Old Mutual Limited (OMU.JO) stock analysis

In our weekly check, Old Mutual Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 9.

About Old Mutual Limited

Old Mutual Limited is a Financial Services company (Insurance - Life) based in South Africa, listed on JNB as OMU.JO.

What our checks show for OMU.JO

Red flags

• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 5.3% a year.
• Free cash flow is negative (-2.9% of revenue): the business spends more cash than it brings in.
• The dividend takes 755% of profit: little cushion if profit falls.
• A small company (market value $34 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin is only 5%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 2.3 points over 5 years, to 5%.
• The gross margin is 100% and has risen by 1.2 points: pricing power is holding.
• Analysts expect the net margin to improve by 2.4 points from today's 5%.
• Earnings per share grew 19.7% a year over the last 3 years.
• Net profit grew 17.1% a year over the last 3 years.
• The price is 7.2 times earnings (P/E), reasonable for its growth.

Similar companies

AFL · MET · MFC · PRU · GWO.TO · PRU.L

Questions

What grade does Old Mutual Limited (OMU.JO) have?

In our weekly check, Old Mutual Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of OMU.JO stock?

This week's biggest flags for Old Mutual Limited: Profits not backed by cash, Weak revenue forecast, Weak free cash flow. In total 11 of 25 checks show a warning or a red flag.

What does Old Mutual Limited do?

Old Mutual Limited is a Financial Services company (Insurance - Life) based in South Africa, listed on JNB as OMU.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 2026-10-31

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