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HDC

Hudaco IndustriesJSE:HDC Stock Report

Market Cap

R4.0b

7D

2.0%

1Y

73.9%

Updated

21 Oct, 2021

Data

Company Financials
HDC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

HDC Overview

Hudaco Industries Limited imports and distributes automotive, industrial, and electrical consumable products primarily in the southern African region.

Price History & Performance

Summary of all time highs, changes and price drops for Hudaco Industries
Historical stock prices
Current Share PriceR133.91
52 Week HighR68.00
52 Week LowR139.88
Beta0.61
1 Month Change7.99%
3 Month Change-1.44%
1 Year Change73.91%
3 Year Change-5.03%
5 Year Change21.75%
Change since IPO1,117.36%

Recent News & Updates

Shareholder Returns

HDCZA Trade DistributorsZA Market
7D2.0%-0.8%0.9%
1Y73.9%91.7%19.9%

Return vs Industry: HDC underperformed the ZA Trade Distributors industry which returned 91.7% over the past year.

Return vs Market: HDC exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is HDC's price volatile compared to industry and market?
HDC volatility
HDC Beta0.61
Industry Beta0.79
Market Beta1

Stable Share Price: HDC is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HDC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18913,587Graham Dunfordhttps://www.hudaco.co.za

Hudaco Industries Limited imports and distributes automotive, industrial, and electrical consumable products primarily in the southern African region. It operates through two segments, Consumer-Related Products and Engineering Consumables. The Consumer-Related Products segment distributes clutch kits, automotive ignition leads, oil and hydraulic seals, wheels, brake and clutch hydraulics, mountings, bushes, hydraulic repair kits, cylinders, hoses, CV joints, wheel hubs, suspension components, and vehicle components to the automotive and industrial after-market; lead acid, solar batteries, chargers, and battery management equipment; power tools, marine engines, survey instruments, rivets, and fasteners; and intrusion detection, access control, fire detection, and surveillance/CCTV solutions, including IP/GSM network and support services.

Hudaco Industries Fundamentals Summary

How do Hudaco Industries's earnings and revenue compare to its market cap?
HDC fundamental statistics
Market CapR4.00b
Earnings (TTM)R478.56m
Revenue (TTM)R7.00b

8.4x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HDC income statement (TTM)
RevenueR7.00b
Cost of RevenueR4.43b
Gross ProfitR2.57b
ExpensesR2.09b
EarningsR478.56m

Dividends

3.6%

Current Dividend Yield

42%

Payout Ratio

Valuation

Is Hudaco Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HDC (ZAR133.91) is trading below our estimate of fair value (ZAR781.99)

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


Price To Earnings Ratio

PE vs Industry: HDC is poor value based on its PE Ratio (8.4x) compared to the ZA Trade Distributors industry average (8x).

PE vs Market: HDC is good value based on its PE Ratio (8.4x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HDC is overvalued based on its PB Ratio (1.5x) compared to the ZA Trade Distributors industry average (0.8x).


Future Growth

How is Hudaco Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hudaco Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Hudaco Industries performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDC has high quality earnings.

Growing Profit Margin: HDC's current net profit margins (6.8%) are higher than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: HDC's earnings have declined by 12.5% per year over the past 5 years.

Accelerating Growth: HDC's earnings growth over the past year (1677.1%) exceeds its 5-year average (-12.5% per year).

Earnings vs Industry: HDC earnings growth over the past year (1677.1%) exceeded the Trade Distributors industry 19.1%.


Return on Equity

High ROE: HDC's Return on Equity (19.6%) is considered low.


Financial Health

How is Hudaco Industries's financial position?


Financial Position Analysis

Short Term Liabilities: HDC's short term assets (ZAR3.1B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: HDC's short term assets (ZAR3.1B) exceed its long term liabilities (ZAR958.0M).


Debt to Equity History and Analysis

Debt Level: HDC's debt to equity ratio (28.8%) is considered satisfactory.

Reducing Debt: HDC's debt to equity ratio has reduced from 73.9% to 28.8% over the past 5 years.

Debt Coverage: HDC's debt is well covered by operating cash flow (133.5%).

Interest Coverage: HDC's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


Dividend

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

3.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDC's dividend (3.58%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: HDC's dividend (3.58%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.1%), HDC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Graham Dunford (56 yo)

7.25yrs

Tenure

R18,328,000

Compensation

Mr. Graham Ronald Dunford, N Dip Mechanical Engineering, serves as the Chief Executive Officer of Hudaco Industries Limited since July 1, 2014 and its Executive Director since July 2010. Mr. Dunford served...


CEO Compensation Analysis

Compensation vs Market: Graham's total compensation ($USD1.26M) is above average for companies of similar size in the ZA market ($USD499.93K).

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


Leadership Team

Experienced Management: HDC's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: HDC's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HDC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hudaco Industries Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Hudaco Industries Limited
  • Ticker: HDC
  • Exchange: JSE
  • Founded: 1891
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: R4.001b
  • Shares outstanding: 29.88m
  • Website: https://www.hudaco.co.za

Number of Employees


Location

  • Hudaco Industries Limited
  • Building 9
  • 1st Floor
  • Edenvale
  • Gauteng
  • 1609
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:55
End of Day Share Price2021/10/21 00:00
Earnings2021/05/31
Annual Earnings2020/11/30


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.