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PAF

Pan African Resources AIM:PAF Stock Report

Last Price

UK£0.21

Market Cap

UK£437.8m

7D

5.5%

1Y

1.7%

Updated

25 May, 2022

Data

Company Financials +
PAF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health4/6
Dividends4/6

PAF Stock Overview

Pan African Resources PLC engages in the mining, extraction, production, and the sale of gold in South Africa.

Pan African Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pan African Resources
Historical stock prices
Current Share PriceUK£0.21
52 Week HighUK£0.24
52 Week LowUK£0.15
Beta0.90
1 Month Change4.98%
3 Month Change-6.64%
1 Year Change1.69%
3 Year Change129.47%
5 Year Change29.85%
Change since IPO502.86%

Recent News & Updates

Apr 05
Pan African Resources PLC's (LON:PAF) Intrinsic Value Is Potentially 52% Above Its Share Price

Pan African Resources PLC's (LON:PAF) Intrinsic Value Is Potentially 52% Above Its Share Price

Does the April share price for Pan African Resources PLC ( LON:PAF ) reflect what it's really worth? Today, we will...

Shareholder Returns

PAFGB Metals and MiningGB Market
7D5.5%2.5%-0.4%
1Y1.7%2.6%-3.0%

Return vs Industry: PAF matched the UK Metals and Mining industry which returned 2.6% over the past year.

Return vs Market: PAF exceeded the UK Market which returned -3% over the past year.

Price Volatility

Is PAF's price volatile compared to industry and market?
PAF volatility
PAF Average Weekly Movement7.5%
Metals and Mining Industry Average Movement8.5%
Market Average Movement6.0%
10% most volatile stocks in GB Market11.6%
10% least volatile stocks in GB Market3.1%

Stable Share Price: PAF is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PAF's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20002,104Cobus Lootshttps://www.panafricanresources.com

Pan African Resources PLC engages in the mining, extraction, production, and the sale of gold in South Africa. Its flagship projects include the Barberton gold project that consists of three underground mines, including Fairview, Sheba, and New Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. The company was incorporated in 2000 and is based in Johannesburg, South Africa.

Pan African Resources Fundamentals Summary

How do Pan African Resources's earnings and revenue compare to its market cap?
PAF fundamental statistics
Market CapUS$549.70m
Earnings (TTM)US$79.97m
Revenue (TTM)US$378.74m

6.5x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAF income statement (TTM)
RevenueUS$378.74m
Cost of RevenueUS$221.30m
Gross ProfitUS$157.43m
Other ExpensesUS$77.46m
EarningsUS$79.97m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 14, 2022

Earnings per share (EPS)0.041
Gross Margin41.57%
Net Profit Margin21.12%
Debt/Equity Ratio17.7%

How did PAF perform over the long term?

See historical performance and comparison

Dividends

4.8%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Pan African Resources undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


39.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PAF (£0.21) is trading below our estimate of fair value (£0.35)

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


Price To Earnings Ratio

PE vs Industry: PAF is poor value based on its Price-To-Earnings Ratio (6.5x) compared to the UK Metals and Mining industry average (6.2x).

PE vs Market: PAF is good value based on its Price-To-Earnings Ratio (6.5x) compared to the UK market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: PAF is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PAF is overvalued based on its Price-To-Book Ratio (1.9x) compared to the GB Metals and Mining industry average (1.5x).


Future Growth

How is Pan African Resources forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


4.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAF's forecast earnings growth (4.3% per year) is above the savings rate (0.9%).

Earnings vs Market: PAF's earnings (4.3% per year) are forecast to grow slower than the UK market (11.3% per year).

High Growth Earnings: PAF's earnings are forecast to grow, but not significantly.

Revenue vs Market: PAF's revenue (1.3% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: PAF's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PAF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Pan African Resources performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAF has high quality earnings.

Growing Profit Margin: PAF's current net profit margins (21.1%) are higher than last year (19.4%).


Past Earnings Growth Analysis

Earnings Trend: PAF's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: PAF's earnings growth over the past year (26.6%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: PAF earnings growth over the past year (26.6%) underperformed the Metals and Mining industry 42.5%.


Return on Equity

High ROE: PAF's Return on Equity (29.1%) is considered high.


Financial Health

How is Pan African Resources's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAF's short term assets ($61.9M) exceed its short term liabilities ($45.7M).

Long Term Liabilities: PAF's short term assets ($61.9M) do not cover its long term liabilities ($117.1M).


Debt to Equity History and Analysis

Debt Level: PAF's net debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: PAF's debt to equity ratio has increased from 16.9% to 17.7% over the past 5 years.

Debt Coverage: PAF's debt is well covered by operating cash flow (252.1%).

Interest Coverage: PAF's interest payments on its debt are well covered by EBIT (25.8x coverage).


Balance Sheet


Dividend

What is Pan African Resources's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.78%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PAF's dividend (4.78%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: PAF's dividend (4.78%) is low compared to the top 25% of dividend payers in the UK market (4.82%).


Stability and Growth of Payments

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

Growing Dividend: PAF's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.5%), PAF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (39.1%), PAF's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Cobus Loots (43 yo)

7.17yrs

Tenure

US$811,900

Compensation

Mr. Jacobus Albertus Johannes Loots, also known as Cobus, C.A.(S.A.), C.F.A. has been the Chief Executive Officer of Pan African Resources PLC since March 1, 2015 and served as its Financial Director since...


CEO Compensation Analysis

Compensation vs Market: Cobus's total compensation ($USD811.90K) is about average for companies of similar size in the UK market ($USD1.02M).

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


Leadership Team

Experienced Management: PAF's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: PAF's board of directors are considered experienced (7.2 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Pan African Resources PLC's employee growth, exchange listings and data sources


Key Information

  • Name: Pan African Resources PLC
  • Ticker: PAF
  • Exchange: AIM
  • Founded: 2000
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: UK£437.777m
  • Shares outstanding: 1.97b
  • Website: https://www.panafricanresources.com

Number of Employees


Location

  • Pan African Resources PLC
  • The Firs Building
  • 2nd Floor, Office 204
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/25 00:00
End of Day Share Price2022/05/25 00:00
Earnings2021/12/31
Annual Earnings2021/06/30


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.