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SOH

South Ocean HoldingsJSE:SOH Stock Report

Market Cap

R215.5m

7D

12.8%

1Y

307.7%

Updated

15 Oct, 2021

Data

Company Financials
SOH fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends1/6

SOH Overview

South Ocean Holdings Limited, an investment holding company, manufactures and distributes electric wires in South Africa.

South Ocean Holdings Competitors

Reunert

JSE:RLO

R8.1b

Altron

JSE:AEL

R4.3b

Price History & Performance

Summary of all time highs, changes and price drops for South Ocean Holdings
Historical stock prices
Current Share PriceR1.06
52 Week HighR0.19
52 Week LowR1.30
Beta-0.49
1 Month Change8.16%
3 Month Change21.84%
1 Year Change307.69%
3 Year Change165.00%
5 Year Change96.30%
Change since IPO-86.23%

Recent News & Updates

Oct 13
South Ocean Holdings (JSE:SOH) Seems To Use Debt Quite Sensibly

South Ocean Holdings (JSE:SOH) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Aug 10
South Ocean Holdings' (JSE:SOH) Earnings Are Weaker Than They Seem

South Ocean Holdings' (JSE:SOH) Earnings Are Weaker Than They Seem

Investors were disappointed with South Ocean Holdings Limited's ( JSE:SOH ) earnings, despite the strong profit...

Aug 10
South Ocean Holdings' (JSE:SOH) Returns On Capital Are Heading Higher

South Ocean Holdings' (JSE:SOH) Returns On Capital Are Heading Higher

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

SOHZA ElectricalZA Market
7D12.8%1.6%1.3%
1Y307.7%5.8%21.2%

Return vs Industry: SOH exceeded the ZA Electrical industry which returned 5.8% over the past year.

Return vs Market: SOH exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is SOH's price volatile compared to industry and market?
SOH volatility
SOH Beta-0.49
Industry Beta0.53
Market Beta1

Stable Share Price: SOH is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: SOH's weekly volatility has decreased from 23% to 15% over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
1989477Andre Smithhttps://www.southoceanholdings.co.za

South Ocean Holdings Limited, an investment holding company, manufactures and distributes electric wires in South Africa. The company operates through two segments, Electrical Cable Manufacturing, and Property Investments. It offers bare copper earth wires, general purpose house wires, flat-twin and earth cables, surface wiring, twin illumination cables, cabtyre, single core flex, solid panel wire, flex power, ripcord, mains cord, submersible pump cables, nitrile trailing cables, PVC nitrile welding cables, flame retardant armoured cables, low halogen armoured cables, armoured cables, single core double PVC cables, single core double PVC AWA PVC cables, aluminium conductors, aluminium conductor steel reinforced, low-voltage aerial bundle conductors, and conduit pipes.

South Ocean Holdings Fundamentals Summary

How do South Ocean Holdings's earnings and revenue compare to its market cap?
SOH fundamental statistics
Market CapR215.47m
Earnings (TTM)R71.29m
Revenue (TTM)R2.19b

3.0x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOH income statement (TTM)
RevenueR2.19b
Cost of RevenueR2.04b
Gross ProfitR149.81m
ExpensesR78.52m
EarningsR71.29m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.35
Gross Margin6.85%
Net Profit Margin3.26%
Debt/Equity Ratio26.2%

How did SOH perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

9%

Payout Ratio

Valuation

Is South Ocean Holdings undervalued compared to its fair value and its price relative to the market?

3.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOH (ZAR1.06) is trading above our estimate of fair value (ZAR0.21)

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


Price To Earnings Ratio

PE vs Industry: SOH is good value based on its PE Ratio (3x) compared to the African Electrical industry average (12.1x).

PE vs Market: SOH is good value based on its PE Ratio (3x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SOH is good value based on its PB Ratio (0.4x) compared to the XF Electrical industry average (1.1x).


Future Growth

How is South Ocean Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.9%

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 South Ocean Holdings 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 South Ocean Holdings performed over the past 5 years?

47.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOH has a high level of non-cash earnings.

Growing Profit Margin: SOH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SOH has become profitable over the past 5 years, growing earnings by 47.2% per year.

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

Earnings vs Industry: SOH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (40%).


Return on Equity

High ROE: SOH's Return on Equity (13.5%) is considered low.


Financial Health

How is South Ocean Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SOH's short term assets (ZAR716.2M) exceed its short term liabilities (ZAR357.7M).

Long Term Liabilities: SOH's short term assets (ZAR716.2M) exceed its long term liabilities (ZAR50.0M).


Debt to Equity History and Analysis

Debt Level: SOH's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: SOH's debt to equity ratio has reduced from 42.4% to 26.2% over the past 5 years.

Debt Coverage: SOH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SOH's interest payments on its debt are well covered by EBIT (12.1x coverage).


Balance Sheet


Dividend

What is South Ocean Holdings's current dividend yield, its reliability and sustainability?

2.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SOH's dividend (2.83%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: SOH's dividend (2.83%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether SOH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SOH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.6%), SOH's dividend payments are thoroughly 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?

1.6yrs

Average management tenure


CEO

Andre Smith (55 yo)

0.58

Tenure

Mr. Andre Smith serves as the Chief Executive Officer & Executive Director of South Ocean Holdings Limited since March 1, 2021. He is a mechanical engineer by training and has broad experience in all facet...


Leadership Team

Experienced Management: SOH's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: SOH's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

South Ocean Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: South Ocean Holdings Limited
  • Ticker: SOH
  • Exchange: JSE
  • Founded: 1989
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: R215.473m
  • Shares outstanding: 203.28m
  • Website: https://www.southoceanholdings.co.za

Number of Employees


Location

  • South Ocean Holdings Limited
  • 16 Botha Street
  • Alrode
  • Gauteng
  • 1451
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 17:04
End of Day Share Price2021/10/14 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.