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ITE

ItaltileJSE:ITE Stock Report

Market Cap

R20.5b

7D

7.3%

1Y

16.2%

Updated

21 Oct, 2021

Data

Company Financials
ITE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

ITE Overview

Italtile Limited manufactures and retails tiles, bathroom ware, and related products in South Africa.

Price History & Performance

Summary of all time highs, changes and price drops for Italtile
Historical stock prices
Current Share PriceR16.81
52 Week HighR12.11
52 Week LowR18.74
Beta0.28
1 Month Change7.00%
3 Month Change4.09%
1 Year Change16.17%
3 Year Change31.84%
5 Year Change15.93%
Change since IPO17,949.46%

Recent News & Updates

Aug 28
Is Italtile (JSE:ITE) Using Too Much Debt?

Is Italtile (JSE:ITE) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 09
Shareholders Are Optimistic That Italtile (JSE:ITE) Will Multiply In Value

Shareholders Are Optimistic That Italtile (JSE:ITE) Will Multiply In Value

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Apr 06
Here's What Italtile's (JSE:ITE) Strong Returns On Capital Mean

Here's What Italtile's (JSE:ITE) Strong Returns On Capital Mean

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

ITEZA Specialty RetailZA Market
7D7.3%1.4%-0.7%
1Y16.2%59.7%19.0%

Return vs Industry: ITE underperformed the ZA Specialty Retail industry which returned 61.5% over the past year.

Return vs Market: ITE underperformed the ZA Market which returned 19.9% over the past year.

Price Volatility

Is ITE's price volatile compared to industry and market?
ITE volatility
ITE Beta0.28
Industry Beta0.91
Market Beta1

Stable Share Price: ITE is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ITE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19692,613Jan Potgieterhttps://www.italtile.com

Italtile Limited manufactures and retails tiles, bathroom ware, and related products in South Africa. It operates through five segments: Retail, Franchising, Properties, Supply and Support Services, and Manufacturing. The company is involved in franchising and retailing of tiles, brassware, laminated flooring, bathroom ware, lighting product, other home finishing products, and accessories; and distribution of tiles, shower enclosures, brassware, laminated flooring, accessories, and tiling tools.

Italtile Fundamentals Summary

How do Italtile's earnings and revenue compare to its market cap?
ITE fundamental statistics
Market CapR20.45b
Earnings (TTM)R1.72b
Revenue (TTM)R9.14b

11.9x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITE income statement (TTM)
RevenueR9.14b
Cost of RevenueR5.11b
Gross ProfitR4.03b
ExpensesR2.31b
EarningsR1.72b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.41
Gross Margin44.11%
Net Profit Margin18.81%
Debt/Equity Ratio7.6%

How did ITE perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

11.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ITE (ZAR16.81) is trading above our estimate of fair value (ZAR8.69)

Significantly Below Fair Value: ITE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ITE is poor value based on its PE Ratio (11.9x) compared to the ZA Specialty Retail industry average (10.1x).

PE vs Market: ITE is poor value based on its PE Ratio (11.9x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ITE is overvalued based on its PB Ratio (3.2x) compared to the ZA Specialty Retail industry average (1.6x).


Future Growth

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

33.7%

Forecasted Retail 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 Italtile 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 Italtile performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITE has high quality earnings.

Growing Profit Margin: ITE's current net profit margins (18.8%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: ITE's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: ITE's earnings growth over the past year (78.2%) exceeds its 5-year average (11.4% per year).

Earnings vs Industry: ITE earnings growth over the past year (78.2%) underperformed the Specialty Retail industry 137.3%.


Return on Equity

High ROE: ITE's Return on Equity (27.5%) is considered high.


Financial Health

How is Italtile's financial position?


Financial Position Analysis

Short Term Liabilities: ITE's short term assets (ZAR3.1B) exceed its short term liabilities (ZAR1.4B).

Long Term Liabilities: ITE's short term assets (ZAR3.1B) exceed its long term liabilities (ZAR526.0M).


Debt to Equity History and Analysis

Debt Level: ITE's debt to equity ratio (7.6%) is considered satisfactory.

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

Debt Coverage: ITE's debt is well covered by operating cash flow (372.2%).

Interest Coverage: ITE's interest payments on its debt are well covered by EBIT (1273.5x coverage).


Balance Sheet


Dividend

What is Italtile current dividend yield, its reliability and sustainability?

6.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITE's dividend (6.31%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: ITE's dividend (6.31%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

Stable Dividend: ITE's dividend payments have been volatile in the past 10 years.

Growing Dividend: ITE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.8%), ITE's dividend payments are 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?

1.3yrs

Average management tenure


CEO

Jan Potgieter (52 yo)

4.83yrs

Tenure

R33,278,000

Compensation

Mr. Jan Naude Potgieter, BCompt (Hons), CTA, CA(SA), has been the Chief Executive Officer of Italtile Ltd. since December 1, 2016. He served as Chief Operating Officer of Italtile Ltd.from August 1, 2014...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD2.28M) is above average for companies of similar size in the ZA market ($USD944.32K).

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


Leadership Team

Experienced Management: ITE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: ITE's board of directors are considered experienced (5.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Italtile Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Italtile Limited
  • Ticker: ITE
  • Exchange: JSE
  • Founded: 1969
  • Industry: Home Improvement Retail
  • Sector: Retail
  • Market Cap: R20.452b
  • Shares outstanding: 1.22b
  • Website: https://www.italtile.com

Number of Employees


Location

  • Italtile Limited
  • The Italtile Building
  • Cnr William Nicol Drive and Peter Place
  • Bryanston
  • Gauteng
  • 2021
  • 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 20:54
End of Day Share Price2021/10/21 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.