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DNB

Deneb InvestmentsJSE:DNB Stock Report

Market Cap

R871.3m

7D

22.7%

1Y

42.9%

Updated

25 Oct, 2021

Data

Company Financials
DNB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends2/6

DNB Overview

Deneb Investments Limited, an investment company, distributes branded products in South Africa and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Deneb Investments
Historical stock prices
Current Share PriceR2.00
52 Week HighR0.91
52 Week LowR2.00
Beta0.63
1 Month Change14.29%
3 Month Change37.93%
1 Year Change42.86%
3 Year Change-9.09%
5 Year Change5.26%
Change since IPO-50.00%

Recent News & Updates

Oct 06
Here's Why Shareholders May Want To Be Cautious With Increasing Deneb Investments Limited's (JSE:DNB) CEO Pay Packet

Here's Why Shareholders May Want To Be Cautious With Increasing Deneb Investments Limited's (JSE:DNB) CEO Pay Packet

As many shareholders of Deneb Investments Limited ( JSE:DNB ) will be aware, they have not made a gain on their...

Shareholder Returns

DNBZA Diversified FinancialZA Market
7D22.7%-2.4%-0.03%
1Y42.9%30.1%19.0%

Return vs Industry: DNB exceeded the ZA Diversified Financial industry which returned 30.1% over the past year.

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

Price Volatility

Is DNB's price volatile compared to industry and market?
DNB volatility
DNB Beta0.63
Industry Beta0.67
Market Beta1

Stable Share Price: DNB is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: DNB's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
20132,305Stuart Queenhttps://www.deneb.co.za

Deneb Investments Limited, an investment company, distributes branded products in South Africa and internationally. The company operates through Property, Industrial Product Manufacturing, Automotive Parts Manufacturing, and Branded Product Distribution segments. The Property segment owns and manages a portfolio of industrial and commercial properties situated in KwaZulu-Natal and the Western Cape.

Deneb Investments Fundamentals Summary

How do Deneb Investments's earnings and revenue compare to its market cap?
DNB fundamental statistics
Market CapR871.35m
Earnings (TTM)R130.12m
Revenue (TTM)R2.60b

6.7x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DNB income statement (TTM)
RevenueR2.60b
Cost of RevenueR1.91b
Gross ProfitR693.94m
ExpensesR563.82m
EarningsR130.12m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.30
Gross Margin26.65%
Net Profit Margin5.00%
Debt/Equity Ratio50.8%

How did DNB perform over the long term?

See historical performance and comparison

Dividends

3.5%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is Deneb Investments undervalued compared to its fair value and its price relative to the market?

6.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DNB's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DNB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DNB is good value based on its PE Ratio (6.7x) compared to the ZA Diversified Financial industry average (9.3x).

PE vs Market: DNB is good value based on its PE Ratio (6.7x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DNB is good value based on its PB Ratio (0.6x) compared to the ZA Diversified Financial industry average (0.7x).


Future Growth

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

16.8%

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 Deneb Investments 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 Deneb Investments performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DNB has a large one-off gain of ZAR29.9M impacting its March 31 2021 financial results.

Growing Profit Margin: DNB's current net profit margins (5%) are higher than last year (0.1%).


Past Earnings Growth Analysis

Earnings Trend: DNB's earnings have declined by 14.1% per year over the past 5 years.

Accelerating Growth: DNB's earnings growth over the past year (3008.3%) exceeds its 5-year average (-14.1% per year).

Earnings vs Industry: DNB earnings growth over the past year (3008.3%) exceeded the Diversified Financial industry 32.9%.


Return on Equity

High ROE: DNB's Return on Equity (8.2%) is considered low.


Financial Health

How is Deneb Investments's financial position?


Financial Position Analysis

Short Term Liabilities: DNB's short term assets (ZAR1.1B) exceed its short term liabilities (ZAR646.7M).

Long Term Liabilities: DNB's short term assets (ZAR1.1B) exceed its long term liabilities (ZAR948.8M).


Debt to Equity History and Analysis

Debt Level: DNB's debt to equity ratio (50.8%) is considered high.

Reducing Debt: DNB's debt to equity ratio has increased from 30.5% to 50.8% over the past 5 years.

Debt Coverage: DNB's debt is well covered by operating cash flow (26.1%).

Interest Coverage: DNB's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Dividend

What is Deneb Investments's current dividend yield, its reliability and sustainability?

3.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DNB's dividend (3.5%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: DNB's dividend (3.5%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

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

Growing Dividend: DNB's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), DNB's dividend payments are well 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?

7.0yrs

Average board tenure


CEO

Stuart Queen (49 yo)

no data

Tenure

R8,871,000

Compensation

Mr. Stuart Alexander Queen, BCompt. (Hons), CA (SA), serves as Chief Executive Officer of Deneb Investments Limited. Mr. Queen serves as a Chief Financial Officer at Johnnic Holdings Limited since February...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD603.06K) is above average for companies of similar size in the ZA market ($USD278.61K).

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


Board Members

Experienced Board: DNB's board of directors are considered experienced (7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Deneb Investments Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Deneb Investments Limited
  • Ticker: DNB
  • Exchange: JSE
  • Founded: 2013
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: R871.346m
  • Shares outstanding: 435.67m
  • Website: https://www.deneb.co.za

Number of Employees


Location

  • Deneb Investments Limited
  • Deneb House
  • 5th Floor
  • Cape Town
  • Western Cape
  • 7925
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:38
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.