Tiger Brands Limited's (JSE:TBS) Price Is Out Of Tune With Earnings
Jul 19
South African (JSE) Food Industry Analysis
UpdatedJul 28, 2024
DataAggregated Company Financials
Companies14
- 7D-0.4%
- 3M8.1%
- 1Y22.6%
- YTD12.0%
Over the last 7 days, the Food industry has remained flat, although notably Astral Foods gained 4.0%. The past year has been better, since the industry has gained 23% in that time. Looking forward, 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 |
|---|---|---|---|---|---|---|
| Sun, 28 Jul 2024 | R114.8b | R194.9b | R8.8b | 9.9x | 13.1x | 0.6x |
| Tue, 25 Jun 2024 | R112.7b | R181.4b | R8.9b | 9.9x | 12.7x | 0.6x |
| Thu, 23 May 2024 | R106.0b | R181.3b | R8.3b | 9.4x | 12.8x | 0.6x |
| Sat, 20 Apr 2024 | R101.7b | R180.9b | R8.0b | 9.5x | 12.7x | 0.6x |
| Mon, 18 Mar 2024 | R106.2b | R180.9b | R8.0b | 9x | 13.3x | 0.6x |
| Wed, 14 Feb 2024 | R102.4b | R178.7b | R7.2b | 9.7x | 14.3x | 0.6x |
| Fri, 12 Jan 2024 | R100.1b | R194.5b | R5.9b | 10.5x | 17x | 0.5x |
| Sun, 10 Dec 2023 | R97.7b | R194.5b | R5.9b | 10.5x | 16.6x | 0.5x |
| Tue, 07 Nov 2023 | R91.0b | R192.7b | R7.0b | 9.7x | 13x | 0.5x |
| Thu, 05 Oct 2023 | R89.5b | R192.7b | R7.0b | 9.4x | 12.8x | 0.5x |
| Sat, 02 Sep 2023 | R94.0b | R191.1b | R7.3b | 9.4x | 13x | 0.5x |
| Mon, 31 Jul 2023 | R91.4b | R191.1b | R7.3b | 9.4x | 12.6x | 0.5x |
| Wed, 28 Jun 2023 | R90.1b | R191.2b | R7.5b | 9.4x | 12.1x | 0.5x |
| Fri, 26 May 2023 | R90.9b | R168.2b | R6.5b | 10.1x | 14.1x | 0.5x |
| Sun, 23 Apr 2023 | R96.9b | R167.6b | R6.9b | 10.7x | 13.9x | 0.6x |
| Tue, 21 Mar 2023 | R86.2b | R167.6b | R7.0b | 10.3x | 12.4x | 0.5x |
| Thu, 16 Feb 2023 | R95.1b | R161.5b | R7.7b | 10.9x | 12.3x | 0.6x |
| Sat, 14 Jan 2023 | R97.9b | R161.5b | R7.7b | 10.7x | 12.7x | 0.6x |
| Mon, 12 Dec 2022 | R96.2b | R160.9b | R7.7b | 10x | 12.4x | 0.6x |
| Wed, 09 Nov 2022 | R90.4b | R154.7b | R6.1b | 10.5x | 14.9x | 0.6x |
| Fri, 07 Oct 2022 | R89.1b | R154.6b | R6.1b | 10x | 14.7x | 0.6x |
| Sun, 04 Sep 2022 | R87.2b | R152.1b | R6.1b | 10.2x | 14.3x | 0.6x |
| Tue, 02 Aug 2022 | R85.0b | R151.5b | R6.3b | 10.2x | 13.5x | 0.6x |
| Thu, 30 Jun 2022 | R80.0b | R151.5b | R6.2b | 10.5x | 12.8x | 0.5x |
| Sat, 28 May 2022 | R81.9b | R151.4b | R6.5b | 9.9x | 12.6x | 0.5x |
| Mon, 25 Apr 2022 | R84.1b | R148.8b | R6.1b | 10.2x | 13.8x | 0.6x |
| Wed, 23 Mar 2022 | R87.2b | R148.7b | R5.8b | 10.2x | 15.1x | 0.6x |
| Fri, 18 Feb 2022 | R95.1b | R148.2b | R5.5b | 13.1x | 17.3x | 0.6x |
| Sun, 16 Jan 2022 | R97.7b | R148.2b | R5.5b | 12x | 17.8x | 0.7x |
| Tue, 14 Dec 2021 | R92.4b | R132.8b | R6.8b | 10.7x | 13.7x | 0.7x |
| Thu, 11 Nov 2021 | R100.2b | R131.4b | R7.2b | 11.4x | 13.9x | 0.8x |
| Sat, 09 Oct 2021 | R99.9b | R131.4b | R7.2b | 11.5x | 13.8x | 0.8x |
| Mon, 06 Sep 2021 | R92.3b | R131.4b | R7.2b | 10x | 12.8x | 0.7x |
| Wed, 04 Aug 2021 | R92.0b | R131.4b | R7.2b | 10x | 12.7x | 0.7x |
Price to Earnings Ratio
12.7x
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 13.1x which is lower than its 3-year average PE of 14.6x.
- The industry is trading close to its 3-year average PS ratio of 0.61x.
Past Earnings Growth
- The earnings for companies in the Food industry have grown 6.7% per year over the last three years.
- Revenues for these companies have grown 14% 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 | 1.88% | |
| Consumer Staples | 1.51% | |
| Food | -0.36% | |
| Agricultural Products | 0.43% | |
| Packaged Foods and Meats | -0.37% | |
Industry PE
- Investors are most optimistic about the Agricultural Products industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Packaged Foods and Meats industry, which is trading close to its 3-year average of 14.5x.
Forecasted Growth
- Analysts are most optimistic on the Packaged Foods and Meats industry, expecting annual earnings growth of 13% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- 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 | |
|---|---|---|---|---|---|
| ARL Astral Foods | R170.81 | 4.0% +R252.5m | 4.8% | PS0.3x | |
| OCE Oceana Group | R69.00 | 2.6% +R209.4m | 0.3% | PE6.4x | |
| RFG RFG Holdings | R15.30 | 2.7% +R104.0m | 49.6% | PE7.6x | |
| AVI AVI | R96.87 | 0.2% +R76.0m | 35.5% | PE15.8x | |
| CKS Crookes Brothers | R35.30 | 0.4% +R2.3m | 21.7% | PE23.9x |
