Fact based stock research
KAP Industrial (JSE:KAP)

ZAE000171963

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

KAP Industrial stock research in summary

kap.co.za

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), KAP Industrial (Industrial Conglomerates, South Africa) shares have much better financial characteristics than comparable stocks. Shares of KAP Industrial are a good value (attractively priced) with a consolidated Value Rank of 99 (better than 99% of alternatives), show above-average growth (Growth Rank of 67) but are riskily financed (Safety Rank of 34), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on KAP Industrial's financial characteristics. As the company KAP Industrial's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 99) and above-average growth (Obermatt Growth Rank of 67), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 34) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	99
Growth Rank	67
Safety Rank	34
Combined Rank	90

Country	South Africa
Industry	Industrial Conglomerates
Index	Good Governace Growth Markets, Independent Boards Growth Markets, JSE All Shares
Size class	Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: KAP Industrial

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	95	99	99
GROWTH
GROWTH	43	9	5	67
SAFETY
SAFETY	23	37	34	34
SENTIMENT
SENTIMENT	n/a	57	12	^new
360° VIEW
360° VIEW	n/a	43	16	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better KAP Industrial is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	74	95	99	99
GROWTH
GROWTH	43	9	5	67
SAFETY
SAFETY	23	37	34	34
COMBINED
COMBINED	76	37	37	90

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of KAP Industrial the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 99 (better than 99% compared with alternatives) for 2024, KAP Industrial shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for KAP Industrial. Price-to-Sales is 91 which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value for KAP Industrial's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 90% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 90. Compared with other companies in the same industry, dividend yields of KAP Industrial are expected to be higher than for 98% of all competitors (a Dividend Yield rank of 98). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 99, is a buy recommendation based on KAP Industrial's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in KAP Industrial based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	89	85	87	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	83	89	92	90
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	80	78	86	90
DIVIDEND YIELD
DIVIDEND YIELD	84	94	100	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	74	95	99	99

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of KAP Industrial; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 67 (better than 67% compared with alternatives), KAP Industrial shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for KAP Industrial. Profit Growth has a rank of 65 which means that currently professionals expect the company to grow its profits more than 65% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 74, and Stock Returns has a rank of 65 which means that the stock returns have recently been above 65% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 23 (77% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 67, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	34	4	40	23
PROFIT GROWTH
PROFIT GROWTH	64	27	44	65
CAPITAL GROWTH
CAPITAL GROWTH	n/a	35	16	74
STOCK RETURNS
STOCK RETURNS	43	41	7	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	43	9	5	67

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of KAP Industrial.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 34 (better than 34% compared with alternatives), the company KAP Industrial has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of KAP Industrial is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for KAP Industrial and the other two below average. Refinancing is at 63, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 63% of its competitors. But Leverage is high with a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Liquidity is also on the riskier side with a rank of 32, meaning the company generates less profit to service its debt than 68% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 34 (worse than 66% compared with alternatives), KAP Industrial has a financing structure that is riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for KAP Industrial are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with KAP Industrial and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	16	38	32	32
REFINANCING
REFINANCING	64	48	68	63
LIQUIDITY
LIQUIDITY	42	48	36	32
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	23	37	34	34

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of KAP Industrial and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	40	48	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	17	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	95	32	^new
MARKET PULSE
MARKET PULSE	n/a	25	15	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	57	12	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for KAP Industrial.
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