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TRU

Truworths InternationalJSE:TRU Stock Report

Market Cap

R21.6b

7D

3.2%

1Y

83.1%

Updated

17 Oct, 2021

Data

Company Financials +
TRU fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

TRU Overview

Truworths International Limited, an investment holding and management company, engages in the retail of fashion apparel, footwear, and related merchandise and homeware.

Truworths International Competitors

Pepkor Holdings

JSE:PPH

R85.2b

Mr Price Group

JSE:MRP

R53.5b

Foschini Group

JSE:TFG

R42.0b

Woolworths Group

ASX:WOW

AU$50.8b

Price History & Performance

Summary of all time highs, changes and price drops for Truworths International
Historical stock prices
Current Share PriceR55.29
52 Week HighR29.35
52 Week LowR68.09
Beta1.11
1 Month Change-1.43%
3 Month Change-4.19%
1 Year Change83.08%
3 Year Change-30.06%
5 Year Change-22.36%
Change since IPO514.33%

Recent News & Updates

Shareholder Returns

TRUZA Specialty RetailZA Market
7D3.2%3.0%1.6%
1Y83.1%69.9%21.3%

Return vs Industry: TRU exceeded the ZA Specialty Retail industry which returned 69.9% over the past year.

Return vs Market: TRU exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is TRU's price volatile compared to industry and market?
TRU volatility
TRU Beta1.11
Industry Beta0.91
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19179,478Michael Markhttps://www.truworthsinternational.com

Truworths International Limited, an investment holding and management company, engages in the retail of fashion apparel, footwear, and related merchandise and homeware. It operates through Truworths and Office segments. The company operates approximately 728 stores in South Africa; and 49 stores in the rest of Africa.

Truworths International Fundamentals Summary

How do Truworths International's earnings and revenue compare to its market cap?
TRU fundamental statistics
Market CapR21.63b
Earnings (TTM)R1.95b
Revenue (TTM)R16.40b

11.1x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRU income statement (TTM)
RevenueR16.40b
Cost of RevenueR8.04b
Gross ProfitR8.36b
ExpensesR6.41b
EarningsR1.95b

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.99
Gross Margin50.96%
Net Profit Margin11.90%
Debt/Equity Ratio8.1%

How did TRU perform over the long term?

See historical performance and comparison

Dividends

6.3%

Current Dividend Yield

73%

Payout Ratio

Valuation

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

11.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRU (ZAR55.29) is trading above our estimate of fair value (ZAR32.43)

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


Price To Earnings Ratio

PE vs Industry: TRU is poor value based on its PE Ratio (11.1x) compared to the ZA Specialty Retail industry average (10.2x).

PE vs Market: TRU is good value based on its PE Ratio (11.1x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRU is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: TRU is overvalued based on its PB Ratio (3.5x) compared to the ZA Specialty Retail industry average (1.6x).


Future Growth

How is Truworths International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRU's forecast earnings growth (6.6% per year) is below the savings rate (8.8%).

Earnings vs Market: TRU's earnings (6.6% per year) are forecast to grow slower than the ZA market (12.2% per year).

High Growth Earnings: TRU's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRU's revenue (3.2% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: TRU's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRU's Return on Equity is forecast to be high in 3 years time (32.8%)


Past Performance

How has Truworths International performed over the past 5 years?

-38.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRU has high quality earnings.

Growing Profit Margin: TRU became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TRU's earnings have declined by 38.8% per year over the past 5 years.

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

Earnings vs Industry: TRU has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (137.3%).


Return on Equity

High ROE: TRU's Return on Equity (31.6%) is considered high.


Financial Health

How is Truworths International's financial position?


Financial Position Analysis

Short Term Liabilities: TRU's short term assets (ZAR7.2B) exceed its short term liabilities (ZAR4.1B).

Long Term Liabilities: TRU's short term assets (ZAR7.2B) exceed its long term liabilities (ZAR2.2B).


Debt to Equity History and Analysis

Debt Level: TRU's debt to equity ratio (8.1%) is considered satisfactory.

Reducing Debt: TRU's debt to equity ratio has reduced from 50.9% to 8.1% over the past 5 years.

Debt Coverage: TRU's debt is well covered by operating cash flow (769.8%).

Interest Coverage: TRU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Truworths International current dividend yield, its reliability and sustainability?

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRU's dividend (6.33%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: TRU's dividend (6.33%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.9%), TRU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRU's dividends in 3 years are forecast to be covered by earnings (67% payout ratio).


Next Steps

Management

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

7.0yrs

Average board tenure


CEO

Michael Mark (68 yo)

no data

Tenure

R26,830,000

Compensation

Mr. Michael Samuel Mark, B.Com., M.B.A., ACMA, serves as the Chief Executive Officer of Truworths International Ltd. Mr. Mark serves as an Executive Chairman and Chief Executive Officer of Truworths limite...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.83M) is above average for companies of similar size in the ZA market ($USD922.82K).

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


Board Members

Experienced Board: TRU's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRU insiders have only sold shares 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

Truworths International Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Truworths International Limited
  • Ticker: TRU
  • Exchange: JSE
  • Founded: 1917
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: R21.625b
  • Shares outstanding: 391.12m
  • Website: https://www.truworthsinternational.com

Number of Employees


Location

  • Truworths International Limited
  • No. 1 Mostert Street
  • 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 Analysis2021/10/17 17:06
End of Day Share Price2021/10/15 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.