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TBS

Tiger BrandsJSE:TBS Stock Report

Market Cap

R30.8b

7D

0.09%

1Y

-10.1%

Updated

18 Oct, 2021

Data

Company Financials +
TBS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance1/6
Financial Health6/6
Dividends3/6

TBS Overview

Tiger Brands Limited engages in the manufacture, marketing, and distribution of fast-moving consumer goods primarily in South Africa.

Tiger Brands Competitors

RFG Holdings

JSE:RFG

R3.1b

Brait

JSE:BAT

R5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Tiger Brands
Historical stock prices
Current Share PriceR186.17
52 Week HighR175.50
52 Week LowR228.73
Beta0.27
1 Month Change1.93%
3 Month Change-8.29%
1 Year Change-10.06%
3 Year Change-27.03%
5 Year Change-49.12%
Change since IPO381.36%

Recent News & Updates

Shareholder Returns

TBSZA FoodZA Market
7D0.09%-0.9%1.6%
1Y-10.1%6.1%21.3%

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

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

Price Volatility

Is TBS's price volatile compared to industry and market?
TBS volatility
TBS Beta0.27
Industry Beta0.32
Market Beta1

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

Volatility Over Time: TBS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192011,188Noel Doylehttps://www.tigerbrands.com

Tiger Brands Limited engages in the manufacture, marketing, and distribution of fast-moving consumer goods primarily in South Africa. The company offers baby care products under the Purity brand; bakeries under the Albany and Tinkies brands; and culinary fruit veg products under the Crosse & Blackwell, Benny, All Gold, Spray and Cook, Ice Cap, KOO, Colman’s, Black Cat, Mrs H.S. Ball’s Chutney, and Hugo’s brands.

Tiger Brands Fundamentals Summary

How do Tiger Brands's earnings and revenue compare to its market cap?
TBS fundamental statistics
Market CapR30.83b
Earnings (TTM)R2.17b
Revenue (TTM)R31.06b

14.2x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TBS income statement (TTM)
RevenueR31.06b
Cost of RevenueR21.76b
Gross ProfitR9.30b
ExpensesR7.13b
EarningsR2.17b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 19, 2021

Earnings per share (EPS)13.08
Gross Margin29.94%
Net Profit Margin6.98%
Debt/Equity Ratio0.01%

How did TBS perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

66%

Payout Ratio

Valuation

Is Tiger Brands undervalued compared to its fair value and its price relative to the market?

17.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TBS (ZAR186.17) is trading below our estimate of fair value (ZAR224.4)

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


Price To Earnings Ratio

PE vs Industry: TBS is poor value based on its PE Ratio (14.2x) compared to the ZA Food industry average (11.4x).

PE vs Market: TBS is poor value based on its PE Ratio (14.2x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TBS is overvalued based on its PB Ratio (2x) compared to the ZA Food industry average (1.2x).


Future Growth

How is Tiger Brands forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBS's forecast earnings growth (15.7% per year) is above the savings rate (8.8%).

Earnings vs Market: TBS's earnings (15.7% per year) are forecast to grow faster than the ZA market (12.2% per year).

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

Revenue vs Market: TBS's revenue (5.3% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: TBS's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TBS's Return on Equity is forecast to be low in 3 years time (15.7%).


Past Performance

How has Tiger Brands performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TBS has high quality earnings.

Growing Profit Margin: TBS's current net profit margins (7%) are lower than last year (12.1%).


Past Earnings Growth Analysis

Earnings Trend: TBS's earnings have declined by 5.9% per year over the past 5 years.

Accelerating Growth: TBS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TBS had negative earnings growth (-37%) over the past year, making it difficult to compare to the Food industry average (0.6%).


Return on Equity

High ROE: TBS's Return on Equity (14%) is considered low.


Financial Health

How is Tiger Brands's financial position?


Financial Position Analysis

Short Term Liabilities: TBS's short term assets (ZAR11.1B) exceed its short term liabilities (ZAR5.5B).

Long Term Liabilities: TBS's short term assets (ZAR11.1B) exceed its long term liabilities (ZAR1.3B).


Debt to Equity History and Analysis

Debt Level: TBS's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: TBS's debt to equity ratio has reduced from 23.4% to 0.01% over the past 5 years.

Debt Coverage: TBS's debt is well covered by operating cash flow (120952.4%).

Interest Coverage: TBS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Tiger Brands's current dividend yield, its reliability and sustainability?

3.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TBS's dividend (3.44%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: TBS's dividend (3.44%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

Growing Dividend: TBS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.6%), TBS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TBS's dividends in 3 years are forecast to be covered by earnings (57.2% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Noel Doyle (55 yo)

1.67yrs

Tenure

R9,002,000

Compensation

Mr. Noel Patrick Doyle, FCS, CA(SA) has been Chief Executive Officer of Tiger Brands Limited since February 1, 2020 and served as its Chief Financial Officer from August 1, 2016 to February 1, 2020. Mr. Do...


CEO Compensation Analysis

Compensation vs Market: Noel's total compensation ($USD612.93K) is below average for companies of similar size in the ZA market ($USD922.82K).

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


Leadership Team

Experienced Management: TBS's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: TBS's board of directors are not considered experienced ( 2.9 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

Tiger Brands Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Tiger Brands Limited
  • Ticker: TBS
  • Exchange: JSE
  • Founded: 1920
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R30.829b
  • Shares outstanding: 165.59m
  • Website: https://www.tigerbrands.com

Number of Employees


Location

  • Tiger Brands Limited
  • 3010 William Nicol Drive
  • Bryanston
  • Gauteng
  • 2196
  • 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 21:34
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.