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SEP

Sephaku HoldingsJSE:SEP Stock Report

Last Price

R1.91

Market Cap

R486.1m

7D

1.6%

1Y

144.9%

Updated

23 Jan, 2022

Data

Company Financials
SEP fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

SEP Stock Overview

Sephaku Holdings Limited operates in the building and construction materials industry in South Africa.

Sephaku Holdings Competitors

PPC

JSE:PPC

R7.7b

Price History & Performance

Summary of all time highs, changes and price drops for Sephaku Holdings
Historical stock prices
Current Share PriceR1.91
52 Week HighR2.75
52 Week LowR0.71
Beta1.18
1 Month Change3.80%
3 Month Change-1.04%
1 Year Change144.87%
3 Year Change6.70%
5 Year Change-32.98%
Change since IPO-69.63%

Recent News & Updates

Shareholder Returns

SEPZA Basic MaterialsZA Market
7D1.6%2.6%-0.3%
1Y144.9%16.7%13.9%

Return vs Industry: SEP exceeded the ZA Basic Materials industry which returned 16.7% over the past year.

Return vs Market: SEP exceeded the ZA Market which returned 13.9% over the past year.

Price Volatility

Is SEP's price volatile compared to industry and market?
SEP volatility
SEP Average Weekly Movement7.6%
Basic Materials Industry Average Movement5.0%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: SEP is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SEP's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2005464Neil Crafford-Lazarushttps://www.sephakuholdings.com

Sephaku Holdings Limited operates in the building and construction materials industry in South Africa. It manufactures and supplies ready-mixed concrete products for the residential, commercial, and industrial markets. The company was incorporated in 2005 is based in Irene, South Africa.

Sephaku Holdings Fundamentals Summary

How do Sephaku Holdings's earnings and revenue compare to its market cap?
SEP fundamental statistics
Market CapR486.07m
Earnings (TTM)R67.32m
Revenue (TTM)R755.03m

7.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEP income statement (TTM)
RevenueR755.03m
Cost of RevenueR466.40m
Gross ProfitR288.63m
ExpensesR221.31m
EarningsR67.32m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.26
Gross Margin38.23%
Net Profit Margin8.92%
Debt/Equity Ratio7.2%

How did SEP perform over the long term?

See historical performance and comparison

Valuation

Is Sephaku 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: SEP (ZAR1.91) is trading below our estimate of fair value (ZAR10.21)

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


Price To Earnings Ratio

PE vs Industry: SEP is good value based on its PE Ratio (7.2x) compared to the African Basic Materials industry average (11.2x).

PE vs Market: SEP is good value based on its PE Ratio (7.2x) compared to the ZA market (10.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEP is good value based on its PB Ratio (0.4x) compared to the XF Basic Materials industry average (1.6x).


Future Growth

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

6.3%

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 Sephaku Holdings 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 Sephaku Holdings performed over the past 5 years?

-32.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEP has high quality earnings.

Growing Profit Margin: SEP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SEP's earnings have declined by 32.2% per year over the past 5 years.

Accelerating Growth: SEP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SEP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (54.2%).


Return on Equity

High ROE: SEP's Return on Equity (5.9%) is considered low.


Financial Health

How is Sephaku Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SEP's short term assets (ZAR135.2M) exceed its short term liabilities (ZAR111.8M).

Long Term Liabilities: SEP's short term assets (ZAR135.2M) do not cover its long term liabilities (ZAR148.8M).


Debt to Equity History and Analysis

Debt Level: SEP's net debt to equity ratio (5.5%) is considered satisfactory.

Reducing Debt: SEP's debt to equity ratio has reduced from 24.8% to 7.2% over the past 5 years.

Debt Coverage: SEP's debt is well covered by operating cash flow (77%).

Interest Coverage: SEP's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEP'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?

9.8yrs

Average board tenure


CEO

Neil Crafford-Lazarus (61 yo)

9.83yrs

Tenure

R4,615,110

Compensation

Mr. Neil Robus Crafford-Lazarus, Chartered Accountant, BCompt (Hons) has been Chief Executive Officer at Sephaku Holdings Limited since January 1, 2020. He has been Financial Director of Sephaku Holdings L...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD306.19K) is about average for companies of similar size in the ZA market ($USD258.93K).

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


Board Members

Experienced Board: SEP's board of directors are considered experienced (9.8 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

Sephaku Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sephaku Holdings Limited
  • Ticker: SEP
  • Exchange: JSE
  • Founded: 2005
  • Industry: Construction Materials
  • Sector: Materials
  • Implied Market Cap: R486.069m
  • Shares outstanding: 254.49m
  • Website: https://www.sephakuholdings.com

Number of Employees


Location

  • Sephaku Holdings Limited
  • Block A
  • First Floor
  • Irene
  • Gauteng
  • 62
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/23 17:01
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.