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SEA

Spear ReitJSE:SEA Stock Report

Market Cap

R1.3b

7D

0.2%

1Y

25.0%

Updated

21 Oct, 2021

Data

Company Financials
SEA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends2/6

SEA Overview

No business description

Spear Reit Competitors

Tower Property Fund

JSE:TWR

R1.2b

Newpark REIT

JSE:NRL

R400.0m

Stor-Age Property REIT

JSE:SSS

R6.0b

New African Properties

BSM:NAP

P2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Spear Reit
Historical stock prices
Current Share PriceR6.50
52 Week HighR4.84
52 Week LowR7.00
Beta0.48
1 Month Change-5.11%
3 Month Change4.67%
1 Year Change25.00%
3 Year Change-32.29%
5 Year Changen/a
Change since IPO-30.85%

Recent News & Updates

Shareholder Returns

SEAZA REITsZA Market
7D0.2%-0.5%-0.7%
1Y25.0%35.0%19.0%

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

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

Price Volatility

Is SEA's price volatile compared to industry and market?
SEA volatility
SEA Beta0.48
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
n/a26Quintin Rossihttps://www.spearprop.co.za

Spear Reit Fundamentals Summary

How do Spear Reit's earnings and revenue compare to its market cap?
SEA fundamental statistics
Market CapR1.34b
Earnings (TTM)R53.01m
Revenue (TTM)R530.53m

25.2x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEA income statement (TTM)
RevenueR530.53m
Cost of RevenueR160.93m
Gross ProfitR369.61m
ExpensesR316.60m
EarningsR53.01m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)0.26
Gross Margin69.67%
Net Profit Margin9.99%
Debt/Equity Ratio88.0%

How did SEA perform over the long term?

See historical performance and comparison

Dividends

9.0%

Current Dividend Yield

118%

Payout Ratio

Valuation

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

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEA (ZAR6.5) is trading below our estimate of fair value (ZAR7.33)

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


Price To Earnings Ratio

PE vs Industry: SEA is poor value based on its PE Ratio (25.2x) compared to the ZA REITs industry average (10.2x).

PE vs Market: SEA is poor value based on its PE Ratio (25.2x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

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


Future Growth

How is Spear Reit 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 Spear Reit 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 Spear Reit performed over the past 5 years?

-25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEA has a large one-off loss of ZAR105.9M impacting its February 28 2021 financial results.

Growing Profit Margin: SEA's current net profit margins (10%) are lower than last year (39.4%).


Past Earnings Growth Analysis

Earnings Trend: SEA's earnings have declined by 25.5% per year over the past 5 years.

Accelerating Growth: SEA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SEA had negative earnings growth (-74.4%) over the past year, making it difficult to compare to the REITs industry average (132.9%).


Return on Equity

High ROE: SEA's Return on Equity (2.4%) is considered low.


Financial Health

How is Spear Reit's financial position?


Financial Position Analysis

Short Term Liabilities: SEA's short term assets (ZAR75.2M) do not cover its short term liabilities (ZAR494.4M).

Long Term Liabilities: SEA's short term assets (ZAR75.2M) do not cover its long term liabilities (ZAR1.7B).


Debt to Equity History and Analysis

Debt Level: SEA's debt to equity ratio (88%) is considered high.

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

Debt Coverage: SEA's debt is not well covered by operating cash flow (7.7%).

Interest Coverage: SEA's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Dividend

What is Spear Reit current dividend yield, its reliability and sustainability?

9.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEA's dividend (9.03%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: SEA's dividend (9.03%) is in the top 25% of dividend payers in the ZA market (8.02%)


Stability and Growth of Payments

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

Growing Dividend: SEA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.9%), SEA's dividend payments are not 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?

3.5yrs

Average management tenure


CEO

Quintin Rossi (40 yo)

3.42yrs

Tenure

R2,602,000

Compensation

Mr. Quintin Michael Rossi, BA (LAW) PGDEM, serves as Managing Director and Chief Executive Officer of Spear Reit Limited since May 17, 2018 and has been its Director November 18, 2015.


CEO Compensation Analysis

Compensation vs Market: Quintin's total compensation ($USD178.49K) is below average for companies of similar size in the ZA market ($USD283.52K).

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


Leadership Team

Experienced Management: SEA's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: SEA's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SEA insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

Company Information

Spear Reit Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Spear Reit Limited
  • Ticker: SEA
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R1.337b
  • Shares outstanding: 205.73m
  • Website: https://www.spearprop.co.za

Number of Employees


Location

  • Spear Reit Limited
  • 2 Long Street
  • 16th Floor
  • Cape Town
  • Western Cape
  • 8001
  • 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 21:05
End of Day Share Price2021/10/21 00:00
Earnings2021/02/28
Annual Earnings2021/02/28


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.