company background image
TEX

Texton Property FundJSE:TEX Stock Report

Market Cap

R1.1b

7D

-12.0%

1Y

275.0%

Updated

14 Oct, 2021

Data

Company Financials
TEX fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance1/6
Financial Health1/6
Dividends0/6

TEX Overview

Texton Property Fund Limited is a Real Estate Investment Trust (“REIT”) listed on the JSE Limited.

Texton Property Fund Competitors

Delta Property Fund

JSE:DLT

R307.1m

Growthpoint Properties

JSE:GRT

R47.1b

Redefine Properties

JSE:RDF

R24.3b

Resilient REIT

JSE:RES

R20.2b

Price History & Performance

Summary of all time highs, changes and price drops for Texton Property Fund
Historical stock prices
Current Share PriceR3.15
52 Week HighR0.74
52 Week LowR4.31
Beta0.82
1 Month Change-9.22%
3 Month Change0.32%
1 Year Change275.00%
3 Year Change-31.37%
5 Year Change-59.61%
Change since IPO-56.25%

Recent News & Updates

Shareholder Returns

TEXZA REITsZA Market
7D-12.0%0.5%2.6%
1Y275.0%39.7%20.7%

Return vs Industry: TEX exceeded the ZA REITs industry which returned 39.7% over the past year.

Return vs Market: TEX exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is TEX's price volatile compared to industry and market?
TEX volatility
TEX Beta0.82
Industry Beta0.89
Market Beta1

Stable Share Price: TEX is more volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TEX's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
2006n/aH. S. Wellemanhttps://www.texton.co.za

Texton Property Fund Limited is a Real Estate Investment Trust (“REIT”) listed on the JSE Limited. The company internally manages its R4,5 billion portfolio of retail, office and industrial property assets located in South Africa (“SA”) and the United Kingdom (“UK”). The Fund was formed in 2006 and listed on the JSE in August 2011.

Texton Property Fund Fundamentals Summary

How do Texton Property Fund's earnings and revenue compare to its market cap?
TEX fundamental statistics
Market CapR1.08b
Earnings (TTM)R202.00m
Revenue (TTM)R344.55m

5.3x

P/E Ratio

3.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEX income statement (TTM)
RevenueR344.55m
Cost of RevenueR159.83m
Gross ProfitR184.71m
Expenses-R17.28m
EarningsR202.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Mar 18, 2022

Earnings per share (EPS)0.59
Gross Margin53.61%
Net Profit Margin58.63%
Debt/Equity Ratio66.4%

How did TEX perform over the long term?

See historical performance and comparison

Valuation

Is Texton Property Fund undervalued compared to its fair value and its price relative to the market?

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TEX (ZAR3.15) is trading below our estimate of fair value (ZAR4.91)

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


Price To Earnings Ratio

PE vs Industry: TEX is good value based on its PE Ratio (5.3x) compared to the ZA REITs industry average (11.8x).

PE vs Market: TEX is good value based on its PE Ratio (5.3x) compared to the ZA market (11.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TEX is good value based on its PB Ratio (0.5x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Texton Property Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.0%

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 Texton Property Fund 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 Texton Property Fund performed over the past 5 years?

-59.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TEX has a large one-off gain of ZAR53.6M impacting its June 30 2021 financial results.

Growing Profit Margin: TEX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TEX's earnings have declined by 59.6% per year over the past 5 years.

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

Earnings vs Industry: TEX has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (111.5%).


Return on Equity

High ROE: TEX's Return on Equity (9.5%) is considered low.


Financial Health

How is Texton Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: TEX's short term assets (ZAR929.8M) exceed its short term liabilities (ZAR149.0M).

Long Term Liabilities: TEX's short term assets (ZAR929.8M) do not cover its long term liabilities (ZAR1.4B).


Debt to Equity History and Analysis

Debt Level: TEX's debt to equity ratio (66.4%) is considered high.

Reducing Debt: TEX's debt to equity ratio has increased from 56.4% to 66.4% over the past 5 years.

Debt Coverage: TEX's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: TEX's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

What is Texton Property Fund current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TEX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TEX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TEX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TEX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TEX is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TEX's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

H. S. Welleman (33 yo)

1.25yrs

Tenure

R3,284,000

Compensation

Mr. H. S. Pienaar Welleman serves as Chief Executive Officer & Executive Director at Texton Property Fund Limited. He served as Interim Chief Executive Officer at Texton Property Fund Limited since April 2...


CEO Compensation Analysis

Compensation vs Market: H. S.'s total compensation ($USD221.67K) is about average for companies of similar size in the ZA market ($USD285.78K).

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


Board Members

Experienced Board: TEX's board of directors are not considered experienced ( 2.9 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

Texton Property Fund Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Texton Property Fund Limited
  • Ticker: TEX
  • Exchange: JSE
  • Founded: 2006
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: R1.076b
  • Shares outstanding: 341.62m
  • Website: https://www.texton.co.za

Number of Employees


Location

  • Texton Property Fund Limited
  • Investment Place
  • Block C, Hyde Park
  • 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 Analysis2021/10/14 21:27
End of Day Share Price2021/10/14 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.