Pan African Resources (PAN.JO)

Materials · JSE · South Africa

R19.80-22.35% today

Fundamentals

Market capR42.27B

P/E ratio10.6

Dividend yield2.35%

Revenue growth (YoY)+157.3%

Profit margin28.8%

Return on equity43.6%

52-week rangeR12.30 to R42.09

Valuation and ratings

DCF fair valueR45.87

Upside to fair value+131.7%

Analyst target (mean)R23.00

Analyst rangeR23.00 to R23.00

Analysts covering2

Consensus viewunderperform

Moat score87/100

Overall rating89/100, Strong Buy

Pan African Resources trades at R19.80, which is 132% below the R45.87 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 87 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 10.6 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 Pan African Resources

Pan African Resources PLC engages in the mining, extraction, production, and sale of gold in South Africa. The company also explores for copper and cobalt deposits. Its flagship projects include the Barberton Mines that consists of three underground mines, including Fairview, Sheba, and Consort located in the Barberton Greenstone Belt; and Elikhulu tailings retreatment plant in Southern Africa. Pan African Resources PLC is headquartered in Johannesburg, South Africa.

Industry: GoldEmployees: 2,494HQ: South Africa

PAN.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.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

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.

Growing dividend payers

A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.

High return on equity, low debt

A high ROE is easy to fake with borrowing. This screen demands the return without the leverage, which is a much shorter list.

Common questions

Is Pan African Resources (PAN.JO) undervalued?

Against our discounted cash flow estimate of R45.87, PAN.JO at R19.80 is 132% 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 PAN.JO's P/E ratio?

PAN.JO trades at 10.6 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 PAN.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open PAN.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.