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About PSG Konsult
We deliver a broad range of financial services and products to individuals and enterprises. We focus on wealth creation, wealth preservation, asset management and insurance. Throughout, we place a strong emphasis on personal service and building lifelong relationships with our clients.
- PSG WEALTH
- A comprehensive wealth management service for individuals, families and businesses.
- Financial planning
- Investments
- Unit trusts
- Stockbroking
- Estate and trust services
- Multi-management
- Healthcare
- Employee benefits
- Life insurance
- Institutional portfolio management
- Wealth platform
- Managed share portfolios
- A comprehensive wealth management service for individuals, families and businesses.
- PSG ASSET MANAGEMENT
- Local unit trusts, global funds and segregated portfolios for individual and institutional investors.
- Investments
- Unit trusts
- Institutional portfolio management
- Investments
- Local unit trusts, global funds and segregated portfolios for individual and institutional investors.
- PSG INSURE
- Personal and commercial short-term insurance solutions.
- Personal short-term insurance
- Commercial short-term insurance
- Personal short-term insurance
- Personal and commercial short-term insurance solutions.
Overview of PSG Konsult's latest financial results
- Total Income: R2.516 billion (up from R2.306 billion for the same period of the previous year)
- Total expenses: R2.026 billion (up from R1.851 billion for the same period of the previous year)
- Profit for the year: R335.475 million (up from R306.257 million for the same period of the previous year)
- Diluted earnings per share: R0.231 (up from R0.213 for the same period of the previous year)
- PE ratio: 18.4
- Dividend declared: R0.075
- Dividend yield. 1.76%
- Cash generated from operations: R311.634 million
- Cash generated from operations per share: R0.236
- Net asset value: R2.35
- So PSG Konsult is trading at 3.61 times its stated net asset value. Firms tend to trade at between 2 to 4 times its stated net asset value.
- Total assets under mangement: R228 billion
- Number of advisors: 928
- Gros written premiums: R2.718 billion
PSG Konsult's management commentary on the results
PSG Konsult achieved a solid 8% growth in recurring headline earnings per share and generated a return on equity of 20.2%, despite difficult business conditions. No performance fees were generated during the current period, compared to the prior period where performance fees constituted 4.6% of headline earnings. The group continued its investment in technology and people.
Corporate Activity
PSG Konsult’s focus remains on organic growth, although it will consider acquisitions that meet its investment criteria, which require, inter alia, acceptable pricing, a compelling strategic rationale, clearly definable synergies and ease of integration. In line with our organic growth strategy, we concluded a few smaller earnings-accretive adviser acquisition transactions. The transactions were funded from existing cash resources and are aligned with our aim of identifying opportunities that will either expand our adviser footprint or enhance our overall client service offering. The transactions were seamlessly integrated into PSG Konsult’s existing business operations and management believes these will contribute positively to the long-term organic growth of the firm.
Looking forward
We continue to monitor the corporate, political and economic climate, both locally and globally, and the associated impact on our clients and other stakeholders. The cash-generative nature of the business gives PSG Konsult several options for funding business growth initiatives and optimising risk-adjusted returns for our shareholders. As such, the group remains confident about the prospects for continued growth. The group will continue to prioritise organic growth in our selected markets where we have a relatively low, but rapidly expanding market share. The group will continue to focus on initiatives that enable us to service clients in an integrated manner that is seamless and market-leading. The group’s focus on products, platforms, client service excellence and the quality of its advice process remains a key initiative.
Corporate Activity
PSG Konsult’s focus remains on organic growth, although it will consider acquisitions that meet its investment criteria, which require, inter alia, acceptable pricing, a compelling strategic rationale, clearly definable synergies and ease of integration. In line with our organic growth strategy, we concluded a few smaller earnings-accretive adviser acquisition transactions. The transactions were funded from existing cash resources and are aligned with our aim of identifying opportunities that will either expand our adviser footprint or enhance our overall client service offering. The transactions were seamlessly integrated into PSG Konsult’s existing business operations and management believes these will contribute positively to the long-term organic growth of the firm.
Looking forward
We continue to monitor the corporate, political and economic climate, both locally and globally, and the associated impact on our clients and other stakeholders. The cash-generative nature of the business gives PSG Konsult several options for funding business growth initiatives and optimising risk-adjusted returns for our shareholders. As such, the group remains confident about the prospects for continued growth. The group will continue to prioritise organic growth in our selected markets where we have a relatively low, but rapidly expanding market share. The group will continue to focus on initiatives that enable us to service clients in an integrated manner that is seamless and market-leading. The group’s focus on products, platforms, client service excellence and the quality of its advice process remains a key initiative.
Share price history of PSG Konsult
The image below, obtained from Sharenet shows the share performance of PSG Konsult over the last 5 years. The summary below shows the returns provided by PSG Konsult over various time periods.
The returns provided by PSG Konsult has been a pretty mixed bag over the last couple of years. Sadly asset management company's fortunes are largely linked to the performance of the markets. So if markets are volatile their earnings and therefore their stock price will tend to be.
- 1 week: 11.11%
- 1 month: 10.39%
- Year to date (YTD): -20.56%
- 1 year: -12.64%
- 3 years: 27.06%
- 5 years: 20.91%
The returns provided by PSG Konsult has been a pretty mixed bag over the last couple of years. Sadly asset management company's fortunes are largely linked to the performance of the markets. So if markets are volatile their earnings and therefore their stock price will tend to be.
Share valuation of PSG Konsult (KST)
So what are PSg Konsult (KST) shares worth based on their latest financial results released? Based on the results released our valuation model places a full value price on PSG Konsult at R8.75 a stock. We therefore believe that PSG Konsult shares are slightly undervalued at its current price of R8.50
We suggest looking to enter at least 10% below our target price, which in this case is R8.75. A good entry point would therefore be around R7.88 a PSG Konsult share.
We suggest looking to enter at least 10% below our target price, which in this case is R8.75. A good entry point would therefore be around R7.88 a PSG Konsult share.