JSE:TPC

Stock Analysis Report

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Executive Summary

Transpaco Limited, together with its subsidiaries, manufactures, recycles, and distributes paper and plastic packaging products primarily in South Africa. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

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

Volatility Over Time: TPC's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-4.0%

TPC

2.6%

ZA Packaging

1.0%

ZA Market


1 Year Return

14.0%

TPC

-14.6%

ZA Packaging

-2.1%

ZA Market

Return vs Industry: TPC exceeded the ZA Packaging industry which returned -15.9% over the past year.

Return vs Market: TPC exceeded the ZA Market which returned -2.2% over the past year.


Shareholder returns

TPCIndustryMarket
7 Day-4.0%2.6%1.0%
30 Day-5.2%3.9%3.4%
90 Day-10.6%31.6%12.0%
1 Year22.2%14.0%-11.8%-14.6%3.0%-2.1%
3 Year-19.9%-32.7%-52.7%-55.4%3.4%-17.7%
5 Year5.8%-20.1%-59.5%-63.6%50.6%8.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Transpaco 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: TPC (ZAR15.98) is trading below our estimate of fair value (ZAR234.35)

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


Price To Earnings Ratio

PE vs Industry: TPC is good value based on its PE Ratio (5.7x) compared to the XF Packaging industry average (7.8x).

PE vs Market: TPC is good value based on its PE Ratio (5.7x) compared to the ZA market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TPC is good value based on its PB Ratio (0.8x) compared to the XF Packaging industry average (1.1x).


Next Steps

Future Growth

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

29.4%

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 Transpaco 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 Transpaco performed over the past 5 years?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPC has high quality earnings.

Growing Profit Margin: TPC's current net profit margins (4.8%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: TPC's earnings have declined by 6.2% per year over the past 5 years.

Accelerating Growth: TPC's earnings growth over the past year (46.9%) exceeds its 5-year average (-6.2% per year).

Earnings vs Industry: TPC earnings growth over the past year (46.9%) exceeded the Packaging industry 0.8%.


Return on Equity

High ROE: TPC's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Transpaco's financial position?


Financial Position Analysis

Short Term Liabilities: TPC's short term assets (ZAR571.5M) exceed its short term liabilities (ZAR297.7M).

Long Term Liabilities: TPC's short term assets (ZAR571.5M) exceed its long term liabilities (ZAR143.7M).


Debt to Equity History and Analysis

Debt Level: TPC's debt to equity ratio (1.2%) is considered satisfactory.

Reducing Debt: TPC's debt to equity ratio has reduced from 1.2% to 1.2% over the past 5 years.

Debt Coverage: TPC's debt is well covered by operating cash flow (2602.6%).

Interest Coverage: TPC's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet


Next Steps

Dividend

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

6.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPC's dividend (6.95%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: TPC's dividend (6.95%) is low compared to the top 25% of dividend payers in the ZA market (8.85%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.9%), TPC'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?

29.6yrs

Average management tenure


CEO

Phil Abelheim (66 yo)

43.08yrs

Tenure

R9,012,000

Compensation

Mr. Phillip Norman Abelheim, also known as Phil, FCIS, has been Chief Executive Officer and Executive Director of Transpaco Limited since December 12, 1977. Mr. Abelheim has experience in the plastic and p...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD593.47K) is above average for companies of similar size in the ZA market ($USD306.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Phillip Abelheim
CEO & Executive Director43.08yrsR9.01m16.94%
ZAR 89.0m
Louis Weinberg
CFO & Executive Director16.92yrsR6.34m0.77%
ZAR 4.0m
Hendrik van Niekerk
Administration Director & Group Services and Company Secretaryno dataR1.81mno data
Shalom Bouzaglou
Executive Director29.58yrsR6.32m3.08%
ZAR 16.2m
Cesseri Taylor
Managing Director of Transpaco Flexibles Mpumalangano datano data0.27%
ZAR 1.4m
Lorraine O'Neill
Joint Managing Director of Transpaco Flexiblesno datano datano data
John Latter
Managing Director of Britepakno datano data0.067%
ZAR 351.6k
Kenneth Harris
Joint Managing Director of Transpaco Specialised Filmsno datano data0.61%
ZAR 3.2m
Steve Harmse
MD of Transpaco Packaging & Joint MD of Transpaco Specialised Filmsno datano datano data
Jacobus Breytenbach
Managing Director of Transpaco Recyclingno datano data0%
ZAR 0
Caroline Cannel
Joint Managing Director of Transpaco Flexiblesno datano datano data
Eddie Wallace
Managing Director of East Rand Plasticsno datano datano data

29.6yrs

Average Tenure

58yo

Average Age

Experienced Management: TPC's management team is seasoned and experienced (29.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phillip Abelheim
CEO & Executive Director43.08yrsR9.01m16.94%
ZAR 89.0m
Louis Weinberg
CFO & Executive Director16.92yrsR6.34m0.77%
ZAR 4.0m
Shalom Bouzaglou
Executive Director29.58yrsR6.32m3.08%
ZAR 16.2m
Derek J. Thomas
Non-Executive Chairman5.5yrsR411.00kno data
Stephen van der Linde
Lead Independent Non-Executive Director5.5yrsR285.00k0.17%
ZAR 910.3k
Henry Botha
Independent Non-Executive Director22.33yrsR295.00k0.76%
ZAR 4.0m
Bonge Mkhondo
Independent Non-Executive Director3.67yrsR285.00kno data

16.9yrs

Average Tenure

63yo

Average Age

Experienced Board: TPC's board of directors are seasoned and experienced ( 16.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Transpaco Limited
  • Ticker: TPC
  • Exchange: JSE
  • Founded: 1951
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: R525.524m
  • Shares outstanding: 32.89m
  • Website: https://www.transpaco.co.za

Number of Employees


Location

  • Transpaco Limited
  • 331 - 6th Street
  • Wynberg
  • Johannesburg
  • Gauteng
  • 2090
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPCJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARJan 1992

Biography

Transpaco Limited, together with its subsidiaries, manufactures, recycles, and distributes paper and plastic packaging products primarily in South Africa. It operates through Plastics Products, Paper and B...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 17:37
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.