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SAR

Safari Investments RSAJSE:SAR Stock Report

Market Cap

R1.2b

7D

1.3%

1Y

39.4%

Updated

21 Oct, 2021

Data

Company Financials
SAR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health0/6
Dividends3/6

SAR Overview

SAFARI is a property investment company listed on the JSE as a Real Estate Investment Trust that specialises in quality commercial investments.

Safari Investments RSA Competitors

Stor-Age Property REIT

JSE:SSS

R6.0b

New African Properties

BSM:NAP

P2.0b

Tradehold

JSE:TDH

R2.6b

Far Property

BSM:FPC

P1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Safari Investments RSA
Historical stock prices
Current Share PriceR4.81
52 Week HighR3.30
52 Week LowR5.28
Beta0.15
1 Month Change-8.21%
3 Month Change8.33%
1 Year Change39.42%
3 Year Change-5.69%
5 Year Change-34.11%
Change since IPO-43.35%

Recent News & Updates

Feb 25
Reflecting on Safari Investments RSA's(JSE:SAR) Total Shareholder Returns Over The Last Five Years

Reflecting on Safari Investments RSA's(JSE:SAR) Total Shareholder Returns Over The Last Five Years

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market...

Shareholder Returns

SARZA REITsZA Market
7D1.3%-0.5%-0.7%
1Y39.4%35.0%19.0%

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

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

Price Volatility

Is SAR's price volatile compared to industry and market?
SAR volatility
SAR Beta0.15
Industry Beta0.89
Market Beta1

Stable Share Price: SAR is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SAR's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
2000n/aDirk Engelbrechthttps://www.safari-investments.com

SAFARI is a property investment company listed on the JSE as a Real Estate Investment Trust that specialises in quality commercial investments. Through selective investments in property we create value for all our stakeholders as we strive for sustainable growth and earnings.

Safari Investments RSA Fundamentals Summary

How do Safari Investments RSA's earnings and revenue compare to its market cap?
SAR fundamental statistics
Market CapR1.24b
Earnings (TTM)R267.58m
Revenue (TTM)R342.71m

4.6x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAR income statement (TTM)
RevenueR342.71m
Cost of RevenueR133.86m
Gross ProfitR208.86m
Expenses-R58.72m
EarningsR267.58m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.04
Gross Margin60.94%
Net Profit Margin78.08%
Debt/Equity Ratio63.2%

How did SAR perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

84%

Payout Ratio

Valuation

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

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAR (ZAR4.81) is trading below our estimate of fair value (ZAR6.12)

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


Price To Earnings Ratio

PE vs Industry: SAR is good value based on its PE Ratio (4.6x) compared to the ZA REITs industry average (10.2x).

PE vs Market: SAR is good value based on its PE Ratio (4.6x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

How is Safari Investments RSA 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 Safari Investments RSA 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 Safari Investments RSA performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAR has a large one-off gain of ZAR153.1M impacting its March 31 2021 financial results.

Growing Profit Margin: SAR's current net profit margins (78.1%) are higher than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: SAR's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: SAR's earnings growth over the past year (148.5%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: SAR earnings growth over the past year (148.5%) exceeded the REITs industry 132.9%.


Return on Equity

High ROE: SAR's Return on Equity (12.5%) is considered low.


Financial Health

How is Safari Investments RSA's financial position?


Financial Position Analysis

Short Term Liabilities: SAR's short term assets (ZAR133.8M) do not cover its short term liabilities (ZAR837.7M).

Long Term Liabilities: SAR's short term assets (ZAR133.8M) do not cover its long term liabilities (ZAR567.3M).


Debt to Equity History and Analysis

Debt Level: SAR's debt to equity ratio (63.2%) is considered high.

Reducing Debt: SAR's debt to equity ratio has increased from 40.9% to 63.2% over the past 5 years.

Debt Coverage: SAR's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: SAR's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Dividend

What is Safari Investments RSA current dividend yield, its reliability and sustainability?

8.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAR's dividend (8.73%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: SAR's dividend (8.73%) is in the top 25% of dividend payers in the ZA market (8.02%)


Stability and Growth of Payments

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

Growing Dividend: SAR 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 (84.1%), SAR'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?

3.8yrs

Average management tenure


CEO

Dirk Engelbrecht (35 yo)

2.92yrs

Tenure

R2,939,398

Compensation

Mr. Dirk Cornelius Engelbrecht, BCom, LLB, has been the Chief Executive Officer of Safari Investments RSA Limited since November 7, 2018. He was an Executive Director of Legal Services at Safari Investment...


CEO Compensation Analysis

Compensation vs Market: Dirk's total compensation ($USD201.63K) is about average for companies of similar size in the ZA market ($USD283.52K).

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


Leadership Team

Experienced Management: SAR's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SAR's board of directors are not considered experienced ( 1.3 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

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


Key Information

  • Name: Safari Investments RSA Limited
  • Ticker: SAR
  • Exchange: JSE
  • Founded: 2000
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: R1.240b
  • Shares outstanding: 257.83m
  • Website: https://www.safari-investments.com

Number of Employees


Location

  • Safari Investments RSA Limited
  • 410 Lynnwood Road
  • Lynnwood
  • Pretoria
  • Gauteng
  • 81
  • 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 21:04
End of Day Share Price2021/10/21 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.