Fortress Real Estate (FFB.JO)

Real Estate · JSE · South Africa

R25.02-0.24% today

Fundamentals

Market capR32.23B

P/E ratio8.9

Dividend yield7.13%

Revenue growth (YoY)+10.9%

Profit margin53.4%

Return on equity11.2%

52-week rangeR20.39 to R26.89

Valuation and ratings

DCF fair valueR55.40

Upside to fair value+121.4%

Analyst target (mean)R24.17

Analyst rangeR19.50 to R26.50

Analysts covering3

Consensus viewnone

Moat score78/100

Overall rating88/100, Strong Buy

Fortress Real Estate trades at R25.02, which is 121% below the R55.40 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.

Our moat model scores it 78 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 8.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Fortress Real Estate

Fortress is a real estate investment company with a focus on developing and letting premium-grade logistics real estate in SA and CEE, as well as growing our convenience and commuter-oriented retail portfolio. Fortress also holds, at the date of this report, a 16,2% interest in NEPI Rockcastle, the largest listed property company on the JSE, with a EUR7 billion portfolio across nine CEE countries. This holding reduced from 24,2% at 31 December 2023 to 16,2% at the date of this report.

Industry: Real Estate ServicesHQ: South Africa

FFB.JO passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Undervalued on cash flow

Companies trading at least 25% below what our discounted cash flow model says the future cash is worth today.

Quality at a fair price

Good businesses, not cheap ones. A wide moat and a strong rating, at a multiple that has not run away.

Deep value, with a pulse

A very low earnings multiple is usually a warning. This screen demands a low multiple AND evidence the business still works.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Growth at a reasonable price

Real growth, without the multiple that usually comes attached to it. The middle ground between value and growth, and the hardest place to find anything.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Common questions

Is Fortress Real Estate (FFB.JO) undervalued?

Against our discounted cash flow estimate of R55.40, FFB.JO at R25.02 is 121% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is FFB.JO's P/E ratio?

FFB.JO trades at 8.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Open FFB.JO in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.