Northam Platinum Holdings (NPH.JO)
Materials · JSE · South Africa
Fundamentals
Valuation and ratings
Northam Platinum Holdings trades at R234.69, which is 119% below the R513.74 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 68 out of 100, which is a moat, but not a deep one. 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 10.2 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 Northam Platinum Holdings
Northam Platinum Holdings Limited, through its subsidiary, Northam Platinum Limited, engages in the production and sale of platinum group metals. It operates through four segments: Zondereinde mine, Booysendal mine, Eland mine, and the US recycling operations. The company explores for platinum, palladium, rhodium, gold, iridium, ruthenium, silver, nickel, copper, cobalt, and chrome deposits. It holds interests in the Booysendal mine located on the eastern limb of the Bushveld complex; the Zondereinde mine located in the northern end of the western limb of the Bushveld complex; and the Eland mine located in the south-eastern portion of the western limb of the Bushveld complex. The company also offers recycling services. Northam Platinum Holdings Limited was incorporated in 2020 and is based in Johannesburg, South Africa.
NPH.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Northam Platinum Holdings (NPH.JO) undervalued?
Against our discounted cash flow estimate of R513.74, NPH.JO at R234.69 is 119% 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 NPH.JO's P/E ratio?
NPH.JO trades at 10.2 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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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.