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Mix Telematics share analysis |
2011-11-17 MiX Telematics is involved in stolen vehicle tracking and recovery, combining the provision of vehicle tracking, driver and passenger safety and recovery services.
Profit to shareholders has dropped to the annual equivalent of 9c a share, from 11c a share in 2009 & 2010.
Both the 1-year and the since inception PE ratio is 17, which equates to an earnings yield of 5.9% (which is expensive compared to the JSE's long-term average of 5.3% and current rate of 5.7%). This implies that the market expects good growth from this company.
Book value of 57c per share forms only 36% of a share price of 155c, so this is a share you buy for the profit stream, rather than for the value of the assets.
Borrowings reduced to R16m at 30 Sep 2011, from R36m on 31 March 2011. If the structure's remained the same, these are long-term loans. Presumably these are the Investec Rand denominated, bearing interest at prime - 0.5%, repayable in September 2013 & September 2015.
At 31 March additional group-wide loans of R28m were reported, owing to Standard Bank and accruing interest at prime-1.2% (no mention was made of these at 30 Sep 2011), repayable in Nov 2012. They were paying interest at some R1.5m a month. Prime is currently 9%, so a rough guess is that there's some R20m of these loans outstanding at 30 Sep 2011.
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