GICS Sector : Financial Services
Ninety One Group operates as an independent global asset manager worldwide.It serves private and public sector pension funds, sovereign wealth funds, insurers, corporates, foundations, and central banks, as well as large retail financial groups, wealth managers, public and private equity as well as debt, private banks, and intermediaries.It seeks to invest in South African companies struggling with the economic fallout from the spread of coronavirus.
Ninety One reported a robust financial performance, with adjusted earnings per share growing 15% to 7.757p, in line with analyst estimates. The company's operating margin expanded to 32.1%, driven by a 12% increase in adjusted operating profit to GBP 98.8 million. Management fees rose to GBP 290.7 million, with an average AUM of GBP 139.7 billion and an average management fee rate of 41.5 bps. Profit before tax was GBP 102.2 million, up 10%, and profit after tax was GBP 76.7 million, up 11%.
Publication Date: Nov -18
The company's business momentum is strong, with net inflows of GBP 4.3 billion for the half year, comprising GBP 2.4 billion organic and GBP 1.9 billion from the Sanlam U.K. transaction. Ninety One has continued to invest in talent, broadening its top leadership team and evolving accountability. The company has formed a dedicated international public markets team, reinforced its private markets team, and backed new growth opportunities through the Ninety One Foundry. As noted by the management, "the pipeline for the next 6-12 months looks positive, with opportunities in scale mandates."
With a P/E Ratio of 12.14 and a Dividend Yield of 5.82%, Ninety One's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's ROE of 41.63% is also impressive, indicating effective use of shareholder capital. Analysts estimate next year's revenue growth at 10.8%, suggesting a positive outlook for the company. However, fee pressure remains a challenge, with an expected 1 basis point compression per year. Ninety One's management team is focused on mitigating this trend and protecting its operating margin.
Ninety One has made significant investments in growth initiatives, including the development of its alternatives business and the adoption of AI technology. The company has built capability to be competitive in the private credit space and expects accelerating flows. While these investments will take time to impact the bottom line, they are expected to drive long-term growth and profitability.
Ninety One's capital coverage ratio is 245%, above the 200% target, and the company may consider moving closer to this target. The company continues to return capital to shareholders through buybacks, looking for opportunities to use seed capital when comfortable with the price and in agreement with the Board. The dividend per share increased to 6p, reflecting the company's commitment to shareholder returns.
Bond investors warned US Treasury over picking Kevin Hassett as Fed chair
Dec -03
Why The Narrative Around Ninety One Is Changing After Recent Analyst Price Target Upgrades
Nov -26
Ninety One PLC (FRA:3XH) (Q2 2026) Earnings Call Highlights: Strong Profit Growth Amid Market ...
Nov -18
How Recent Developments Are Rewriting the Story for Ninety One Group
Nov -11
Rare Inflation Flip Gives Emerging Markets Edge on Rich Nations
Nov -09
Green Investors Enjoy Huge Returns as Stock Market Powers Through Trump’s Attacks
Nov -03
Ninety One's Middle East CIO Sees 'Huge Growth' in Credit Opportunities
Oct -28
Why Analysts See the Story Changing for Ninety One After a Boost in Outlook and Valuation
Oct -28
Increasing demand for active investment solutions, growing need for sustainable investments, and rising adoption of ESG principles drive growth in Ninety One Group's investment management business.
Ninety One Group offers a range of equity products that cater to different investment objectives and risk profiles, including active and passive strategies, thematic and sector-specific funds, and index trackers.
The company provides a variety of fixed income products, including government bonds, corporate bonds, and high-yield bonds, designed to generate regular income and manage interest rate risk.
Ninety One Group's multi-asset products combine different asset classes, such as equities, fixed income, and alternatives, to provide diversified investment portfolios.
The company offers alternative investment products, including real estate, private equity, and hedge funds, designed to provide diversification and potentially higher returns.
Ninety One Group's sustainable investment products integrate environmental, social, and governance (ESG) considerations into the investment process, aiming to generate long-term returns while promoting positive impact.
The company offers a range of index funds that track various market indices, providing low-cost, diversified exposure to different asset classes and geographic regions.
The threat of substitutes for Ninety One Group is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.
The bargaining power of customers for Ninety One Group is low, as customers have limited options and the company has a strong brand presence.
The bargaining power of suppliers for Ninety One Group is moderate, as the company has some dependence on key suppliers, but it also has some bargaining power due to its size and reputation.
The threat of new entrants for Ninety One Group is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.
The intensity of rivalry for Ninety One Group is high, as the industry is highly competitive and there are many established players, leading to a high level of competition.
| Value | |
|---|---|
| Debt Weight | 22.70% |
| Debt Cost | 4.80% |
| Equity Weight | 77.30% |
| Equity Cost | 7.26% |
| WACC | 6.70% |
| Leverage | 29.36% |
Value: 5.4
Growth: 4.2
Quality: 8.5
Yield: 7.5
Momentum: 6.0
Volatility: 5.0
1-Year Total Return ->
Value: 5.8
Growth: 3.9
Quality: 3.4
Yield: 7.5
Momentum: 6.0
Volatility: 10.0
1-Year Total Return ->
Value: 2.4
Growth: 6.8
Quality: 8.1
Yield: 3.1
Momentum: 7.5
Volatility: 8.7
1-Year Total Return ->
Value: 5.2
Growth: 2.0
Quality: 7.5
Yield: 8.8
Momentum: 6.0
Volatility: 6.7
1-Year Total Return ->
Value: 7.3
Growth: 2.9
Quality: 4.4
Yield: 8.8
Momentum: 1.0
Volatility: 9.7
1-Year Total Return ->
Value: 5.8
Growth: 0.1
Quality: 3.7
Yield: 6.2
Momentum: 1.5
Volatility: 5.3
1-Year Total Return ->