Vukile Property Fund (VKE.JO)

Real Estate · JSE · South Africa

R24.72+1.52% today

Fundamentals

Market capR36.86B

P/E ratio5.6

Dividend yield5.83%

Revenue growth (YoY)+19.6%

Profit margin93.7%

Return on equity18.7%

52-week rangeR19.30 to R26.24

Valuation and ratings

DCF fair valueR54.34

Upside to fair value+119.8%

Analyst target (mean)R26.13

Analyst rangeR25.00 to R27.50

Analysts covering4

Consensus viewstrong buy

Moat score87/100

Overall rating91/100, Strong Buy

Vukile Property Fund trades at R24.72, which is 120% below the R54.34 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 87 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 5.6 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 Vukile Property Fund

Vukile Property Fund Limited, the leading specialist retail real estate investment trust (REIT). Through its 99.5% held Spanish subsidiary Castellana Properties, has acquired the largest shopping centre in Spain Valencia province, the iconic Bonaire Shopping Centre, from multinational retail REIT Unibail-Rodamco-Westfield. The purchase consideration of EUR 305 million represents an attractive entry yield of approximately 7%. Vukile Property Fund Limited was formed in 2002 and is based in South Africa.

Industry: REIT - RetailHQ: South Africa

VKE.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 Vukile Property Fund (VKE.JO) undervalued?

Against our discounted cash flow estimate of R54.34, VKE.JO at R24.72 is 120% 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 VKE.JO's P/E ratio?

VKE.JO trades at 5.6 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 VKE.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open VKE.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.