South African stock report - Naspers

SAFR

UPDATE: Naspers increases, lifts 2.7% for week January 19, 2018 17:00 SAST

NEWS BITES - AFRICA

Naspers Limited (J:NPN), South Africa's largest Media company by market cap, has increased ZAR35.22 (1.0%) from its last trading session of January 18 to close at ZAR3,710.02. Compared with the FTSE/JSE- Africa Top 40 Index which rose 48.2 points (0.09%) in the day, the relative price increase was 0.9%. The volume was 0.5 times the average daily trading volume of 1.4 million shares. The stock lifted 2.7% in the past week.

DIRECTORS BUYING

B J van der Ross, director bought 1,650 shares worth ZAR60,426 ($US4,903) on January 16. The price was ZAR36.62.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

Fundamentals, Technicals, High Performance Indicators

SECTION 2 BEARISH SIGNALS

Fundamentals, Technicals, Low Performance Indicator

SECTION 3 PRICE VOLUME DYNAMICS

Technicals, Moving Annual Return, Beta, Turnover Rate & Turnover Period

SECTION 4 RANKING

Global, Independent Ratings

SECTION 5 FINANCIALS

Financials Summary, Trailing 12 Months Dividends

SECTION 6 PROFILE

Activities, Industry & Sector, Issued Capital

SECTION 7 REPORTED BUYING AND SELLING

SECTION 8 STOCK BUZZ

SECTION 1 NASPERS BULLISH SIGNALS

1.1 Fundamentals:

+ Total Liabilities/EBITDA of 2 is comfortably below the Joseph Piotroski benchmark of 5.

+ Interest cover defined by EBIT/I is 12 times. This indicates it is less leveraged.

+ Net profit margin has averaged 27.4% in the last 3 years. This is considered superior and suggests a high margin of safety.

1.2 Technicals:

+ The price lifted 2.7% in the last week and soared 13.3% in the last month.

+ Compared with the FTSE/JSE- Africa Top 40 Index which rose 1.4% for the week and 5.5% for the month, this represented a relative price increase for Naspers stock of 1.2% for the week and 7.8% for the month.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 3,630.54 minus the 26-day EMA of 3,587.1 is positive 43.45 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ The present value of ZAR1,000 (PV1000) invested one year ago in Naspers is ZAR1,706, comprising a capital gain of ZAR704 and dividend reinvested of ZAR3.

PV10001-week1-month1-year
NPN.J1,0271,1331,706
FTSE/JSE- Africa Top 40 Index1,0141,0381,173

+ The present value of ZAR1,000 (PV1000) invested five years ago in Naspers is ZAR6,838, including a capital gain of ZAR5,757 and dividend reinvested of ZAR81.

+ 5 years Multiplier in ZAR = 6.838x

+ Compound Annual Growth Rate (CAGR) in ZAR = 46.9%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Naspers is $US4,990, including a capital gain of $US3,931 and dividend reinvested of $US59.

+ 5 years ago USD 1 equalled ZAR 8.8106

+ 5 years Multiplier in USD = 4.99x

+ Compound Annual Growth Rate (CAGR) in USD = 37.9%

Jan 19, 2018: USD 1 equals ZAR 12.07

1.3 High Performance Indicators:

DescriptionValueRank In Market
Today's TurnoverZAR2.7 billion (US$226.4 million)In Top 1%
Price/MAP2001.23In Top 10%
Return on Assets [ROA] %12.8In Top Quartile
EBITDA Margin %54.6In Top Quartile
Price Change %1.0In Top Quartile

SECTION 2 NASPERS BEARISH SIGNALS

2.1 Fundamentals:

+ The relative yield of the stock, defined by its yield of 0.1%, divided by average yield of dividend yielding stocks in the FTSE/JSE- Africa Top 40 Index of 1.3% is 10.2%. This suggests the stock is overvalued in dividend yield terms.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 2% of stocks by value of Q Ratio.

+ As per the Du Pont analysis, Return on Equity of 18.0% is lower than sector average of 19.2%. This is computed as net profit margin of 46.0% times asset turnover [sales/assets] of 0.46 times leverage factor [total assets/shareholders' equity] of 1.5.

2.2 Technicals:

Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 74.3 has penetrated the overbought line of 70, suggesting the price gain of 4.8% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -16.0, suggesting the price is close to its 14-day high of ZAR3,749.98.

2.3 Low Performance Indicator:

DescriptionValueRank In Market
Price to Sales13In Bottom 2%

SECTION 3 PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 736,710 shares worth ZAR2.7 billion (US$226.4 million) traded today. In the past week, volume was 0.6 times average and the shares were up 2.7%. The volume was 0.5 times the average daily trading volume of 1.4 million shares.

+ Naspers is at a discount of 10.4% to its 12-month high of ZAR4,142.99 on November 21, 2017. It is also at a premium of 77.2% to the 12-month low of ZAR2,093.80 on March 03, 2017.

3.2 Moving Annual Return

Based on a dynamic start date of 2 years ago, the Moving Annual Return has consistently exceeded 20%.

NPNClose (ZAR)Dividends (ZAR)Capital Gain %% YieldAnnual Return %
Jan 193,710.024.6470.40.270.6
1 Yr ago2,177.844.4220.20.220.4

Close 2 years ago ZAR1,812.0

3.3 Beta:

+ Beta: the Beta of Naspers stock is 1.5. A Beta greater than 1 suggests this is a high risk, high return stock with volatility greater than that of the market.

3.4 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 49.3% (or a turnover period of 2 years 11 days). This average length of ownership of the stock at 0.9 times the average holding period of 2 years 3 months for stocks in the FTSE/JSE- Africa Top 40 Index suggests a larger number of speculators on the share register, making it less safe for long-term investors.

SECTION 4 RANKING

4.1 Global Rank [out of 47,420 stocks] and Rank in the Middle East & Africa Region [out of 2,280 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap (US$)134.8B741
Total Assets (US$)21.9B1,61161
Revenue (US$)10.2B1,34918
Net Profit (US$)2.9B3419
Return on Equity %18.05,419313
Net Profit Margin %46.02,210190
Price to Book11.531,9081,501
Yield %0.121,2751,180
PV$1000 (1Year) US$*1,9044,642168
US$* Change (1Year) %85.34,623158

* 1 year ago USD 1 = ZAR 13.64

Jan 19, 2018: USD 1 equals ZAR 12.07

4.2 Independent Ratings

+ FT 500:

Naspers Limited is the 332nd largest by revenue in the FT Global 500.

+ Newsweek 500:

It was ranked 378 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 1.6% in Carbon productivity.

+ Forbes 2000:

It is the 1225th largest by revenue in the Forbes Global 2000.

+ BSS/News Bites:

It is placed 10/232 in BSS News Bites' ranking of South African performers in the past year, a percentile ranking of 96.

+ Vanguard Total World Stock ETF 7457:

The stock was one of 7457 global stocks selected by Vanguard Total World Stock ETF (VT). As at November 30, 2017, the Vanguard Total World Stock ETF held 116,174 shares worth $US31,778,685 or 0.22% by value of the ETF's portfolio [Ranked 51 out of 7457 by value and 1 out of 115 for South Africa].

SECTION 5 NASPERS FINANCIALS

5.1 Financials Summary

Year endedMar 2017Mar 2016Mar 2015
Sales (USD B)10.27.76.6
Pretax (USD B)3.11.31.6
Net (USD)2.9B994M1.3B
EPS (USD)--3.05

Sales was up 31.8% from US$7.7 billion in 2016 to US$10.2 billion in 2017. Net profit was up 193.9% from US$994 million in 2016 to US$2.9 billion in 2017.

5.2 Trailing 12 Months Dividends

Trailing 12 Months ToValue (ZAR)
19 Jan 20184.64
19 Jan 20174.42
19 Jan 20164
19 Jan 20153.61
19 Jan 20143.27

SECTION 6 NASPERS PROFILE

6.1 Activities

Naspers operates, through its subsidiaries, in the areas of pay-television, internet, instant messaging subscriber platforms, publishing of magazines, newspapers and books and private education services. These activities are conducted in South Africa, sub-Saharan Africa, Greece, Cyprus, Brazil, Russia, China, Netherlands and USA.

6.2 Industry & Sector

Classification LevelName of Sector
Business SectorCyclical Consumer Services
Industry GroupMedia & Publishing
Economic SectorConsumer Cyclicals

6.3 Issued Capital

Based on 438,640,000 issued shares the market capitalisation is ZAR1,627.4 billion (US$134.8 billion).

SECTION 7 REPORTED BUYING AND SELLING

Insider Buying

January 18: Naspers director buys

Naspers (J:NPN) director B J van der Ross bought 1,650 shares worth ZAR60,426 ($US4,903) on January 16. The purchase price was ZAR36.62. The shares hit a 12-day high on the day.

SECTION 8 STOCK BUZZ

Corporate Wire

To view Recent Company Headlines, click here

December 19 2017: Naspers Limited - Amendments To Composition Of Board Committees

Shareholders are advised that the composition of the human resources and remuneration committee, the nomination committee and the social and ethics committee will be amended.

December 12 2017: Naspers Limited - Naspers Hosts Investor Day - 12 December 2017

Naspers Limited will be hosting an Investor Day in New York today beginning at 16:30 SA time/ 09:30 EST. Presentations will be made by executives of the underlying business segments to investors and other market participants in attendance. The proceedings will be accessible via live webcast on http://www.naspers.com/investors/investor-day (the Investor Day page).

November 30 2017: Naspers Limited - Condensed Consolidated Interim Report For The Six Months Ended 30 September 2017

Naspers delivered a solid performance for the six months to 30 September 2017 with group revenue, measured on an economic-interest basis, increasing 33% year on year to US$9.0bn (or 39% in local currency and adjusted for acquisitions and disposals). This is a 17% increase on last year's growth rate with the ecommerce businesses being key drivers of the acceleration.

November 17 2017: Naspers Limited - Trading Statement

Shareholders are advised that the Naspers group ("the group") is presently finalising

its condensed consolidated interim report for the six months ended 30 September 2017.

We expect core headline earnings per share to be between 62% (132 US cents) and

67% (142 US cents) higher than the comparable period's 212 US cents.

October 24 2017: Naspers: Global markets can be a key to startup success

2017 seems like a challenging time to cross borders.

While certain economies are focusing inward, unlike anything we have experienced in recent history, many businesses still want to accelerate growth outside their home markets.

Looking abroad, companies should focus on the regions with the greatest opportunities for growth.

Contact: (27 21) 406 2121

Physical Address: 40 Heerengracht Cape Town, 8001 South Africa

State/Province/Country: South Africa

Exchange: Johannesburg Stock Exchange (JSE)

ISIN: ZAE000015889

J:NPN; JNB:NPN; SJ:NPN; NPNJn.J

PermID: 4295888592

Source: www.BuySellSignals.com