Oceana Group (OCE.JO)

Consumer · JSE · South Africa

R69.13+6.47% today

Fundamentals

Market capR9.08B

P/E ratio11.9

Dividend yield4.07%

Revenue growth (YoY)-6.0%

Profit margin7.4%

Return on equity9.2%

52-week rangeR48.00 to R72.23

Valuation and ratings

DCF fair valueR154.00

Upside to fair value+122.8%

Analyst target (mean)R90.00

Analyst rangeR90.00 to R90.00

Analysts covering1

Consensus viewnone

Moat score38/100

Overall rating68/100, Buy

Oceana Group trades at R69.13, which is 123% below the R154.00 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 38 out of 100, which is little in the way of a 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 11.9 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 Oceana Group

Oceana Group Limited operates as a fishing and food processing company in South Africa, Namibia, rest of Africa, North America, Europe, the Far East, and internationally. It engages in catching, processing, and procuring various marine species, including pilchard, anchovy, redeye herring, Gulf menhaden, lobster, squid, horse mackerel, and hake, as well as processing of meat, chicken, and vegetable products. The company also markets and sells canned fish, fishmeal, and fish oil products, as well as frozen and fresh products. Oceana Group Limited was incorporated in 1918 and is headquartered in Cape Town, South Africa.

Industry: Packaged FoodsHQ: South Africa

OCE.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.

Dividend powerhouses

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

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.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

South Africa and the JSE

A commodity and currency market wearing an equity market's clothes. The index can rise on a good day in Beijing.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is Oceana Group (OCE.JO) undervalued?

Against our discounted cash flow estimate of R154.00, OCE.JO at R69.13 is 123% 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 OCE.JO's P/E ratio?

OCE.JO trades at 11.9 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.

The full research page for OCE.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open OCE.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.