Fact based stock research
Thungela Resources (JSE:TGA)
ZAE000296554
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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.
Thungela Resources stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 92 (better than 92% compared with investment alternatives), Thungela Resources (Coal & Consumable Fuels, South Africa) shares have much better financial characteristics than comparable stocks. Shares of Thungela Resources are a good value (attractively priced) with a consolidated Value Rank of 88 (better than 88% of alternatives), are safely financed (Safety Rank of 98, which means low debt burdens), but show below-average growth (Growth Rank of 31). ...read more
RECOMMENDATION: A Combined Rank of 92, is a strong buy recommendation based on Thungela Resources's financial characteristics. As the company Thungela Resources's key financial metrics exhibit good value (Obermatt Value Rank of 88) but low growth (Obermatt Growth Rank of 31) while being safely financed (Obermatt Safety Rank of 98), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 88% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | South Africa |
| Industry | Coal & Consumable Fuels |
| Index | JSE All Shares |
| Size class | Large |
This stock has achievements: Top 10 Stock.
21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Thungela Resources
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 73 |
|
93 |
|
82 |
|
88 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
83 |
|
13 |
|
31 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
63 |
|
98 |
|
98 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
72 |
|
18 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
97 |
|
50 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 92 (better than 92% compared with investment alternatives), Thungela Resources (Coal & Consumable Fuels, South Africa) shares have much better financial characteristics than comparable stocks. Shares of Thungela Resources are a good value (attractively priced) with a consolidated Value Rank of 88 (better than 88% of alternatives), are safely financed (Safety Rank of 98, which means low debt burdens), but show below-average growth (Growth Rank of 31). ...read more
RECOMMENDATION: A Combined Rank of 92, is a strong buy recommendation based on Thungela Resources's financial characteristics. As the company Thungela Resources's key financial metrics exhibit good value (Obermatt Value Rank of 88) but low growth (Obermatt Growth Rank of 31) while being safely financed (Obermatt Safety Rank of 98), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 88% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 73 |
|
93 |
|
82 |
|
88 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
83 |
|
13 |
|
31 |
|
| SAFETY | ||||||||
| SAFETY | 100 |
|
63 |
|
98 |
|
98 |
|
| COMBINED | ||||||||
| COMBINED | 98 |
|
96 |
|
75 |
|
92 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 88 (better than 88% compared with alternatives) for 2024, Thungela Resources shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Thungela Resources. Price-to-Sales is 72 which means that the stock price compared with what market professionals expect for future sales is lower than for 72% of comparable companies, indicating a good value for Thungela Resources's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 88% 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 81. Compared with other companies in the same industry, dividend yields of Thungela Resources are expected to be higher than for 83% of all competitors (a Dividend Yield rank of 83). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 88, is a buy recommendation based on Thungela Resources'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 Thungela Resources 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) | 83 |
|
82 |
|
67 |
|
72 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 100 |
|
100 |
|
95 |
|
88 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 82 |
|
66 |
|
75 |
|
81 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
100 |
|
63 |
|
83 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 73 |
|
93 |
|
82 |
|
88 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 31 (better than 31% compared with alternatives), Thungela Resources 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 three out of four indicators below average for Thungela Resources. Only Capital Growth has a good rank of 86, which means that currently professionals expect the company to grow its invested capital more than 11% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 33 which means that currently professionals expect the company to grow less than 67% of its competitors. Profit Growth with a rank of 11 and Stock Returns with a rank of 23 are also low (below 77% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 31, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Thungela Resources is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 98 |
|
47 |
|
75 |
|
33 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
19 |
|
16 |
|
11 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
82 |
|
11 |
|
86 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 18 |
|
100 |
|
17 |
|
23 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 88 |
|
83 |
|
13 |
|
31 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives) for 2024, the company Thungela Resources has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Thungela Resources 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 Thungela Resources. Leverage is at 95, meaning the company has a below-average debt-to-equity ratio. It has less debt than 95% of its competitors. Refinancing is at a rank of 96, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 96% of its competitors. Finally, Liquidity is also good at a rank of 82, which means that the company generates more profit to service its debt than 82% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 98 (better than 98% compared with alternatives), Thungela Resources 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 Thungela Resources 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 | 98 |
|
72 |
|
94 |
|
95 |
|
| REFINANCING | ||||||||
| REFINANCING | 82 |
|
91 |
|
95 |
|
96 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 86 |
|
12 |
|
92 |
|
82 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 100 |
|
63 |
|
98 |
|
98 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
93 |
|
16 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
90 |
|
40 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
22 |
|
17 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
72 |
|
18 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Thungela Resources from March 21, 2024.
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