Q: Can you please tell me your opinion of Sagicor. It is thinly traded for a company of this size. It was recommended in a Globe article as a good dividend payer with low PE, etc. There is not much forum commentary on this company within 5i, or other stock forum's for example. I would appreciate your insight. Thank you.
5i Research Answer:
We would agree with the Globe article as SFC offers a cheap valuation at 6.8x and a good yield of 3.28%. We like the outlook for the financials industry in 2024 and SFC has even performed strong in the last year with a total return of 50.8%. SFC's forecast predicts high revenue and earnings growth in 2024. Revenues have grown at a high rate of 179% in 2023. We think SFC is a solid small cap income play that offers growth upside in 2024.