Hosken Consolidated Investments Valuation

Is HCI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HCI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HCI (ZAR195.24) is trading below our estimate of fair value (ZAR265.16)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HCI?

Key metric: As HCI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HCI. This is calculated by dividing HCI's market cap by their current earnings.
What is HCI's PE Ratio?
PE Ratio	24.2x
Earnings	R651.90m
Market Cap	R15.85b

HCI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	6.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does HCI's PE Ratio compare to its peers?

The above table shows the PE ratio for HCI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	11.2x
RLO Reunert	13.3x	16.9%	R13.0b
KAP KAP	7.4x	18.1%	R8.0b
BVT Bidvest Group	15x	8.5%	R94.1b
BAW Barloworld	9.2x	6.6%	R17.0b
HCI Hosken Consolidated Investments	24.2x	n/a	R15.9b

Price-To-Earnings vs Peers: HCI is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the peer average (11.2x).

Price to Earnings Ratio vs Industry

How does HCI's PE Ratio compare vs other companies in the Global Industrials Industry?

8 Companies	Price / Earnings	Estimated Growth	Market Cap

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: HCI is expensive based on its Price-To-Earnings Ratio (24.2x) compared to the Global Industrials industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is HCI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HCI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HCI's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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