Tiger Brands (TBS.JO)

Consumer · JSE · South Africa

R280.45-4.42% today

Fundamentals

Market capR41.85B

P/E ratio13.5

Dividend yield5.94%

Revenue growth (YoY)+1.3%

Profit margin9.6%

Return on equity21.3%

52-week rangeR267.22 to R385.00

Valuation and ratings

DCF fair valueR180.28

Upside to fair value-35.7%

Analyst target (mean)R355.00

Analyst rangeR310.00 to R415.00

Analysts covering4

Consensus viewbuy

Moat score54/100

Overall rating40/100, Reduce

Tiger Brands trades at R280.45, which is 36% above the R180.28 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 54 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 13.5 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 Tiger Brands

Tiger Brands Limited engages in the manufacture and sale of fast-moving consumer goods in South Africa and internationally. It operates through Milling and Baking; Culinary; Snacks, Treats, and Beverages; and Home and Personal Care segments. The company offers wheat milling and baking; and culinary, Davita, and baby nutrition products. It operates under the Albany, All Gold, Black Cat, Crosse & Blackwell, DOOM, Energade, Fatti's & Moni's, Ingrams, Jungle Oats, KOO, Maynards, Mrs H.S Balls, Oros, PURITY, Tastic, and Benny brands. The company also exports its products to approximately 22 countries. Tiger Brands Limited was founded in 1921 and is based in Midrand, South Africa.

Industry: Packaged FoodsEmployees: 8,721HQ: South Africa

TBS.JO passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Dividend powerhouses

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

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.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

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 Tiger Brands (TBS.JO) undervalued?

Against our discounted cash flow estimate of R180.28, TBS.JO at R280.45 is 36% above 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 TBS.JO's P/E ratio?

TBS.JO trades at 13.5 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 TBS.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.