Tiger Brands (JSE:TBS) Strong Profits May Be Masking Some Underlying Issues
Jun 03
South African (JSE) Food Industry Analysis
UpdatedJun 03, 2024
DataAggregated Company Financials
Companies13
- 7D-4.1%
- 3M-0.9%
- 1Y18.6%
- YTD2.0%
Over the last 7 days, the Food industry has dropped 4.1%, driven by Tiger Brands declining 2.4%. Meanwhile, Quantum Foods Holdings actually outperformed within the industry, gaining 23% in the last week. Over the past 12 months, the industry was up 19%. Earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the South African Food Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 04 Jun 2024 | R101.3b | R180.8b | R8.5b | 9.6x | 12x | 0.6x |
| Thu, 02 May 2024 | R105.6b | R180.9b | R8.0b | 9.5x | 13.2x | 0.6x |
| Sat, 30 Mar 2024 | R104.7b | R180.9b | R8.0b | 9.2x | 13.1x | 0.6x |
| Mon, 26 Feb 2024 | R102.0b | R178.7b | R7.2b | 10.2x | 14.2x | 0.6x |
| Wed, 24 Jan 2024 | R101.6b | R194.5b | R5.9b | 10.8x | 17.2x | 0.5x |
| Fri, 22 Dec 2023 | R99.1b | R194.5b | R5.9b | 10.5x | 16.8x | 0.5x |
| Sun, 19 Nov 2023 | R93.0b | R193.4b | R7.0b | 9.7x | 13.2x | 0.5x |
| Tue, 17 Oct 2023 | R88.7b | R192.7b | R7.0b | 9.3x | 12.7x | 0.5x |
| Thu, 14 Sep 2023 | R91.1b | R192.7b | R7.0b | 9.3x | 13x | 0.5x |
| Sat, 12 Aug 2023 | R91.9b | R191.1b | R7.3b | 9.1x | 12.7x | 0.5x |
| Mon, 10 Jul 2023 | R91.7b | R191.1b | R7.3b | 9.4x | 12.6x | 0.5x |
| Wed, 07 Jun 2023 | R85.7b | R173.3b | R6.7b | 9.2x | 12.8x | 0.5x |
| Fri, 05 May 2023 | R94.7b | R167.6b | R6.9b | 10.6x | 13.6x | 0.6x |
| Sun, 02 Apr 2023 | R98.8b | R167.6b | R7.0b | 10.7x | 14.2x | 0.6x |
| Tue, 28 Feb 2023 | R96.8b | R161.5b | R7.7b | 10x | 12.6x | 0.6x |
| Thu, 26 Jan 2023 | R95.3b | R161.5b | R7.7b | 10.9x | 12.4x | 0.6x |
| Sat, 24 Dec 2022 | R95.5b | R161.5b | R7.7b | 9.8x | 12.4x | 0.6x |
| Mon, 21 Nov 2022 | R91.4b | R154.6b | R6.1b | 10.3x | 15x | 0.6x |
| Wed, 19 Oct 2022 | R89.7b | R154.6b | R6.1b | 9.8x | 14.8x | 0.6x |
| Fri, 16 Sep 2022 | R87.6b | R154.7b | R6.1b | 10.5x | 14.5x | 0.6x |
| Sun, 14 Aug 2022 | R86.2b | R151.5b | R6.3b | 10.1x | 13.7x | 0.6x |
| Tue, 12 Jul 2022 | R81.6b | R151.5b | R6.2b | 10.5x | 13.1x | 0.5x |
| Thu, 09 Jun 2022 | R82.3b | R151.2b | R6.3b | 10.3x | 13.1x | 0.5x |
| Sat, 07 May 2022 | R80.9b | R148.8b | R6.1b | 9.7x | 13.3x | 0.5x |
| Mon, 04 Apr 2022 | R87.2b | R148.8b | R6.1b | 10.3x | 14.3x | 0.6x |
| Wed, 02 Mar 2022 | R93.7b | R148.2b | R5.5b | 13x | 17.1x | 0.6x |
| Fri, 28 Jan 2022 | R96.2b | R148.2b | R5.5b | 12.6x | 17.6x | 0.6x |
| Sun, 26 Dec 2021 | R94.1b | R132.8b | R6.8b | 12x | 13.9x | 0.7x |
| Tue, 23 Nov 2021 | R100.9b | R132.7b | R6.8b | 11.2x | 14.8x | 0.8x |
| Thu, 21 Oct 2021 | R97.8b | R131.4b | R7.2b | 11.2x | 13.5x | 0.7x |
| Sat, 18 Sep 2021 | R98.1b | R131.4b | R7.2b | 10.1x | 13.6x | 0.7x |
| Mon, 16 Aug 2021 | R90.8b | R131.4b | R7.2b | 10x | 12.6x | 0.7x |
Price to Earnings Ratio
15.2x
Current Industry PE
- Investors are pessimistic on the South African Food industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 12.0x which is lower than its 3-year average PE of 14.7x.
- The industry is trading close to its 3-year average PS ratio of 0.62x.
Past Earnings Growth
- The earnings for companies in the Food industry have grown 12% per year over the last three years.
- Revenues for these companies have grown 12% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Consumer Staples industry?
| ZA Market | -3.99% | |
| Consumer Staples | -3.12% | |
| Food | -4.06% | |
| Agricultural Products | 3.13% | |
| Packaged Foods and Meats | -4.09% | |
Industry PE
- Investors are most optimistic about the Packaged Foods and Meats industry even though it's trading below its 3-year average PE ratio of 14.6x.
- Analysts are expecting annual earnings growth of 12.7%, which is lower than the prior year's growth of 19.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Packaged Foods and Meats industry, expecting annual earnings growth of 13% over the next 5 years.
- However this is lower than its past earnings growth rate of 20% per year.
- In contrast, the Packaged Foods and Meats industry is expected to see its earnings grow by 13% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| QFH Quantum Foods Holdings | R16.00 | 23.1% +R599.8m | 263.6% | PE1125.2x | |
| CKS Crookes Brothers | R33.00 | 3.1% +R15.1m | 3.1% | PS0.7x |