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OCT

Octodec InvestmentsJSE:OCT Stock Report

Market Cap

R2.2b

7D

0.1%

1Y

65.5%

Updated

21 Oct, 2021

Data

Company Financials
OCT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends3/6

OCT Overview

Octodec, a real estate investment trust (REIT) listed on the Johannesburg Stock Exhange and one of the largest owners of property in the Tshwane and Johannesburg CBDs,is committed to delivering long-term stakeholder value through an innovative and visionary perspective on property investment.

Octodec Investments Competitors

Growthpoint Properties

JSE:GRT

R45.2b

Redefine Properties

JSE:RDF

R24.6b

Fortress REIT

JSE:FFA

R18.7b

Investec Property Fund

JSE:IPF

R8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Octodec Investments
Historical stock prices
Current Share PriceR8.36
52 Week HighR4.91
52 Week LowR10.95
Beta1.04
1 Month Change-6.07%
3 Month Change-1.07%
1 Year Change65.55%
3 Year Change-58.68%
5 Year Change-61.30%
Change since IPO-59.61%

Recent News & Updates

Shareholder Returns

OCTZA REITsZA Market
7D0.1%-0.5%-0.7%
1Y65.5%35.0%19.0%

Return vs Industry: OCT exceeded the ZA REITs industry which returned 36.1% over the past year.

Return vs Market: OCT exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is OCT's price volatile compared to industry and market?
OCT volatility
OCT Beta1.04
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1956220Jeff Wapnickhttps://www.octodec.co.za

Octodec, a real estate investment trust (REIT) listed on the Johannesburg Stock Exhange and one of the largest owners of property in the Tshwane and Johannesburg CBDs,is committed to delivering long-term stakeholder value through an innovative and visionary perspective on property investment.

Octodec Investments Fundamentals Summary

How do Octodec Investments's earnings and revenue compare to its market cap?
OCT fundamental statistics
Market CapR2.23b
Earnings (TTM)-R1.12b
Revenue (TTM)R1.90b

1.2x

P/S Ratio

-2.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OCT income statement (TTM)
RevenueR1.90b
Cost of RevenueR884.12m
Gross ProfitR1.02b
ExpensesR2.14b
Earnings-R1.12b

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)-4.21
Gross Margin53.55%
Net Profit Margin-58.89%
Debt/Equity Ratio84.3%

How did OCT perform over the long term?

See historical performance and comparison

Dividends

12.0%

Current Dividend Yield

77%

Payout Ratio

Valuation

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

35.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OCT (ZAR8.36) is trading below our estimate of fair value (ZAR12.97)

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


Price To Earnings Ratio

PE vs Industry: OCT is unprofitable, so we can't compare its PE Ratio to the ZA REITs industry average.

PE vs Market: OCT is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OCT is good value based on its PB Ratio (0.4x) compared to the ZA REITs industry average (0.6x).


Future Growth

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

11.7%

Forecasted Real Estate 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 Octodec Investments 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 Octodec Investments performed over the past 5 years?

-57.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OCT is currently unprofitable.

Growing Profit Margin: OCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OCT is unprofitable, and losses have increased over the past 5 years at a rate of 57.6% per year.

Accelerating Growth: Unable to compare OCT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: OCT is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: OCT has a negative Return on Equity (-18.8%), as it is currently unprofitable.


Financial Health

How is Octodec Investments's financial position?


Financial Position Analysis

Short Term Liabilities: OCT's short term assets (ZAR295.4M) do not cover its short term liabilities (ZAR866.5M).

Long Term Liabilities: OCT's short term assets (ZAR295.4M) do not cover its long term liabilities (ZAR4.7B).


Debt to Equity History and Analysis

Debt Level: OCT's debt to equity ratio (84.3%) is considered high.

Reducing Debt: OCT's debt to equity ratio has increased from 63.4% to 84.3% over the past 5 years.

Debt Coverage: OCT's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: OCT's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is Octodec Investments's current dividend yield, its reliability and sustainability?

11.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OCT's dividend (11.96%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: OCT's dividend (11.96%) is in the top 25% of dividend payers in the ZA market (8.02%)


Stability and Growth of Payments

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

Growing Dividend: OCT has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77%), OCT's payments are 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?

3.3yrs

Average management tenure


CEO

Jeff Wapnick (60 yo)

23.75yrs

Tenure

R4,814,895

Compensation

Mr. Jeffrey Percy Wapnick, also known as Jeff, BCom, is the Managing Director of Octodec Investments Limited since 1998 and has been its Executive director since October 2, 1998. Mr. Wapnick is responsible...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD330.28K) is below average for companies of similar size in the ZA market ($USD499.93K).

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: OCT's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: OCT's board of directors are considered experienced (9.7 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

Octodec Investments Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Octodec Investments Limited
  • Ticker: OCT
  • Exchange: JSE
  • Founded: 1956
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R2.225b
  • Shares outstanding: 266.20m
  • Website: https://www.octodec.co.za

Number of Employees


Location

  • Octodec Investments Limited
  • CPA House
  • 101 Du Toit Street
  • Tshwane
  • Gauteng
  • 2
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:55
End of Day Share Price2021/10/21 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.