Wilson Bayly Holmes-Ovcon (WBO.JO)

Industrials · JSE · South Africa

R167.89-4.34% today

Fundamentals

Market capR8.80B

P/E ratio7.4

Dividend yield3.70%

Revenue growth (YoY)-4.3%

Profit margin4.4%

Return on equity23.9%

52-week rangeR142.84 to R214.51

Valuation and ratings

DCF fair valueR236.08

Upside to fair value+40.6%

Analyst target (mean)R220.00

Analyst rangeR220.00 to R220.00

Analysts covering1

Consensus viewnone

Moat score37/100

Overall rating69/100, Buy

Wilson Bayly Holmes-Ovcon trades at R167.89, which is 41% below the R236.08 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 37 out of 100, which is little in the way of a 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 7.4 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 Wilson Bayly Holmes-Ovcon

Wilson Bayly Holmes-Ovcon Limited operates as a construction company in South Africa, rest of Africa, and the United Kingdom. It undertakes construction of buildings, including retail, commercial offices, residential, healthcare, hotels and entertainment, warehousing and industrial, and data centres; civil engineering and infrastructure for mining, industrial, and water and energy infrastructure; and roads and earthworks, such as road and bridges, bulk earthworks, dams, oil and gas, and rail and pipeline infrastructure projects. The company also undertakes construction of airports, toll roads, renewable energy, and serviced accommodation; and manufactures, supplies, and installs long-steel products. Wilson Bayly Holmes-Ovcon Limited was founded in 1970 and is headquartered in Johannesburg, South Africa.

Industry: Engineering & ConstructionHQ: South Africa

WBO.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.

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.

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.

Common questions

Is Wilson Bayly Holmes-Ovcon (WBO.JO) undervalued?

Against our discounted cash flow estimate of R236.08, WBO.JO at R167.89 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 WBO.JO's P/E ratio?

WBO.JO trades at 7.4 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 WBO.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open WBO.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.