Resilient REIT (RES.JO)

Real Estate · JSE · South Africa

R82.38-1.49% today

Fundamentals

Market capR27.49B

P/E ratio6.0

Dividend yield6.05%

Profit margin97.0%

Return on equity19.0%

52-week rangeR61.88 to R89.50

Valuation and ratings

DCF fair valueR115.94

Upside to fair value+40.7%

Analyst target (mean)R85.12

Analyst rangeR83.36 to R87.00

Analysts covering3

Consensus viewnone

Moat score77/100

Overall rating87/100, Strong Buy

Resilient REIT trades at R82.38, which is 41% below the R115.94 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 77 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 6.0 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 Resilient REIT

Resilient REIT Limited is a retail-focused Real Estate Investment Trust (REIT) listed on the JSE Limited (JSE). Its strategy is to invest in dominant retail centres with a minimum of three anchor tenants and let predominantly to national retailers. A core competency is its strong development skills which support new developments and the reconfiguration of existing shopping centres to adapt to structural changes in the market. Resilient also invests directly and indirectly in offshore property assets. The Company's focus is on regions with strong growth fundamentals. Resilient generally has the dominant offering in its target markets with strong grocery and flagship fashion offerings. Resilient REIT Limited was incorporated in 2002 in South Africa.

Industry: REIT - RetailHQ: South Africa

RES.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.

Dividend powerhouses

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

High margin machines

Companies that keep an unusually large share of every pound they sell. That is pricing power made visible.

Common questions

Is Resilient REIT (RES.JO) undervalued?

Against our discounted cash flow estimate of R115.94, RES.JO at R82.38 is 41% 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 RES.JO's P/E ratio?

RES.JO trades at 6.0 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 RES.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.