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TRANSACTION CAPITAL sees an upgrade to Positive due to a better fundam...
The general evaluation of TRANSACTION CAPITAL (ZA), a company active in the Investment Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date August 20, 2021, the closing price was ZAR 37....
- David Talpert
- Harry Botha
- Warwick Bam
Avior Financials | Alexander Forbes | Transaction Capital | JSE tradin...
Alexander Forbes announced a shareholder restructure as Mercer will sell its 34.4% shareholding in AFH. AFH will buyback a 200m shares from Mercer at 515cps for R1bn. We attended a Transaction Capital site visit to see SA Taxi's operations. Management are confident in SA Taxi's ability to grow attributable earnings by c.20% y/y. We highlight the returns from several large SA equity funds. Sanlam followed by Coronation performed the best with one-year returns of 17.7% and 15.5% respectively. P...
- David Talpert
Transaction Capital | Paying a growth premium
Transaction Capital (TCP) reported 18% HEPS growth despite a challenging economy. SA Taxi and TCRS have generated a five-year CAGR of 21% and 29% respectively. We believe SA Taxi's vertically integrated business model supports high margins. Aggressive book buying (R1.2bn in FY '19) supported TCRS's growth. Despite the defensive nature of the operations, any improvement in SA economic growth would support an acceleration in TCRS's collections revenue. The Group has excess capital of R950m, w...
- David Talpert
Transaction Capital | Due for a pullback
Transaction Capital (TCP) has been rewarded for consistent earnings growth with the share appreciating by 31% YTD. We believe TCP deserves a premium rating due to its defensive business model and ability to grow earnings in a difficult local operating environment. We believe both operations can sustainably generate an ROE of over 20%. However, the Group ROE will decline due to c.R1bn in excess cash. We are confident in the long-term prospects and believe management can continue delivering ear...
- David Talpert
- Harry Botha
- Warwick Bam
Avior Financials | Standard Bank results | Nedbank meeting notes | Inv...
Standard Bank reported a positive set of H1 ‘19 results as diluted HEPS increased 5.7% y/y. Despite the pressures on SBK's SA operations, we believe SBK's operations outside SA will continue to support upper single digit to low teens Group earnings growth over the next three years. We met with Nedbank management (RBB, CIB, Wealth and Rest of Africa teams, and Group management) yesterday and provide our meeting notes. Investec announced yesterday that the Group has received all necessary reg...
- David Talpert
Transaction Capital | Rewarding consistency
Transaction Capital (TCP) delivered impressive H1 '19 results with core HEPS increasing by 17%. SA Taxi grew attributable earnings by 22% ahead of 13% earnings growth for TCRS. SA Taxi's vertically integrated business model has allowed it to gain market share while maintaining high margins. TCRS has taken advantage of a weak economy to aggressively acquire non-performing loan books. We expect TCP to deliver 16% HEPS CAGR over the next four years.
- David Talpert
Transaction Capital | Lots of fuel left in the tank
We expect Transaction Capital (TCP) to deliver 16% H1 '19 earnings growth. We expect SA Taxi to grow attributable earnings by 20% despite a challenging operating environment. TCRS's growth slowed due to a difficult operating environment. TCP's diversified business model is resilient delivering consistent earnings growth despite slow economic growth. We believe TCP has multiple opportunities to supplement earnings growth.
- David Talpert
Transaction Capital | Defying economic headwinds
Transaction Capital (TCP) is not immune to a weak SA economy. However, the defensive nature of the taxi industry and debt collections allows TCP to maintain a high growth rate despite economic headwinds. We estimate growth for SA Taxi and TCRS of 20% and 19% respectively. We expect the Group to deliver 16.3% HEPS growth for FY '18. We believe TCP can maintain high-teens growth for the next three years.
- David Talpert
- Harry Botha
- Warwick Bam
Avior Financials | Sanlam | MMI | Transaction Capital | JSE | Standard...
•SLM's FY'17 results based on an analysis of the change in the director's valuation (GEV). The return on GEV for the period was 14.8%, ahead of management's SA risk free rate plus 4% target. The GEV increased 10% YoY while the SLM share price increased 36% in CY'17. SLM currently trades at a 58% premium to the director's valuation. •SLM and SNT's purchase of the remaining 53.37% of SAHAM Finances through SEM. SAHAM Finances appears sub-scale with an underwriting margin of -0.7% in FY'17...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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