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OTHER SHARES IN industries similar to Steinhoff also offer value. Top of the pick is probably Lewis Group, on similar historic and forward earnings multiples (10,7 times/10,1 times) as Steinhoff but with a considerably higher dividend yield of 4,6%. It’s hard to beat Steinhoff on its large presence overseas.
Kap International is another contender in the value stakes, on an earnings multiple of 10,6 times and 3,1% dividend yield. Unlike the other diversified industrial conglomerates, where share price performance has generally been stronger than the market over the past year, Kap’s share price has gone nowhere. That could imply some upside potential. Steinhoff is a major shareholder in Kap.
Cashbuild is also a contender, though the share is rated a little more expensive than Steinhoff’s. Cashbuild’s share price – up 18,6% over the past year – has come off a bit since January. As SA’s largest building materials retailer it looks well placed to benefit from any economic growth.
Ellies is in a fairly specialised market, mainly television and audio products. But it should also benefit from increased consumer spending on products consumers would typically have delayed buying in harder times. An earnings multiple of 8,3 times makes it one of the cheaper shares in the sector.
Also in the running is JD Group. Its share price has performed pretty well over the past year – up 17,5% – placing it on a forward earnings multiple of 12,6 times. It operates a number of retail chains in SA and also has a chain of stores in Poland.
Kap International is another contender in the value stakes, on an earnings multiple of 10,6 times and 3,1% dividend yield. Unlike the other diversified industrial conglomerates, where share price performance has generally been stronger than the market over the past year, Kap’s share price has gone nowhere. That could imply some upside potential. Steinhoff is a major shareholder in Kap.
Cashbuild is also a contender, though the share is rated a little more expensive than Steinhoff’s. Cashbuild’s share price – up 18,6% over the past year – has come off a bit since January. As SA’s largest building materials retailer it looks well placed to benefit from any economic growth.
Ellies is in a fairly specialised market, mainly television and audio products. But it should also benefit from increased consumer spending on products consumers would typically have delayed buying in harder times. An earnings multiple of 8,3 times makes it one of the cheaper shares in the sector.
Also in the running is JD Group. Its share price has performed pretty well over the past year – up 17,5% – placing it on a forward earnings multiple of 12,6 times. It operates a number of retail chains in SA and also has a chain of stores in Poland.
