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TON

Tongaat HulettJSE:TON Stock Report

Market Cap

R918.8m

7D

1.5%

1Y

4.8%

Updated

19 Oct, 2021

Data

Company Financials
TON fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

TON Overview

Tongaat Hulett Limited operates as an agriculture and agri-processing company in Zimbabwe, Mozambique, South Africa, Other SADC, North America, Europe and Middle East, and the Asia-Pacific.

Tongaat Hulett Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tongaat Hulett
Historical stock prices
Current Share PriceR6.80
52 Week HighR5.74
52 Week LowR13.48
Beta2.58
1 Month Change1.80%
3 Month Change13.33%
1 Year Change4.78%
3 Year Change-87.22%
5 Year Change-94.35%
Change since IPO-66.83%

Recent News & Updates

Shareholder Returns

TONZA FoodZA Market
7D1.5%0.8%1.0%
1Y4.8%4.0%20.8%

Return vs Industry: TON underperformed the ZA Food industry which returned 6% over the past year.

Return vs Market: TON underperformed the ZA Market which returned 20.7% over the past year.

Price Volatility

Is TON's price volatile compared to industry and market?
TON volatility
TON Beta2.58
Industry Beta0.32
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
187523,347John Hudsonhttps://www.tongaat.com

Tongaat Hulett Limited operates as an agriculture and agri-processing company in Zimbabwe, Mozambique, South Africa, Other SADC, North America, Europe and Middle East, and the Asia-Pacific. It produces and sells a range of refined sugarcane and maize based carbohydrate products; sweeteners; energy and supplementary feeds to the livestock farming community under the Voermol brand using bagasse and molasses; and corn starch, glucose, and other related products under the Amryal, Hydex, and Vaalgold Gluten 60 brands. The company also provides white and brown sugar products under the Huletts, SunSweet, and Blue Crystal brands.

Tongaat Hulett Fundamentals Summary

How do Tongaat Hulett's earnings and revenue compare to its market cap?
TON fundamental statistics
Market CapR918.77m
Earnings (TTM)-R929.00m
Revenue (TTM)R14.92b

0.06x

P/S Ratio

-1.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TON income statement (TTM)
RevenueR14.92b
Cost of RevenueR10.65b
Gross ProfitR4.27b
ExpensesR5.20b
Earnings-R929.00m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-6.88
Gross Margin28.62%
Net Profit Margin-6.23%
Debt/Equity Ratio-13,196.3%

How did TON perform over the long term?

See historical performance and comparison

Valuation

Is Tongaat Hulett undervalued compared to its fair value and its price relative to the market?

42.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TON (ZAR6.8) is trading below our estimate of fair value (ZAR11.9)

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


Price To Earnings Ratio

PE vs Industry: TON is unprofitable, so we can't compare its PE Ratio to the ZA Food industry average.

PE vs Market: TON is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TON has negative assets, so we can't compare its PB Ratio to the ZA Food industry average.


Future Growth

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

15.1%

Forecasted Food, Beverage & Tobacco 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 Tongaat Hulett 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 Tongaat Hulett performed over the past 5 years?

-35.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TON is currently unprofitable.

Growing Profit Margin: TON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TON is unprofitable, and losses have increased over the past 5 years at a rate of 35.9% per year.

Accelerating Growth: Unable to compare TON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TON is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (0.6%).


Return on Equity

High ROE: TON's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Tongaat Hulett's financial position?


Financial Position Analysis

Short Term Liabilities: TON has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TON has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TON has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TON's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable TON has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TON is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.8% per year.


Dividend

What is Tongaat Hulett current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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

2.5yrs

Average management tenure


CEO

John Hudson (51 yo)

2.67yrs

Tenure

R9,862,000

Compensation

Mr. John Gavin Hudson serves as Non-Executive Director at Hippo Valley Estates Limited since August 01, 2020. He has been Chief Executive Officer at Tongaat Hulett Limited since February 01, 2019. He had b...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD678.81K) is above average for companies of similar size in the ZA market ($USD278.96K).

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


Leadership Team

Experienced Management: TON's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: TON's board of directors are not considered experienced ( 2 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

Tongaat Hulett Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Tongaat Hulett Limited
  • Ticker: TON
  • Exchange: JSE
  • Founded: 1875
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R918.765m
  • Shares outstanding: 135.11m
  • Website: https://www.tongaat.com

Number of Employees


Location

  • Tongaat Hulett Limited
  • Amanzimnyama Hill Road
  • PO Box 3
  • Tongaat
  • KwaZulu-Natal
  • 4400
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:37
End of Day Share Price2021/10/19 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.