OMU:JSEOld Mutual Ltd. Analysis
Data as of 2026-05-24 - not real-time
ZAC 1,302.00
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Old Mutual (OMU) is trading at ZAc 1,302, comfortably below its 20‑day (1,324.85), 50‑day (1,367.88) and 200‑day (1,407.25) simple moving averages, signalling a short‑term bearish bias. The RSI sits at 42, indicating neither overbought nor oversold conditions, while the MACD histogram has turned positive (≈3.9) suggesting a nascent bullish momentum despite the MACD line still lagging the signal.
Fundamentally, the stock appears undervalued with a trailing P/E of 6.85 versus an industry average of 16.75 and a DCF‑derived fair value implying roughly 17% upside. Revenue is growing at ~20% YoY, free cash flow is robust at ZAc 76.8 bn, and the dividend yield of 7.14% is supported by a modest payout ratio (~47%). These factors combine to make OMU an attractive value‑oriented play with solid income potential.
Fundamentally, the stock appears undervalued with a trailing P/E of 6.85 versus an industry average of 16.75 and a DCF‑derived fair value implying roughly 17% upside. Revenue is growing at ~20% YoY, free cash flow is robust at ZAc 76.8 bn, and the dividend yield of 7.14% is supported by a modest payout ratio (~47%). These factors combine to make OMU an attractive value‑oriented play with solid income potential.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price below all major SMAs indicating bearish pressure
- MACD histogram turning positive suggests possible reversal
- Support level at ZAc 1,272 provides downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Undervalued valuation metrics (P/E 6.85 vs industry 16.75)
- Strong revenue growth (~20%) and free cash flow generation
- Attractive dividend yield (7.14%) with sustainable payout
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Long‑term cash strength (ZAc 118.6 bn) offsets debt exposure
- Consistent dividend policy enhances total return
- DCF fair value indicates ~17% upside, supporting upside potential
Key Metrics & Analysis
Financial Health
Revenue Growth19.90%
Profit Margin7.13%
P/E Ratio6.9
ROE14.77%
ROA1.06%
Debt/Equity93.42
P/B Ratio0.9
Op. Cash FlowZAC-2471000064
Free Cash FlowZAC76.8B
Industry P/E16.8
Technical Analysis
TrendBearish
RSI42.2
SupportZAC 1,272.00
ResistanceZAC 1,387.00
MA 20ZAC 1,324.85
MA 50ZAC 1,367.88
MA 200ZAC 1,407.25
MACDBullish
VolumeStable
Fear & Greed Index91.61
Valuation
Fair ValueZAC 57,682.37
Target PriceZAC 1,526.00
Upside/Downside17.20%
GradeUndervalued
TypeBlend
Dividend Yield7.14%
Risk Assessment
Beta0.23
Volatility21.09%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.