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Onelogix (OLG) will be the stock in focus: (Price at time of writing: R3.25 as 2 February 2017)
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Background and overview of Onelogix (OLG)
OneLogix Group is a niche logistics provider with logistics experience gained over 27 years of operation. It was listed on the JSE AltX in 2004 and in 2013 transferred to the Main Board - Transportation Services sector. See www.onelogix.com
Onelogix is best known for their large fleet of flatbed trucks that deliver new vehicles to car dealerships. This business is known as VDS.
Onelogix is best known for their large fleet of flatbed trucks that deliver new vehicles to car dealerships. This business is known as VDS.
Scroll over or click on the funnel chart to get more details of OLG's latest financial results.
Financial review:
OLG is sitting on a net profit margin of 4.69% for the 6months months ending November 2016. So essentially for every R100 they receive they make R4.69 in profits after paying all expenses and taxes.
Diluted earnings per share came in at R0.165 a share for the half year This places OLG on a PE ratio of 9.84 (assuming the next half of the fiscal year's earnings will be the same as that of the first half). The PE ratio is not very demanding when compared to the PE ratio of the overall JSE which is over 20. And assuming the full year dividend will match the half year reported dividend, OLG is trading at a dividend yield of 4.9%, which is extremely strong.
Diluted earnings per share came in at R0.165 a share for the half year This places OLG on a PE ratio of 9.84 (assuming the next half of the fiscal year's earnings will be the same as that of the first half). The PE ratio is not very demanding when compared to the PE ratio of the overall JSE which is over 20. And assuming the full year dividend will match the half year reported dividend, OLG is trading at a dividend yield of 4.9%, which is extremely strong.
Cash generated by operating activities for the 6 months amounted to R166million (or roughly R0.66 a share). At the end of the 6 months their cash and equivalents on their balance sheet was R117.7million (or R0.466 a share in cash). Thus roughly 14% of OLG's current share price is made up for in cash.
There are market concerns that the current slump in new vehicle purchases will hurt OLG's future earnings for a while to come as consumers find themselves under ever increasing pressure due to weak economic conditions. Higher interest rates, high levels of inflation, job insecurity etc all leading to less and less consumers buying new vehicles. The question is whether OLG is diversified enough to shield themselves against a siginificant slump in their main business.
A few financial ratios for OLG (calculated using our Financial Ratios Calculator):
- Debt to Equity Ratio: 0.48 (more than 2 shows high levels of financial leverage).
- Current Ratio: 1.01 (A measure of liquidity. Less than one signals possible trouble in paying off current liabilities).
- Quick Ratio: 0.95 (Another liquidity measure. Shows how much in liquid assets is available to cover current liabilities or short term debt).
- Return on Assets (ROA): 2.55%
- Return on Equity (ROE): 3.77%
- Net Profit Margin: 4.69%
- Dividend Yield: 4.92%
Valuation:
Based on OLG's current financial results we value them at between R4.64 and R4.70 We therefore feel that at it's current price it does offer good value, for investors who are willing to take the risk and invest in a small cap. With it's strong dividend yield, healthy balance sheet and low PE ratio we would rate this as one of the better small caps listed on the JSE.
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. Note this is not a binding valuation and investors should do their own research before investing in a specific share. Southafricanmi.com cannot be held liable for any losses incurred, We would accept donations on profits made though ;)
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. Note this is not a binding valuation and investors should do their own research before investing in a specific share. Southafricanmi.com cannot be held liable for any losses incurred, We would accept donations on profits made though ;)