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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.

Market Outlook

Short Term

< 1 year
Neutral
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 years
Positive
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 years
Positive
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

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.