Tsogo Sun (TSG.JO)

Consumer · JSE · South Africa

R7.80+0.13% today

Fundamentals

Market capR7.72B

P/E ratio6.3

Dividend yield7.54%

Revenue growth (YoY)-0.6%

Profit margin11.6%

Return on equity24.5%

52-week rangeR6.13 to R8.17

Valuation and ratings

DCF fair valueR17.51

Upside to fair value+124.5%

Analyst target (mean)R8.30

Analyst rangeR7.90 to R8.70

Analysts covering2

Consensus viewnone

Moat score62/100

Overall rating81/100, Strong Buy

Tsogo Sun trades at R7.80, which is 124% below the R17.51 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 62 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 6.3 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 Tsogo Sun

Tsogo Sun Limited, together with its subsidiaries, engages in the gaming, entertainment, and hospitality business in South Africa. The company operates through Casinos, Limited Payout Machines (LPMs), and Other Gaming and Betting segments. It offers casinos and gaming comprising VSlots division with limited payout machines, and the Galaxy Bingo division with electronic bingo terminals. The company's gaming and entertainment options include movies, bird gardens, theme parks, restaurants, bars, shows and events, and others. It also operates hotels; and online betting division through playTSOGO and bet.co.za. The company was formerly known as Tsogo Sun Gaming Limited and changed its name to Tsogo Sun Limited in June 2023. Tsogo Sun Limited is headquartered in Four Ways, South Africa. Tsogo Sun Limited is a subsidiary of Hosken Consolidated Investments Limited.

Industry: Resorts & CasinosHQ: South Africa

TSG.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.

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.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Highest conviction

The best overall scores in our universe, restricted to companies where we actually hold enough data to have an opinion worth reading.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

Common questions

Is Tsogo Sun (TSG.JO) undervalued?

Against our discounted cash flow estimate of R17.51, TSG.JO at R7.80 is 124% 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 TSG.JO's P/E ratio?

TSG.JO trades at 6.3 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 TSG.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open TSG.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.