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Transaction Capital

Updated: Mar 8, 2022

This is another interesting investment for me!

Transaction Capital is a financial services group in South Africa that specializes in asset-backed lending and niche risk services. The Company focuses on credit-orientated assets with an investment approach to generate risk-adjusted interest returns (measures the profit your investment has made relative to the amount of risk the investment has) and capital appreciation services (rise in an investment’s market price). It provides non-deposit taking financial services in South Africa and Australia

Divisions include vehicle finance, insurance and related products business SA Taxi, as well as Transaction Capital Risk Services, a technology, online and data analytics driven provider of customer management and capital solutions.

With 75.5% invested in SA Taxi to empower small and medium-sized minibus taxi operators, thus supporting the sustainability of the minibus taxi industry with technology, finance, insurance and other services. This is still and will be for long a big industry in South-Africa. The challenges within this sector is real but it’s one we can’t go without.

With 74.2% invested in WeBuyCars trading in the used vehicle industry. With new vehicle prices increasing and shortage in supply, more consumers are buying used vehicles, thus driving growth in the used vehicle market. The number of vehicles purchased and sold has continued to grow year-on-year. WeBuyCars’ e-commerce platform and vehicle finance will support even higher growth.

100 % Shareholding in Transaction Capital Risk Services. The business is now structured to deliver in the three key areas of collections, transactions and business process outsource services.

Finally - I like this stock…

Some Financial Advisors will be including this stock in their portfolios, please do your research and decide if you want this stock to be part of your portfolio. It is currently not overvalued with a PE of around 13 with a dividend yield at 1.19%. The ROA stands at 8.22 a very good return on assets and ROE on 29.59 this is good in the finance sector and a Net Margin of 34.63 and not very volatile with a Beta of 0.7.

See my post regarding key indicators.

Happy Investing!

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