DB:N09

Stock Analysis Report

Executive Summary

Novus Holdings Limited engages in the printing and manufacturing businesses in South Africa and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Novus Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: N09's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

N09

1.3%

DE Commercial Services

-0.2%

DE Market


1 Year Return

-58.3%

N09

-6.5%

DE Commercial Services

13.7%

DE Market

Return vs Industry: N09 underperformed the German Commercial Services industry which returned -6.5% over the past year.

Return vs Market: N09 underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

N09IndustryMarket
7 Day1.5%1.3%-0.2%
30 Day-10.6%-1.6%0.3%
90 Day-18.5%3.6%3.7%
1 Year-52.8%-58.3%-3.2%-6.5%17.2%13.7%
3 Yearn/a13.0%3.2%15.4%5.3%
5 Yearn/a3.6%-10.9%21.3%4.7%

Price Volatility Vs. Market

How volatile is Novus Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Novus Holdings undervalued compared to its fair value and its price relative to the market?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: N09 (€0.1) is trading below our estimate of fair value (€0.17)

Significantly Below Fair Value: N09 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: N09 is good value based on its PE Ratio (7.1x) compared to the Commercial Services industry average (31.8x).

PE vs Market: N09 is good value based on its PE Ratio (7.1x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate N09's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: N09 is good value based on its PB Ratio (0.2x) compared to the DE Commercial Services industry average (3.3x).


Next Steps

Future Growth

How is Novus Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.8%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Novus Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Novus Holdings performed over the past 5 years?

-36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: N09 has high quality earnings.

Growing Profit Margin: N09 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: N09's earnings have declined by -36% per year over the past 5 years.

Accelerating Growth: N09 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: N09 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (10.9%).


Return on Equity

High ROE: N09's Return on Equity (3.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Novus Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: N09's short term assets (ZAR1.7B) exceed its short term liabilities (ZAR826.4M).

Long Term Liabilities: N09's short term assets (ZAR1.7B) exceed its long term liabilities (ZAR397.6M).


Debt to Equity History and Analysis

Debt Level: N09's debt to equity ratio (14.6%) is considered satisfactory.

Reducing Debt: N09's debt to equity ratio has increased from 11.3% to 14.6% over the past 5 years.

Debt Coverage: N09's debt is well covered by operating cash flow (39%).

Interest Coverage: N09's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: N09 has a high level of physical assets or inventory.

Debt Coverage by Assets: N09's debt is covered by short term assets (assets are 4.4x debt).


Next Steps

Dividend

What is Novus Holdings's current dividend yield, its reliability and sustainability?

13.64%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: N09's dividend (13.64%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: N09's dividend (13.64%) is in the top 25% of dividend payers in the German market (3.65%)


Stability and Growth of Payments

Stable Dividend: N09 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: N09 has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (96.1%), N09's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Neil Birch (58yo)

1.7yrs

Tenure

R4,826,000

Compensation

Mr. Neil William Birch, BSc (Hons) (Eng), served as the Chief Executive of Paperplus -South Africa at The Bidvest Group Limited and served as its Chief Executive of Bidpaper Plus. Mr. Birch has more than 2 ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD318.40K) is about average for companies of similar size in the German market ($USD412.50K).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Neil Birch
CEO & Director1.7yrsR4.83m0.54% ZAR230.3k
Harry Todd
CFO & Executive Director1.3yrsR3.30mno data
Peter Metcalfe
Group Executive of Sales0yrsno datano data
Ralph Ruthford
Group Executive of Human Resources2.1yrsno datano data
Pierre van der Walt
Group Head of Projects0yrsno datano data
Melonie Brink
Company Secretary1.3yrsno datano data
Keshree Alwar
Group Financial Manager1.3yrsno datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Management: N09's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Neil Birch
CEO & Director1.7yrsR4.83m0.54% ZAR230.3k
Harry Todd
CFO & Executive Director1.3yrsR3.30mno data
Keshree Alwar
Group Financial Manager1.3yrsno datano data
Christoffel Botha
Independent Non-Executive Director4yrsR588.00kno data
Sandile Donald Zungu
Independent Non-Executive Director5yrsR443.00kno data
Phumla Mnganga
Chairman0.8yrsno datano data
H. Mtanga
Independent Non-Executive Director2.6yrsR508.00kno data
Noluvuyo Mkhondo
Non-Independent Non-Executive Director2.2yrsR298.00kno data
Dennis Mack
Independent Non-Executive Director1.5yrsR282.00kno data

2.2yrs

Average Tenure

51yo

Average Age

Experienced Board: N09's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Novus Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Novus Holdings Limited
  • Ticker: N09
  • Exchange: DB
  • Founded: 1905
  • Industry: Commercial Printing
  • Sector: Commercial Services
  • Market Cap: R693.875m
  • Listing Market Cap: R42.420m
  • Shares outstanding: 315.40m
  • Website: https://www.novus.holdings

Number of Employees


Location

  • Novus Holdings Limited
  • 10 Freedom Way
  • Milnerton
  • Western Cape
  • 7441
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NVSJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 2015
N09DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015

Biography

Novus Holdings Limited engages in the printing and manufacturing businesses in South Africa and internationally. The company operates through Printing, Packaging, and Other segments. It offers gravure, heatset, coldset, sheet-fed, and digital printing services. The company prints books and directories, magazines, newspapers, leaflets, flyers, newsletters, textbooks, workbooks, examination papers, answer books, and retail and promotional catalogues, as well as security materials, such as ballot papers, voter registration forms, census forms, and other confidential materials. It is also involved in the printing of self-adhesive, wet-glue, wrap-around, and digital personalized labels; and manufacture and supply of flexible packaging solutions, such as boutique/retail, security, and carrier bags, as well as form, fill, and seal bags for wine, beverage, petrochemical, and FMCG markets. In addition, the company manufactures bulk tissue and jumbo wadding products; and operates training institution that offers a range of technical, life skills, management, leadership, and IT and systems courses and programs. Novus Holdings Limited was founded in 1905 and is based in Milnerton, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:50
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.