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KAP

KAP Industrial HoldingsJSE:KAP Stock Report

Market Cap

R12.4b

7D

8.2%

1Y

84.2%

Updated

18 Oct, 2021

Data

Company Financials +
KAP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health3/6
Dividends2/6

KAP Overview

KAP Industrial Holdings Limited engages in the contractual logistics, passenger transport, timber, chemical, automotive components, and bedding businesses in South Africa, rest of Africa, Europe, the Middle East, Asia, Australasia, the Americas.

KAP Industrial Holdings Competitors

Imperial Logistics

JSE:IPL

R12.0b

Price History & Performance

Summary of all time highs, changes and price drops for KAP Industrial Holdings
Historical stock prices
Current Share PriceR4.90
52 Week HighR2.20
52 Week LowR5.04
Beta1.43
1 Month Change6.52%
3 Month Change19.51%
1 Year Change84.21%
3 Year Change-36.61%
5 Year Change-35.10%
Change since IPO63.88%

Recent News & Updates

Shareholder Returns

KAPZA IndustrialsZA Market
7D8.2%1.6%1.6%
1Y84.2%52.0%21.3%

Return vs Industry: KAP exceeded the ZA Industrials industry which returned 52% over the past year.

Return vs Market: KAP exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is KAP's price volatile compared to industry and market?
KAP volatility
KAP Beta1.43
Industry Beta0.75
Market Beta1

Stable Share Price: KAP is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KAP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aGary Chaplinhttps://www.kap.co.za

KAP Industrial Holdings Limited engages in the contractual logistics, passenger transport, timber, chemical, automotive components, and bedding businesses in South Africa, rest of Africa, Europe, the Middle East, Asia, Australasia, the Americas. The company operates through Diversified Industrial, Diversified chemical, and Diversified Logistics segments. The Diversified Industrial segment manufactures and sells forestry and timber products for panel products; automotive components used in new vehicle assembly and aftermarket accessories; and bedding products comprising of bed bases, foam, and sprung mattresses.

KAP Industrial Holdings Fundamentals Summary

How do KAP Industrial Holdings's earnings and revenue compare to its market cap?
KAP fundamental statistics
Market CapR12.40b
Earnings (TTM)R1.12b
Revenue (TTM)R23.96b

11.0x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KAP income statement (TTM)
RevenueR23.96b
Cost of RevenueR19.53b
Gross ProfitR4.43b
ExpensesR3.31b
EarningsR1.12b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.44
Gross Margin18.49%
Net Profit Margin4.69%
Debt/Equity Ratio66.3%

How did KAP perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

34%

Payout Ratio

Valuation

Is KAP Industrial Holdings undervalued compared to its fair value and its price relative to the market?

11.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KAP (ZAR4.9) is trading above our estimate of fair value (ZAR3.82)

Significantly Below Fair Value: KAP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KAP is poor value based on its PE Ratio (11x) compared to the ZA Industrials industry average (10.7x).

PE vs Market: KAP is good value based on its PE Ratio (11x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: KAP is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: KAP's PB Ratio (1.2x) is in line with the ZA Industrials industry average.


Future Growth

How is KAP Industrial Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAP's forecast earnings growth (2% per year) is below the savings rate (8.8%).

Earnings vs Market: KAP's earnings (2% per year) are forecast to grow slower than the ZA market (12.2% per year).

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

Revenue vs Market: KAP's revenue (5.7% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: KAP's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KAP's Return on Equity is forecast to be low in 3 years time (11.1%).


Past Performance

How has KAP Industrial Holdings performed over the past 5 years?

-39.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAP has high quality earnings.

Growing Profit Margin: KAP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: KAP's earnings have declined by 39.5% per year over the past 5 years.

Accelerating Growth: KAP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: KAP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (35.6%).


Return on Equity

High ROE: KAP's Return on Equity (11.4%) is considered low.


Financial Health

How is KAP Industrial Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: KAP's short term assets (ZAR7.7B) exceed its short term liabilities (ZAR6.6B).

Long Term Liabilities: KAP's short term assets (ZAR7.7B) do not cover its long term liabilities (ZAR8.3B).


Debt to Equity History and Analysis

Debt Level: KAP's debt to equity ratio (66.3%) is considered high.

Reducing Debt: KAP's debt to equity ratio has increased from 52.9% to 66.3% over the past 5 years.

Debt Coverage: KAP's debt is well covered by operating cash flow (37.8%).

Interest Coverage: KAP's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Dividend

What is KAP Industrial Holdings's current dividend yield, its reliability and sustainability?

3.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KAP's dividend (3.06%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: KAP's dividend (3.06%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: KAP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KAP's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.1%), KAP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KAP's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Gary Chaplin (50 yo)

6.92yrs

Tenure

R8,376,799

Compensation

Mr. Gary Noel Chaplin, CA(SA), has been the Chief Executive Officer and Executive Director of KAP Industrial Holdings Limited since November 18, 2014. Mr. Chaplin served as the Chief Executive Officer of P...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD570.36K) is below average for companies of similar size in the ZA market ($USD895.91K).

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


Leadership Team

Experienced Management: KAP's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: KAP's board of directors are considered experienced (5.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

KAP Industrial Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: KAP Industrial Holdings Limited
  • Ticker: KAP
  • Exchange: JSE
  • Founded: NaN
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Market Cap: R12.403b
  • Shares outstanding: 2.53b
  • Website: https://www.kap.co.za

Number of Employees


Location

  • KAP Industrial Holdings Limited
  • Stellenpark Business Park
  • Unit G7
  • Stellenbosch
  • Western Cape
  • 7600
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:44
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
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.