Fact based stock research
Old Mutual (JSE:OMU)

ZAE000255360

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Old Mutual stock research in summary

oldmutual.com

ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Old Mutual (Life & Health Insurance, United Kingdom) shares have lower financial characteristics compared with similar stocks. Shares of Old Mutual are a good value (attractively priced) with a consolidated Value Rank of 67 (better than 67% of alternatives) but show below-average growth (Growth Rank of 7), and are riskily financed (Safety Rank of 37), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Old Mutual's financial characteristics. As the company Old Mutual's key financial metrics exhibit good value (Obermatt Value Rank of 67) but low growth (Obermatt Growth Rank of 7) and risky financing practices (Obermatt Safety Rank of 37), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 67% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	67
Growth Rank	7
Safety Rank	37
Combined Rank	19

Country	United Kingdom
Industry	Life & Health Insurance
Index	Dividends Europe, Human Rights, JSE All Shares
Size class	XX-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Old Mutual

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	45	67	83	67
GROWTH
GROWTH	88	33	77	7
SAFETY
SAFETY	59	37	37	37
SENTIMENT
SENTIMENT	n/a	100	79	^new
360° VIEW
360° VIEW	n/a	83	79	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Old Mutual is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	45	67	83	67
GROWTH
GROWTH	88	33	77	7
SAFETY
SAFETY	59	37	37	37
COMBINED
COMBINED	75	19	19	19

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Old Mutual the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 67 (better than 67% compared with alternatives), Old Mutual shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Old Mutual. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 65 which means that the stock price compared with what market professionals expect for future profits is lower than for 65% of comparable companies, indicating a good value concerning Old Mutual's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 72, and for Dividend Yield with a Dividend Yield Rank of 75. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 62% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 38). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 67, is a buy recommendation based on Old Mutual's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Old Mutual has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Old Mutual shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	88	13	84	38
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	18	83	75	65
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	55	65	64	72
DIVIDEND YIELD
DIVIDEND YIELD	60	85	74	75
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	45	67	83	67

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Old Mutual; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), Old Mutual shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Old Mutual. While Sales Growth ranks at 62, professionals currently expect the company to grow more than 62% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 17, which means that, currently, professionals expect the company to grow its profits less than 83% of its competitors, and Capital Growth has a low rank of 9. Historic stock returns were also below average with a current Stock Returns rank of 29 which means that the stock returns have recently been below 71% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	84	52	73	62
PROFIT GROWTH
PROFIT GROWTH	60	29	20	17
CAPITAL GROWTH
CAPITAL GROWTH	n/a	1	71	9
STOCK RETURNS
STOCK RETURNS	78	83	83	29
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	88	33	77	7

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Old Mutual.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 37 (better than 37% compared with alternatives), the company Old Mutual has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Old Mutual is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Old Mutual. Leverage is at a rank of 59, meaning the company has a below-average debt-to-equity ratio. It has less debt than 59% of its competitors. Liquidity is also good at a rank of 78, meaning the company generates more profit to service its debt than 78% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 6, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 94% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 37 (worse than 63% compared with alternatives), Old Mutual has a financing structure that is riskier than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Old Mutual. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Old Mutual and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	79	48	74	59
REFINANCING
REFINANCING	7	6	6	6
LIQUIDITY
LIQUIDITY	37	65	61	78
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	59	37	37	37

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Old Mutual and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	94	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	65	61	^new
MARKET PULSE
MARKET PULSE	n/a	94	87	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	100	79	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Old Mutual.
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