Sygnia (SYG.JO)

Financials · JSE · South Africa

R32.60-2.72% today

Fundamentals

Market capR5.19B

P/E ratio12.3

Dividend yield7.68%

Revenue growth (YoY)+24.3%

Profit margin35.8%

Return on equity49.2%

52-week rangeR27.00 to R39.50

Valuation and ratings

DCF fair valueR73.04

Upside to fair value+124.0%

Moat score86/100

Overall rating81/100, Strong Buy

Sygnia trades at R32.60, which is 124% below the R73.04 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 86 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 12.3 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 Sygnia

Sygnia Limited, a financial services group, provides investment management and administration services to institutional and retail clients primarily in South Africa. It offers investment funds, such as unitised life funds, unit trusts, ETFs, and management of segregated portfolios; various savings products, including retirement annuities, tax-free savings accounts, investment policies, living annuities, and preservation funds; and institutional investment administration, employee benefits, and retirement fund services. Sygnia Limited was formerly known as Sygnia Investment Holdings No 2 Proprietary Limited and changed its name to Sygnia Limited in July 2015. The company was founded in 2003 and is headquartered in Cape Town, South Africa.

Industry: Financial ConglomeratesEmployees: 390HQ: South Africa

SYG.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 Sygnia (SYG.JO) undervalued?

Against our discounted cash flow estimate of R73.04, SYG.JO at R32.60 is 124% 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 SYG.JO's P/E ratio?

SYG.JO trades at 12.3 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 SYG.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open SYG.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.