South African stock alert

SAFR

Morning Alert: Nampak lifts 2.1%, leads Packaging & containers sector higher 18 October 2017 10:50 SAST

NEWS BITES - AFRICA

Nampak Limited (J:NPK) has lifted 2.1% to trade at ZAR18.89 vs. the Packaging & containers sector which strengthened 784.6 points (or 1.8%) to 43,446.4. Representing a weighting of about 64.7% of the sector, the stock accounted for 73.3% of today's gain. Trading volume was 1.6 times average so far today.

SECTION 1: The past week

Current indications of bullish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Nampak in its biggest weekly gain in 1 month October 17, 2017 17:00 SAST

Nampak Limited (J:NPK), South Africa's largest Packaging & Containers company by market cap, has increased 57.0c (or 3.2%) in the past week to close at ZAR18.50. In the past week the shares have increased 3.2%, the biggest weekly gain since September 19, 2017. Compared with the FTSE/JSE- Africa Top 40 Index which rose 147.4 points (or 0.3%) in the week, this represented a relative price increase of 2.9%. The volume was 0.5 times average trading per week of 14.2 million shares. In the past week the market cap has risen ZAR393.2 million.

1.2 5-day Recap

Nampak outperformed the FTSE/JSE: AFRICA TOP 40 index in 3 out of 5 days.

DayHeadlineClose price [ZAR]Price change %Relative change %Comment
TuesdayNampak rises for a second consecutive day, a two-day rise of 2.0%18.50.20.6
MondayNampak increases 1.9%, climbs 5.5% for week18.471.91.3
WednesdayNampak outperforms 93% of the market18.744.54.3Top Rise

Note

DayHeadlineClose price [ZAR]Price change %Relative change %Comment
FridayNampak underperforms 92% of the market18.13-2.5-2.6Steepest Fall
ThursdayNampak drops on high volatility18.59-0.8-0.6

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Return on Equity 14.6% [15.4%]

Return on Assets 6.1% [6.2%]

Return on Capital Employed 12.4% [13.8%]

Undervaluation:

Price/Earnings of 7.4 [8.8]

Year-on-Year Earnings Growth of 55.1% [20.1%]

Overvaluation:

Price/Earnings/Growth of 1.15 [0.4]

Price/Sales of 6 [1.3]

Price to Book of 2.5 [1.9]

Note

The stock is at a discount of 20.0% to the 12-month high of ZAR23.61 on 31 May, 2017. It is also at a premium of 21.8% to the 12-month low of ZAR15.51 on 09 Mar, 2017.

Bearish:

The negative 0.18 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are falling - another bearish signal. In the past week, the stock's MACD has been negative every day, a reinforcing bearish signal.

The price tumbled 7.9% in the last month.

The present value of ZAR1,000 invested one year ago is ZAR969 [vs ZAR1,154 for the FTSE/JSE- Africa Top 40 Index], for a capital loss of ZAR31. The total return to shareholders for 1 year is -3.1%.

SECTION 2: Ranking

DescriptionValueRank In Market
MCap $US million965.7In 2nd Quartile
52-week Range (in ZAR)15.5-23.6
1-month Range (in ZAR)17.1-20.7

SECTION 3: Earnings

FY2016 Annual Report: Nampak Net Profit up 54%

Nampak (J:NPK) reported net profit for the year-ended 30 September 2016 of ZAR1.6b ($US116m), up 54.4% from ZAR1.0b ($US74.6m) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Net profit up 54.4% from ZAR1.0b ($US74.6m) to ZAR1.6b ($US116.3m)

- EBIT to total assets up from 7.0% to 9.1%

- Debt to Equity down 13.7% from 0.9 to 0.8

- Current ratio up 40% from 1.1 to 1.5

- Retained earnings to total assets up from 33.1% to 37.8%

- Total current assets to Total Assets up from 37% to 38.7%

- Net tangible assets per share up 10.6% from ZAR7.35 (US52.5c) to ZAR8.13 (US58.8c)

Unfavourable Changes:

- Interest cover down 22.9% from 5.4 to 4.2

- Profit before tax to Sales down from 83.2% to 77.6%

- Interest expenses to Sales up from 18.8% to 24.4%

- Interest revenue to Sales down from 2.2% to 1.9%

- Total non-current assets to Total Assets down from 63% to 61.3%

- Fixed Assets to Total Assets down from 45.2% to 43.9%

- Total Liabilities to EBITDA of 6.7 compares unfavourably with the Joseph Piotroski benchmark of less than 5. However, it has improved by 25.1% from the previous year's ratio of 8.9.

- Total Liabilities to Operating Cash Flow of 16.5 compares unfavourably with the Joseph Piotroski benchmark of less than 4

Note:

- Total liabilities to Total assets steady at 0.6

- Intangibles to Total Assets down from 16.9% to 16.8%

- Current Inventory to Total Assets down from 15.9% to 14%

SECTION 4: Recent News of Nampak

September 26: Nampak Limited - Nampak Provides Strategy And Operational Updates At The 2017 Investor Day

Johannesburg, 26 September 2017 - Nampak will provide an update on the group's strategy and progress on key operational initiatives across its divisions at the Nampak Investor Day briefing for investors and analysts being held today. Nampak's Chief Executive Officer, Andre de Ruyter and Chief Financial Officer, Glenn Fullerton along with Nampak's divisional executives will deliver presentations on the group's key strategies and provide brief operational updates by division.

The Investor Day briefing will take place from 08:00 a.m.

September 19: Nampak Limited - Broad-based Black Economic Empowerment Act 53 Of 2003: Annual Compliance Report

In accordance with paragraph 16.20(g) and Appendix 1 of Section 11 of the JSE listings requirements, notice is hereby given that Nampak's annual compliance report, in terms of section 13G(2) of the B-BBEE Act, is available on the company's website at www.nampak.com.

Source: Sharenet

September 19: Nampak Limited - Broad-based Black Economic Empowerment Act 53 Of 2003: Annual Compliance Report

Broad-Based Black Economic Empowerment Act 53 of 2003: Annual Compliance Report

Source: Sharenet

Nampak Limited (J:NPK; JNB:NPK; SJ:NPK)

ISIN: ZAE000071676

PermID: 4295889094

Source: www.BuySellSignals.com