Absa Group Limited (ABG.JO) stock analysis

In our weekly check, Absa Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8.

About Absa Group Limited

Absa Group Limited is a Financial Services company (Banks - Regional) based in South Africa, listed on JNB as ABG.JO.

What our checks show for ABG.JO

Red flags

• The net margin fell by 12.7 points over 5 years, to 11%: the company keeps less of each sale as profit.
• The gross margin fell by 58.6 points, to 52.3%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 13.2% a year.
• The dividend takes 1014% of profit: little cushion if profit falls.
• A small company (market value $110 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 69% from a peak. Would you have held through that?

Warning signs

• Recovering from its deepest fall took about 2.6 years.
• Return on capital (ROCE) is only 6.3%.

Strengths

• Operating cash flow is 2.92x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 12.1% a year over the next years.
• Analysts expect the net margin to improve by 12.2 points from today's 11%.
• Revenue grew 36.5% a year over the last 3 years.
• Free cash flow is 30.6% of revenue: cash for dividends, buybacks or growth.
• Beta 0.35: the stock usually moves less than the market.

Similar companies

EMIRATESNBD.AE · 1180.SR · BBAS3.SA · NED.JO · O39.SI

Questions

What grade does Absa Group Limited (ABG.JO) have?

In our weekly check, Absa Group Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ABG.JO stock?

This week's biggest flags for Absa Group Limited: Margins falling, Gross margin falling, Weak revenue forecast. In total 10 of 25 checks show a warning or a red flag.

What does Absa Group Limited do?

Absa Group Limited is a Financial Services company (Banks - Regional) based in South Africa, listed on JNB as ABG.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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