JSE:AFT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Afrimat Limited, an open pit mining company, provides industrial minerals and construction materials in South Africa. More Details

Rewards

PE ratio (12.6x) is below the ZA market (13.6x)

Earnings grew by 9.8% over the past year

Risk Analysis

No risks detected for AFT from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AFT is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 5% a week.

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


Market Performance


7 Day Return

4.9%

AFT

1.7%

ZA Basic Materials

2.0%

ZA Market


1 Year Return

31.1%

AFT

28.0%

ZA Basic Materials

1.2%

ZA Market

Return vs Industry: AFT exceeded the ZA Basic Materials industry which returned 28% over the past year.

Return vs Market: AFT exceeded the ZA Market which returned 1.2% over the past year.


Shareholder returns

AFTIndustryMarket
7 Day4.9%1.7%2.0%
30 Day0.1%11.2%7.2%
90 Day11.8%46.2%12.9%
1 Year35.4%31.1%35.9%28.0%6.5%1.2%
3 Year55.0%42.4%-6.5%-21.3%2.9%-17.9%
5 Year118.7%91.0%46.5%8.3%51.0%8.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AFT (ZAR43) is trading above our estimate of fair value (ZAR30.42)

Significantly Below Fair Value: AFT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AFT is good value based on its PE Ratio (12.6x) compared to the XF Basic Materials industry average (18.2x).

PE vs Market: AFT is good value based on its PE Ratio (12.6x) compared to the ZA market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFT is overvalued based on its PB Ratio (3x) compared to the XF Basic Materials industry average (1.2x).


Next Steps

Future Growth

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

8.8%

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 Afrimat 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 Afrimat performed over the past 5 years?

16.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFT has high quality earnings.

Growing Profit Margin: AFT's current net profit margins (14.7%) are higher than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: AFT's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: AFT's earnings growth over the past year (9.8%) is below its 5-year average (16% per year).

Earnings vs Industry: AFT earnings growth over the past year (9.8%) exceeded the Basic Materials industry -7.9%.


Return on Equity

High ROE: AFT's Return on Equity (24%) is considered high.


Next Steps

Financial Health

How is Afrimat's financial position?


Financial Position Analysis

Short Term Liabilities: AFT's short term assets (ZAR1.2B) exceed its short term liabilities (ZAR658.4M).

Long Term Liabilities: AFT's short term assets (ZAR1.2B) exceed its long term liabilities (ZAR495.7M).


Debt to Equity History and Analysis

Debt Level: AFT's debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: AFT's debt to equity ratio has reduced from 14.3% to 10.7% over the past 5 years.

Debt Coverage: AFT's debt is well covered by operating cash flow (282.6%).

Interest Coverage: AFT's interest payments on its debt are well covered by EBIT (45.9x coverage).


Balance Sheet


Next Steps

Dividend

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

2.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFT's dividend (2.72%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (2.98%).

High Dividend: AFT's dividend (2.72%) is low compared to the top 25% of dividend payers in the ZA market (8.8%).


Stability and Growth of Payments

Stable Dividend: AFT's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.2%), AFT'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?

11.1yrs

Average board tenure


CEO

Andries van Heerden (55 yo)

14.25yrs

Tenure

R9,986,000

Compensation

Mr. Andries Johannes van Heerden, B.Eng (Mech), MBA, has been Chief Executive Officer of Afrimat Limited since October 4, 2006. Mr. van Heerden started his career at Iscor Mining serving in different manag...


CEO Compensation Analysis

Compensation vs Market: Andries's total compensation ($USD670.74K) is about average for companies of similar size in the ZA market ($USD666.28K).

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


Board Members

NamePositionTenureCompensationOwnership
Andries van Heerden
CEO & Executive Director14.25yrsR9.99m0.79%
ZAR 45.7m
Pieter Gabriel de Wit
CFO & Directorno dataR5.51m0.15%
ZAR 8.8m
Collin Ramukhubathi
Executive Director1.17yrsR3.71m0.0039%
ZAR 227.6k
Johannes Hendrick van der Merwe
Independent Non-Executive Director3.83yrsR232.00kno data
Loyiso Dotwana
Non-Executive Director13.25yrsR451.00kno data
Phuti Rachel Tsukudu
Independent Non-Executive Director12yrsR356.00kno data
Marthinus von Wielligh
Independent Chairman15yrsR994.00k0.33%
ZAR 19.3m
Hendrik Johannes van Wyk
Independent Non Executive Director15yrsR376.00k0.081%
ZAR 4.7m
Francois Louw
Lead Independent Directorno dataR368.00k0.21%
ZAR 12.0m
Gert Coffee
Non-Executive Director10.17yrsR297.00k0.49%
ZAR 28.6m
Jacobus van der Merwe
Independent Non-Executive Director6.42yrsR356.00k0.016%
ZAR 945.2k
Helmut Pool
Independent Non-Executive Director3.83yrsR333.00k0.29%
ZAR 16.7m

11.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: AFT's board of directors are seasoned and experienced ( 11.1 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Afrimat Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Afrimat Limited
  • Ticker: AFT
  • Exchange: JSE
  • Founded: 1963
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: R5.778b
  • Shares outstanding: 137.56m
  • Website: https://www.afrimat.co.za

Number of Employees


Location

  • Afrimat Limited
  • Tyger Valley Office Park No. 2
  • Cor Willie van Schoor Ave & Old Oak Rd
  • Bellville
  • Western Cape
  • 7530
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFTJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARNov 2006

Biography

Afrimat Limited, an open pit mining company, provides industrial minerals and construction materials in South Africa. It operates through three segments: Construction Materials, Industrial Minerals, and Bu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 17:03
End of Day Share Price2021/01/21 00:00
Earnings2020/08/31
Annual Earnings2020/02/29


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.