average tenure and age of the Old Mutual board of directors in years:

1.6
Average Tenure
60
Average Age
  • The average tenure for the Old Mutual board of directors is less than 3 years, this suggests a new board.
Board of Directors

Trevor Manuel

TITLE
Independent Chairperson of the Board
COMPENSATION
ZAR7M
AGE
63

Iain Williamson

TITLE
Interim CEO & Director
COMPENSATION
ZAR12M
AGE
49
TENURE
0.5 yrs

Casparus Troskie

TITLE
CFO & Executive Director
COMPENSATION
ZAR12M
AGE
55
TENURE
1.8 yrs

Itumeleng Kgaboesele

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
48
TENURE
1.9 yrs

John Lister

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR3M
AGE
60

Carol Winifred Molope

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
54

Bahleli Rapiya

TITLE
Non Executive Director
COMPENSATION
ZAR1M
AGE
66
TENURE
1.4 yrs

Peter de Beyer

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR3M
AGE
64

Paul Baloyi

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
63

Thys du Toit

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR834K
AGE
60
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Old Mutual's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Old Mutual has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Old Mutual Limited provides financial services to retail and corporate customers in South Africa and the rest of Africa, and Asia. The company offers life and savings, property and casualty insurance, asset management, and banking and lending products and services. It distributes its products through independent advisers, branches, bancassurance, direct and digital channels, and worksites. The company was founded in 1845 and is headquartered in Cape Town, South Africa.

Details
Name: Old Mutual Limited
OMUL
Exchange: BATS-CHIXE
Founded: 1845
ZAR4,802,973,499
4,708,553,649
Website: http://www.oldmutual.com
Address: Old Mutual Limited
Mutualpark,
Jan Smuts Drive,
Cape Town,
Western Cape, 7405,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE OMU Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 26. Jun 2018
LSE OMU Ordinary Shares London Stock Exchange GB GBP 26. Jun 2018
MAL OMU Ordinary Shares Malawi Stock Exchange MW MWK 26. Jun 2018
NMSE OMM Ordinary Shares Namibian Stock Exchange NA ZAR 26. Jun 2018
ZMSE OMU Ordinary Shares Zimbabwe Stock Exchange ZW ZWL 26. Jun 2018
BATS-CHIXE OMUL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Jun 2018
Number of employees
Current staff
Staff numbers
61,259
Old Mutual employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/13 19:56
End of day share price update: 2019/12/12 00:00
Last estimates confirmation: 2019/12/11
Last earnings filing: 2019/09/02
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

Related Companies

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