Fact based stock research
Royal Bafokeng Platinum (JSE:RBP)

ZAE000149936

How to read the 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.

Royal Bafokeng Platinum stock research in summary

bafokengplatinum.co.za

ANALYSIS: With an Obermatt Combined Rank of 27 (worse than 73% compared with investment alternatives), Royal Bafokeng Platinum (Precious Metals & Minerals, South Africa) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Royal Bafokeng Platinum are low in value (priced high) with a consolidated Value Rank of 23 (worse than 77% of alternatives) and show below-average growth (Growth Rank of 28) but are safely financed (Safety Rank of 94), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 27, is a hold recommendation based on Royal Bafokeng Platinum's financial characteristics. As the company Royal Bafokeng Platinum's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 23) and low growth (Obermatt Growth Rank of 28), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 94) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. 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	23
Growth Rank	28
Safety Rank	94
Combined Rank	27

Country	South Africa
Industry	Precious Metals & Minerals
Index	Energy Efficient, Good Governace Growth Markets, Independent Boards Growth Markets, Water Efficiency, JSE All Shares
Size class	Large

This stock has achievements: Top 10 Stock.

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: Royal Bafokeng Platinum

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	49	31	23	23
GROWTH
GROWTH	46	67	9	28
SAFETY
SAFETY	98	71	91	94
SENTIMENT
SENTIMENT	n/a	6	61	^new
360° VIEW
360° VIEW	n/a	27	25	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 30-Jun-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Royal Bafokeng Platinum is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	49	31	23	23
GROWTH
GROWTH	46	67	9	28
SAFETY
SAFETY	98	71	91	94
COMBINED
COMBINED	93	63	27	27

Last update of combined financial performance: 7-Sep-2023. Stock analysis on combined financial performance: The higher the rank of Royal Bafokeng Platinum the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 23 (worse than 77% compared with alternatives), Royal Bafokeng Platinum shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Royal Bafokeng Platinum. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 83% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than 83% of comparable companies, indicating a low value concerning Royal Bafokeng Platinum's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 36 which means that the stock price compared with what market professionals expect for future profit levels is higher than 64% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 49 is also low. Compared with invested capital, the stock price is higher than for 51% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 23, is a sell recommendation based on Royal Bafokeng Platinum's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Royal Bafokeng Platinum? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Royal Bafokeng Platinum only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	51	27	17	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91	53	36	36
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	58	52	49	49
DIVIDEND YIELD
DIVIDEND YIELD	86	70	73	83
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	49	31	23	23

Last update of Value Rank: 7-Sep-2023. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Royal Bafokeng Platinum; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 28 (better than 28% compared with alternatives), Royal Bafokeng Platinum shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Royal Bafokeng Platinum. Sales Growth has a rank of 39, which means that currently professionals expect the company to grow less than 61% of its competitors. The same is valid for Profit Growth, with a rank of 41, and Capital Growth with 44. In addition, Stock Returns have a below market rank of 27, which means that the stock returns have recently been below 73% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 28, is a hold recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. 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, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	24	43	25	39
PROFIT GROWTH
PROFIT GROWTH	100	64	38	41
CAPITAL GROWTH
CAPITAL GROWTH	n/a	24	31	44
STOCK RETURNS
STOCK RETURNS	94	95	27	27
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	46	67	9	28

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Royal Bafokeng Platinum.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 94 (better than 94% compared with alternatives) for 2023, the company Royal Bafokeng Platinum has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Royal Bafokeng Platinum is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Royal Bafokeng Platinum. Leverage is at 79, meaning the company has a below-average debt-to-equity ratio. It has less debt than 79% of its competitors. Refinancing is at a rank of 70, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 70% of its competitors. Finally, Liquidity is also good at a rank of 100, which means that the company generates more profit to service its debt than 100% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 94 (better than 94% compared with alternatives), Royal Bafokeng Platinum has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Royal Bafokeng Platinum but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	64	64	72	79
REFINANCING
REFINANCING	90	69	69	70
LIQUIDITY
LIQUIDITY	87	50	100	100
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98	71	91	94

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Royal Bafokeng Platinum 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	16	5	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	4	95	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	63	19	^new
MARKET PULSE
MARKET PULSE	n/a	40	44	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	6	61	^new

Last update of Sentiment Rank: 28-Sep-2023. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Royal Bafokeng Platinum.
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