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L2D

Liberty Two DegreesJSE:L2D Stock Report

Market Cap

R3.8b

7D

0%

1Y

-6.4%

Updated

19 Oct, 2021

Data

Company Financials +
L2D fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance1/6
Financial Health2/6
Dividends1/6

L2D Overview

Liberty Two Degrees was converted and relisted as a corporate REIT on the JSE main board on 1 November 2018 as Liberty Two Degrees Limited (L2D Limited) following the conversion from a CISIP.

Price History & Performance

Summary of all time highs, changes and price drops for Liberty Two Degrees
Historical stock prices
Current Share PriceR4.40
52 Week HighR3.51
52 Week LowR5.90
Beta0.26
1 Month Change0%
3 Month Change-8.90%
1 Year Change-6.38%
3 Year Change-41.33%
5 Year Changen/a
Change since IPO-58.10%

Recent News & Updates

May 01
It Looks Like Liberty Two Degrees Limited's (JSE:L2D) CEO May Expect Their Salary To Be Put Under The Microscope

It Looks Like Liberty Two Degrees Limited's (JSE:L2D) CEO May Expect Their Salary To Be Put Under The Microscope

The results at Liberty Two Degrees Limited ( JSE:L2D ) have been quite disappointing recently and CEO Amelia Beattie...

Shareholder Returns

L2DZA REITsZA Market
7D0%-0.4%0.7%
1Y-6.4%38.4%20.7%

Return vs Industry: L2D underperformed the ZA REITs industry which returned 39.5% over the past year.

Return vs Market: L2D underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is L2D's price volatile compared to industry and market?
L2D volatility
L2D Beta0.26
Industry Beta0.89
Market Beta1

Stable Share Price: L2D is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: L2D's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aAmelia Beattiehttps://www.liberty2degrees.co.za

Liberty Two Degrees was converted and relisted as a corporate REIT on the JSE main board on 1 November 2018 as Liberty Two Degrees Limited (L2D Limited) following the conversion from a CISIP. The new structure cancels the Liberty Group PUT option for no consideration and internalises the management company. The structure also introduces a conservative level of debt to the capital structure of L2D Limited, which will assist in reducing the weighted average cost of capital over time.

Liberty Two Degrees Fundamentals Summary

How do Liberty Two Degrees's earnings and revenue compare to its market cap?
L2D fundamental statistics
Market CapR3.79b
Earnings (TTM)R87.42m
Revenue (TTM)R897.59m

44.7x

P/E Ratio

4.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
L2D income statement (TTM)
RevenueR897.59m
Cost of RevenueR450.69m
Gross ProfitR446.90m
ExpensesR359.48m
EarningsR87.42m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.099
Gross Margin49.79%
Net Profit Margin9.74%
Debt/Equity Ratio30.5%

How did L2D perform over the long term?

See historical performance and comparison

Dividends

7.2%

Current Dividend Yield

100%

Payout Ratio

Valuation

Is Liberty Two Degrees undervalued compared to its fair value and its price relative to the market?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: L2D (ZAR4.27) is trading below our estimate of fair value (ZAR5.16)

Significantly Below Fair Value: L2D is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: L2D is poor value based on its PE Ratio (43.3x) compared to the ZA REITs industry average (9.9x).

PE vs Market: L2D is poor value based on its PE Ratio (43.3x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate L2D's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: L2D's PB Ratio (0.6x) is in line with the ZA REITs industry average.


Future Growth

How is Liberty Two Degrees forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if L2D's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if L2D's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: L2D's revenue (3.5% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: L2D's revenue (3.5% 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 L2D's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Liberty Two Degrees performed over the past 5 years?

-66.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: L2D has a large one-off loss of ZAR246.8M impacting its June 30 2021 financial results.

Growing Profit Margin: L2D became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: L2D's earnings have declined by 66.9% per year over the past 5 years.

Accelerating Growth: L2D has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: L2D has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: L2D's Return on Equity (1.3%) is considered low.


Financial Health

How is Liberty Two Degrees's financial position?


Financial Position Analysis

Short Term Liabilities: L2D's short term assets (ZAR513.2M) do not cover its short term liabilities (ZAR892.3M).

Long Term Liabilities: L2D's short term assets (ZAR513.2M) do not cover its long term liabilities (ZAR1.3B).


Debt to Equity History and Analysis

Debt Level: L2D's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if L2D's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: L2D's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: L2D's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

What is Liberty Two Degrees's current dividend yield, its reliability and sustainability?

7.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: L2D's dividend (7.4%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: L2D's dividend (7.4%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: L2D has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: L2D's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (100.1%), L2D's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: L2D's dividends in 3 years are not forecast to be well covered by earnings (100% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Amelia Beattie (50 yo)

3.25yrs

Tenure

R7,424,640

Compensation

Ms. Amelia Beattie, B.Comm has been Chief Executive Officer and Executive Director of Liberty Two Degrees Limited since July 10, 2018. Ms. Beattie serves as the Chief Investment Officer at STANLIB Direct P...


CEO Compensation Analysis

Compensation vs Market: Amelia's total compensation ($USD505.53K) is about average for companies of similar size in the ZA market ($USD494.06K).

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


Leadership Team

Experienced Management: L2D's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: L2D's board of directors are not considered experienced ( 1.8 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

Liberty Two Degrees Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Liberty Two Degrees Limited
  • Ticker: L2D
  • Exchange: JSE
  • Founded: NaN
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: R3.788b
  • Shares outstanding: 887.09m
  • Website: https://www.liberty2degrees.co.za

Location

  • Liberty Two Degrees Limited
  • 17 Melrose Boulevard
  • Melrose Arch
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 17:03
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.