Newpark REIT Limited

JSE:NRL Stock Report

Market Cap: R480.0m

Newpark REIT Valuation

Is NRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NRL (ZAR4.8) is trading below our estimate of fair value (ZAR7.14)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NRL?

Key metric: As NRL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NRL. This is calculated by dividing NRL's market cap by their current revenue.
What is NRL's PS Ratio?
PS Ratio3.7x
SalesR130.94m
Market CapR480.00m

Price to Sales Ratio vs Peers

How does NRL's PS Ratio compare to its peers?

The above table shows the PS ratio for NRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.7x
OAS Oasis Crescent Property Fund
9.2xn/aR1.3b
REB Rebosis Property Fund
0.07xn/aR172.2m
SEA Spear Reit
3.9x-13.2%R2.4b
OCT Octodec Investments
1.5xn/aR3.2b
NRL Newpark REIT
3.7xn/aR480.0m

Price-To-Sales vs Peers: NRL is good value based on its Price-To-Sales Ratio (3.7x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

How does NRL's PS Ratio compare vs other companies in the African REITs Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
NRL 3.7xIndustry Avg. 6.3xNo. of Companies5PS03.67.210.814.418+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NRL is good value based on its Price-To-Sales Ratio (3.7x) compared to the Global REITs industry average (6.3x).

Price to Sales Ratio vs Fair Ratio

What is NRL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NRL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate NRL's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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