PSG Fin (previously PSG Konsult) is a well-established financial services group that originated from PSG's stockbroking business. Today, it offers a comprehensive range of financial services, including financial planning, unit trusts, healthcare, short-term insurance, and estate planning. PSG still holds a 60% stake in the company.
For the six months ending 31st August 2023, PSG Fin reported a 21% increase in recurring headline earnings per share (HEPS) and a 19% rise in assets under management (AUM) to R375.9 billion. Gross written premiums also grew by 12%. The company noted that its technology and infrastructure spending increased by 12%, with these costs being fully expensed, and fixed remuneration costs also grew by 12%. In its trading statement for the six months ending 31st August 2024, PSG Fin estimated a HEPS increase of between 27% and 30%.
Although the share currently trades on a price-to-earnings (P/E) ratio of 22.49, which may seem relatively high, it is a quality company that has demonstrated its ability to generate solid returns even in challenging economic conditions. From a technical perspective, the share has been in an upward trend since March 2020 and continues to show good value.
On 1st March 2022, PSG announced plans to unbundle its 60.8% holding in PSG Konsult, transferring this stake into the hands of PSG shareholders as a way to release value. PSG Fin was added to the Winning Shares List (WSL) on 23rd May 2024 at 1610c, and the share has since moved up to 1824c. Given its performance and potential, we believe the share has room to go further.
For the six months ending 31st August 2023, PSG Fin reported a 21% increase in recurring headline earnings per share (HEPS) and a 19% rise in assets under management (AUM) to R375.9 billion. Gross written premiums also grew by 12%. The company noted that its technology and infrastructure spending increased by 12%, with these costs being fully expensed, and fixed remuneration costs also grew by 12%. In its trading statement for the six months ending 31st August 2024, PSG Fin estimated a HEPS increase of between 27% and 30%.
Although the share currently trades on a price-to-earnings (P/E) ratio of 22.49, which may seem relatively high, it is a quality company that has demonstrated its ability to generate solid returns even in challenging economic conditions. From a technical perspective, the share has been in an upward trend since March 2020 and continues to show good value.
On 1st March 2022, PSG announced plans to unbundle its 60.8% holding in PSG Konsult, transferring this stake into the hands of PSG shareholders as a way to release value. PSG Fin was added to the Winning Shares List (WSL) on 23rd May 2024 at 1610c, and the share has since moved up to 1824c. Given its performance and potential, we believe the share has room to go further.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.