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SHG

Sea Harvest GroupJSE:SHG Stock Report

Market Cap

R3.8b

7D

1.9%

1Y

0%

Updated

25 Oct, 2021

Data

Company Financials +
SHG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends3/6

SHG Overview

Sea Harvest Group Limited engages in the fishing and food business serving retail and foodservice customers.

Price History & Performance

Summary of all time highs, changes and price drops for Sea Harvest Group
Historical stock prices
Current Share PriceR13.50
52 Week HighR11.85
52 Week LowR18.50
Beta0.14
1 Month Change-2.53%
3 Month Change5.06%
1 Year Change0%
3 Year Change-1.82%
5 Year Changen/a
Change since IPO4.49%

Recent News & Updates

Jun 10
Sea Harvest Group (JSE:SHG) Could Be Struggling To Allocate Capital

Sea Harvest Group (JSE:SHG) Could Be Struggling To Allocate Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a...

May 19
Shareholders May Not Be So Generous With Sea Harvest Group Limited's (JSE:SHG) CEO Compensation And Here's Why

Shareholders May Not Be So Generous With Sea Harvest Group Limited's (JSE:SHG) CEO Compensation And Here's Why

CEO Felix Ratheb has done a decent job of delivering relatively good performance at Sea Harvest Group Limited ( JSE:SHG...

Shareholder Returns

SHGZA FoodZA Market
7D1.9%0%0%
1Y0%0%0%

Return vs Industry: SHG underperformed the ZA Food industry which returned 2.4% over the past year.

Return vs Market: SHG underperformed the ZA Market which returned 19% over the past year.

Price Volatility

Is SHG's price volatile compared to industry and market?
SHG volatility
SHG Beta0.14
Industry Beta0
Market Beta1

Stable Share Price: SHG is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SHG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1964n/aFelix Rathebhttps://www.seaharvestgroup.co.za

Sea Harvest Group Limited engages in the fishing and food business serving retail and foodservice customers. The company operates through four segments: South African Fishing, Australia, Aquaculture, and Cape Harvest Foods. Its activities include the fishing of cape hake, and shark bay king and tiger prawns, as well as horse and Spanish mackerel, pilchards, anchovies, tuna, scallops, crabs, and a variety of farmed species; processing of the catch into frozen and chilled seafood; and marketing of products.

Sea Harvest Group Fundamentals Summary


Earnings & Revenue

Key profitability statistics from the latest earnings report
SHG income statement (TTM)
RevenueR4.48b
Cost of RevenueR2.99b
Gross ProfitR1.49b
ExpensesR1.01b
EarningsR479.90m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.71
Gross Margin33.30%
Net Profit Margin10.71%
Debt/Equity Ratio49.3%

How did SHG perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

11.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SHG (ZAR13.5) is trading below our estimate of fair value (ZAR15.31)

Significantly Below Fair Value: SHG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SHG is good value based on its PE Ratio (7.9x) compared to the ZA Food industry average (11.3x).

PE vs Market: SHG is good value based on its PE Ratio (7.9x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: SHG is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SHG is overvalued based on its PB Ratio (1.3x) compared to the ZA Food industry average (1.2x).


Future Growth

How is Sea Harvest Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHG's forecast earnings growth (6.1% per year) is below the savings rate (8.8%).

Earnings vs Market: SHG's earnings (6.1% per year) are forecast to grow slower than the ZA market (12.1% per year).

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

Revenue vs Market: SHG's revenue (6.8% per year) is forecast to grow faster than the ZA market (6.4% per year).

High Growth Revenue: SHG's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SHG's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Sea Harvest Group performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHG has high quality earnings.

Growing Profit Margin: SHG's current net profit margins (10.7%) are higher than last year (10.1%).


Past Earnings Growth Analysis

Earnings Trend: SHG's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: SHG's earnings growth over the past year (16.4%) is below its 5-year average (26.8% per year).

Earnings vs Industry: SHG earnings growth over the past year (16.4%) exceeded the Food industry 0.6%.


Return on Equity

High ROE: SHG's Return on Equity (15.3%) is considered low.


Financial Health

How is Sea Harvest Group's financial position?


Financial Position Analysis

Short Term Liabilities: SHG's short term assets (ZAR1.9B) exceed its short term liabilities (ZAR943.3M).

Long Term Liabilities: SHG's short term assets (ZAR1.9B) do not cover its long term liabilities (ZAR2.1B).


Debt to Equity History and Analysis

Debt Level: SHG's debt to equity ratio (49.3%) is considered high.

Reducing Debt: SHG's debt to equity ratio has reduced from 175% to 49.3% over the past 5 years.

Debt Coverage: SHG's debt is well covered by operating cash flow (51.6%).

Interest Coverage: SHG's interest payments on its debt are well covered by EBIT (13.6x coverage).


Balance Sheet


Dividend

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

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHG's dividend (3.33%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: SHG's dividend (3.33%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SHG has been paying a dividend for less than 10 years.

Growing Dividend: SHG's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.3%), SHG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHG's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Felix Ratheb (48 yo)

8.75yrs

Tenure

R18,275,000

Compensation

Mr. Felix Ratheb, BSc Engineering (Hons), MBA serves as Chief Executive Officer of Sea Harvest Corporation (Pty) Ltd since December 31, 2013 and also serves as its Executive Director. Mr. Ratheb has been t...


CEO Compensation Analysis

Compensation vs Market: Felix's total compensation ($USD1.24M) is above average for companies of similar size in the ZA market ($USD502.17K).

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


Leadership Team

Experienced Management: SHG's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: SHG'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: SHG 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

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


Key Information

  • Name: Sea Harvest Group Limited
  • Ticker: SHG
  • Exchange: JSE
  • Founded: 1964
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R3.779b
  • Shares outstanding: 279.90m
  • Website: https://www.seaharvestgroup.co.za

Number of Employees


Location

  • Sea Harvest Group Limited
  • The Boulevard Office Park
  • 1st Floor, Block C
  • 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 21:43
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.