Spanjaard (JSE:SPA) - Stock price, News & Analysis

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

SPA Stock Overview

Spanjaard Limited, through its subsidiaries, manufactures and distributes specialized lubricants and allied chemical products worldwide.

Rewards

Trading at 60.9% below our estimate of its fair value

Earnings grew by 40.8% over the past year

Risk Analysis

Does not have a meaningful market cap (ZAR31M)

Price History & Performance

Summary of all time highs, changes and price drops for Spanjaard
Historical stock prices
Current Share Price	R3.82
52 Week High	R4.15
52 Week Low	R2.59
Beta	0.86
1 Month Change	-1.80%
3 Month Change	5.82%
1 Year Change	-8.83%
3 Year Change	52.80%
5 Year Change	46.92%
Change since IPO	409.33%

Shareholder Returns

	SPA	ZA Chemicals	ZA Market
7D	0%	-2.0%	-1.7%
1Y	-8.8%	88.5%	10.4%

Return vs Industry: SPA underperformed the ZA Chemicals industry which returned 53% over the past year.

Return vs Market: SPA underperformed the ZA Market which returned 14.4% over the past year.

Price Volatility

Is SPA's price volatile compared to industry and market?
SPA volatility
SPA Average Weekly Movement	3.4%
Chemicals Industry Average Movement	4.4%
Market Average Movement	5.7%
10% most volatile stocks in ZA Market	11.4%
10% least volatile stocks in ZA Market	3.3%

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

Volatility Over Time: SPA's weekly volatility has decreased from 13% to 3% over the past year.

About the Company

Founded	Employees	CEO	Website
1960	92	Tracy Spanjaard	https://www.spanjaard.biz

Spanjaard Limited, through its subsidiaries, manufactures and distributes specialized lubricants and allied chemical products worldwide. It operates through Automotive, Industrial, Exports, and Consumer Goods segments. The company produces a range of food aerosol products; trades in anti-friction powders; and sells fuel additives, greases, and car care products.

Spanjaard Fundamentals Summary

How do Spanjaard's earnings and revenue compare to its market cap?
SPA fundamental statistics
Market Cap	R31.11m
Earnings (TTM)	R4.66m
Revenue (TTM)	R144.14m

6.7x

P/E Ratio

0.2x

P/S Ratio

Is SPA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SPA income statement (TTM)
Revenue	R144.14m
Cost of Revenue	R89.47m
Gross Profit	R54.67m
Expenses	R50.01m
Earnings	R4.66m

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.57
Gross Margin	37.93%
Net Profit Margin	3.23%
Debt/Equity Ratio	16.1%

How did SPA perform over the long term?

See historical performance and comparison

Valuation

Is Spanjaard 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: SPA (ZAR3.82) is trading below our estimate of fair value (ZAR9.78)

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

Price To Earnings Ratio

PE vs Industry: SPA is good value based on its PE Ratio (6.7x) compared to the ZA Chemicals industry average (11.2x).

PE vs Market: SPA is good value based on its PE Ratio (6.7x) compared to the ZA market (10.7x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: SPA is good value based on its PB Ratio (0.6x) compared to the ZA Chemicals industry average (1.2x).

Future Growth

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

20.9%

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 Spanjaard 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 Spanjaard performed over the past 5 years?

27.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SPA has high quality earnings.

Growing Profit Margin: SPA's current net profit margins (3.2%) are higher than last year (2.7%).

Past Earnings Growth Analysis

Earnings Trend: SPA's earnings have grown significantly by 27.4% per year over the past 5 years.

Accelerating Growth: SPA's earnings growth over the past year (40.8%) exceeds its 5-year average (27.4% per year).

Earnings vs Industry: SPA earnings growth over the past year (40.8%) exceeded the Chemicals industry 37.2%.

Return on Equity

High ROE: SPA's Return on Equity (8.8%) is considered low.

Financial Health

How is Spanjaard's financial position?

Financial Position Analysis

Short Term Liabilities: SPA's short term assets (ZAR62.5M) exceed its short term liabilities (ZAR28.8M).

Long Term Liabilities: SPA's short term assets (ZAR62.5M) exceed its long term liabilities (ZAR17.5M).

Debt to Equity History and Analysis

Debt Level: SPA has more cash than its total debt.

Reducing Debt: SPA's debt to equity ratio has reduced from 16.8% to 16.1% over the past 5 years.

Debt Coverage: SPA's debt is well covered by operating cash flow (106.4%).

Interest Coverage: SPA's interest payments on its debt are well covered by EBIT (13.4x coverage).

Balance Sheet

Dividend

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

Dividend Yield vs Market

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

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

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

Current Payout to Shareholders

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

Future Payout to Shareholders

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

1.8yrs

Average management tenure

CEO

Tracy Spanjaard (38 yo)

2.33yrs

Tenure

R1,386,000

Compensation

Ms. Tracy Nelly Spanjaard has been Executive Director and Chief Executive Officer at Spanjaard Ltd. since September 01, 2020 and was Director of Marketing at Spanjaard Limited since October 12, 2017 until...

CEO Compensation Analysis

Compensation vs Market: Tracy's total compensation ($USD89.26K) is below average for companies of similar size in the ZA market ($USD265.29K).

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

Leadership Team

Experienced Management: SPA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: SPA's board of directors are not considered experienced ( 2.4 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/01/12 17:00
End of Day Share Price	2022/01/04 00:00
Earnings	2021/08/31
Annual Earnings	2021/02/28