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PPE

Purple GroupJSE:PPE Stock Report

Market Cap

R2.2b

7D

-2.5%

1Y

148.7%

Updated

22 Oct, 2021

Data

Company Financials
PPE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance3/6
Financial Health3/6
Dividends0/6

PPE Overview

Purple Group Limited, a financial services company, through its subsidiaries, engages in trading, investing, and asset management businesses in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Purple Group
Historical stock prices
Current Share PriceR1.94
52 Week HighR0.71
52 Week LowR2.25
Beta-0.050
1 Month Change23.57%
3 Month Change31.97%
1 Year Change148.72%
3 Year Change592.86%
5 Year Change234.48%
Change since IPO-61.20%

Recent News & Updates

Shareholder Returns

PPEZA Capital MarketsZA Market
7D-2.5%1.1%-0.7%
1Y148.7%54.9%19.0%

Return vs Industry: PPE exceeded the ZA Capital Markets industry which returned 54.9% over the past year.

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

Price Volatility

Is PPE's price volatile compared to industry and market?
PPE volatility
PPE Beta-0.050
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1998n/aCharles Savagehttps://www.purplegroup.co.za

Purple Group Limited, a financial services company, through its subsidiaries, engages in trading, investing, and asset management businesses in South Africa. It operates through GT247.com and Emperor Asset Management; and EasyEquities segments. The company operates EasyEquities, a web-based investment platform; GT247.com, a trading platform that provides a range of tradable instruments, such as 153 JSE equity contracts for differences, 5 commodities, 5 crypto currencies, 135 currency pairs, and 12 major indices, as well as private broking and do it yourself trading services; and EasyProperties, an online property investment platform.

Purple Group Fundamentals Summary

How do Purple Group's earnings and revenue compare to its market cap?
PPE fundamental statistics
Market CapR2.24b
Earnings (TTM)R21.86m
Revenue (TTM)R198.67m

102.4x

P/E Ratio

11.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPE income statement (TTM)
RevenueR198.67m
Cost of RevenueR139.15m
Gross ProfitR59.52m
ExpensesR37.66m
EarningsR21.86m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.019
Gross Margin29.96%
Net Profit Margin11.00%
Debt/Equity Ratio21.2%

How did PPE perform over the long term?

See historical performance and comparison

Valuation

Is Purple Group undervalued compared to its fair value and its price relative to the market?

102.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: PPE is poor value based on its PE Ratio (102.4x) compared to the ZA Capital Markets industry average (11.5x).

PE vs Market: PPE is poor value based on its PE Ratio (102.4x) compared to the ZA market (11.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PPE is overvalued based on its PB Ratio (7x) compared to the ZA Capital Markets industry average (0.7x).


Future Growth

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

8.1%

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 Purple Group 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 Purple Group performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPE has high quality earnings.

Growing Profit Margin: PPE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PPE has become profitable over the past 5 years, growing earnings by 30.3% per year.

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

Earnings vs Industry: PPE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (35.2%).


Return on Equity

High ROE: PPE's Return on Equity (8.9%) is considered low.


Financial Health

How is Purple Group's financial position?


Financial Position Analysis

Short Term Liabilities: PPE's short term assets (ZAR240.8M) do not cover its short term liabilities (ZAR246.2M).

Long Term Liabilities: PPE's short term assets (ZAR240.8M) exceed its long term liabilities (ZAR15.2M).


Debt to Equity History and Analysis

Debt Level: PPE's debt to equity ratio (21.2%) is considered satisfactory.

Reducing Debt: PPE's debt to equity ratio has increased from 3.4% to 21.2% over the past 5 years.

Debt Coverage: PPE's debt is well covered by operating cash flow (151.6%).

Interest Coverage: Insufficient data to determine if PPE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Purple Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

8.8yrs

Average management tenure


CEO

Charles Savage (48 yo)

13.92yrs

Tenure

R5,440,000

Compensation

Mr. Charles Savage has been the Chief Executive Officer of Purple Group Limited since November 2007. Mr. Savage served as the Managing Director of Global Trader's South African business and a member of gro...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD367.94K) is about average for companies of similar size in the ZA market ($USD509.30K).

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


Leadership Team

Experienced Management: PPE's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: PPE's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PPE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.1%.


Top Shareholders

Company Information

Purple Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Purple Group Limited
  • Ticker: PPE
  • Exchange: JSE
  • Founded: 1998
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: R2.238b
  • Shares outstanding: 1.15b
  • Website: https://www.purplegroup.co.za

Location

  • Purple Group Limited
  • 25 Owl Street
  • 16th Floor
  • Johannesburg
  • Gauteng
  • 2092
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/22 20:58
End of Day Share Price2021/10/22 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.