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MOMENTUM GROUP LIMITED

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Our opinion on the current state of MOMMET(MTM)Momentum Metropolitan (MTM) is a JSE- and Namibian-listed insurance company, formed through the merger of Momentum and Metropolitan in December 2010. The company provides a wide range of short- and long-term insurance products and financial services. It was the first insurance company to achieve level 1 BBBEE status. However, it has been scaling back its African operations by closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger, the combined entity held 24% of South Africa's life insurance market. This has since declined to 17%. The company faced substantial challenges during the COVID-19 pandemic, paying out nearly R4 billion in death claims in Q1 2021 due to the second wave—three times the expected amount. In response to the pandemic, it has also reduced its office space requirements, adapting to the increased prevalence of remote work. Recent Developments: 1. Leadership Change: Jeanette Marais assumed the role of CEO on 30th September 2023, succeeding Hilgard Meyer. 2. Results for the Year to 30th June 2024: - Headline earnings per share (HEPS): Increased by 39%. - Return on embedded value: Achieved 13.3%. - Operating profit: Rose 31%, from R2.755 billion to R3.608 billion. - Momentum Retail saw a decline in operating profit due to lower market variances and increased expenses. 3. Update for the 3 Months to 30th September 2024: - Recurring premium income: Up 8%. - Assets under management (AUM): Increased 17% to R280 billion. - Operational performance was supported by satisfactory new business performance across most units. Improving economic indicators have started to positively affect business results. Technical and Valuation: - The share began its upward movement in May 2024, and it was added to the Winning Shares List (WSL) on 24th July 2024 at 2402c. It has since risen to 3000c. - It trades on a price-to-earnings (P:E) ratio of 10.05 and offers a dividend yield (DY) of 3.33%. - The share appears reasonably priced at current levels and is likely to benefit from further economic improvements and strong operational performance. Momentum Metropolitan is well-positioned for growth, with improving business fundamentals and an attractive valuation. Its gradual recovery in market share and increased operational efficiency under new leadership make it a compelling long-term investment.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MOMMET(MTM)Momentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian Stock Exchange, formed by the merger of Momentum and Metropolitan in December 2010. The company operates across the full spectrum of short- and long-term insurance and financial services. Notably, Momentum Metropolitan was the first insurance company to achieve level 1 BBBEE status. The company has been scaling back its presence in certain African markets, closing its operations in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger, the combined company held 24% of the South African life insurance market, but this has since declined to 17%. During the first quarter of 2021, Momentum Metropolitan paid out nearly R4 billion in death claims, three times more than expected, largely due to the second wave of COVID-19. The company also announced plans to reduce its office space by 60%, as the work-from-home trend has continued since the pandemic. In May 2023, it was announced that Jeanette Marais would succeed Hilgard Meyer as CEO on 30th September 2023. For the year ending 30th June 2024, the company reported headline earnings per share (HEPS) up 39% and a return on embedded value of 13.3%. Operating profit increased by 31%, from R2.755 billion to R3.608 billion, as many business units benefited from higher investment income and an elevated interest rate environment. However, Momentum Retail's operating profit declined, driven by lower market variances and increased expenses compared to the previous year. Technically, the share began an upward trend in May 2024, and it was added to the Winning Shares List (WSL) on 24th July 2024 at 2402c. It has since risen to 2947c, with further upside potential expected. With a price-to-earnings (P/E) ratio of 9.87 and a dividend yield (DY) of 3.39%, Momentum Metropolitan looks reasonably priced, offering a solid investment opportunity for long-term growth.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MOMMET(MTM)Momentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. The company was the first insurance company to achieve level 1 BBBEE status. The company is closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa. Today that has been reduced to just 17%. The company paid out almost R4bn in death claims in the 1st quarter of 2021 - three times higher than it anticipated, mainly due to the 2nd wave of the virus. The company said that it would consider managing with about 60% of its current office space because of the move to work-from-home as a result of COVID19. On 26th May 2023, Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. In its results for the year to 30th June 2023, the company reported net income of R125bn, up from the previous year's R70,1bn. Earnings per share (EPS) increased to 313,3c compared with 260,6c in the previous year. The company said, "During July 2022, the Group, through its wholly owned subsidiary, Metropolitan International Holdings (Pty) Ltd, disposed of its entire shareholding in Metropolitan Cannon Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. A loss on disposal of R112 million was recognised. During October 2022, the Group’s holding in Aditya Birla Health Insurance Company Ltd (ABHI) was diluted from 49% to 44.1% with the introduction of a new shareholder as a partner in the business. As a result, a gain on deemed disposal of R563 million was recognised. The Group bought back a total of 73 million shares (for a cost of R1 250 million including transaction costs) during the current year. These shares were cancelled prior to 30 June 2023." In an operational update for the 3 months to 30th September 2023, the company reported new business premiums up 18% and a claim ratio of 66% - down from the previous period's 70%. The company said, "As at 20 November 2023, the Group had bought back 24 million shares, of which 16.5 million have been cancelled, for a total consideration of R498 million." In the nine months to 31st March 2024, the company reported recurring premium income down 15% and single premiums up 32%. Assets under management (AUM) were up 14% at R265bn. In a trading statement for the year to 30th June 2024, the company estimated that HEPS would increase by between 41% and 46%. Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 10,54 and a dividend yield (DY) of 3,8%, it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MTMMomentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. It was the first insurance company to achieve level 1 BBBEE status. Recently, the company has been closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa, which has now reduced to 17%. In the first quarter of 2021, the company paid out almost R4bn in death claims, three times higher than anticipated, mainly due to the 2nd wave of the virus. The company indicated it would consider managing with about 60% of its current office space due to the move to work-from-home as a result of COVID-19. On 26th May 2023, Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. In its results for the year to 30th June 2023, the company reported net income of R125bn, up from the previous year's R70.1bn. Earnings per share (EPS) increased to 313.3c compared with 260.6c in the previous year. The company said, "During July 2022, the Group, through its wholly owned subsidiary, Metropolitan International Holdings (Pty) Ltd, disposed of its entire shareholding in Metropolitan Cannon Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. A loss on disposal of R112 million was recognised. During October 2022, the Group’s holding in Aditya Birla Health Insurance Company Ltd (ABHI) was diluted from 49% to 44.1% with the introduction of a new shareholder as a partner in the business. As a result, a gain on deemed disposal of R563 million was recognised. The Group bought back a total of 73 million shares (for a cost of R1 250 million including transaction costs) during the current year. These shares were cancelled prior to 30 June 2023." In an operational update for the 3 months to 30th September 2023, the company reported new business premiums up 18% and a claim ratio of 66%, down from the previous period's 70%. The company said, "As at 20 November 2023, the Group had bought back 24 million shares, of which 16.5 million have been cancelled, for a total consideration of R498 million." In the nine months to 31st March 2024, the company reported recurring premium income down 15% and single premiums up 32%. Assets under management (AUM) were up 14% at R265bn. Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 8.18 and a dividend yield (DY) of 4.89%, it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MTMMomentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. The company was the first insurance company to achieve level 1 BBBEE status. The company is closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa. Today that has been reduced to just 17%. The company paid out almost R4bn in death claims in the 1st quarter of 2021 - three times higher than it anticipated, mainly due to the 2nd wave of the virus. The company said that it would consider managing with about 60% of its current office space because of the move to work-from-home as a result of COVID19. On 26th May 2023 Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. In its results for the year to 30th June 2023 the company reported net income of R125bn up from the previous year's R70,1bn. Earnings per share (EPS) increased to 313,3c compared with 260,6c in the previous year. The company said, "During July 2022, the Group, through its wholly owned subsidiary, Metropolitan International Holdings (Pty) Ltd, disposed of its entire shareholding in Metropolitan Cannon Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. A loss on disposal of R112 million was recognised. During October 2022, the Group’s holding in Aditya Birla Health Insurance Company Ltd (ABHI) was diluted from 49% to 44.1% with the introduction of a new shareholder as a partner in the business. As a result, a gain on deemed disposal of R563 million was recognised. The Group bought back a total of 73 million shares (for a cost of R1 250 million including transaction costs) during the current year. These shares were cancelled prior to 30 June 2023". In an operational update for the 3 months to 30th September 2023 the company reported new business premiums up 18% and a claim ratio of 66% - down from the previous period's 70%. The company said, "As at 20 November 2023, the Group had bought back 24 million shares, of which 16.5 million have been cancelled, for a total consideration of R498 million". Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 6,94 and a dividend yield (DY) of 4,45% it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
$JSEMTM - Momentum Met Hldgs: Classic Trend ChangeSee link below for previous analysis. Momentum stock finally has some momentum. The key levels of 1283 and 1386 have held and price has broken strongly above the upper resistance line of the down-sloping channel. A key level to break above, as mentioned in the previous analysis, is 2270 to break above the previous lower high to buck the trend and make a new higher high. This break looks imminent. The bullish outlook is fully intact and I now have more conviction than before.
JSE:MTMLong
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of MTMMomentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. The company was the first insurance company to achieve level 1 BBBEE status. The company is closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa. Today that has been reduced to just 17%. The company paid out almost R4bn in death claims in the 1st quarter of 2021 - three times higher than it anticipated, mainly due to the 2nd wave of the virus. The company said that it would consider managing with about 60% of its current office space because of the move to work-from-home as a result of COVID19. On 26th May 2023 Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. In its results for the year to 30th June 2023 the company reported net income of R125bn up from the previous year's 70,1bn.Earnings per share (EPS) increased to 313,3c compared with 260,6c in the previous year. The company said, "During July 2022, the Group, through its wholly owned subsidiary, Metropolitan International Holdings (Pty) Ltd, disposed of its entire shareholding in Metropolitan Cannon Life Assurance Ltd and Metropolitan Cannon General Insurance Ltd. A loss on disposal of R112 million was recognised. During October 2022, the Group’s holding in Aditya Birla Health Insurance Company Ltd (ABHI) was diluted from 49% to 44.1% with the introduction of a new shareholder as a partner in the business. As a result, a gain on deemed disposal of R563 million was recognised. The Group bought back a total of 73 million shares (for a cost of R1 250 million including transaction costs) during the current year.These shares were cancelled prior to 30 June 2023". The company said that its laspe rate had deteriorated over the period. Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 6,38 and a dividend yield (DY) of 4,84% it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MTMMomentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. The company was the first insurance company to achieve level 1 BBBEE status. The company is closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa. Today that has been reduced to just 17%. The company paid out almost R4bn in death claims in the 1st quarter of 2021 - three times higher than it anticipated, mainly due to the 2nd wave of the virus. The company said that it would consider managing with about 60% of its current office space because of the move to work-from-home as a result of COVID19. In its results for the six months to 31st December 2022 the company reported headline earnings per share (HEPS) up 43% and embedded value up 11%. The company said, "While the prior period's results were negatively impacted by heightened mortality experience resulting from Covid-19 (net of releases of Covid-19 reserves), mortality experience in the current period has normalised to levels last seen in 2019". In an operational update on the 9 months to 31st March 2023 the company reported headline earnings per share (HEPS) up 29% and new business volumes down 8%. The company said, "This growth in earnings was supported by the improved mortality experience in the life businesses, benefiting from the less severe impact of Covid-19 (net of release of Covid-19 reserves) in the current period". On 26th May 2023 Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. Business Day reported a trading statement on 24th August 2023 for the year to 30th June 2023. The company estimated that HEPS would rise by between 2% and 7%. Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 5,97 and a dividend yield (DY) of 4,53% it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
Our opinion on the current state of MTM.Momentum Metropolitan (MTM) is an insurance company listed on the JSE and the Namibian stock exchanges. It was formed by the merger of Momentum and Metropolitan in December 2010. The company participates in all aspects of short and long-term insurances and various financial services. The company was the first insurance company to achieve level 1 BBBEE status. The company is closing its businesses in Mozambique, Mauritius, Zambia, Tanzania, and Swaziland. At the time of the merger between Momentum and Metropolitan, they had a combined 24% of the life insurance market in South Africa. Today that has been reduced to just 17%. The company paid out almost R4bn in death claims in the 1st quarter of 2021 - three times higher than it anticipated, mainly due to the 2nd wave of the virus. The company said that it would consider managing with about 60% of its current office space because of the move to work-from-home as a result of COVID19. In its results for the six months to 31st December 2022 the company reported headline earnings per share (HEPS) up 43% and embedded value up 11%. The company said, "While the prior period's results were negatively impacted by heightened mortality experience resulting from Covid-19 (net of releases of Covid-19 reserves), mortality experience in the current period has normalised to levels last seen in 2019". In an operational update on the 9 months to 31st March 2023 the company reported headline earnings per share (HEPS) up 29% and new business volumes down 8%. The company said, "This growth in earnings was supported by the improved mortality experience in the life businesses, benefiting from the less severe impact of Covid-19 (net of release of Covid-19 reserves) in the current period". On 26th May 2023 Business Day reported that Jeanette Marais would take over from Hilgard Meyer as CEO on 30th September 2023. Business Day reported a trading statement on 24th August 2023 for the year to 30th June 2023. The company estimated that HEPS would rise by between 2% and 7%. Technically, the share has begun to move up in recent months and may be entering a new upward trend. On a P:E of 5,97 and a dividend yield (DY) of 4,53% it looks reasonably priced to us.
JSE:MTM
by PDSnetSA
$JSEMTM - Momentum Met Hldgs: A Change of Trend On The Horizon?Since peaking at an all time high of 3475 zac in 2015, MTM stock has been in a bear market that made a low in October 2020 at 1282 zac for a 63% decline in value. The bear market has characterized by a classic sequence of lower highs (LH) and lower lows (LL). The 1386 low in mid 2022 gives hope that this trend has been bucked and a trend change is on the horizon. A break above 2270 zac will provide an extra confirmation that the trend is changing as the LHs will be broken. It is critical for 1282 zac to remain intact.
JSE:MTMLong
by Loyiso_BlaqueSoros_Mpeta