JSE:NPK

Stock Analysis Report

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Executive Summary

Nampak Limited manufactures and sells metal, plastic, and paper packaging products in South Africa and internationally. More Details


Snowflake Analysis

Moderate growth potential and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NPK is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: NPK's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of ZA stocks.


Market Performance


7 Day Return

-7.8%

NPK

3.9%

ZA Packaging

1.0%

ZA Market


1 Year Return

-63.4%

NPK

-14.1%

ZA Packaging

-1.9%

ZA Market

Return vs Industry: NPK underperformed the ZA Packaging industry which returned -14.2% over the past year.

Return vs Market: NPK underperformed the ZA Market which returned -2.1% over the past year.


Shareholder returns

NPKIndustryMarket
7 Day-7.8%3.9%1.0%
30 Day-19.4%3.0%3.8%
90 Day112.8%30.4%11.8%
1 Year-63.4%-63.4%-11.3%-14.1%3.3%-1.9%
3 Year-87.6%-87.6%-53.0%-55.6%2.9%-17.9%
5 Year-89.4%-89.4%-60.3%-64.2%52.2%9.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NPK (ZAR2) is trading above our estimate of fair value (ZAR1.5)

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


Price To Earnings Ratio

PE vs Industry: NPK is unprofitable, so we can't compare its PE Ratio to the XF Packaging industry average.

PE vs Market: NPK is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NPK is good value based on its PB Ratio (0.3x) compared to the XF Packaging industry average (1.1x).


Next Steps

Future Growth

How is Nampak forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

76.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.3%).

Earnings vs Market: NPK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NPK's is expected to become profitable in the next 3 years.

Revenue vs Market: NPK's revenue (4.8% per year) is forecast to grow slower than the ZA market (10.5% per year).

High Growth Revenue: NPK's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NPK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Nampak performed over the past 5 years?

-57.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPK is currently unprofitable.

Growing Profit Margin: NPK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NPK is unprofitable, and losses have increased over the past 5 years at a rate of 57.8% per year.

Accelerating Growth: Unable to compare NPK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NPK is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (0.8%).


Return on Equity

High ROE: NPK has a negative Return on Equity (-103.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nampak's financial position?


Financial Position Analysis

Short Term Liabilities: NPK's short term assets (ZAR6.5B) exceed its short term liabilities (ZAR3.9B).

Long Term Liabilities: NPK's short term assets (ZAR6.5B) do not cover its long term liabilities (ZAR8.1B).


Debt to Equity History and Analysis

Debt Level: NPK's debt to equity ratio (163.3%) is considered high.

Reducing Debt: NPK's debt to equity ratio has increased from 91% to 163.3% over the past 5 years.

Debt Coverage: NPK's debt is not well covered by operating cash flow (6%).

Interest Coverage: NPK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Erik Smuts (50 yo)

1

Tenure

R8,659,087

Compensation

Mr. Erik E. Smuts, CA(SA), ACMA, CIPIM, (GIBS), GEDP, AMP, has been Chief Executive Officer and Executive Director at Nampak Limited since January 6, 2020. He served as Managing Director of Metals and Glas...


CEO Compensation Analysis

Compensation vs Market: Erik's total compensation ($USD570.23K) is above average for companies of similar size in the ZA market ($USD306.55K).

Compensation vs Earnings: Erik's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Erik Smuts
CEO & Executive Director1yrR8.66m0.074%
ZAR 978.3k
Glenn Fullerton
CFO & Executive Director5.33yrsR7.37m0.0071%
ZAR 94.4k
Ilse van Lochem
Group Executive of Legal & Secretarial and Company Secretaryno dataR4.17m0.0046%
ZAR 60.8k
Lynne Kidd
Group Executive of Human Capital2yrsR4.34m0.014%
ZAR 182.4k
Robert Morris
Group Executive of Africa & Glass13yrsR9.82m0.021%
ZAR 272.0k
Christiaan Burmeister
Group Executive of DivFood and R&Dno dataR3.82m0.037%
ZAR 491.9k
Henk Nel
Group Executive Officerno dataR4.48m0.0069%
ZAR 91.0k
Quinton Swart
Group Executive Officerno dataR3.63mno data
Willem Pienaar
Managing Director of Plastics - Liquid Packagingno datano datano data
Joel Sibanda
Managing Director of Nampak Tissue12.75yrsno datano data
Craig Dingley
Managing Director of Sacksno datano datano data
Stewart Lamb
MD of Metals - General Metal Packaging - Zambia and MD of Paper - Zambiano datano datano data

5.3yrs

Average Tenure

56yo

Average Age

Experienced Management: NPK's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Erik Smuts
CEO & Executive Director1yrR8.66m0.074%
ZAR 978.3k
Glenn Fullerton
CFO & Executive Director5.33yrsR7.37m0.0071%
ZAR 94.4k
Peter Surgey
Independent Chairman of the Board2.25yrsR1.80m0.028%
ZAR 369.0k
Simon Ridley
Independent Non-Executive Director1.83yrsR1.05m0.027%
ZAR 360.8k
Kholeka Mzondeki
Independent Non-Executive Director1.33yrsR573.80kno data
Clifford Raphiri
Independent Non-Executive Director1.83yrsR756.70kno data
Nooraya Khan
Independent Non-Executive Director0.42yrR98.55kno data
Lesego Sennelo
Independent Non-Executive Director1.17yrsR501.49kno data

1.6yrs

Average Tenure

53yo

Average Age

Experienced Board: NPK's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Nampak Limited
  • Ticker: NPK
  • Exchange: JSE
  • Founded:
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: R1.322b
  • Shares outstanding: 645.08m
  • Website: https://www.nampak.co.za

Number of Employees


Location

  • Nampak Limited
  • Nampak House
  • Hampton Office Park
  • Sandton
  • Gauteng
  • 2191
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPKPJSE (The Johannesburg Securities Exchange)6% CUM PRF ZAR2ZAZARJan 1992
NPKJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 1994
NPKA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 1994
NPP1JSE (The Johannesburg Securities Exchange)6.5% CUM PRF ZAR2ZAZARJun 1994
NPKL.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDSep 1995

Biography

Nampak Limited manufactures and sells metal, plastic, and paper packaging products in South Africa and internationally. The company offers HDPE and PET bottles and jars, plastic closures, tubes, and crates...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 17:31
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.