OMU:LSEOld Mutual Ltd. Analysis
Data as of 2026-03-12 - not real-time
£67.00
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Old Mutual Limited trades at a trailing P/E of roughly 9.6, well below the financial conglomerates industry average of 16.4, and delivers a solid dividend yield of about 5.6% with a payout ratio near 60%, suggesting earnings are comfortably covering the dividend. The company shows modest top‑line growth (≈5‑6% YoY), a profit margin around 6% and an ROE of roughly 12%, indicating decent profitability despite a relatively high book‑to‑price multiple.
Technically, the share price of 67 GBp sits under both the 20‑day (≈72) and 50‑day (≈71) moving averages and the MACD is in a bearish configuration, while the RSI hovers near 41, pointing to neutral momentum. Volume is rising and the price remains above a strong support near 63 GBp, though volatility is elevated at over 40% annualised, implying sizable short‑term swings.
Technically, the share price of 67 GBp sits under both the 20‑day (≈72) and 50‑day (≈71) moving averages and the MACD is in a bearish configuration, while the RSI hovers near 41, pointing to neutral momentum. Volume is rising and the price remains above a strong support near 63 GBp, though volatility is elevated at over 40% annualised, implying sizable short‑term swings.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price below short‑term moving averages
- Bearish MACD signal
- High dividend yield providing downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Undervaluation relative to earnings peers
- Fundamental profitability and cash‑flow strength
- Potential mean‑reversion toward the 20‑day SMA
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Sustainable dividend policy
- Solid ROE and consistent revenue growth
- Long‑run upside as market re‑prices the low P/E
Key Metrics & Analysis
Financial Health
Revenue Growth5.60%
Profit Margin6.07%
P/E Ratio9.6
ROE11.70%
ROA0.80%
Debt/Equity32.16
P/B Ratio104.1
Op. Cash Flow£30.4B
Free Cash Flow£26.7B
Industry P/E16.4
Technical Analysis
TrendBullish
RSI41.0
Support£63.20
Resistance£78.80
MA 20£72.13
MA 50£70.75
MA 200£59.73
MACDBearish
VolumeIncreasing
Fear & Greed Index73.46
Valuation
Fair Value£12,593.63
Target Price£70.30
Upside/Downside4.93%
GradeUndervalued
TypeValue
Dividend Yield5.57%
Risk Assessment
Beta0.15
Volatility42.59%
Sector RiskMedium
Reg. RiskMedium
Geo RiskHigh
Currency RiskMedium
Liquidity RiskMedium
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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.