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OCE

Oceana GroupJSE:OCE Stock Report

Market Cap

R7.2b

7D

-3.9%

1Y

-1.5%

Updated

18 Oct, 2021

Data

Company Financials +
OCE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

OCE Overview

Oceana Group Limited operates as a fishing company in Africa, Asia, Europe, the United States, Australia, the Far East, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Oceana Group
Historical stock prices
Current Share PriceR61.74
52 Week HighR56.97
52 Week LowR78.47
Beta0.17
1 Month Change-3.53%
3 Month Change-1.67%
1 Year Change-1.50%
3 Year Change-25.15%
5 Year Change-47.20%
Change since IPO341.00%

Recent News & Updates

Mar 17
Shareholders May Find It Hard To Justify Increasing Oceana Group Limited's (JSE:OCE) CEO Compensation For Now

Shareholders May Find It Hard To Justify Increasing Oceana Group Limited's (JSE:OCE) CEO Compensation For Now

In the past three years, the share price of Oceana Group Limited ( JSE:OCE ) has struggled to generate growth for its...

Shareholder Returns

OCEZA FoodZA Market
7D-3.9%-0.9%1.6%
1Y-1.5%6.1%21.3%

Return vs Industry: OCE underperformed the ZA Food industry which returned 6.1% over the past year.

Return vs Market: OCE underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is OCE's price volatile compared to industry and market?
OCE volatility
OCE Beta0.17
Industry Beta0.32
Market Beta1

Stable Share Price: OCE is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: OCE's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1918n/aImraan Soomrahttps://www.oceana.co.za

Oceana Group Limited operates as a fishing company in Africa, Asia, Europe, the United States, Australia, the Far East, and internationally. It engages in catching, procuring, processing, marketing, and distributing canned fish, fishmeal, fish oil, pilchard, anchovy, redeye herring, gulf menhaden, tuna, horse mackerel, hake, lobster, and squid; and mid-water, deep-sea, and inshore fishing for pelagic fish. The company also provides refrigerated warehouse facilities and logistical support services.

Oceana Group Fundamentals Summary

How do Oceana Group's earnings and revenue compare to its market cap?
OCE fundamental statistics
Market CapR7.21b
Earnings (TTM)R799.28m
Revenue (TTM)R8.25b

9.0x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OCE income statement (TTM)
RevenueR8.25b
Cost of RevenueR5.41b
Gross ProfitR2.84b
ExpensesR2.04b
EarningsR799.28m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)6.85
Gross Margin34.39%
Net Profit Margin9.69%
Debt/Equity Ratio71.8%

How did OCE perform over the long term?

See historical performance and comparison

Dividends

6.5%

Current Dividend Yield

59%

Payout Ratio

Valuation

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

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCE (ZAR61.74) is trading below our estimate of fair value (ZAR83.99)

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


Price To Earnings Ratio

PE vs Industry: OCE is good value based on its PE Ratio (9x) compared to the ZA Food industry average (11.4x).

PE vs Market: OCE is good value based on its PE Ratio (9x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: OCE is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: OCE is overvalued based on its PB Ratio (1.5x) compared to the ZA Food industry average (1.2x).


Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OCE's forecast earnings growth (9.6% per year) is above the savings rate (8.8%).

Earnings vs Market: OCE's earnings (9.6% per year) are forecast to grow slower than the ZA market (12.2% per year).

High Growth Earnings: OCE's earnings are forecast to grow, but not significantly.

Revenue vs Market: OCE's revenue (5.6% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: OCE's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OCE's Return on Equity is forecast to be low in 3 years time (13.3%).


Past Performance

How has Oceana Group performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCE has high quality earnings.

Growing Profit Margin: OCE's current net profit margins (9.7%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: OCE's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: OCE's earnings growth over the past year (28.6%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: OCE earnings growth over the past year (28.6%) exceeded the Food industry 0.6%.


Return on Equity

High ROE: OCE's Return on Equity (16.7%) is considered low.


Financial Health

How is Oceana Group's financial position?


Financial Position Analysis

Short Term Liabilities: OCE's short term assets (ZAR3.9B) exceed its short term liabilities (ZAR2.6B).

Long Term Liabilities: OCE's short term assets (ZAR3.9B) exceed its long term liabilities (ZAR3.2B).


Debt to Equity History and Analysis

Debt Level: OCE's debt to equity ratio (71.8%) is considered high.

Reducing Debt: OCE's debt to equity ratio has reduced from 116.8% to 71.8% over the past 5 years.

Debt Coverage: OCE's debt is well covered by operating cash flow (43.6%).

Interest Coverage: OCE's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Dividend

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

6.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCE's dividend (6.53%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: OCE's dividend (6.53%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: OCE's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.9%), OCE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OCE's dividends in 3 years are forecast to be covered by earnings (66.8% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Imraan Soomra (46 yo)

3.67yrs

Tenure

R14,686,000

Compensation

Mr. Imraan Soomra, BCompt (Hons) (Wits), CA(SA), PLD Harvard Business School, has been Chief Executive Officer of Oceana Group Ltd since August 1, 2018. Mr. Soomra served as the Interim Chief Executive Off...


CEO Compensation Analysis

Compensation vs Market: Imraan's total compensation ($USD999.95K) is above average for companies of similar size in the ZA market ($USD731.45K).

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


Leadership Team

Experienced Management: OCE's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: OCE's board of directors are not considered experienced ( 2.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Oceana Group Limited
  • Ticker: OCE
  • Exchange: JSE
  • Founded: 1918
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R7.208b
  • Shares outstanding: 116.75m
  • Website: https://www.oceana.co.za

Number of Employees


Location

  • Oceana Group Limited
  • Oceana House
  • 7th Floor
  • Cape Town
  • Western Cape
  • 8001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:36
End of Day Share Price2021/10/18 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.