DB:4H6

Stock Analysis Report

Executive Summary

Hulamin Limited manufactures and markets rolled and extruded aluminum products in South Africa, North America, Europe, Asia, the Middle East, Australasia, South America, and rest of Africa.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.6%

4H6

4.6%

DE Metals and Mining

1.7%

DE Market


1 Year Return

-51.8%

4H6

-28.5%

DE Metals and Mining

7.2%

DE Market

Return vs Industry: 4H6 underperformed the German Metals and Mining industry which returned -28.5% over the past year.

Return vs Market: 4H6 underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

4H6IndustryMarket
7 Day-5.6%4.6%1.7%
30 Day30.2%3.3%2.4%
90 Day-14.1%6.2%2.3%
1 Year-49.5%-51.8%-27.3%-28.5%10.6%7.2%
3 Year-50.2%-55.2%-31.8%-34.1%18.4%8.1%
5 Year-67.0%-71.6%-19.2%-23.7%42.3%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4H6 (€0.14) is trading below our estimate of fair value (€1.05)

Significantly Below Fair Value: 4H6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4H6 is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: 4H6 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 4H6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4H6 is good value based on its PB Ratio (0.2x) compared to the DE Metals and Mining industry average (4.1x).


Next Steps

Future Growth

How is Hulamin forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

109.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4H6 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 4H6 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 4H6 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 4H6's revenue (4.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 4H6's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4H6's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Hulamin performed over the past 5 years?

-15.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 4H6 is unprofitable, and losses have increased over the past 5 years at a rate of -15.4% per year.

Accelerating Growth: Unable to compare 4H6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 4H6 is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-7.4%).


Return on Equity

High ROE: 4H6 has a negative Return on Equity (-25.08%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 4H6 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 4H6 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Hulamin's financial position?


Financial Position Analysis

Short Term Liabilities: 4H6's short term assets (ZAR3.9B) exceeds its short term liabilities (ZAR1.9B)

Long Term Liabilities: 4H6's short term assets (3.9B) exceeds its long term liabilities (570.3M)


Debt to Equity History and Analysis

Debt Level: 4H6's debt to equity ratio (16.8%) is considered satisfactory

Reducing Debt: 4H6's debt to equity ratio has increased from 12.1% to 16.8% over the past 5 years.


Balance Sheet

Inventory Level: 4H6 has a high level of physical assets or inventory.

Debt Coverage by Assets: 4H6's debt is covered by short term assets (assets are 6.290260x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if 4H6 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 4H6 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

6.84%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%1.5%markettop25%3.8%industryaverage1.9%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 4H6's dividend (6.84%) is higher than the bottom 25% of dividend payers in the German market (1.48%).

High Dividend: 4H6's dividend (6.84%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: 4H6's dividend payments have been volatile in the past 10 years.

Growing Dividend: 4H6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: 4H6 is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: 4H6's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).


Next Steps

Management

What is the CEO of Hulamin's salary, the management and board of directors tenure and is there insider trading?

9.3yrs

Average management tenure


CEO

Richard Jacob (53yo)

9.3yrs

Tenure

SAR9,077,548

Compensation

Mr. Richard Gordon Jacob, BSc (Eng); MBA has been the Chief Executive Officer of Hulamin Limited since July 1, 2010. Mr. Jacob served as a Director of Can End and Painted at Hulett Aluminium (pty) Limited. ...


CEO Compensation Analysis

Compensation vs. Market: Richard's total compensation ($USD621.43K) is above average for companies of similar size in the German market ($USD209.32K).

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


Management Age and Tenure

9.3yrs

Average Tenure

45.5yo

Average Age

Experienced Management: 4H6's management team is seasoned and experienced (9.3 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 4H6's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuySAR5,02224 May 19
Richard Jacob
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares25,000
Max PriceSAR0.20
SellSAR6,41801 Nov 18
Zamani Mkhize
EntityIndividual
Role
Member of the Board of Directors
MD of Hulamin Rolled Products & Executive Director
Shares21,991
Max PriceSAR0.30
SellSAR5,28131 Oct 18
Zamani Mkhize
EntityIndividual
Role
Member of the Board of Directors
MD of Hulamin Rolled Products & Executive Director
Shares18,009
Max PriceSAR0.30

Ownership Breakdown


Management Team

  • Zamani Mkhize (58yo)

    MD of Hulamin Rolled Products & Executive Director

    • Tenure: 19.5yrs
    • Compensation: SAR5.99m
  • Richard Jacob (53yo)

    CEO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: SAR9.08m
  • Willem Fitchat

    Company Secretary

    • Tenure: 21.8yrs
  • Marlene Janneker (47yo)

    Group Executive of Human Capital

    • Tenure: 0yrs
  • Anton Krull (44yo)

    CFO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: SAR6.04m
  • Clayton Fisher (42yo)

    Group Executive of Strategy & Supply Chain

    • Tenure: 0yrs
  • Ayanda Mngadi (44yo)

    Group Executive of Corporate Affairs & Investor Relations

    • Tenure: 0yrs
  • L. Ncoliwe

    Head of Internal Audit

    • Tenure: 0yrs

Board Members

  • Sibusiso Ngwenya (65yo)

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: SAR279.26k
  • Zamani Mkhize (58yo)

    MD of Hulamin Rolled Products & Executive Director

    • Tenure: 19.5yrs
    • Compensation: SAR5.99m
  • Richard Jacob (53yo)

    CEO & Executive Director

    • Tenure: 9.3yrs
    • Compensation: SAR9.08m
  • Vusi Khumalo (56yo)

    Non Executive Director

    • Tenure: 13.2yrs
    • Compensation: SAR406.78k
  • Thabo Leeuw (56yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: SAR683.97k
  • Gando Angelina Matyumza (56yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: SAR440.26k
  • Anton Krull (44yo)

    CFO & Executive Director

    • Tenure: 3.4yrs
    • Compensation: SAR6.04m
  • Geoff Watson (68yo)

    Independent Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: SAR837.49k
  • Naran Maharajh (53yo)

    Independent Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: SAR399.34k
  • Charles Boles (50yo)

    Independent Non-Executive Director

    • Tenure: 3yrs
    • Compensation: SAR369.28k

Company Information

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


Key Information

  • Name: Hulamin Limited
  • Ticker: 4H6
  • Exchange: DB
  • Founded: 1935
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: SAR852.957m
  • Listing Market Cap: SAR52.413m
  • Shares outstanding: 324.32m
  • Website: https://www.hulamin.com

Number of Employees


Location

  • Hulamin Limited
  • Moses Mabhida Road
  • PO Box 74
  • Pietermaritzburg
  • KwaZulu-Natal
  • 3200
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLMJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2007
4H6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2007

Biography

Hulamin Limited manufactures and markets rolled and extruded aluminum products in South Africa, North America, Europe, Asia, the Middle East, Australasia, South America, and rest of Africa. It operates thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:01
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.