Why is Southern Sun Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 7.99%
- Poor long term growth as Net Sales has grown by an annual rate of 19.90% and Operating profit at 56.81% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With ROE of 11.13%, it has a Very Expensive valuation with a 1.25 Price to Book Value
- Over the past year, while the stock has generated a return of 13.19%, its profits have risen by 27.4% ; the PEG ratio of the company is 0.4
3
Underperformed the market in the last 1 year
- The stock has generated a return of 13.19% in the last 1 year, much lower than market (FTSE JSE 40) returns of 37.92%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Southern Sun Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Southern Sun Ltd.
16.29%
3.33
26.61%
FTSE JSE 40
38.72%
2.26
16.75%
Quality key factors
Factor
Value
Sales Growth (5y)
19.90%
EBIT Growth (5y)
56.81%
EBIT to Interest (avg)
2.14
Debt to EBITDA (avg)
2.32
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
0.44
Tax Ratio
31.27%
Dividend Payout Ratio
32.71%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.99%
ROE (avg)
5.24%
Valuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
1.25
EV to EBIT
7.64
EV to EBITDA
6.03
EV to Capital Employed
1.24
EV to Sales
1.83
PEG Ratio
0.42
Dividend Yield
NA
ROCE (Latest)
16.29%
ROE (Latest)
11.13%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish






