SAGICOR GROUP (SJ) Presented By Leovaughni Dillon
OUTLINE FOR THIS PRESENTATION Company Background Key Jamaican Economic Indicators SJ Financials Valuation Conclusion
COMPANY BACKGROUND
SJ’s field force wrote more than 1$ million in life insurance on the first day of operations 1 st June 1970
SAGICOR GROUP PRODUCTS AND SERVICES Life Insurance • Health Insurance • Annuities • Retirement products • Pension Administration • Investments Services •
KEY JAMAICAN ECONOMIC INDICATORS
Unemployment • Was reduced to 11.30% in July JMD/USD Depreciation • 1.69% as at November 28, 2017 currently at $126.30 GDP growth • PIOJ 3 rd estimate economic growth of 0.9% over the same period last year
SJ FINANCIALS
KEY INCOME STATEMENT DATA
SJ REVENUE $59.70 $54.99 $45.63 $42.36 $35.51 $28.67 REVENUE (BILLIONS) 2011 2012 2013 2014 2015 2016
% REVENUE FROM PREMIUMS AND ANNUITIES 69.00% 65.45% 64.66% 63.92% 59.06% 56.10% 2011 2012 2013 2014 2015 2016
% REVENUE FROM INVESTMENT INCOME 32.41% 29.64% 27.51% 26.84% 26.48% 19.25% 2011 2012 2013 2014 2015 2016
SJ PROFITS 2011 2012 2013 2014 2015 2016 $11.26 $9.79 $8.56 $6.45 $6.06 $5.75 PROFITS (BILLIONS)
SAGICOR GROUP EPS 2011 2012 2013 2014 2015 2016 $2.90 $2.51 $2.21 $1.67 $1.56 $1.47 EPS
SAGICOR DIVIDEND HISTORY $1.11 $0.73 $0.65 $0.63 $0.56 $0.40 DIVIDEND PER SHARE 2011 2012 2013 2014 2015 2016
KEY BALANCE SHEET DATA
TOTAL ASSETS 2011 2012 2013 2014 2015 2016 340.95 300.39 284.22 198.31 174.53 160.74 TOTAL ASSETS
CUSTOMER DEPOSITS 2011 2012 2013 2014 2015 2016 104.15 67.48 53.59 11.88 11.41 11.09 CUSTOMER DEPOSTIS AND OTHER ACCOUNTS
Sagicor Group 25.00% 21.46% 21.14% 20.46% 20.00% 18.86% 18.71% 18.77% 17.87% 17.81% 17.07% 15.23% 15.00% 10.00% 5.00% 0.00% 2012 2013 2014 2015 2016 ROE Net Profit Margin
VALUATION
Discounted Free Cash Flow Capital Asset Pricing Model Main Market P/E of 17x
Estimated 2018 EPS $5.03 Key Drivers 12M Price Target $41.68
CONCLUSION
Economy Improving Jamaican Economic Outlook Consistency Consistent Earnings/Profit Growth Currently Undervalued P/E below peers and Main Market and has significant room for growth
Recommend
More recommend
