Truworths International (TRU.JO)
Consumer · JSE · South Africa
Fundamentals
Valuation and ratings
Truworths International trades at R54.98, which is 50% below the R82.32 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 66 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 7.6 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 Truworths International
Truworths International Limited, an investment holding and management company, engages in the retail of fashion apparel and accessories. It operates through Truworths Africa and Office UK segments. The company offers accessories, bags, bottoms, jackets and coats, jewellery and watches, shoes, sleepwear, tops, and Gifts for women, men and kids. It also provides purses, denim, dresses, lingerie, maternity, formals, and co-ord sets for women; wallets, suiting, and underwears for men; kids multipacks for kids. In addition, the company offers fragrances for men and women, and kids; skincare, such as cleansing, moisturisers, bath and body, gifting, special treatments, mens grooming, and suncare; and makups for eyes, gifting, lips, face, and nails. Further, it provides homeware, including blankets and throws; duvet covers and inners; sheeting; pillowcases; pillows for bedroom; bathmats; bathroom accessories; home fragrances; towels; and bathroom fragrance for bathroom; and curtains, decor, rugs, scatter cushions, dining, the flower shop, and kitchen accessories for living; and soft toys for kids. The company offers its products under various range of brands through a network of stores, concession outlets, wholesale partnerships, and an ecommerce channel. Truworths International Limited was founded in 1917 and is based in Cape Town, South Africa.
TRU.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Truworths International (TRU.JO) undervalued?
Against our discounted cash flow estimate of R82.32, TRU.JO at R54.98 is 50% 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 TRU.JO's P/E ratio?
TRU.JO trades at 7.6 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 TRU.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.