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ACT

AfroCentric InvestmentJSE:ACT Stock Report

Market Cap

R3.2b

7D

3.7%

1Y

62.3%

Updated

19 Oct, 2021

Data

Company Financials
ACT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends4/6

ACT Overview

AfroCentric Investment Corporation Limited, an investment holding company, provides health administration and health risk management solutions to the healthcare sector.

Price History & Performance

Summary of all time highs, changes and price drops for AfroCentric Investment
Historical stock prices
Current Share PriceR5.60
52 Week HighR3.19
52 Week LowR5.99
Beta0.49
1 Month Change3.70%
3 Month Change25.84%
1 Year Change62.32%
3 Year Change12.22%
5 Year Change-0.89%
Change since IPO24.44%

Recent News & Updates

Oct 03
AfroCentric Investment (JSE:ACT) Will Pay A Dividend Of R0.17

AfroCentric Investment (JSE:ACT) Will Pay A Dividend Of R0.17

AfroCentric Investment Corporation Limited's ( JSE:ACT ) investors are due to receive a payment of R0.17 per share on...

Sep 16
AfroCentric Investment's (JSE:ACT) Dividend Will Be R0.17

AfroCentric Investment's (JSE:ACT) Dividend Will Be R0.17

The board of AfroCentric Investment Corporation Limited ( JSE:ACT ) has announced that it will pay a dividend on the...

Sep 05
Is Now The Time To Put AfroCentric Investment (JSE:ACT) On Your Watchlist?

Is Now The Time To Put AfroCentric Investment (JSE:ACT) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jun 04
I Built A List Of Growing Companies And AfroCentric Investment (JSE:ACT) Made The Cut

I Built A List Of Growing Companies And AfroCentric Investment (JSE:ACT) Made The Cut

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

ACTZA Diversified FinancialZA Market
7D3.7%-3.6%1.0%
1Y62.3%42.3%20.8%

Return vs Industry: ACT exceeded the ZA Diversified Financial industry which returned 43.1% over the past year.

Return vs Market: ACT exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is ACT's price volatile compared to industry and market?
ACT volatility
ACT Beta0.49
Industry Beta0.67
Market Beta1

Stable Share Price: ACT is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ACT's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
20085,693Ahmed Banderkerhttps://www.afrocentric.za.com

AfroCentric Investment Corporation Limited, an investment holding company, provides health administration and health risk management solutions to the healthcare sector. The company operates through Healthcare SA, Healthcare Retail, Healthcare Africa, and Information Technology segments. It offers documentation based care equipment and administration services to 12 musculoskeletal treatment centers; and engages in the retail and wholesale of pharmaceutical products under the Pharmacy Direct, MMed, Scriptpharm Risk Management, Curasana Wholesaler, and Activo Health names.

AfroCentric Investment Fundamentals Summary

How do AfroCentric Investment's earnings and revenue compare to its market cap?
ACT fundamental statistics
Market CapR3.21b
Earnings (TTM)R326.06m
Revenue (TTM)R8.16b

9.8x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACT income statement (TTM)
RevenueR8.16b
Cost of RevenueR6.55b
Gross ProfitR1.61b
ExpensesR1.29b
EarningsR326.06m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.57
Gross Margin19.78%
Net Profit Margin4.00%
Debt/Equity Ratio23.8%

How did ACT perform over the long term?

See historical performance and comparison

Dividends

6.1%

Current Dividend Yield

60%

Payout Ratio

Does ACT pay a reliable dividends?

See ACT dividend history and benchmarks
When do you need to buy ACT by to receive an upcoming dividend?
AfroCentric Investment dividend dates
Ex Dividend DateNov 10 2021
Dividend Pay DateNov 15 2021
Days until Ex dividend21 days
Days until Dividend pay date26 days

Does ACT pay a reliable dividends?

See ACT dividend history and benchmarks

Valuation

Is AfroCentric Investment undervalued compared to its fair value and its price relative to the market?

9.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ACT (ZAR5.6) is trading above our estimate of fair value (ZAR2.84)

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


Price To Earnings Ratio

PE vs Industry: ACT is poor value based on its PE Ratio (9.8x) compared to the ZA Diversified Financial industry average (9.4x).

PE vs Market: ACT is good value based on its PE Ratio (9.8x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ACT is overvalued based on its PB Ratio (1.4x) compared to the ZA Diversified Financial industry average (0.7x).


Future Growth

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

15.3%

Forecasted Diversified Financials 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 AfroCentric Investment 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 AfroCentric Investment performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACT has high quality earnings.

Growing Profit Margin: ACT's current net profit margins (4%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: ACT's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: ACT's earnings growth over the past year (7.4%) is below its 5-year average (18.6% per year).

Earnings vs Industry: ACT earnings growth over the past year (7.4%) underperformed the Diversified Financial industry 32.9%.


Return on Equity

High ROE: ACT's Return on Equity (15.2%) is considered low.


Financial Health

How is AfroCentric Investment's financial position?


Financial Position Analysis

Short Term Liabilities: ACT's short term assets (ZAR1.3B) exceed its short term liabilities (ZAR786.0M).

Long Term Liabilities: ACT's short term assets (ZAR1.3B) exceed its long term liabilities (ZAR1.1B).


Debt to Equity History and Analysis

Debt Level: ACT's debt to equity ratio (23.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ACT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ACT's debt is well covered by operating cash flow (91.9%).

Interest Coverage: ACT's interest payments on its debt are well covered by EBIT (21x coverage).


Balance Sheet


Dividend

What is AfroCentric Investment current dividend yield, its reliability and sustainability?

6.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 20 2021Ex Dividend DateNov 10 2021Dividend Pay DateNov 15 20215 days from Ex DividendBuy in the next 21 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ACT's dividend (6.07%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: ACT's dividend (6.07%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

Stable Dividend: ACT's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (59.9%), ACT's dividend payments are 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

Ahmed Banderker (45 yo)

2.5yrs

Tenure

R8,459,000

Compensation

Mr. Ahmed Banderker, CA (SA), is Group Chief Executive Officer of AfroCentric Investment Corporation Limited since April 1, 2019. Mr. Banderker served as the Chief Executive of Sanlam Strategic Business De...


CEO Compensation Analysis

Compensation vs Market: Ahmed's total compensation ($USD582.24K) is about average for companies of similar size in the ZA market ($USD478.25K).

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


Leadership Team

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


Board Members

Experienced Board: ACT's board of directors are considered experienced (4.9 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

AfroCentric Investment Corporation Limited's employee growth, exchange listings and data sources


Key Information

  • Name: AfroCentric Investment Corporation Limited
  • Ticker: ACT
  • Exchange: JSE
  • Founded: 2008
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: R3.209b
  • Shares outstanding: 572.96m
  • Website: https://www.afrocentric.za.com

Number of Employees


Location

  • AfroCentric Investment Corporation Limited
  • 37 Conrad Road
  • Florida North
  • Roodepoort
  • Gauteng
  • 1709
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:39
End of Day Share Price2021/10/19 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.