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ADR

Adcorp HoldingsJSE:ADR Stock Report

Market Cap

R656.1m

7D

2.3%

1Y

60.1%

Updated

26 Oct, 2021

Data

Company Financials
ADR fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

ADR Overview

Adcorp Holdings Limited provides workplace solutions in South Africa and Australia.

Price History & Performance

Summary of all time highs, changes and price drops for Adcorp Holdings
Historical stock prices
Current Share PriceR5.73
52 Week HighR3.50
52 Week LowR8.87
Beta0.48
1 Month Change-8.90%
3 Month Change-11.85%
1 Year Change60.06%
3 Year Change-68.34%
5 Year Change-58.48%
Change since IPO616.25%

Recent News & Updates

Shareholder Returns

ADRZA Professional ServicesZA Market
7D2.3%0.8%-0.3%
1Y60.1%35.1%19.5%

Return vs Industry: ADR exceeded the ZA Professional Services industry which returned 32.4% over the past year.

Return vs Market: ADR exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is ADR's price volatile compared to industry and market?
ADR volatility
ADR Beta0.48
Industry Beta0.91
Market Beta1

Stable Share Price: ADR is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ADR's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1968n/aJohn Wentzelhttps://www.adcorpgroup.com

Adcorp Holdings Limited provides workplace solutions in South Africa and Australia. It operates through Industrial Services, Professional Services, Training, Australia, and Central segments. The company offers permanent recruitment and flexible staffing, professional IT, and business process outsourcing services; and shared, emergent business, and project management products and services.

Adcorp Holdings Fundamentals Summary

How do Adcorp Holdings's earnings and revenue compare to its market cap?
ADR fundamental statistics
Market CapR656.14m
Earnings (TTM)R2.32m
Revenue (TTM)R11.72b

269.9x

P/E Ratio

0.05x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADR income statement (TTM)
RevenueR11.72b
Cost of RevenueR10.58b
Gross ProfitR1.14b
ExpensesR1.14b
EarningsR2.32m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.021
Gross Margin9.74%
Net Profit Margin0.019%
Debt/Equity Ratio33.7%

How did ADR perform over the long term?

See historical performance and comparison

Valuation

Is Adcorp Holdings 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: ADR (ZAR6) is trading below our estimate of fair value (ZAR168)

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


Price To Earnings Ratio

PE vs Industry: ADR is poor value based on its PE Ratio (282.6x) compared to the Global Professional Services industry average (26.2x).

PE vs Market: ADR is poor value based on its PE Ratio (282.6x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADR is good value based on its PB Ratio (0.5x) compared to the XX Professional Services industry average (2.9x).


Future Growth

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

16.8%

Forecasted Commercial Services 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 Adcorp 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 Adcorp Holdings performed over the past 5 years?

-30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADR has high quality earnings.

Growing Profit Margin: ADR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ADR has become profitable over the past 5 years, growing earnings by -30.2% per year.

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

Earnings vs Industry: ADR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Professional Services industry (18.6%).


Return on Equity

High ROE: ADR's Return on Equity (0.4%) is considered low.


Financial Health

How is Adcorp Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: ADR's short term assets (ZAR2.2B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: ADR's short term assets (ZAR2.2B) exceed its long term liabilities (ZAR870.5M).


Debt to Equity History and Analysis

Debt Level: ADR's debt to equity ratio (33.7%) is considered satisfactory.

Reducing Debt: ADR's debt to equity ratio has reduced from 74.8% to 33.7% over the past 5 years.

Debt Coverage: ADR's debt is well covered by operating cash flow (169%).

Interest Coverage: ADR's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ADR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ADR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ADR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ADR is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ADR's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

John Wentzel

0.50

Tenure

Dr. John Peter Wentzel serves as Chief Executive Officer and Executive Director of Adcorp Holdings Limited since April 1, 2021. He serves as the Chief Executive Officer and Member of Management Board of Dr...


Leadership Team

Experienced Management: ADR's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: ADR'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

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


Key Information

  • Name: Adcorp Holdings Limited
  • Ticker: ADR
  • Exchange: JSE
  • Founded: 1968
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: R656.142m
  • Shares outstanding: 109.36m
  • Website: https://www.adcorpgroup.com

Number of Employees


Location

  • Adcorp Holdings Limited
  • Adcorp Place
  • 102 Western Service Road
  • Johannesburg
  • Gauteng
  • 2191
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 17:01
End of Day Share Price2021/10/26 00:00
Earnings2021/02/28
Annual Earnings2021/02/28


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.