Sanlam Limited (SLM.JO) stock analysis

In our weekly check, Sanlam Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6.

About Sanlam Limited

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

What our checks show for SLM.JO

Red flags

• Analysts expect revenue to shrink about 42.5% a year.
• The dividend takes 1163% of profit: little cushion if profit falls.
• A small company (market value $107 million): usually riskier and followed by fewer analysts.
• Recovering from its deepest fall took about 5.6 years.
• Return on capital (ROCE) is only 2.4%.

Warning signs

• The gross margin fell by 1.4 points, to 100%: costs are rising faster than prices.
• The net margin is only 5.5%: little room if costs rise.
• Free cash flow is only 4.5% of revenue.
• The stock has fallen as much as 53% from a peak. Would you have held through that?

Strengths

• The net margin rose by 0.6 points over 5 years, to 5.5%.
• Analysts expect earnings per share to grow about 12.4% a year over the next years.
• Analysts expect the net margin to improve by 34.7 points from today's 5.5%.
• Revenue grew 38% a year over the last 3 years.
• The price is 9.4 times earnings (P/E), reasonable for its growth.
• Beta 0.51: the stock usually moves less than the market.

Similar companies

DSY.JO · 1336.HK · GWO.TO · MFC · MET · AFL

Questions

What grade does Sanlam Limited (SLM.JO) have?

In our weekly check, Sanlam Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 4, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SLM.JO stock?

This week's biggest flags for Sanlam Limited: Weak revenue forecast, Dividend stretched, Small company. In total 10 of 25 checks show a warning or a red flag.

What does Sanlam Limited do?

Sanlam Limited is a Financial Services company (Insurance - Life) based in South Africa, listed on JNB as SLM.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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