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  5. SFC: Checking in again to get your thoughts on Sagicor. [Sagicor Financial Company Ltd.]
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Investment Q&A

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Q: Checking in again to get your thoughts on Sagicor. They just reported earnings and RBC just increased the PT to $8.00 (shares currently at $4.35). Do you agree with RBC that the shares are undervalued and what are your thoughts overall on SFC (I own it mostly for the nice 7% dividend).
Asked by Randy on August 17, 2023
5i Research Answer:

SFC is certainly cheap at 7X earnings. But that being said, we note it is still below its $10 IPO price in 2017. It reiterated guidance, swung to a profit in the 2Q, and announced a share buyback. EPS is expected to dip this year, before an expected fairly strong recovery in 2024. We find it interesting, but with the stock down 20% this year we are in a small group. We think a catalyst is needed here. The buyback will help if the company does all 10% allowed. The dividend of course is attractive but we would like to see better growth. Insiders own 10% and JMMB Group owns 23%, so the float is fairly small, which may be one drawback to attracting interest. We would consider it 'OK' for small cap income, but would focus on income here and not expect big gains.