Northam Platinum Holdings (JSE:NPH) - Share price, News & Analysis

NPH fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	6/6
Financial Health	5/6
Dividends	0/6

NPH Overview

Northam Platinum Holdings Limited, through its subsidiary, Northam Platinum Limited, produces and sells platinum group metals in South Africa, Europe, Japan, Asia, and North America.

Rewards

Trading at 60.4% below our estimate of its fair value

Earnings are forecast to grow 11.54% per year

Earnings grew by 332.6% over the past year

Risk Analysis

Has a high level of debt

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Northam Platinum Holdings Competitors

Anglo American Platinum

JSE:AMS

R414.0b

Impala Platinum Holdings

JSE:IMP

R169.2b

Sibanye Stillwater

JSE:SSW

R153.2b

Royal Bafokeng Platinum

JSE:RBP

R26.4b

Price History & Performance

Summary of all time highs, changes and price drops for Northam Platinum Holdings
Historical stock prices
Current Share Price	R232.15
52 Week High	R149.49
52 Week Low	R279.18
Beta	1.36
1 Month Change	31.37%
3 Month Change	5.16%
1 Year Change	27.96%
3 Year Change	513.34%
5 Year Change	371.28%
Change since IPO	922.11%

Recent News & Updates

Oct 10

Northam Platinum Holdings Limited's (JSE:NPH) Price Is Right But Growth Is Lacking After Shares Rocket 31%

Northam Platinum Holdings Limited ( JSE:NPH ) shareholders would be excited to see that the share price has had a great...

Shareholder Returns

	NPH	ZA Metals and Mining	ZA Market
7D	2.3%	-3.8%	-0.7%
1Y	28.0%	-2.0%	19.0%

Return vs Industry: NPH exceeded the ZA Metals and Mining industry which returned -2% over the past year.

Return vs Market: NPH exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is NPH's price volatile compared to industry and market?
NPH volatility
NPH Beta	1.36
Industry Beta	1.16
Market Beta	1

Stable Share Price: NPH is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NPH's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

Founded	Employees	CEO	Website
2020	9,917	Paul Dunne	https://www.northam.co.za

Northam Platinum Holdings Limited, through its subsidiary, Northam Platinum Limited, produces and sells platinum group metals in South Africa, Europe, Japan, Asia, and North America. The company explores for platinum, palladium, rhodium, gold, iridium, ruthenium, silver, nickel, copper, cobalt, chrome, and UG2 ore deposits. It holds interests in the Booysendal mine located on the eastern limb of the Bushveld complex; the Zondereinde mine located in the northern end of the western limb of the Bushveld complex; and the Eland mine.

Northam Platinum Holdings Fundamentals Summary

How do Northam Platinum Holdings's earnings and revenue compare to its market cap?
NPH fundamental statistics
Market Cap	R84.09b
Earnings (TTM)	R9.38b
Revenue (TTM)	R32.63b

9.0x

P/E Ratio

2.6x

P/S Ratio

Is NPH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NPH income statement (TTM)
Revenue	R32.63b
Cost of Revenue	R15.68b
Gross Profit	R16.95b
Expenses	R7.57b
Earnings	R9.38b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	25.90
Gross Margin	51.96%
Net Profit Margin	28.76%
Debt/Equity Ratio	49.5%

How did NPH perform over the long term?

See historical performance and comparison

Valuation

Is Northam Platinum Holdings 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: NPH (ZAR232.15) is trading below our estimate of fair value (ZAR586.46)

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

Price To Earnings Ratio

PE vs Industry: NPH is poor value based on its PE Ratio (9x) compared to the ZA Metals and Mining industry average (5.7x).

PE vs Market: NPH is good value based on its PE Ratio (9x) compared to the ZA market (11.1x).

Price to Earnings Growth Ratio

PEG Ratio: NPH is good value based on its PEG Ratio (0.8x)

Price to Book Ratio

PB vs Industry: NPH is overvalued based on its PB Ratio (4.4x) compared to the ZA Metals and Mining industry average (1.2x).

Future Growth

How is Northam Platinum Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPH's forecast earnings growth (11.5% per year) is above the savings rate (8.8%).

Earnings vs Market: NPH's earnings (11.5% per year) are forecast to grow slower than the ZA market (12.3% per year).

High Growth Earnings: NPH's earnings are forecast to grow, but not significantly.

Revenue vs Market: NPH's revenue (12.9% per year) is forecast to grow faster than the ZA market (6.4% per year).

High Growth Revenue: NPH's revenue (12.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NPH's Return on Equity is forecast to be high in 3 years time (39.9%)

Past Performance

How has Northam Platinum Holdings performed over the past 5 years?

81.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NPH has high quality earnings.

Growing Profit Margin: NPH's current net profit margins (28.8%) are higher than last year (12.2%).

Past Earnings Growth Analysis

Earnings Trend: NPH has become profitable over the past 5 years, growing earnings by 81.3% per year.

Accelerating Growth: NPH's earnings growth over the past year (332.6%) exceeds its 5-year average (81.3% per year).

Earnings vs Industry: NPH earnings growth over the past year (332.6%) exceeded the Metals and Mining industry 252.8%.

Return on Equity

High ROE: NPH's Return on Equity (49.3%) is considered outstanding.

Financial Health

How is Northam Platinum Holdings's financial position?

Financial Position Analysis

Short Term Liabilities: NPH's short term assets (ZAR10.6B) exceed its short term liabilities (ZAR8.6B).

Long Term Liabilities: NPH's short term assets (ZAR10.6B) exceed its long term liabilities (ZAR10.4B).

Debt to Equity History and Analysis

Debt Level: NPH's debt to equity ratio (49.5%) is considered high.

Reducing Debt: NPH's debt to equity ratio has reduced from 93.3% to 49.5% over the past 5 years.

Debt Coverage: NPH's debt is well covered by operating cash flow (128.5%).

Interest Coverage: NPH's interest payments on its debt are well covered by EBIT (17.7x coverage).

Balance Sheet

Dividend

What is Northam Platinum Holdings's current dividend yield, its reliability and sustainability?

12.05%

Forecast Dividend Yield

Dividend Yield vs Market

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

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

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

Current Payout to Shareholders

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

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NPH's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.

Next Steps

Explore strong dividend paying companies in the Materials industry.

Management

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

6.1yrs

Average management tenure

CEO

Paul Dunne (58 yo)

7.58yrs

Tenure

R36,122,000

Compensation

Mr. Paul Anthony Dunne, BSc (Hons), MBA, has been Chief Executive Officer and Director of Northam Platinum Limited since March 01, 2014. Prior to joining Northam he was employed by Impala Platinum Holdings...

CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.44M) is above average for companies of similar size in the ZA market ($USD1.71M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: NPH's management team is seasoned and experienced (6.1 years average tenure).

Board Members

Experienced Board: NPH'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: 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 been diluted in the past year, with total shares outstanding growing by 3.5%.

Data	Last Updated (UTC time)
Company Analysis	2021/10/22 20:57
End of Day Share Price	2021/10/22 00:00
Earnings	2021/06/30
Annual Earnings	2021/06/30

Market Cap

7D

1Y

Updated

Data