Ninety One Group (NY1.JO)

Financials · JSE · South Africa

R46.85+1.32% today

Fundamentals

Market capR43.64B

P/E ratio12.8

Dividend yield6.95%

Revenue growth (YoY)+13.5%

Profit margin23.6%

Return on equity28.5%

52-week rangeR42.71 to R57.54

Valuation and ratings

DCF fair valueR104.61

Upside to fair value+123.3%

Analyst target (mean)R56.52

Analyst rangeR56.52 to R56.52

Analysts covering1

Consensus viewstrong buy

Moat score87/100

Overall rating94/100, Strong Buy

Ninety One Group trades at R46.85, which is 123% below the R104.61 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 87 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 12.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Ninety One Group

Ninety One Group operates as an independent global asset manager worldwide. It serves private and public sector pension funds, sovereign wealth funds, insurers, corporates, foundations, and central banks, as well as large retail financial groups, wealth managers, public and private equity as well as debt, private banks, and intermediaries. It seeks to invest in South African companies struggling with the economic fallout from the spread of coronavirus. Ninety One Group was founded in 1991 and is headquartered in Cape Town, South Africa with additional offices in Africa.

Industry: Asset ManagementEmployees: 1,346HQ: South Africa

NY1.JO passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

Common questions

Is Ninety One Group (NY1.JO) undervalued?

Against our discounted cash flow estimate of R104.61, NY1.JO at R46.85 is 123% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is NY1.JO's P/E ratio?

NY1.JO trades at 12.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for NY1.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open NY1.JO in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.