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TPC

TranspacoJSE:TPC Stock Report

Last Price

R18.75

Market Cap

R590.6m

7D

4.2%

1Y

19.0%

Updated

23 Jan, 2022

Data

Company Financials
TPC fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends4/6

TPC Stock Overview

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

Transpaco Competitors

Mpact

JSE:MPT

R5.3b

Nampak

JSE:NPK

R2.5b

Bowler Metcalf

JSE:BCF

R845.1m

Price History & Performance

Summary of all time highs, changes and price drops for Transpaco
Historical stock prices
Current Share PriceR18.75
52 Week HighR18.75
52 Week LowR13.00
Beta-0.10
1 Month Change13.64%
3 Month Change17.19%
1 Year Change19.05%
3 Year Change-10.71%
5 Year Change-39.52%
Change since IPO4,240.38%

Recent News & Updates

Dec 21
We Think Transpaco (JSE:TPC) Can Stay On Top Of Its Debt

We Think Transpaco (JSE:TPC) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 14
Transpaco (JSE:TPC) Could Be Struggling To Allocate Capital

Transpaco (JSE:TPC) Could Be Struggling To Allocate Capital

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...

Shareholder Returns

TPCZA PackagingZA Market
7D4.2%2.9%-0.3%
1Y19.0%51.4%13.9%

Return vs Industry: TPC underperformed the ZA Packaging industry which returned 51.4% over the past year.

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

Price Volatility

Is TPC's price volatile compared to industry and market?
TPC volatility
TPC Average Weekly Movement6.0%
Packaging Industry Average Movement7.2%
Market Average Movement5.7%
10% most volatile stocks in ZA Market12.1%
10% least volatile stocks in ZA Market3.3%

Stable Share Price: TPC is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TPC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19511,522Phil Abelheimhttps://www.transpaco.co.za

Transpaco Limited, together with its subsidiaries, manufactures and distributes paper and plastic packaging products primarily in South Africa. It operates through Plastics Products; Paper and Board Products; and Property and Group Services segments. The company manufactures plastic products comprising refuse bags, bin liners, and sheeting and films; retail vest–type plastic bags, retail boutique plastic bags, courier bags, industrial plastic bags, tubing and sheeting, scholastic stationery, and high density and low-density polyethylene; and specialized films, consisting of cast pallet stabilization wrapping, stretch film, and cast films.

Transpaco Fundamentals Summary

How do Transpaco's earnings and revenue compare to its market cap?
TPC fundamental statistics
Market CapR590.61m
Earnings (TTM)R110.28m
Revenue (TTM)R2.08b

5.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPC income statement (TTM)
RevenueR2.08b
Cost of RevenueR1.40b
Gross ProfitR680.10m
ExpensesR569.82m
EarningsR110.28m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.50
Gross Margin32.71%
Net Profit Margin5.30%
Debt/Equity Ratio9.4%

How did TPC perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

45%

Payout Ratio

Valuation

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

5.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPC (ZAR18.75) is trading below our estimate of fair value (ZAR19.74)

Significantly Below Fair Value: TPC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TPC is good value based on its PE Ratio (5.4x) compared to the African Packaging industry average (10.9x).

PE vs Market: TPC is good value based on its PE Ratio (5.4x) compared to the ZA market (10.9x).


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 (1.5x).


Future Growth

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

18.7%

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.


Past Performance

How has Transpaco performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPC has high quality earnings.

Growing Profit Margin: TPC's current net profit margins (5.3%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: TPC's earnings have declined by 2.3% per year over the past 5 years.

Accelerating Growth: TPC's earnings growth over the past year (20.5%) exceeds its 5-year average (-2.3% per year).

Earnings vs Industry: TPC earnings growth over the past year (20.5%) exceeded the Packaging industry 4.5%.


Return on Equity

High ROE: TPC's Return on Equity (15%) is considered low.


Financial Health

How is Transpaco's financial position?


Financial Position Analysis

Short Term Liabilities: TPC's short term assets (ZAR687.4M) exceed its short term liabilities (ZAR349.4M).

Long Term Liabilities: TPC's short term assets (ZAR687.4M) exceed its long term liabilities (ZAR227.8M).


Debt to Equity History and Analysis

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

Reducing Debt: TPC's debt to equity ratio has increased from 8.8% to 9.4% over the past 5 years.

Debt Coverage: TPC's debt is well covered by operating cash flow (194.6%).

Interest Coverage: TPC's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Dividend

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

8.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPC's dividend (8.16%) is higher than the bottom 25% of dividend payers in the ZA market (2.87%).

High Dividend: TPC's dividend (8.16%) is in the top 25% of dividend payers in the ZA market (7.34%)


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 (45.3%), 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?

24.3yrs

Average management tenure


CEO

Phil Abelheim (67 yo)

44.08yrs

Tenure

R10,213,000

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 ($USD677.58K) is above average for companies of similar size in the ZA market ($USD258.93K).

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


Leadership Team

Experienced Management: TPC's management team is seasoned and experienced (24.3 years average tenure).


Board Members

Experienced Board: TPC's board of directors are seasoned and experienced ( 19.2 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

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


Key Information

  • Name: Transpaco Limited
  • Ticker: TPC
  • Exchange: JSE
  • Founded: 1951
  • Industry: Paper Packaging
  • Sector: Materials
  • Implied Market Cap: R590.614m
  • Shares outstanding: 31.50m
  • Website: https://www.transpaco.co.za

Number of Employees


Location

  • Transpaco Limited
  • 331 - 6th Street
  • Wynberg
  • Johannesburg
  • Gauteng
  • 2090
  • 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
Earnings2021/06/30
Annual Earnings2021/06/30


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.