JSE:AFE

Stock Analysis Report

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Executive Summary

AECI Ltd provides mining, water treatment, plant and animal health, food and beverage, infrastructure, and general industrial sector related products and services in Africa, Europe, South East Asia, North America, South America, and Australia. More Details


Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has AECI's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

1.2%

AFE

0.9%

ZA Chemicals

1.0%

ZA Market


1 Year Return

-16.3%

AFE

-32.5%

ZA Chemicals

-2.1%

ZA Market

Return vs Industry: AFE exceeded the ZA Chemicals industry which returned -32.5% over the past year.

Return vs Market: AFE underperformed the ZA Market which returned -2.2% over the past year.


Shareholder returns

AFEIndustryMarket
7 Day1.2%0.9%1.0%
30 Day1.7%16.2%3.4%
90 Day16.3%51.7%12.0%
1 Year-10.2%-16.3%-31.7%-32.5%3.0%-2.1%
3 Year3.6%-12.7%-55.4%-58.6%3.4%-17.7%
5 Year44.2%12.1%-46.0%-53.1%50.6%8.4%

Long-Term Price Volatility Vs. Market

How volatile is AECI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFE (ZAR89.09) is trading below our estimate of fair value (ZAR238.31)

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


Price To Earnings Ratio

PE vs Industry: AFE is good value based on its PE Ratio (8.1x) compared to the ZA Chemicals industry average (10.3x).

PE vs Market: AFE is good value based on its PE Ratio (8.1x) compared to the ZA market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFE's PB Ratio (0.8x) is in line with the ZA Chemicals industry average.


Next Steps

Future Growth

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

67.9%

Forecasted Materials 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 AECI 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.


Next Steps

Past Performance

How has AECI performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFE has high quality earnings.

Growing Profit Margin: AFE's current net profit margins (4.8%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: AFE's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: AFE's earnings growth over the past year (29.8%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: AFE earnings growth over the past year (29.8%) exceeded the Chemicals industry 7.7%.


Return on Equity

High ROE: AFE's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is AECI's financial position?


Financial Position Analysis

Short Term Liabilities: AFE's short term assets (ZAR11.8B) exceed its short term liabilities (ZAR6.3B).

Long Term Liabilities: AFE's short term assets (ZAR11.8B) exceed its long term liabilities (ZAR6.1B).


Debt to Equity History and Analysis

Debt Level: AFE's debt to equity ratio (50.5%) is considered high.

Reducing Debt: AFE's debt to equity ratio has increased from 39.8% to 50.5% over the past 5 years.

Debt Coverage: AFE's debt is well covered by operating cash flow (42.6%).

Interest Coverage: AFE's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Next Steps

Dividend

What is AECI current dividend yield, its reliability and sustainability?

6.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFE's dividend (6.4%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: AFE's dividend (6.4%) is low compared to the top 25% of dividend payers in the ZA market (8.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), AFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Mark Dytor (58 yo)

7.83yrs

Tenure

R16,300,000

Compensation

Mr. Mark Anthony Dytor has been the Chief Executive Officer of AECI Ltd. since March 01, 2013. Mr. Dytor has been the Managing Director of Chemserve Water Sciences since 1993 and then of S.A. Paper Chemica...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.07M) is above average for companies of similar size in the ZA market ($USD777.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Dytor
Chief Executive & Executive Director7.83yrsR16.30m0.14%
ZAR 14.1m
K. Kathan
CFO, Financial Director & Executive Director12.33yrsR15.61m0.055%
ZAR 5.4m
Edwin Ludick
MD of AEL and Chairman of Experse & Senmin -AECI Mining Chemicalsno dataR9.29m0%
ZAR 0
Dean Mulqueeny
Chemicals Executive6yrsR7.61m0%
ZAR 0
Dean Murray
Executive Officerno dataR7.53m0%
ZAR 0
Toni Serra
Chief Information Officer4.83yrsno datano data
Fulvia Putero
Corporate Communications & Investor Relations Managerno datano datano data
Wynand Strydom
Head of Legalno datano datano data
Candice Watson
Group Human Capital Executive1yrno datano data
Reg Bhikum
Managing Director of Operation Services12yrsno datano data
Gugu Mthethwa
Group Mergers & Acquisitions Manager10yrsno datano data
Trevor Starke
Group Treasurer & Debt Officerno datano datano data

7.8yrs

Average Tenure

55yo

Average Age

Experienced Management: AFE's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Dytor
Chief Executive & Executive Director7.83yrsR16.30m0.14%
ZAR 14.1m
K. Kathan
CFO, Financial Director & Executive Director12.33yrsR15.61m0.055%
ZAR 5.4m
Khotso Kenneth Mokhele
Independent Chairman of the Board3.83yrsR1.85mno data
Godfrey Gomwe
Independent Non-Executive Director6yrsR1.01mno data
Fikile Felicity De Buck
Independent Non-Executive Director1.58yrsR188.00kno data
Rams Ramashia
Independent Non Executive Director10.5yrsR793.00kno data
Marna Roets
Independent Non-Executive Director0.58yrno datano data
Stephen Dawson
Independent Non-Executive Director1yrno datano data
Walter Dissinger
Independent Non-Executive Director1yrno datano data
Philisiwe Sibiya
Independent Non-Executive Director2.92yrsR645.00kno data

3.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: AFE's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AFE 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

AECI Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AECI Ltd
  • Ticker: AFE
  • Exchange: JSE
  • Founded: 1894
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: R9.795b
  • Shares outstanding: 109.94m
  • Website: https://www.aeciworld.com

Number of Employees


Location

  • AECI Ltd
  • AECI Place
  • First Floor, 24 The Woodlands
  • Sandton
  • Gauteng
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
87FZLSE (London Stock Exchange)PREF SHS 5.5%GBGBPJan 1992
AFEJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992
AFEPJSE (The Johannesburg Securities Exchange)PREF SHS 5.5%ZAZARJan 1992
A7ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

AECI Ltd provides mining, water treatment, plant and animal health, food and beverage, infrastructure, and general industrial sector related products and services in Africa, Europe, South East Asia, North ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 17:44
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.