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AFE

AECIJSE:AFE Stock Report

Last Price

R112.50

Market Cap

R12.4b

7D

-4.2%

1Y

26.0%

Updated

25 Jan, 2022

Data

Company Financials
AFE fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends2/6

AFE Stock Overview

AECI Ltd, together with its subsidiaries, operates in the mining, water treatment, plant and animal health, food and beverage, infrastructure, and general industrial sectors in Africa, Europe, South East Asia, North America, South America, and Australia.

Price History & Performance

Summary of all time highs, changes and price drops for AECI
Historical stock prices
Current Share PriceR112.50
52 Week HighR127.00
52 Week LowR86.99
Beta0.73
1 Month Change3.00%
3 Month Change0.69%
1 Year Change25.95%
3 Year Change23.64%
5 Year Change9.33%
Change since IPO1,150.00%

Recent News & Updates

Shareholder Returns

AFEZA ChemicalsZA Market
7D-4.2%-2.0%-1.7%
1Y26.0%88.5%10.4%

Return vs Industry: AFE underperformed the ZA Chemicals industry which returned 77.2% over the past year.

Return vs Market: AFE exceeded the ZA Market which returned 9.3% over the past year.

Price Volatility

Is AFE's price volatile compared to industry and market?
AFE volatility
AFE Average Weekly Movement3.6%
Chemicals Industry Average Movement4.4%
Market Average Movement5.7%
10% most volatile stocks in ZA Market11.4%
10% least volatile stocks in ZA Market3.3%

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.

About the Company

FoundedEmployeesCEOWebsite
18946,807Mark Dytorhttps://www.aeciworld.com

AECI Ltd, together with its subsidiaries, operates in the mining, water treatment, plant and animal health, food and beverage, infrastructure, and general industrial sectors in Africa, Europe, South East Asia, North America, South America, and Australia. The company operates through five segments: AECI Mining, AECI Water, AECI Agri Health, AECI Chemicals, and AECI Property Services & Corporate. The AECI Mining segment provides mine-to-mineral solution for the mining sector.

AECI Fundamentals Summary

How do AECI's earnings and revenue compare to its market cap?
AFE fundamental statistics
Market CapR12.37b
Earnings (TTM)R434.00m
Revenue (TTM)R24.65b

28.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AFE income statement (TTM)
RevenueR24.65b
Cost of RevenueR16.91b
Gross ProfitR7.74b
ExpensesR7.30b
EarningsR434.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.95
Gross Margin31.38%
Net Profit Margin1.76%
Debt/Equity Ratio42.4%

How did AFE perform over the long term?

See historical performance and comparison

Dividends

5.8%

Current Dividend Yield

158%

Payout Ratio

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 (ZAR112.5) is trading below our estimate of fair value (ZAR234.32)

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


Price To Earnings Ratio

PE vs Industry: AFE is poor value based on its PE Ratio (28.5x) compared to the ZA Chemicals industry average (10.9x).

PE vs Market: AFE is poor value based on its PE Ratio (28.5x) compared to the ZA market (10.6x).


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 (1.2x) is in line with the ZA Chemicals industry average.


Future Growth

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

20.9%

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.


Past Performance

How has AECI performed over the past 5 years?

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFE has a large one-off gain of ZAR612.0M impacting its June 30 2021 financial results.

Growing Profit Margin: AFE's current net profit margins (1.8%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: AFE's earnings have declined by 4.8% per year over the past 5 years.

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

Earnings vs Industry: AFE had negative earnings growth (-62.7%) over the past year, making it difficult to compare to the Chemicals industry average (40.8%).


Return on Equity

High ROE: AFE's Return on Equity (4.5%) is considered low.


Financial Health

How is AECI's financial position?


Financial Position Analysis

Short Term Liabilities: AFE's short term assets (ZAR11.2B) exceed its short term liabilities (ZAR6.0B).

Long Term Liabilities: AFE's short term assets (ZAR11.2B) exceed its long term liabilities (ZAR5.0B).


Debt to Equity History and Analysis

Debt Level: AFE's net debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: AFE's debt to equity ratio has increased from 28% to 42.4% over the past 5 years.

Debt Coverage: AFE's debt is well covered by operating cash flow (59.2%).

Interest Coverage: AFE's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

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

5.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFE's dividend (5.78%) is higher than the bottom 25% of dividend payers in the ZA market (2.89%).

High Dividend: AFE's dividend (5.78%) is low compared to the top 25% of dividend payers in the ZA market (7.41%).


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 high payout ratio (158%), AFE's dividend payments are not 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?

8.8yrs

Average management tenure


CEO

Mark Dytor (59 yo)

8.83yrs

Tenure

R21,331,000

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 ($USD1.40M) is above average for companies of similar size in the ZA market ($USD858.70K).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AFE's management team is seasoned and experienced (8.8 years average tenure).


Board Members

Experienced Board: AFE's board of directors are considered experienced (3.9 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 employee growth, exchange listings and data sources


Key Information

  • Name: AECI Ltd
  • Ticker: AFE
  • Exchange: JSE
  • Founded: 1894
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Implied Market Cap: R12.369b
  • Shares outstanding: 109.94m
  • Website: https://www.aeciworld.com

Number of Employees


Location

  • AECI Ltd
  • AECI Place
  • First Floor, 24 The Woodlands
  • Sandton
  • Gauteng
  • 2191
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/25 21:34
End of Day Share Price2022/01/25 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.