LSE:BWO

Stock Analysis Report

Executive Summary

Barloworld Limited distributes products that provide integrated rental, fleet management, product support, and logistics solutions in South Africa, rest of Africa, the Middle East, and Russia.

Snowflake

Fundamentals

Excellent balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

LSE:BWO

-1.3%

GB Trade Distributors

-1.1%

GB Market


1 Year Return

0%

LSE:BWO

-5.8%

GB Trade Distributors

-5.7%

GB Market

BWO outperformed the Trade Distributors industry which returned -5.2% over the past year.

BWO outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

BWOIndustryMarket
7 Day0%-1.3%-1.1%
30 Day0%-1.6%-4.4%
90 Day0%1.7%-2.7%
1 Year4.7%0%-1.9%-5.8%-1.3%-5.7%
3 Year13.2%0%33.3%20.9%17.6%3.9%
5 Year19.8%0%71.2%48.1%26.8%0.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Barloworld undervalued based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Barloworld's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Barloworld's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Barloworld is good value based on earnings compared to the GB Trade Distributors industry average.

Barloworld is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Barloworld is poor value based on expected growth next year.


Price Based on Value of Assets

Barloworld is good value based on assets compared to the GB Trade Distributors industry average.


Next Steps

Future Growth

How is Barloworld expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Barloworld's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Barloworld's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).

Barloworld's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Barloworld's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Barloworld's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Barloworld is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Barloworld performed over the past 5 years?

5.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Barloworld's year on year earnings growth rate has been positive over the past 5 years.

Barloworld's 1-year earnings growth exceeds its 5-year average (5.5% vs 5.4%)

Barloworld's earnings growth has not exceeded the GB Trade Distributors industry average in the past year (5.5% vs 5.7%).


Return on Equity

Barloworld has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Barloworld used its assets less efficiently than the GB Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Barloworld has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Barloworld's financial position?


Financial Position Analysis

Barloworld is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Barloworld's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Barloworld's level of debt (46.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (72.4% vs 46.5% today).

Debt is well covered by operating cash flow (34.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.6x debt.


Next Steps

Dividend

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

5.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Barloworld's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Barloworld's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Dominic Sewela (53yo)

2.5yrs

Tenure

SAR20,912,000

Compensation

Mr. Dominic Malentsha Sewela, BSc Chemical Engineering, has been the Chief Executive Officer of Barloworld Ltd. since February 8, 2017. Mr. Sewela served as Deputy Chief Executive Officer of Barloworld Ltd ...


CEO Compensation Analysis

Dominic's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Dominic's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

52.5yo

Average Age

The tenure for the Barloworld management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

60.5yo

Average Age

The tenure for the Barloworld board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuySAR1,636,84527 Feb 19
Barloworld Limited, Employee Share Ownership Plan
EntityCompany
Shares231,469
Max PriceSAR7.34
BuySAR28,16013 Dec 18
Dumisa Ntsebeza
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares4,500
Max PriceSAR6.26
BuySAR111,44304 Dec 18
Dominic Sewela
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares17,721
Max PriceSAR6.37
BuySAR1,10929 Nov 18
Sango Ntsaluba
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares885
Max PriceSAR1.25
BuySAR5,58328 Nov 18
Sango Ntsaluba
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares900
Max PriceSAR6.20
BuySAR27,61421 Nov 18
Dominic Sewela
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares4,315
Max PriceSAR6.42
BuySAR49,25317 Sep 18
Dominic Sewela
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares7,953
Max PriceSAR6.20

Ownership Breakdown


Management Team

  • Rob Tennant (62yo)

    Chief Information Officer and Chief Digital Officer

    • Tenure: 4.4yrs
  • Charles Nell (62yo)

    Chief Information Officer of Equipment

    • Tenure: 0.0yrs
  • Dominic Sewela (53yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR20.91m
  • Nopasika Lila (50yo)

    Group Finance Director

    • Tenure: 0.0yrs
  • Litha Nkombisa (52yo)

    Chief Executive of Motor Retail Southern Africa - Automotive & Logistics

    • Tenure: 0.0yrs
  • Andiswa Ndoni (53yo)

    Group Executive of Company Secretariat and Legal

    • Tenure: 0.6yrs
  • Emmy Leeka (50yo)

    Chief Executive Officer of Barloworld Equipment Southern Africa

    • Tenure: 6.8yrs
    • Compensation: SAR9.65m
  • Lauren Bobbert

    Communications & Marketing Officer

    • Tenure: 9.3yrs
  • Tantaswa Fubu (46yo)

    Group Executive of Human Capital

    • Tenure: 2.5yrs
  • Lethiwe Motloung

    Head of Group Communication & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Peter Schmid (56yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR1.72m
  • Dumisa Ntsebeza (69yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: SAR2.47m
  • Hester Hickey (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR732.00k
  • Dominic Sewela (53yo)

    CEO & Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR20.91m
  • Sango Ntsaluba (59yo)

    Independent Non-Executive Director

    • Tenure: 11.1yrs
    • Compensation: SAR1.04m
  • Don Wilson (62yo)

    Director

    • Tenure: 12.9yrs
    • Compensation: SAR10.87m
  • Ngozi Edozien (54yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: SAR1.23m
  • Nomavuso Mnxasana (62yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: SAR516.00k
  • Nee Hani Dongwana (47yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: SAR1.08m
  • Michael Lynch-Bell (65yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: SAR1.42m

Company Information

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


Key Information

  • Name: Barloworld Limited
  • Ticker: BWO
  • Exchange: LSE
  • Founded: 1902
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: SAR24.372b
  • Listing Market Cap: SAR1.306b
  • Shares outstanding: 219.27m
  • Website: https://www.barloworld.com

Number of Employees


Location

  • Barloworld Limited
  • 180 Katherine Street
  • Sandton
  • Gauteng
  • 2146
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRRA.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 1990
BAWPJSE (The Johannesburg Securities Exchange)6% CUM PRF ZAR2ZAZARJan 1992
BWOLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
BAWJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
BWLNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1992
BRL1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Barloworld Limited distributes products that provide integrated rental, fleet management, product support, and logistics solutions in South Africa, rest of Africa, the Middle East, and Russia. The company  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 20:47
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.