OTCPK:BRRA.Y

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

Solid track record with excellent balance sheet and pays a dividend.

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

4.1%

BRRA.Y

5.2%

US Trade Distributors

1.3%

US Market


1 Year Return

1.2%

BRRA.Y

-0.7%

US Trade Distributors

5.9%

US Market

Return vs Industry: BRRA.Y exceeded the US Trade Distributors industry which returned -0.7% over the past year.

Return vs Market: BRRA.Y underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

BRRA.YIndustryMarket
7 Day4.1%5.2%1.3%
30 Day-0.9%-2.4%-1.9%
90 Day-8.0%1.9%-1.8%
1 Year3.8%1.2%1.1%-0.7%8.3%5.9%
3 Year47.1%37.9%41.2%35.2%45.6%36.2%
5 Year13.0%-0.5%32.7%23.2%66.1%47.9%

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 compared to its fair value and its price relative to the market?

11.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BRRA.Y ($8.34) is trading above our estimate of fair value ($8.03)

Significantly Undervalued: BRRA.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRRA.Y is good value based on its PE Ratio (11.3x) compared to the Trade Distributors industry average (16x).

PE vs Market: BRRA.Y is good value based on its PE Ratio (11.3x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: BRRA.Y is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: BRRA.Y is good value based on its PB Ratio (1.1x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

How is Barloworld forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRRA.Y's forecast earnings growth (10.2% per year) is above the savings rate (2.7%).

Earnings vs Market: BRRA.Y's earnings (10.2% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: BRRA.Y's revenue (6.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: BRRA.Y's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BRRA.Y's Return on Equity is forecast to be low in 3 years time (11.8%).


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

Earnings Trend: BRRA.Y's earnings have grown by 5.4% per year over the past 5 years.

Accelerating Growth: BRRA.Y's earnings growth over the past year (5.5%) exceeds its 5-year average (5.4% per year).

Earnings vs Industry: BRRA.Y earnings growth over the past year (5.5%) exceeded the Trade Distributors industry 0.9%.


Return on Equity

High ROE: BRRA.Y's Return on Equity (9.6%) is considered low.


Return on Assets

ROA vs Industry: BRRA.Y has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: BRRA.Y has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Barloworld's financial position?


Financial Position Analysis

Short Term Liabilities: BRRA.Y's short term assets (ZAR28.3B) exceeds its short term liabilities (ZAR15.1B)

Long Term Liabilities: BRRA.Y's short term assets (28.3B) exceeds its long term liabilities (9.5B)


Debt to Equity History and Analysis

Debt Level: BRRA.Y's debt to equity ratio (46.5%) is considered high

Reducing Debt: BRRA.Y's debt to equity ratio has reduced from 72.4% to 46.5% over the past 5 years.

Debt Coverage: BRRA.Y's debt is well covered by operating cash flow (34.1%).

Interest Coverage: BRRA.Y's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: BRRA.Y's debt is covered by short term assets (assets are 2.628640x debt).


Next Steps

Dividend

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

3.95%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage2.7%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BRRA.Y's dividend (3.95%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: BRRA.Y's dividend (3.95%) is in the top 25% of dividend payers in the US market (3.77%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), BRRA.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRRA.Y's dividends in 3 years are forecast to be well covered by earnings (42.7% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Dominic Sewela (53yo)

2.7yrs

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

Compensation vs. Market: Dominic's total compensation ($USD1.41M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Dominic's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: BRRA.Y's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: BRRA.Y's board of directors are considered experienced (5.6 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.


Ownership Breakdown


Management Team

  • Rob Tennant (62yo)

    Chief Information Officer and Chief Digital Officer

    • Tenure: 4.6yrs
  • Charles Nell (62yo)

    Chief Information Officer of Equipment

    • Tenure: 0yrs
  • Dominic Sewela (53yo)

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: SAR20.91m
  • Nopasika Lila (50yo)

    Group Finance Director

    • Tenure: 0.2yrs
  • Litha Nkombisa (52yo)

    Chief Executive of Motor Retail Southern Africa - Automotive & Logistics

    • Tenure: 0yrs
  • Andiswa Ndoni (53yo)

    Group Executive of Company Secretariat and Legal

    • Tenure: 0.8yrs
  • Emmy Leeka (50yo)

    Chief Executive Officer of Barloworld Equipment Southern Africa

    • Tenure: 7yrs
    • Compensation: SAR9.65m
  • Lauren Bobbert

    Communications & Marketing Officer

    • Tenure: 9.4yrs
  • Tantaswa Fubu (46yo)

    Group Executive of Human Capital

    • Tenure: 2.7yrs
  • Lethiwe Motloung

    Head of Group Communication & Investor Relations

    • Tenure: 0yrs

Board Members

  • Peter Schmid (56yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR1.72m
  • Dumisa Ntsebeza (69yo)

    Chairman of the Board

    • Tenure: 12.3yrs
    • Compensation: SAR2.47m
  • Hester Hickey (65yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR732.00k
  • Dominic Sewela (53yo)

    CEO & Executive Director

    • Tenure: 2.7yrs
    • Compensation: SAR20.91m
  • Sango Ntsaluba (59yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: SAR1.04m
  • Don Wilson (62yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: SAR10.87m
  • Ngozi Edozien (54yo)

    Independent Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: SAR1.23m
  • Nomavuso Mnxasana (62yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: SAR516.00k
  • Nee Hani Dongwana (47yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: SAR1.08m
  • Michael Lynch-Bell (65yo)

    Independent Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: SAR1.42m

Company Information

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


Key Information

  • Name: Barloworld Limited
  • Ticker: BRRA.Y
  • Exchange: OTCPK
  • Founded: 1902
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: SAR25.624b
  • Listing Market Cap: SAR1.729b
  • 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 Analysis2019/10/14 23:47
End of Day Share Price2019/10/14 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.