South African stock alert

SAFR

Morning Alert: Cartrack Holdings Limited continues significant uptrend, increases 1.8% 18 October 2017 10:50 SAST

NEWS BITES - AFRICA

Cartrack Holdings Limited (J:CTK) continued its significant uptrend and increased 29.0c (or 1.8%) to trade at ZAR16.25 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: Cartrack Holdings Limited continues significant uptrend October 17, 2017 17:00 SAST

Cartrack Holdings Limited (J:CTK) has lifted ZAR1.76 (or 12.4%) in the past week to close at ZAR15.96. 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 12.1%. The volume was 0.1 times average trading per week of 593,945 shares. In the past week the market cap has jumped ZAR528 million.

1.2 5-day Recap

Cartrack Holdings Limited outperformed the FTSE/JSE: AFRICA TOP 40 index in 4 out of 5 days.

DayHeadlineClose price [ZAR]Price change %Relative change %Comment
TuesdayCartrack Holdings Limited rises in 4 out of last 5 days15.963.33.7
FridayCartrack Holdings Limited accelerates rise, up 9.2% in 3 days15.55.14.9Top Rise
ThursdayCartrack Holdings Limited in its biggest weekly gain in 3 weeks14.751.92.1
WednesdayCartrack Holdings Limited increases 1.9%14.471.91.8

Note

DayHeadlineClose price [ZAR]Price change %Relative change %Comment
MondayCartrack Holdings Limited decreases15.45-0.3-0.8Steepest Fall

SECTION 2: Technical indicators

Bullish:

The stock has outperformed 97% of the South African market over the past 6 months.

The price soared 12.3% in the last week and 20.2% in the last month.

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

Undervaluation:

Total Liabilities/EBITDA of 0.4 is comfortably below the Joseph Piotroski benchmark of <5.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US million361.2In 3rd Quartile
1-month Range (in ZAR)13.5-16.2
Stochastic100Bullish

SECTION 4: Earnings

FY2017 Annual Report: Cartrack Holdings Limited Net Profit down 12.4%

Cartrack Holdings Limited (J:CTK) reported net profit for the year-ended 28 February 2017 of ZAR163m ($US12.5m), down 12.4% from ZAR186m ($US11.5m) in the previous year.

Major changes compared with previous year:

Favourable Changes:

- EBIT Margin up from 4,658.9% to 5,120.1%

- Total current assets to Total Assets up from 5.8% to 16.2%

- Current Debtors to Total Assets up from 5.2% to 16.1%

- Total Liabilities to EBITDA of 0.4 compares favourably with the Joseph Piotroski benchmark of less than 5. However, it has deteriorated by 78.3% from the previous year's ratio of 0.2.

Unfavourable Changes:

- Net profit down 12.4% from ZAR186.4m ($US11.5m) to ZAR163.2m ($US12.5m)

- Total revenue down 11.2% from ZAR190.4m ($US11.8m) to ZAR169.1m ($US12.9m)

- EBIT to total assets down from 105.4% to 82.5%

- Total revenue to total assets down from 1.1 to 0.9

- Total liabilities to Total assets up 37.5% from 0.2 to 0.3

- Retained earnings to total assets down from 51.7% to 45.1%

- Long-term investments to Total Assets down from 94.2% to 83.8%

- Total non-current assets to Total Assets down from 94.2% to 83.8%

Note:

- Tax expenses to Sales up from 0.1% to 18.7%

SECTION 5: Recent News of Cartrack Holdings Limited

October 18: Cartrack Holdings Limited announces dividend

Cartrack Holdings Limited today announced an interim dividend of 14.40c per share. The record date is Tuesday, December 05, 2017 and it is payable on Monday, December 11.

October 11: Cartrack Holdings Limited - Abridged Unaudited Consolidated Interim Financial Statements 2018

Salient features

- Robust comparative subscriber growth of 21% to 666 422

- Subscription revenue up 19%

- Total revenue up 14% to R629,9 million

- Continued strong investment in operating capacity

- EBITDA of R297,1 million, up 26%

- EBITDA margin of 47%

- Normalised EPS (NEPS)1 of 46,2 cents, up 20%

October 03: Cartrack Holdings Limited - Trading Statement

Shareholders are advised that Cartrack expects to report growth in interim earnings per share and headline earnings per share in excess of 20% on the prior comparable period. The increase is primarily attributable to subscriber growth over the corresponding period.

Cartrack expects the results for the 6 months ended 31 August 2017, expressed as growth on the previous comparative period, to fall within the following ranges:

Cartrack Holdings Limited (J:CTK; JNB:CTK; SJ:CTK)

ISIN: ZAE000198305

PermID: 5044099559

Source: www.BuySellSignals.com