JSE:AFX

Stock Analysis Report

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Executive Summary

African Oxygen Limited, together with its subsidiaries, manufactures and distributes atmospheric gases, liquefied petroleum gas (LPG), and hard goods in South Africa and other African countries. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AFX is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: AFX's weekly volatility has decreased from 7% to 1% over the past year.


Market Performance


7 Day Return

0%

AFX

-0.09%

ZA Chemicals

2.0%

ZA Market


1 Year Return

15.1%

AFX

-31.0%

ZA Chemicals

1.2%

ZA Market

Return vs Industry: AFX exceeded the ZA Chemicals industry which returned -31% over the past year.

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


Shareholder returns

AFXIndustryMarket
7 Day0%-0.09%2.0%
30 Day1.2%22.9%7.2%
90 Day4.1%56.2%12.9%
1 Year42.4%15.1%-30.3%-31.0%6.5%1.2%
3 Year22.3%-8.2%-55.6%-58.7%2.9%-17.9%
5 Year162.3%79.1%-47.3%-54.1%51.0%8.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is African Oxygen 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: AFX (ZAR24.98) is trading below our estimate of fair value (ZAR50.7)

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


Price To Earnings Ratio

PE vs Industry: AFX is poor value based on its PE Ratio (14.7x) compared to the ZA Chemicals industry average (9.8x).

PE vs Market: AFX is poor value based on its PE Ratio (14.7x) compared to the ZA market (13.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFX is overvalued based on its PB Ratio (1.8x) compared to the ZA Chemicals industry average (0.8x).


Next Steps

Future Growth

How is African Oxygen 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 African Oxygen 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 African Oxygen performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFX has high quality earnings.

Growing Profit Margin: AFX's current net profit margins (9.1%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: AFX's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: AFX's earnings growth over the past year (12.2%) exceeds its 5-year average (9% per year).

Earnings vs Industry: AFX earnings growth over the past year (12.2%) exceeded the Chemicals industry 7.7%.


Return on Equity

High ROE: AFX's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is African Oxygen's financial position?


Financial Position Analysis

Short Term Liabilities: AFX's short term assets (ZAR3.3B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: AFX's short term assets (ZAR3.3B) exceed its long term liabilities (ZAR1.5B).


Debt to Equity History and Analysis

Debt Level: AFX's debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: AFX's debt to equity ratio has reduced from 32% to 13.6% over the past 5 years.

Debt Coverage: AFX's debt is well covered by operating cash flow (193.5%).

Interest Coverage: AFX's interest payments on its debt are well covered by EBIT (26.6x coverage).


Balance Sheet


Next Steps

Dividend

What is African Oxygen current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFX's dividend (3.36%) is higher than the bottom 25% of dividend payers in the ZA market (2.98%).

High Dividend: AFX's dividend (3.36%) is low compared to the top 25% of dividend payers in the ZA market (8.8%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.3%), AFX'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?

4.5yrs

Average management tenure


CEO

Schalk Venter (53 yo)

5.67yrs

Tenure

R9,860,000

Compensation

Mr. Schalk M. Venter has been the Managing Director and Executive Director of African Oxygen Limited since May 18, 2015. Mr. Venter served as Managing Director of AEL Mining Services Limited at AECI Ltd. s...


CEO Compensation Analysis

Compensation vs Market: Schalk's total compensation ($USD662.28K) is about average for companies of similar size in the ZA market ($USD666.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Schalk Venter
MD & Executive Director5.67yrsR9.86mno data
Magnus Stenglin
Group Finance Director & Executive Director0.75yrno datano data
Jan Ntuli
Senior Director of Operations5.25yrsno datano data
Sandy Morris
Director of IS RAF3.83yrsno datano data
Cheryl Singh
Head of Legalno datano datano data
Winky Makwela
Head of Human Resources2yrsno datano data
Stephen Moran
Head of SHEQ8.5yrsR918.00kno data
Makhula Magaoga
Head of Procurement5.33yrsno datano data
Sanjay Misra
Head of the Programme Management Office5.25yrsno datano data
Joseph Ramashala
Head of Healthcare3.42yrsno datano data
N. Nakana
Head of Internal Auditno datano datano data
Jens Heyerdahl
Deputy Company Secretary2.5yrsno datano data

4.5yrs

Average Tenure

Experienced Management: AFX's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Schalk Venter
MD & Executive Director5.67yrsR9.86mno data
Magnus Stenglin
Group Finance Director & Executive Director0.75yrno datano data
Nomfundo Vuyiswa Qangule
Independent Non-Executive Director6.5yrsR639.00kno data
Matthias von Plotho
Non-Executive Director9.67yrsno datano data
Giullean Strauss
Lead Independent Non-Executive Director1.67yrsR804.00k0.0081%
ZAR 624.3k
Christopher Wells
Independent Non-Executive Director8.17yrsR721.00k0.000030%
ZAR 2.3k
John Panikar
Chairman1.75yrsno datano data
Nolulamo Gwagwa
Independent Non-Executive Director1yrno datano data

3.7yrs

Average Tenure

52.5yo

Average Age

Experienced Board: AFX's board of directors are considered experienced (3.7 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: African Oxygen Limited
  • Ticker: AFX
  • Exchange: JSE
  • Founded: 1927
  • Industry: Industrial Gases
  • Sector: Materials
  • Market Cap: R7.708b
  • Shares outstanding: 308.57m
  • Website: https://www.afrox.co.za

Number of Employees


Location

  • African Oxygen Limited
  • Afrox House
  • 23 Webber Street
  • Johannesburg
  • Gauteng
  • 2001
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFXJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1980
AOXNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARJan 1980
IZ8ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980

Biography

African Oxygen Limited, together with its subsidiaries, manufactures and distributes atmospheric gases, liquefied petroleum gas (LPG), and hard goods in South Africa and other African countries. It operate...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 17:00
End of Day Share Price2021/01/12 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.