Remgro (REM.JO)
Financials · JSE · South Africa
Fundamentals
Valuation and ratings
Remgro trades at R191.20, which is 119% below the R418.33 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 47 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 0.7 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 Remgro
Remgro Limited is a principal investment firm. The firm prefers to invest in financial services, food, liquor and home care, banking, insurance, industrial, healthcare, infrastructure, information technology infrastructure services, media, and sport. It considers investments in Africa, UAE, UK, Switzerland and other international countries though investee companies. The firm typically invests in companies with significant influence and board representation. It mainly focuses on the provision of support rather than on being involved in the day-to-day management of business units of investees. Remgro Limited was founded in 1948 and is based in Stellenbosch, South Africa.
REM.JO passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Remgro (REM.JO) undervalued?
Against our discounted cash flow estimate of R418.33, REM.JO at R191.20 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 REM.JO's P/E ratio?
REM.JO trades at 0.7 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.