Background and overview of Rex Trueform (RTO)
Probably the most unknown of all the clothin retailers listed on the JSE is Rex Trueform ,which owns Queenspark. According to Queenspark's website: "Queenspark is a leading South African fashion store specialising in elegant, fashionable womenswear, menswear, accessories and cosmetics. Our timeless designs and elegant fashion must-haves are all created with a keen eye for detail using only the finest fabrics and craftsmanship.
With a range of fashion-forward brands in our stable, Queenspark has something to offer everyone, whatever your shape or style. Our Queenspark womenswear label, for example, offers today’s elegant and feminine woman a complete wardrobe solution, from formal wear and casual wear to chic shoes and accessories. J Crew MAN offers menswear for the stylish man about town, combining expert tailoring with the latest international trends."
In addition to owning Queenspark RTO owns a few properties too. Seems like RTO is not sure whether it should be a clothing retailer or a property counter. For now though the majority of RTO's turnover comes from its clothing operations. While saying that their property operations are earning much higher margins than those achieved by its clothing operations. (See the pie charts below).
With a range of fashion-forward brands in our stable, Queenspark has something to offer everyone, whatever your shape or style. Our Queenspark womenswear label, for example, offers today’s elegant and feminine woman a complete wardrobe solution, from formal wear and casual wear to chic shoes and accessories. J Crew MAN offers menswear for the stylish man about town, combining expert tailoring with the latest international trends."
In addition to owning Queenspark RTO owns a few properties too. Seems like RTO is not sure whether it should be a clothing retailer or a property counter. For now though the majority of RTO's turnover comes from its clothing operations. While saying that their property operations are earning much higher margins than those achieved by its clothing operations. (See the pie charts below).
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Scroll over or click on the funnel chart to get more details of BCF's latest financial results.
Financial review:
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A few financial ratios to mull over for RTO (calculated using our Financial Ratios Calculator):
- Debt to Equity Ratio: 0.18 (more than 2 shows high levels of financial leverage).
- Current Ratio: 6.29 (A measure of liquidity. Less than one signals possible trouble in paying off current liabilities).
- Quick Ratio: 5.21 (Another liquidity measure. Shows how much in liquid assets is available to cover current liabilities or short term debt).
- Return on Assets (ROA): 8.94%
- Return on Equity (ROE): 10.52%
- Net Profit Margin: 14.75%
- Dividend Yield: 2.07%
Valuation:
Based on RTO's current financial results we value them at between R11.61 and R11.80
We use our Share Valuation Calculator as guide to valuing shares. We believe in value investing and our above mentioned share valuation is based on the underlying fundamentals and financial statements of the stock in question.
We use our Share Valuation Calculator as guide to valuing shares. We believe in value investing and our above mentioned share valuation is based on the underlying fundamentals and financial statements of the stock in question.
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