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Transaction Capital

JSE:TCP
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TCP
JSE
ZAR8B
Market Cap
  1. Home
  2. ZA
  3. Diversified Financials
Company description

Transaction Capital Limited provides non-deposit taking financial services in South Africa and Australia. The last earnings update was 126 days ago. More info.


Add to Portfolio Compare Print
  • Transaction Capital has significant price volatility in the past 3 months.
TCP Share Price and Events
7 Day Returns
19%
JSE:TCP
5.1%
Africa Consumer Finance
10.1%
ZA Market
1 Year Returns
-31.7%
JSE:TCP
-24.5%
Africa Consumer Finance
-33.6%
ZA Market
TCP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Transaction Capital (TCP) 19% -34.4% -42.7% -31.7% -17.3% 34.2%
Africa Consumer Finance 5.1% -19.1% -20.4% -24.5% -21.4% -14.2%
ZA Market 10.1% -19.3% -29.1% -33.6% -29.1% -31.9%
1 Year Return vs Industry and Market
  • TCP underperformed the Consumer Finance industry which returned -24.5% over the past year.
  • TCP outperformed the Market in South Africa which returned -33.6% over the past year.
Price Volatility
TCP
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Transaction Capital 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 Transaction Capital 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 Transaction Capital.

JSE:TCP 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
= ZAR6.17 * 17%
ZAR1.05
Book Value of Equity per Share Median Book Value from the past 5 years. ZAR6.17
Discount Rate (Cost of Equity) See below 18.4%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 8.6%

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 JSE:TCP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 8.6%
Equity Risk Premium S&P Global 8.2%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.587 (1 + (1- 28%) (150.09%))
1.186
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 8.6% + (1.186 * 8.23%)
18.36%

Discounted Cash Flow Calculation for JSE:TCP using Excess Returns Model Model

The calculations below outline how an intrinsic value for Transaction Capital 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.

JSE:TCP Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17% – 18.36%) * ZAR6.17)
ZAR-0.09
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ZAR-0.09 / (18.36% - 8.6%)
ZAR-0.88
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ZAR6.17 + ZAR-0.88
ZAR5.29
JSE:TCP Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR5.29
Current discount Discount to share price of ZAR12.08
= -1 x (ZAR12.08 - ZAR5.29) / ZAR5.29
-128.2%

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

  • The current share price of Transaction Capital 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 Transaction Capital's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Transaction Capital's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:TCP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in ZAR ZAR1.19
JSE:TCP Share Price ** JSE (2020-03-30) in ZAR ZAR12.08
Africa Consumer Finance Industry PE Ratio Median Figure of 9 Publicly-Listed Consumer Finance Companies 10.17x
South Africa Market PE Ratio Median Figure of 202 Publicly-Listed Companies 7.88x

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

** Primary Listing of Transaction Capital.

JSE:TCP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 12.08 ÷ 1.19

10.17x

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

  • Transaction Capital is good value based on earnings compared to the Africa Consumer Finance industry average.
  • Transaction Capital is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Transaction Capital's expected growth come at a high price?
Raw Data
JSE:TCP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
11.8%per year
Global Consumer Finance Industry PEG Ratio Median Figure of 87 Publicly-Listed Consumer Finance Companies 0.37x
South Africa Market PEG Ratio Median Figure of 79 Publicly-Listed Companies 0.86x

*Line of best fit is calculated by linear regression .

JSE:TCP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.17x ÷ 11.8%

0.86x

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

  • Transaction Capital is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Transaction Capital's assets?
Raw Data
JSE:TCP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in ZAR ZAR7.99
JSE:TCP Share Price * JSE (2020-03-30) in ZAR ZAR12.08
Africa Consumer Finance Industry PB Ratio Median Figure of 10 Publicly-Listed Consumer Finance Companies 1.5x
South Africa Market PB Ratio Median Figure of 271 Publicly-Listed Companies 0.66x
JSE:TCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 12.08 ÷ 7.99

1.51x

* Primary Listing of Transaction Capital.

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

  • Transaction Capital is overvalued based on assets compared to the Africa Consumer Finance industry average.
X
Value checks
We assess Transaction Capital'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 Consumer Finance 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 Consumer Finance industry average (and greater than 0)? (1 check)
  5. Transaction Capital has a total score of 2/6, 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 Transaction Capital expected to perform in the next 1 to 3 years based on estimates from 3 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
11.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Transaction Capital expected to grow at an attractive rate?
  • Transaction Capital's earnings growth is expected to exceed the low risk savings rate of 8.6%.
Growth vs Market Checks
  • Transaction Capital's earnings growth is positive but not above the South Africa market average.
  • Transaction Capital's revenues are expected to decrease over the next 1-3 years, this is below the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:TCP Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:TCP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 11.8%
JSE:TCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts -0.8%
Global Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 6.7%
Global Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 12.4%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.2%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.8%

*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
JSE:TCP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:TCP Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 3,615 422 2
2021-09-30 4,666 659 925 1
2020-09-30 4,216 614 862 1
2020-03-31
JSE:TCP Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-09-30 3,589 -1,838 727
2019-06-30 3,500 -1,719 693
2019-03-31 3,744 -1,599 659
2018-12-31 3,637 -1,400 671
2018-09-30 3,196 -1,200 682
2018-06-30 3,284 -1,187 658
2018-03-31 3,372 -1,174 633
2017-12-31 3,213 -1,036 594
2017-09-30 3,053 -898 555
2017-06-30 2,628 -665 518
2017-03-31 2,203 -432 480
2016-12-31 2,076 -202 469

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Transaction Capital's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
  • Transaction Capital's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
JSE:TCP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Transaction Capital Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:TCP Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30
2021-09-30 1.48 1.48 1.48 1.00
2020-09-30 1.38 1.38 1.38 1.00
2020-03-31
JSE:TCP Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-09-30 1.19
2019-06-30 1.13
2019-03-31 1.08
2018-12-31 1.10
2018-09-30 1.12
2018-06-30 1.08
2018-03-31 1.04
2017-12-31 0.98
2017-09-30 0.93
2017-06-30 0.88
2017-03-31 0.83
2016-12-31 0.82

*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.
  • Transaction Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Transaction Capital'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 Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global 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.
Transaction Capital has a total score of 1/6, 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 Transaction Capital 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 Transaction Capital's growth in the last year to its industry (Consumer Finance).
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.
  • Transaction Capital's year on year earnings growth rate has been positive over the past 5 years.
  • Transaction Capital's 1-year earnings growth is less than its 5-year average (6.6% vs 15.9%)
  • Transaction Capital's earnings growth has not exceeded the Africa Consumer Finance industry average in the past year (6.6% vs 6.9%).
Earnings and Revenue History
Transaction Capital'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 Transaction Capital Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:TCP Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,589.00 727.00 118.00
2019-06-30 3,500.00 693.00 114.00
2019-03-31 3,744.00 659.00 476.00
2018-12-31 3,636.50 670.50 476.00
2018-09-30 3,196.00 682.00 110.00
2018-06-30 3,284.00 657.50 280.50
2018-03-31 3,372.00 633.00 451.00
2017-12-31 3,212.50 594.00 451.00
2017-09-30 3,053.00 555.00 451.00
2017-06-30 2,628.00 517.50 246.00
2017-03-31 2,203.00 480.00 41.00
2016-12-31 2,076.00 469.00 41.00
2016-09-30 1,949.00 458.00 41.00
2016-06-30 1,902.00 446.00 34.50
2016-03-31 1,855.00 434.00 28.00
2015-12-31 1,819.00 417.50 38.00
2015-09-30 1,783.00 401.00 48.00
2015-06-30 1,753.50 380.00 51.50
2015-03-31 1,724.00 359.00 55.00
2014-12-31 1,674.50 344.50 45.00
2014-09-30 1,625.00 330.00 35.00
2014-03-31 1,513.00 291.00 38.00
2013-12-31 1,469.50 266.00 38.00
2013-09-30 1,426.00 241.00 38.00

*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.
  • Transaction Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Transaction Capital used its assets more efficiently than the Africa Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Transaction Capital improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Transaction Capital'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 Consumer Finance 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.
Transaction Capital has a total score of 2/6, 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 Transaction Capital'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 Transaction Capital's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Transaction Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Transaction Capital's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Transaction Capital'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 1.5x 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 Transaction Capital Company Filings, last reported 6 months ago.

JSE:TCP Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 5,472.00 11,262.00 1,113.00
2019-06-30 5,472.00 11,262.00 1,113.00
2019-03-31 5,508.00 10,626.00 1,539.00
2018-12-31 5,508.00 10,626.00 1,539.00
2018-09-30 3,823.00 9,934.00 1,024.00
2018-06-30 3,823.00 9,934.00 1,024.00
2018-03-31 3,869.00 9,000.00 904.00
2017-12-31 3,869.00 9,000.00 904.00
2017-09-30 3,772.00 8,331.00 997.00
2017-06-30 3,772.00 8,331.00 997.00
2017-03-31 3,590.00 8,042.00 782.00
2016-12-31 3,590.00 8,042.00 782.00
2016-09-30 2,978.00 7,650.00 1,349.00
2016-06-30 2,978.00 7,650.00 1,349.00
2016-03-31 2,739.00 6,713.00 965.00
2015-12-31 2,739.00 6,713.00 965.00
2015-09-30 2,611.00 6,692.00 1,277.00
2015-06-30 2,611.00 6,692.00 1,277.00
2015-03-31 3,131.00 6,245.00 698.00
2014-12-31 3,131.00 6,245.00 698.00
2014-09-30 2,963.00 6,279.00 1,345.00
2014-03-31 2,864.00 5,663.00 1,243.00
2013-12-31 2,864.00 5,663.00 1,243.00
2013-09-30 3,895.00 9,672.00 733.00
  • Transaction Capital's level of debt (205.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (211.8% vs 205.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Unable to confirm if the interest payments on Transaction Capital's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Transaction Capital'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. Transaction Capital has a total score of 3/6, 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 Transaction Capital'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
5.05%
Current annual income from Transaction Capital dividends. Estimated to be 6.5% next year.
If you bought ZAR2,000 of Transaction Capital shares you are expected to receive ZAR101 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?
  • Transaction Capital's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (4.56%).
  • Transaction Capital's dividend is below the markets top 25% of dividend payers in South Africa (13.83%).
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
JSE:TCP 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 3 Analyst Estimates (S&P Global) See Below
Africa Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 6.7%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 171 Stocks 5.6%
South Africa Minimum Threshold Dividend Yield 10th Percentile 2.7%
South Africa Bottom 25% Dividend Yield 25th Percentile 4.6%
South Africa Top 25% Dividend Yield 75th Percentile 13.8%

Industry and Market average data is calculated daily.

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

JSE:TCP Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.93 2.00
2021-09-30 0.78 3.00
2020-09-30 0.69 3.00
2020-03-31
JSE:TCP Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-11-26 0.610 3.044
2018-11-20 0.500 2.554
2017-11-21 0.400 2.342
2017-11-13 0.400 2.789
2017-01-24 0.360 2.456
2016-11-22 0.360 2.439
2016-05-10 0.240 2.044
2016-04-15 0.240 2.069
2016-01-26 0.240 2.156
2015-11-24 0.240 2.064
2014-11-25 0.160 1.731
2014-01-16 0.240 3.782
2013-11-26 0.240 3.171
2013-05-08 0.180 2.567
2013-05-07 0.180 2.699
2012-11-29 0.090 1.214

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

  • Transaction Capital has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Transaction Capital only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Transaction Capital's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Transaction Capital's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.7%) - 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 Transaction Capital afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Transaction Capital 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 Transaction Capital'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
David Hurwitz
COMPENSATION ZAR7,774,172
AGE 47
TENURE AS CEO 6.2 years
CEO Bio

Mr. David M. Hurwitz, also known as Dave, BCom (Hon) (Wits), CA (SA), H Dip Tax (Wits), has been the Chief Executive Officer at Transaction Capital Limited since January 16, 2014. Mr. Hurwitz served as the Chief Financial Officer of Transaction Capital Limited from February 1, 2012 to January 15, 2014 and served as its Group Chief Risk Officer since June 2011. He has been an Executive Director of Transaction Capital Limited since April 2012. Mr. Hurwitz serves as a Non-Executive Director of Bayport Financial Services 2010 (proprietary) Limited. He holds a Bachelor of Accounting (Honours) degree from the University of the Witwatersrand, a Higher Diploma in Tax and qualified as a Chartered Accountant (SA) after completing his articles at Kessel Feinstein in 1997. He has been active in debt capital markets since 1997, holding employment at both a specialist structured finance organization and a large local bank. In 2005, he joined Transaction Capital’s founding shareholders to acquire African Bank’s Commercial Vehicle Finance division (now SA Taxi). He served as the Chief Financial Officer of SA Taxi for 18 months. He has been a Director of Recoveries Corp. Pty Ltd. since 2018.

CEO Compensation
  • David's compensation has been consistent with company performance over the past year, both up more than 20%.
  • David's remuneration is lower than average for companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Transaction Capital management team in years:

6.2
Average Tenure
53
Average Age
  • The average tenure for the Transaction Capital management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

David Hurwitz

TITLE
CEO & Executive Director
COMPENSATION
ZAR8M
AGE
47
TENURE
6.2 yrs

Sean Doherty

TITLE
CFO & Executive Director
COMPENSATION
ZAR4M
AGE
41
TENURE
0.7 yrs

Michael Mendelowitz

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
ZAR6M
AGE
54
TENURE
8.3 yrs

Jonathan Jawno

TITLE
Deputy CEO & Executive Director
COMPENSATION
ZAR6M
AGE
53
TENURE
17 yrs

Mark Herskovits

TITLE
Executive Director of Capital Management & Executive Director
COMPENSATION
ZAR6M
AGE
44
TENURE
9.7 yrs

Terry Kier

TITLE
Chief Executive Officer of SA Taxi
COMPENSATION
ZAR9M
AGE
53

Dave McAlpin

TITLE
Chief Executive Officer of Risk Services Division
COMPENSATION
ZAR6M
AGE
58
TENURE
5.4 yrs

Jaco Rossouw

TITLE
Chief Executive Officer of Principa Decisions

Theresa Palos

TITLE
Company Secretary
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the Transaction Capital board of directors in years:

9.3
Average Tenure
52.5
Average Age
  • The tenure for the Transaction Capital board of directors is about average.
Board of Directors

Chris Seabrooke

TITLE
Independent Non-Executive Chairperson
COMPENSATION
ZAR2M
AGE
66
TENURE
10.7 yrs

David Hurwitz

TITLE
CEO & Executive Director
COMPENSATION
ZAR8M
AGE
47
TENURE
7.8 yrs

Sean Doherty

TITLE
CFO & Executive Director
COMPENSATION
ZAR4M
AGE
41
TENURE
0.7 yrs

Michael Mendelowitz

TITLE
Chief Investment Officer & Executive Director
COMPENSATION
ZAR6M
AGE
54
TENURE
17 yrs

Jonathan Jawno

TITLE
Deputy CEO & Executive Director
COMPENSATION
ZAR6M
AGE
53
TENURE
17 yrs

Mark Herskovits

TITLE
Executive Director of Capital Management & Executive Director
COMPENSATION
ZAR6M
AGE
44
TENURE
6.2 yrs

Kuben Pillay

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR918K
AGE
58
TENURE
0.7 yrs

Diane Radley

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR882K
AGE
52
TENURE
1.7 yrs

Rob Rossi

TITLE
Non-Executive Director
COMPENSATION
ZAR513K
AGE
57
TENURE
16.4 yrs

Phumzile Langeni

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR819K
AGE
44
TENURE
10.7 yrs
Who owns this company?
Recent Insider Trading
  • Transaction Capital individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
21. Feb 20 Sell Jonathan Jawno Individual 18. Feb 20 18. Feb 20 -23,000,000 ZAR23.50 ZAR-540,500,143
27. Sep 19 Buy Pilatucom Holdings Limited Company 26. Sep 19 26. Sep 19 59,333,333 ZAR17.78 ZAR1,054,946,612
27. Sep 19 Sell Jonathan Jawno Individual 26. Sep 19 26. Sep 19 -59,333,333 ZAR17.78 ZAR-1,054,946,612
20. Jun 19 Sell Mark Herskovits Individual 19. Jun 19 19. Jun 19 -91,991 ZAR19.51 ZAR-1,793,831
X
Management checks
We assess Transaction Capital'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. Transaction Capital 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

Transaction Capital Limited provides non-deposit taking financial services in South Africa and Australia. It operates through two divisions, SA Taxi and Transaction Capital Risk Services. The SA Taxi division offers vehicle procurement, retail, repossession, and refurbishment capabilities, such as asset-backed developmental finance and insurance services for mini-bus taxi industry. The Transaction Capital Risk Services division provides customer management solutions through its fintech platform that enables its clients to mitigate risk through their customer engagement lifecycle. It also provides business support and working capital finance to SMEs; accounts receivables collection services; payroll, human resources management, access controls, biometrics, employee self-service, recruitment, and outsourcing services, as well as time and attendance solutions; payment solutions; legal and administrative services; and personal credit information services. Transaction Capital Limited was founded in 2007 and is based in Johannesburg, South Africa.

Details
Name: Transaction Capital Limited
TCP
Exchange: JSE
Founded: 2007
ZAR7,505,019,389
612,654,644
Website: http://www.transactioncapital.co.za
Address: Transaction Capital Limited
230 Jan Smuts Avenue,
Corner Bompas Road,
Johannesburg,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE TCP Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 11. Jun 2012
Number of employees
Current staff
Staff numbers
0
Transaction Capital employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 19:43
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2019/11/26
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


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.