Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to KSh320, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 13x in the Food industry in Africa. Total returns to shareholders of 301% over the past three years. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to KSh400, the stock trades at a trailing P/E ratio of 17.3x. Average trailing P/E is 13x in the Food industry in Africa. Total returns to shareholders of 351% over the past three years. Announcement • Aug 29
Kapchorua Tea Kenya Plc, Annual General Meeting, Aug 28, 2025 Kapchorua Tea Kenya Plc, Annual General Meeting, Aug 28, 2025, at 10:15 E. Africa Standard Time. New Risk • Jul 26
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 68% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 108% Cash payout ratio: 97% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.2% net profit margin). Market cap is less than US$100m (KSh2.59b market cap, or US$20.0m). Upcoming Dividend • Jul 25
Upcoming dividend of KSh25.00 per share Eligible shareholders must have bought the stock before 01 August 2025. Payment date: 02 September 2025. Payout ratio is a comfortable 59% but the company is paying out more than the cash it is generating. Trailing yield: 9.1%. Within top quartile of Kenyan dividend payers (9.0%). Higher than average of industry peers (3.3%). New Risk • Jul 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 8.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.3% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.5% net profit margin). Market cap is less than US$100m (KSh2.52b market cap, or US$19.5m). Valuation Update With 7 Day Price Move • Jul 03
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to KSh268, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 12x in the Food industry in Africa. Total returns to shareholders of 237% over the past three years. Declared Dividend • Jun 30
Dividend of KSh25.00 announced Shareholders will receive a dividend of KSh25.00. Ex-date: 1st August 2025 Payment date: 2nd September 2025 Dividend yield will be 11%, which is higher than the industry average of 6.4%. Sustainability & Growth The dividend has increased by an average of 28% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 59% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jun 29
Kapchorua Tea Kenya Plc announces Annual dividend, payable on September 02, 2025 Kapchorua Tea Kenya Plc announced Annual dividend of KES 25.0000 per share payable on September 02, 2025, ex-date on August 01, 2025 and record date on July 31, 2025. New Risk • May 27
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Dividend is not well covered by cash flows (157% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.5% net profit margin). Market cap is less than US$100m (KSh1.57b market cap, or US$12.1m). New Risk • Nov 10
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 37% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Shares are highly illiquid. Minor Risks Dividend is not well covered by cash flows (157% cash payout ratio). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.5% net profit margin). Market cap is less than US$100m (KSh1.94b market cap, or US$15.0m). Buy Or Sell Opportunity • Sep 30
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to KSh229. The fair value is estimated to be KSh294, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 60%. New Risk • Aug 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.4% average weekly change). Market cap is less than US$100m (KSh1.96b market cap, or US$15.1m). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to KSh225, the stock trades at a trailing P/E ratio of 4.4x. Average trailing P/E is 16x in the Food industry in Kenya. Total returns to shareholders of 263% over the past three years. Buy Or Sell Opportunity • Aug 06
Now 23% undervalued Over the last 90 days, the stock has risen 2.3% to KSh225. The fair value is estimated to be KSh294, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 60%. Upcoming Dividend • Jul 25
Upcoming dividend of KSh15.00 per share Eligible shareholders must have bought the stock before 01 August 2024. Payment date: 02 September 2024. Payout ratio is a comfortable 49% but the company is paying out more than the cash it is generating. Trailing yield: 12%. Lower than top quartile of Kenyan dividend payers (12%). Higher than average of industry peers (7.7%). Announcement • Jun 29
Kapchorua Tea Kenya Plc, Annual General Meeting, Aug 22, 2024 Kapchorua Tea Kenya Plc, Annual General Meeting, Aug 22, 2024, at 10:15 E. Africa Standard Time. New Risk • Jun 04
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.1% average weekly change). Market cap is less than US$100m (KSh1.83b market cap, or US$14.0m). Buy Or Sell Opportunity • Apr 17
Now 22% overvalued The stock has been flat over the last 90 days, currently trading at KSh233. The fair value is estimated to be KSh191, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 76%. Buy Or Sell Opportunity • Mar 21
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 7.0% to KSh230. The fair value is estimated to be KSh191, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 76%. Buy Or Sell Opportunity • Feb 22
Now 21% overvalued Over the last 90 days, the stock has fallen 3.3% to KSh232. The fair value is estimated to be KSh191, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 76%. Upcoming Dividend • Dec 01
Upcoming dividend of KSh10.00 per share at 8.4% yield Eligible shareholders must have bought the stock before 08 December 2023. Payment date: 13 December 2023. Payout ratio is a comfortable 62% and the cash payout ratio is 87%. Trailing yield: 8.4%. Lower than top quartile of Kenyan dividend payers (12%). In line with average of industry peers (7.7%). New Risk • Nov 21
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Kenyan stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (23% accrual ratio). Minor Risks Dividend is not well covered by cash flows (440% cash payout ratio). Share price has been volatile over the past 3 months (7.5% average weekly change). Market cap is less than US$100m (KSh1.87b market cap, or US$12.2m). Upcoming Dividend • Aug 17
Upcoming dividend of KSh25.00 per share at 11% yield Eligible shareholders must have bought the stock before 24 August 2023. Payment date: 04 September 2023. Payout ratio is a comfortable 62% but the company is paying out more than the cash it is generating. Trailing yield: 11%. Within top quartile of Kenyan dividend payers (11%). Higher than average of industry peers (7.8%). Reported Earnings • Jul 13
Full year 2023 earnings released: EPS: KSh40.20 (vs KSh27.35 in FY 2022) Full year 2023 results: EPS: KSh40.20 (up from KSh27.35 in FY 2022). Revenue: KSh1.77b (up 25% from FY 2022). Net income: KSh314.5m (up 47% from FY 2022). Profit margin: 18% (up from 15% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 87% per year but the company’s share price has only increased by 39% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to KSh188, the stock trades at a trailing P/E ratio of 4.8x. Average trailing P/E is 8x in the Food industry in Kenya. Total returns to shareholders of 216% over the past three years. Valuation Update With 7 Day Price Move • Jan 31
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to KSh120, the stock trades at a trailing P/E ratio of 3.1x. Average trailing P/E is 13x in the Food industry in Kenya. Total returns to shareholders of 115% over the past three years. Board Change • Dec 07
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Nov 17
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment improved over the past week After last week's 18% share price gain to KSh124, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 16x in the Food industry in Kenya. Total returns to shareholders of 131% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 20% share price gain to KSh107, the stock trades at a trailing P/E ratio of 18.4x. Average trailing P/E is 17x in the Food industry in Kenya. Total returns to shareholders of 86% over the past three years. Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment deteriorated over the past week After last week's 15% share price decline to KSh81.00, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 15x in the Food industry in Kenya. Total returns to shareholders of 85% over the past three years. Board Change • Apr 28
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Dec 22
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Dec 07
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Dec 01
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (up KSh12.7m from 1H 2021). Profit margin: (up from net loss in 1H 2021). Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improved over the past week After last week's 15% share price gain to KSh98.00, the stock trades at a trailing P/E ratio of 39.5x. Average trailing P/E is 34x in the Food industry in Kenya. Total returns to shareholders of 95% over the past three years. Is New 90 Day High Low • Feb 17
New 90-day high: KSh85.00 The company is up 19% from its price of KSh71.50 on 19 November 2020. The Kenyan market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Food industry, which is up 2.0% over the same period.