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ZSUG

Zambia SugarLUSE:ZSUG Stock Report

Market Cap

K2.0b

7D

0%

1Y

151.4%

Updated

25 Oct, 2021

Data

Company Financials
ZSUG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends3/6

ZSUG Overview

Zambia Sugar Plc operates as an agricultural and sugar manufacturing company in Zambia.

Price History & Performance

Summary of all time highs, changes and price drops for Zambia Sugar
Historical stock prices
Current Share PriceK6.31
52 Week HighK0
52 Week LowK0
Beta-0.13
1 Month Change0%
3 Month Changen/a
1 Year Change151.39%
3 Year Change133.70%
5 Year Change110.33%
Change since IPO827.94%

Recent News & Updates

Shareholder Returns

ZSUGZM FoodZM Market
7D0%-1.1%-2.2%
1Y151.4%16.5%44.7%

Return vs Industry: ZSUG exceeded the ZM Food industry which returned 16.5% over the past year.

Return vs Market: ZSUG exceeded the ZM Market which returned 44.7% over the past year.

Price Volatility

Is ZSUG's price volatile compared to industry and market?
ZSUG volatility
ZSUG Beta-0.13
Industry Beta0.52
Market Beta1

Stable Share Price: Insufficient data to determine ZSUG's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine ZSUG's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
19641,126Rebecca M. Katowahttps://www.illovosugarafrica.com/About-us/Zambia

Zambia Sugar Plc operates as an agricultural and sugar manufacturing company in Zambia. The company operates through Cane Growing and Sugar Production segments. It provides raw and refined sugar to local consumer markets and industrial customers; and specialty sugars and syrups, as well as sells molasses.

Zambia Sugar Fundamentals Summary

How do Zambia Sugar's earnings and revenue compare to its market cap?
ZSUG fundamental statistics
Market CapK2.00b
Earnings (TTM)K782.14m
Revenue (TTM)K4.06b

2.6x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ZSUG income statement (TTM)
RevenueK4.06b
Cost of RevenueK1.76b
Gross ProfitK2.31b
ExpensesK1.52b
EarningsK782.14m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.47
Gross Margin56.78%
Net Profit Margin19.26%
Debt/Equity Ratio50.2%

How did ZSUG perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

10%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZSUG (ZMW6.31) is trading below our estimate of fair value (ZMW26.15)

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


Price To Earnings Ratio

PE vs Industry: ZSUG is good value based on its PE Ratio (2.6x) compared to the African Food industry average (13.7x).

PE vs Market: ZSUG is good value based on its PE Ratio (2.6x) compared to the ZM market (5.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZSUG is good value based on its PB Ratio (1x) compared to the XF Food industry average (1.2x).


Future Growth

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

13.4%

Forecasted Food, Beverage & Tobacco 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 Zambia Sugar 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 Zambia Sugar performed over the past 5 years?

39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZSUG has high quality earnings.

Growing Profit Margin: ZSUG's current net profit margins (19.3%) are higher than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: ZSUG's earnings have grown significantly by 39.2% per year over the past 5 years.

Accelerating Growth: ZSUG's earnings growth over the past year (194.7%) exceeds its 5-year average (39.2% per year).

Earnings vs Industry: ZSUG earnings growth over the past year (194.7%) exceeded the Food industry 5.7%.


Return on Equity

High ROE: ZSUG's Return on Equity (37.8%) is considered high.


Financial Health

How is Zambia Sugar's financial position?


Financial Position Analysis

Short Term Liabilities: ZSUG's short term assets (ZMW2.1B) exceed its short term liabilities (ZMW829.6M).

Long Term Liabilities: ZSUG's short term assets (ZMW2.1B) exceed its long term liabilities (ZMW1.2B).


Debt to Equity History and Analysis

Debt Level: ZSUG's debt to equity ratio (50.2%) is considered high.

Reducing Debt: ZSUG's debt to equity ratio has reduced from 160.3% to 50.2% over the past 5 years.

Debt Coverage: ZSUG's debt is well covered by operating cash flow (51.3%).

Interest Coverage: ZSUG's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Dividend

What is Zambia Sugar current dividend yield, its reliability and sustainability?

3.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZSUG's dividend (3.8%) is higher than the bottom 25% of dividend payers in the ZM market (2.08%).

High Dividend: ZSUG's dividend (3.8%) is low compared to the top 25% of dividend payers in the ZM market (9.38%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), ZSUG's dividend payments are thoroughly 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?

1.8yrs

Average management tenure


CEO

Rebecca M. Katowa (60 yo)

no data

Tenure

K3,721,000

Compensation

Ms. Rebecca M. L. Katowa, BA, MBA, DipM, MCIM, FZIM, serves as Managing Director of Zambia Sugar plc and served as its Marketing Director. Ms. Katowa joined Zambia Sugar in 1996 as Marketing Services Manag...


CEO Compensation Analysis

Compensation vs Market: Rebecca M.'s total compensation ($USD216.34K) is about average for companies of similar size in the ZM market ($USD257.50K).

Compensation vs Earnings: Rebecca M.'s compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ZSUG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ZSUG's board of directors are considered experienced (6.3 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

Zambia Sugar Plc's employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Zambia Sugar Plc
  • Nakambala Sugar Estate
  • Plot No: 118a, Livingstone
  • Mazabuka
  • Zambia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 18:02
End of Day Share Price2021/10/15 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.