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FTH

Frontier Transport HoldingsJSE:FTH Stock Report

Market Cap

R1.7b

7D

15.0%

1Y

82.0%

Updated

21 Oct, 2021

Data

Company Financials
FTH fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health4/6
Dividends2/6

FTH Overview

Frontier Transport Holdings Limited, an investment holding company, operates in the commuter transport sector.

Price History & Performance

Summary of all time highs, changes and price drops for Frontier Transport Holdings
Historical stock prices
Current Share PriceR5.75
52 Week HighR2.90
52 Week LowR5.75
Beta0.30
1 Month Change51.32%
3 Month Change53.33%
1 Year Change81.96%
3 Year Change11.22%
5 Year Changen/a
Change since IPO15.00%

Recent News & Updates

Oct 07
The Returns On Capital At Frontier Transport Holdings (JSE:FTH) Don't Inspire Confidence

The Returns On Capital At Frontier Transport Holdings (JSE:FTH) Don't Inspire Confidence

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Jul 21
Is Hosken Passenger Logistics and Rail (JSE:HPR) A Risky Investment?

Is Hosken Passenger Logistics and Rail (JSE:HPR) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

FTHZA TransportationZA Market
7D15.0%2.9%0.9%
1Y82.0%26.3%19.9%

Return vs Industry: FTH exceeded the ZA Transportation industry which returned 26.3% over the past year.

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

Price Volatility

Is FTH's price volatile compared to industry and market?
FTH volatility
FTH Beta0.30
Industry Beta0.98
Market Beta1

Stable Share Price: FTH is more volatile than 90% of ZA stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: FTH's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of ZA stocks.

About the Company

FoundedEmployeesCEOWebsite
20152,565Francois Meyerhttps://www.hplr.co.za

Frontier Transport Holdings Limited, an investment holding company, operates in the commuter transport sector. It operates buses for scheduled passenger services; and commuter buses and luxury coaches in the schools and tourism markets. The company was formerly known as Hosken Passenger Logistics and Rail Limited and changed its name to Frontier Transport Holdings Limited in September 2021.

Frontier Transport Holdings Fundamentals Summary

How do Frontier Transport Holdings's earnings and revenue compare to its market cap?
FTH fundamental statistics
Market CapR1.67b
Earnings (TTM)R204.80m
Revenue (TTM)R1.66b

8.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTH income statement (TTM)
RevenueR1.66b
Cost of RevenueR1.27b
Gross ProfitR386.73m
ExpensesR181.93m
EarningsR204.80m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.71
Gross Margin23.34%
Net Profit Margin12.36%
Debt/Equity Ratio28.4%

How did FTH perform over the long term?

See historical performance and comparison

Dividends

7.7%

Current Dividend Yield

62%

Payout Ratio

Valuation

Is Frontier Transport Holdings undervalued compared to its fair value and its price relative to the market?

45.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTH (ZAR5.75) is trading below our estimate of fair value (ZAR10.45)

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


Price To Earnings Ratio

PE vs Industry: FTH is good value based on its PE Ratio (8.1x) compared to the Global Transportation industry average (16.8x).

PE vs Market: FTH is good value based on its PE Ratio (8.1x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FTH is overvalued based on its PB Ratio (1.3x) compared to the XF Transportation industry average (0.5x).


Future Growth

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

24.8%

Forecasted Transportation 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 Frontier Transport Holdings 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 Frontier Transport Holdings performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FTH has high quality earnings.

Growing Profit Margin: FTH's current net profit margins (12.4%) are lower than last year (12.6%).


Past Earnings Growth Analysis

Earnings Trend: FTH's earnings have declined by 1.7% per year over the past 5 years.

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

Earnings vs Industry: FTH had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Transportation industry average (20.5%).


Return on Equity

High ROE: FTH's Return on Equity (15.5%) is considered low.


Financial Health

How is Frontier Transport Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: FTH's short term assets (ZAR588.6M) exceed its short term liabilities (ZAR420.7M).

Long Term Liabilities: FTH's short term assets (ZAR588.6M) do not cover its long term liabilities (ZAR597.4M).


Debt to Equity History and Analysis

Debt Level: FTH's debt to equity ratio (28.4%) is considered satisfactory.

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

Debt Coverage: FTH's debt is well covered by operating cash flow (90.2%).

Interest Coverage: FTH's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet


Dividend

What is Frontier Transport Holdings's current dividend yield, its reliability and sustainability?

7.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FTH's dividend (7.65%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: FTH's dividend (7.65%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FTH has been paying a dividend for less than 10 years.

Growing Dividend: FTH's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.3%), FTH's dividend 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?

3.6yrs

Average board tenure


CEO

Francois Meyer (59 yo)

3.58yrs

Tenure

R9,285,000

Compensation

Mr. Francois Eckhard Meyer, Dip Trans B.Comm, MBA, has been the Chief Executive Officer of Golden Arrow Bus Services (Pty) Ltd. (GABS) since 2015 and serves as its Director. Mr. Meyer serves as Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Francois's total compensation ($USD636.91K) is above average for companies of similar size in the ZA market ($USD283.52K).

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


Board Members

Experienced Board: FTH's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Frontier Transport Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Frontier Transport Holdings Limited
  • Ticker: FTH
  • Exchange: JSE
  • Founded: 2015
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: R1.668b
  • Shares outstanding: 290.00m
  • Website: https://www.hplr.co.za

Number of Employees


Location

  • Frontier Transport Holdings Limited
  • 103 Bofors Circle
  • Epping Industria
  • Cape Town
  • Western Cape
  • 7460
  • 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
Earnings2021/03/31
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.