JSE:KAL

Stock Analysis Report

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Executive Summary

Kaap Agri Limited trades in agricultural, fuel and related retail markets in South Africa and Namibia.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has Kaap Agri's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.2%

KAL

3.4%

ZA Consumer Retailing

-0.7%

ZA Market


1 Year Return

-48.5%

KAL

-21.3%

ZA Consumer Retailing

-23.8%

ZA Market

Return vs Industry: KAL underperformed the ZA Consumer Retailing industry which returned -21.1% over the past year.

Return vs Market: KAL underperformed the ZA Market which returned -23.6% over the past year.


Shareholder returns

KALIndustryMarket
7 Day-8.2%3.4%-0.7%
30 Day-20.7%-2.3%-0.6%
90 Day-27.3%-8.8%-8.1%
1 Year-46.3%-48.5%-19.2%-21.3%-13.0%-23.8%
3 Yearn/a-16.6%-22.2%0.3%-18.8%
5 Yearn/a1.6%-10.5%9.9%-17.5%

Price Volatility Vs. Market

How volatile is Kaap Agri's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kaap Agri undervalued compared to its fair value and its price relative to the market?

4.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KAL (ZAR17.44) is trading above our estimate of fair value (ZAR2.59)

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


Price To Earnings Ratio

PE vs Industry: KAL is good value based on its PE Ratio (4.2x) compared to the Consumer Retailing industry average (17.6x).

PE vs Market: KAL is good value based on its PE Ratio (4.2x) compared to the ZA market (8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KAL is good value based on its PB Ratio (0.6x) compared to the ZA Consumer Retailing industry average (4x).


Next Steps

Future Growth

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

9.1%

Forecasted Consumer Retailing 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 Kaap Agri 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.


Next Steps

Past Performance

How has Kaap Agri performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAL has high quality earnings.

Growing Profit Margin: KAL's current net profit margins (3.2%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: KAL's earnings have grown by 8.1% per year over the past 5 years.

Accelerating Growth: KAL's earnings growth over the past year (17.1%) exceeds its 5-year average (8.1% per year).

Earnings vs Industry: KAL earnings growth over the past year (17.1%) exceeded the Consumer Retailing industry 6.2%.


Return on Equity

High ROE: KAL's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Kaap Agri's financial position?


Financial Position Analysis

Short Term Liabilities: KAL's short term assets (ZAR2.9B) exceed its short term liabilities (ZAR2.5B).

Long Term Liabilities: KAL's short term assets (ZAR2.9B) exceed its long term liabilities (ZAR445.1M).


Debt to Equity History and Analysis

Debt Level: KAL's debt to equity ratio (87.5%) is considered high.

Reducing Debt: KAL's debt to equity ratio has increased from 51.2% to 87.5% over the past 5 years.

Debt Coverage: KAL's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: KAL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Kaap Agri's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate KAL'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 KAL's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KAL'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?

4.8yrs

Average management tenure


CEO

Sean Walsh (53yo)

no data

Tenure

R7,240,000

Compensation

Sean Walsh serves as Chief Executive Officer and Managing Director at Kaap Agri (Pty) Ltd. Sean Walsh served as Director of Operations at Kaap Agri (Pty) Ltd. Sean Walsh held senior positions at several co ...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD410.28K) is above average for companies of similar size in the ZA market ($USD282.21K).

Compensation vs Earnings: Sean's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sean Walsh
CEO, MD & Executive Directorno dataR7.24m0.18% ZAR2.2m
Graeme Sim
Financial Director & Director4.75yrsR4.31m0.035% ZAR433.9k
David Gempies
Head of Human Resourcesno datano datano data
Philip Faure
Managing Director of Rsa Agri Brokersno datano datano data
Werner van Zyl
Head of Properties4.75yrsno datano data
Ian Schooling
Head of Agriplasno datano datano data
Reinhard Köstens
Company Secretary8.42yrsno datano data
Pennie Muller
Financing Controller of CERESno datano datano data
Annemari Briers
Senior Financing Controller of Portervilleno datano datano data
Annelize Swart
Financing Controller of CERESno datano datano data

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: KAL's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sean Walsh
CEO, MD & Executive Directorno dataR7.24m0.18% ZAR2.2m
Graeme Sim
Financial Director & Director4.75yrsR4.31m0.035% ZAR433.9k
Chris Otto
Independent Non-Executive Director8.42yrsR637.00k0.36% ZAR4.4m
Bernhardt du Toit
Independent Non-Executive Director8.42yrsR301.00k0.042% ZAR518.5k
Helgard Smit
Independent Non-Executive Director8.42yrsR258.00k0.0049% ZAR60.3k
George Steyn
Independent Non-Executive Chairman7.17yrsR648.00kno data
Johann Le Roux
Non-Executive Director6yrsR226.00kno data
Wynoma Michaels
Independent Non-Executive Director2.75yrsR199.00k0.0075% ZAR91.6k
EA Messina
Independent Non-Executive Director3.17yrsR586.00kno data
D Toit
Independent Non-Executive Director3.17yrsR301.00kno data

6.6yrs

Average Tenure

54.5yo

Average Age

Experienced Board: KAL's board of directors are considered experienced (6.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KAL 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

Kaap Agri Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kaap Agri Limited
  • Ticker: KAL
  • Exchange: JSE
  • Founded: 1912
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: R1.226b
  • Shares outstanding: 70.28m
  • Website: https://www.kaapagri.co.za

Number of Employees


Location

  • Kaap Agri Limited
  • 1 Westhoven Street
  • Paarl
  • Western Cape
  • 7646
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KALJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJun 2017

Biography

Kaap Agri Limited trades in agricultural, fuel and related retail markets in South Africa and Namibia. It operates through Trade, The Fuel Company (TFC), Wesgraan, and Manufacturing segments. The Trade segment offers production inputs, mechanization equipment and services, and other goods to agricultural producers, as well as the general public. The TFC segment provides a retail fuel offering to a range of customers, including convenience store and quick service restaurant outlets. The Wesgraan segment sells grain products and provides a range of services, including storage and handling of grain products. The Manufacturing segment manufactures and sells dripper pipes and other irrigation equipment; and distributes franchise and other irrigation parts. It operates under the Agrimark, Liquormark, Pakmark, Wesgraan, Mechanisation, Agriplas, the Fuel Company, Forge, and Expressmark brands. Kaap Agri Limited was founded in 1912 and is based in Paarl, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 18:55
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/09/30


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.