company background image
RFG

RFG HoldingsJSE:RFG Stock Report

Market Cap

R3.1b

7D

-4.1%

1Y

-7.1%

Updated

17 Oct, 2021

Data

Company Financials +
RFG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance4/6
Financial Health5/6
Dividends2/6

RFG Overview

RFG Holdings Limited manufactures and markets convenience meal solutions in South Africa and the Kingdom of Eswatini.

RFG Holdings Competitors

Tiger Brands

JSE:TBS

R30.9b

AVI

JSE:AVI

R27.3b

Brait

JSE:BAT

R5.5b

Mutandis

CBSE:MUT

د.م2.0b

Price History & Performance

Summary of all time highs, changes and price drops for RFG Holdings
Historical stock prices
Current Share PriceR11.99
52 Week HighR10.50
52 Week LowR14.08
Beta-0.013
1 Month Change2.22%
3 Month Change-1.72%
1 Year Change-7.05%
3 Year Change-23.63%
5 Year Change-54.03%
Change since IPO9.00%

Recent News & Updates

Apr 13
RFG Holdings (JSE:RFG) Hasn't Managed To Accelerate Its Returns

RFG Holdings (JSE:RFG) Hasn't Managed To Accelerate Its Returns

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Mar 26
Is RFG Holdings (JSE:RFG) A Risky Investment?

Is RFG Holdings (JSE:RFG) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Mar 11
Would Shareholders Who Purchased RFG Holdings' (JSE:RFG) Stock Five Years Be Happy With The Share price Today?

Would Shareholders Who Purchased RFG Holdings' (JSE:RFG) Stock Five Years Be Happy With The Share price Today?

The main aim of stock picking is to find the market-beating stocks. But even the best stock picker will only win with...

Shareholder Returns

RFGZA FoodZA Market
7D-4.1%-0.9%1.6%
1Y-7.1%6.1%21.3%

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

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

Price Volatility

Is RFG's price volatile compared to industry and market?
RFG volatility
RFG Beta-0.013
Industry Beta0.32
Market Beta1

Stable Share Price: RFG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RFG's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1897n/aPieter Hanekomhttps://www.rfg.com

RFG Holdings Limited manufactures and markets convenience meal solutions in South Africa and the Kingdom of Eswatini. The company operates through Regional and International segments. It offers canned fruits, jams, vegetables, meat products, fruit juices, fruit purees and concentrates, dry packed foods, fresh and frozen ready meals, pies, pastries, bakery, salads, canned pineapple, tomato paste, canned tomatoes, vegetable puree, citrus fruit products, custards, spices, and gravy and cook-in sauces.

RFG Holdings Fundamentals Summary

How do RFG Holdings's earnings and revenue compare to its market cap?
RFG fundamental statistics
Market CapR3.14b
Earnings (TTM)R243.79m
Revenue (TTM)R5.76b

12.9x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RFG income statement (TTM)
RevenueR5.76b
Cost of RevenueR4.39b
Gross ProfitR1.38b
ExpensesR1.13b
EarningsR243.79m

Last Reported Earnings

Mar 28, 2021

Next Earnings Date

Nov 17, 2021

Earnings per share (EPS)0.93
Gross Margin23.91%
Net Profit Margin4.23%
Debt/Equity Ratio41.9%

How did RFG perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is RFG Holdings undervalued compared to its fair value and its price relative to the market?

39.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RFG (ZAR11.99) is trading below our estimate of fair value (ZAR19.77)

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


Price To Earnings Ratio

PE vs Industry: RFG is poor value based on its PE Ratio (12.9x) compared to the ZA Food industry average (11.4x).

PE vs Market: RFG is poor value based on its PE Ratio (12.9x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: RFG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: RFG's PB Ratio (1.2x) is in line with the ZA Food industry average.


Future Growth

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

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RFG's forecast earnings growth (22.7% per year) is above the savings rate (8.8%).

Earnings vs Market: RFG's earnings (22.7% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RFG's revenue (6.5% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: RFG's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RFG's Return on Equity is forecast to be low in 3 years time (10.6%).


Past Performance

How has RFG Holdings performed over the past 5 years?

-5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RFG has high quality earnings.

Growing Profit Margin: RFG's current net profit margins (4.2%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: RFG's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: RFG's earnings growth over the past year (13.7%) exceeds its 5-year average (-5.2% per year).

Earnings vs Industry: RFG earnings growth over the past year (13.7%) exceeded the Food industry 0.6%.


Return on Equity

High ROE: RFG's Return on Equity (9.3%) is considered low.


Financial Health

How is RFG Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: RFG's short term assets (ZAR2.7B) exceed its short term liabilities (ZAR1.7B).

Long Term Liabilities: RFG's short term assets (ZAR2.7B) exceed its long term liabilities (ZAR915.7M).


Debt to Equity History and Analysis

Debt Level: RFG's debt to equity ratio (41.9%) is considered high.

Reducing Debt: RFG's debt to equity ratio has reduced from 95.7% to 41.9% over the past 5 years.

Debt Coverage: RFG's debt is well covered by operating cash flow (44.7%).

Interest Coverage: RFG's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Dividend

What is RFG Holdings's current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RFG's dividend (2.4%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: RFG's dividend (2.4%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), RFG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RFG's dividends in 3 years are forecast to be well covered by earnings (33.3% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Pieter Hanekom (57 yo)

no data

Tenure

R2,277,000

Compensation

Mr. Pieter Willem Hanekom, BAcc, B.Comp. Hons, CA (SA) serves as Executive Director at RFG Holdings Ltd (formerly known as RFG Holdings Limited) since July 08, 2020 and serves as its Chief Executive Office...


CEO Compensation Analysis

Compensation vs Market: Pieter's total compensation ($USD155.72K) is below average for companies of similar size in the ZA market ($USD494.06K).

Compensation vs Earnings: Insufficient data to compare Pieter's compensation with company performance.


Leadership Team

Experienced Management: RFG's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: RFG's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RFG insiders have only sold shares 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

RFG Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: RFG Holdings Limited
  • Ticker: RFG
  • Exchange: JSE
  • Founded: 1897
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R3.137b
  • Shares outstanding: 261.64m
  • Website: https://www.rfg.com

Location

  • RFG Holdings Limited
  • Pniel Road
  • Groot Drakenstein
  • Cape Town
  • Western Cape
  • 7680
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Earnings2021/03/28
Annual Earnings2020/09/27


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.