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Trencor

JSE:TRE
Snowflake Description

Mediocre balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TRE
JSE
ZAR2B
Market Cap
  1. Home
  2. ZA
  3. Capital Goods
Company description

Trencor Limited, an investment holding company, owns, leases, manages, and trades in dry freight, tank, and refrigerated marine cargo containers to transportation and other companies worldwide. The last earnings update was 120 days ago. More info.


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  • Trencor has significant price volatility in the past 3 months.
TRE Share Price and Events
7 Day Returns
-3.7%
JSE:TRE
-4.4%
ZA Trade Distributors
-2.9%
ZA Market
1 Year Returns
-68.9%
JSE:TRE
-28.8%
ZA Trade Distributors
-6.3%
ZA Market
TRE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Trencor (TRE) -3.7% -0.4% -69.5% -68.9% -75.6% -87.5%
ZA Trade Distributors -4.4% -10.9% -23.1% -28.8% -32.3% -38.7%
ZA Market -2.9% -2% 0.6% -6.3% -0.3% -4.1%
1 Year Return vs Industry and Market
  • TRE underperformed the Trade Distributors industry which returned -28.8% over the past year.
  • TRE underperformed the Market in South Africa which returned -6.3% over the past year.
Price Volatility
TRE
Industry
5yr Volatility vs Market

TRE Value

 Is Trencor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Trencor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Trencor.

JSE:TRE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 21%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 8.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:TRE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 8.6%
Equity Risk Premium S&P Global 8.2%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 28%) (120.35%))
1.501
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.5
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 8.6% + (1.501 * 8.23%)
20.95%

Discounted Cash Flow Calculation for JSE:TRE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Trencor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

JSE:TRE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 20.95%)
2020 89.43 Est @ -61.12% 73.94
2021 53.47 Est @ -40.2% 36.55
2022 39.81 Est @ -25.56% 22.50
2023 33.71 Est @ -15.31% 15.75
2024 30.97 Est @ -8.14% 11.96
2025 30.00 Est @ -3.12% 9.58
2026 30.12 Est @ 0.4% 7.95
2027 30.98 Est @ 2.86% 6.76
2028 32.40 Est @ 4.58% 5.85
2029 34.27 Est @ 5.79% 5.11
Present value of next 10 years cash flows ZAR195.00
JSE:TRE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR34.27 × (1 + 8.6%) ÷ (20.95% – 8.6%)
ZAR301.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR301.32 ÷ (1 + 20.95%)10
ZAR44.96
JSE:TRE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR195.00 + ZAR44.96
ZAR239.96
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR239.96 / 173.53
ZAR1.38
JSE:TRE Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR1.38
Current discount Discount to share price of ZAR9.15
= -1 x (ZAR9.15 - ZAR1.38) / ZAR1.38
-561.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Trencor is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Trencor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Trencor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:TRE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR-8.76
JSE:TRE Share Price ** JSE (2020-01-27) in ZAR ZAR9.15
South Africa Trade Distributors Industry PE Ratio Median Figure of 7 Publicly-Listed Trade Distributors Companies 8.16x
South Africa Market PE Ratio Median Figure of 205 Publicly-Listed Companies 11.58x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Trencor.

JSE:TRE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:TRE Share Price ÷ EPS (both in ZAR)

= 9.15 ÷ -8.76

-1.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trencor is loss making, we can't compare its value to the ZA Trade Distributors industry average.
  • Trencor is loss making, we can't compare the value of its earnings to the South Africa market.
Price based on expected Growth
Does Trencor's expected growth come at a high price?
Raw Data
JSE:TRE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Global Trade Distributors Industry PEG Ratio Median Figure of 124 Publicly-Listed Trade Distributors Companies 1.35x
South Africa Market PEG Ratio Median Figure of 77 Publicly-Listed Companies 1.06x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Trencor, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Trencor's assets?
Raw Data
JSE:TRE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR35.76
JSE:TRE Share Price * JSE (2020-01-27) in ZAR ZAR9.15
South Africa Trade Distributors Industry PB Ratio Median Figure of 11 Publicly-Listed Trade Distributors Companies 0.58x
South Africa Market PB Ratio Median Figure of 268 Publicly-Listed Companies 0.86x
JSE:TRE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:TRE Share Price ÷ Book Value per Share (both in ZAR)

= 9.15 ÷ 35.76

0.26x

* Primary Listing of Trencor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trencor is good value based on assets compared to the ZA Trade Distributors industry average.
X
Value checks
We assess Trencor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. Trencor has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TRE Future Performance

 How is Trencor expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Trencor has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected Trade Distributors industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Trencor expected to grow at an attractive rate?
  • Unable to compare Trencor's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Trencor's earnings growth to the South Africa market average as no estimate data is available.
  • Unable to compare Trencor's revenue growth to the South Africa market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
JSE:TRE Future Growth Rates Data Sources
Data Point Source Value (per year)
Global Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 8.7%
Global Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 4%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 19.9%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 9.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:TRE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:TRE Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
JSE:TRE Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 605 230 -1,535
2019-03-31 574 77 657
2018-12-31 543 -77 2,848
2018-09-30 3,142 3,889
2018-06-30 5,781 -913 4,930
2018-03-31 7,703 441 2,305
2017-12-31 9,625 1,794 -321
2017-09-30 8,998 -279
2017-06-30 8,370 2,344 -236
2017-03-31 8,872 1,207 -990
2016-12-31 9,373 70 -1,743
2016-09-30 9,728 911 -2,375

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Trencor is high growth as no earnings estimate data is available.
  • Unable to determine if Trencor is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:TRE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Trencor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:TRE Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
JSE:TRE Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 -8.76
2019-03-31 3.73
2018-12-31 16.10
2018-09-30 21.97
2018-06-30 27.84
2018-03-31 13.01
2017-12-31 -1.81
2017-09-30 -1.57
2017-06-30 -1.33
2017-03-31 -5.59
2016-12-31 -9.84
2016-09-30 -13.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Trencor will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of TRE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Trencor's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Trencor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Trencor has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TRE Past Performance

  How has Trencor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Trencor's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Trencor does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Trencor's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Trencor's 1-year growth to the ZA Trade Distributors industry average as it is not currently profitable.
Earnings and Revenue History
Trencor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Trencor Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:TRE Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 605.00 -1,535.00 23.00
2019-03-31 574.00 656.50 23.00
2018-12-31 543.00 2,848.00 23.00
2018-09-30 3,141.50 3,889.00 111.50
2018-06-30 5,781.00 4,930.00 200.00
2018-03-31 7,703.00 2,304.50 284.50
2017-12-31 9,625.00 -321.00 369.00
2017-09-30 8,997.50 -278.50 462.50
2017-06-30 8,370.00 -236.00 556.00
2017-03-31 8,871.50 -989.50 466.00
2016-12-31 9,373.00 -1,743.00 376.00
2016-09-30 9,728.00 -2,375.00 367.00
2016-06-30 10,083.00 -3,007.00 358.00
2016-03-31 9,680.00 -1,576.50 358.00
2015-12-31 9,277.00 -146.00 358.00
2015-09-30 8,868.50 465.50 338.50
2015-06-30 8,460.00 1,077.00 319.00
2015-03-31 8,257.50 1,019.50 319.00
2014-12-31 8,055.00 962.00 319.00
2014-09-30 7,753.50 1,085.50 282.50
2014-06-30 7,452.00 1,211.00 246.00
2014-03-31 7,021.00 1,301.00 246.00
2013-12-31 6,590.00 1,391.00 246.00
2013-09-30 5,993.50 1,256.00 249.00
2013-06-30 5,397.00 1,121.00 252.00
2013-03-31 4,975.00 1,074.00 252.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Trencor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Trencor has efficiently used its assets last year compared to the ZA Trade Distributors industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Trencor improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Trencor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Trencor has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TRE Health

 How is Trencor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Trencor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Trencor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Trencor's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Trencor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Trencor Company Filings, last reported 6 months ago.

JSE:TRE Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 6,211.00 1,911.00 1,014.00
2019-03-31 6,211.00 1,911.00 1,014.00
2018-12-31 6,231.00 2,134.00 1,280.00
2018-09-30 6,231.00 2,134.00 1,280.00
2018-06-30 8,305.00 2,023.00 1,285.00
2018-03-31 8,305.00 2,023.00 1,285.00
2017-12-31 12,435.00 37,619.00 3,134.00
2017-09-30 12,435.00 37,619.00 3,134.00
2017-06-30 12,067.00 38,608.00 3,384.00
2017-03-31 12,067.00 38,608.00 3,384.00
2016-12-31 14,417.00 41,685.00 2,837.00
2016-09-30 14,417.00 41,685.00 2,837.00
2016-06-30 15,049.00 45,690.00 3,780.00
2016-03-31 15,049.00 45,690.00 3,780.00
2015-12-31 21,259.00 47,617.00 4,241.00
2015-09-30 21,259.00 47,617.00 4,241.00
2015-06-30 18,623.00 38,071.00 3,189.00
2015-03-31 18,623.00 38,071.00 3,189.00
2014-12-31 16,916.00 35,557.00 3,160.00
2014-09-30 17,221.00 35,124.00 3,160.00
2014-06-30 15,024.00 29,436.00 2,679.00
2014-03-31 15,024.00 29,436.00 2,679.00
2013-12-31 14,559.00 28,922.00 2,744.00
2013-09-30 14,559.00 28,922.00 2,744.00
2013-06-30 12,773.00 23,133.00 2,109.00
2013-03-31 12,773.00 23,133.00 2,109.00
  • Trencor's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (196% vs 30.8% today).
  • Debt is not well covered by operating cash flow (12%, less than 20% of total debt).
  • Trencor is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Trencor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Trencor has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TRE Dividends

 What is Trencor's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Trencor dividends.
If you bought ZAR2,000 of Trencor shares you are expected to receive ZAR0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Trencor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Trencor's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:TRE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
South Africa Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 4.9%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 178 Stocks 4%
South Africa Minimum Threshold Dividend Yield 10th Percentile 1.9%
South Africa Bottom 25% Dividend Yield 25th Percentile 3.4%
South Africa Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:TRE Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
JSE:TRE Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-09-30 0.000 0.000
2019-05-02 0.000 0.000
2019-04-01 0.000 0.000
2018-09-28 0.000 0.000
2018-07-06 1.000 3.066
2018-05-22 1.000 2.753
2017-06-30 1.300 3.183
2017-04-28 1.300 3.584
2016-07-01 3.000 8.868
2016-04-25 3.000 7.287
2015-04-29 2.670 5.394
2015-04-23 2.670 4.096
2015-02-20 2.670 4.254
2014-08-14 2.300 3.319
2014-02-26 2.300 3.127
2013-08-16 2.220 3.253
2013-02-21 2.150 3.181
2012-02-16 1.750 3.397
2011-02-28 1.400 3.927
2010-04-16 1.200 3.470
2010-02-18 1.200 3.907
2009-03-02 1.100 5.149
2009-02-20 1.100 6.119

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Trencor has not reported any payouts.
  • Unable to verify if Trencor's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Trencor's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Trencor has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Trencor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Trencor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Trencor has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TRE Management

 What is the CEO of Trencor's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hennie van der Merwe
COMPENSATION ZAR4,012,000
AGE 71
TENURE AS CEO 2.4 years
CEO Bio

Mr. Hendrik Roux van der Merwe, also known as Hennie, BA Law, LLB (Stellenbosch), LLM (Tax) (Wits) has been Executive Director of Trencor Limited since May 20, 1998 and has been its Chief Executive Officer since August 10, 2017. Mr. van der Merwe served as the Managing Director at Trencor Limited from April 4, 2003 to 2011. He joined Trencor Ltd. on July 1, 1997 and is responsible for corporate affairs and its mobile asset management operations. He served as the First Vice President of Textainer Group Holdings Limited. From 1990 to 1991, he held various Senior Executive Positions in the banking sector in South Africa and also as Chief Executive Officer of Sendbank, the corporate/merchant banking arm of Bankorp Group Ltd. He practiced as an attorney at law in Johannesburg, South Africa. In this capacity, he is responsible for certain operating entities and strategic and corporate functions within Trencor group of companies. Mr. van der Merwe served as Managing Director of Finansbank Ltd, General Manager of Nedcor Bank Ltd and Chief Executive Officer of Senbank Ltd. Since 1992, he has held senior executive positions, including positions as Director and Chairperson, of large listed and unlisted industrial corporations in South Africa, Australia, the United Kingdom and the US. He has been an Independent Non-Executive Chairman of Master Drilling Group Limited since July 24, 2014. Mr. van der Merwe served as the Executive Chairman of TrenStar, Inc. since April 07, 2006. He served as a Deputy Chairman of Waco International Ltd., an international industrial group listed on the JSE Securities Exchange South Africa and with subsidiaries listed on Sydney and London Stock Exchanges from 1991 to 1998, where he served on the Boards of those companies. He serves as a Director of Abagold (Pty) Ltd. He has been a Director of Textainer Equipment Mgmt Ltd. (TEM) and TL, General Partners of TCC Equipment Income Fund since March 2003. He serves as a Director of various companies in TrenStar group and other companies in the wider Trencor group and has been such since 2000. He has been an Independent Non-Executive Director at Bell Equipment Ltd. since January 1, 2016. He has been a Director of Textainer Group Holdings Limited since August 14, 2017 and previously served as its Director since March 2003. He served as a Director of Centricity, Inc. Mr. van der Merwe holds a Bachelor of Arts and LL.B. degrees from University of Stellenbosch and an Ll.M degree majored in Taxation from University of the Witwatersrand.

CEO Compensation
  • Hennie's compensation has increased whilst company is loss making.
  • Hennie's remuneration is about average for companies of similar size in South Africa.
Management Team Tenure

Average tenure of the Trencor management team in years:

3.8
Average Tenure
  • The tenure for the Trencor management team is about average.
Management Team

Hennie van der Merwe

TITLE
CEO & Executive Director
COMPENSATION
ZAR4M
AGE
71
TENURE
2.4 yrs

Ric Sieni

TITLE
Financial Director & Executive Director
COMPENSATION
ZAR7M
AGE
64
TENURE
3.8 yrs

T. Du Plessis

TITLE
Chief Executive Officer of TrenStar SA
TENURE
16.4 yrs
Board of Directors Tenure

Average tenure and age of the Trencor board of directors in years:

8.8
Average Tenure
68
Average Age
  • The tenure for the Trencor board of directors is about average.
Board of Directors

David Nurek

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR1M
AGE
68
TENURE
3.4 yrs

Hennie van der Merwe

TITLE
CEO & Executive Director
COMPENSATION
ZAR4M
AGE
71
TENURE
21.7 yrs

Ric Sieni

TITLE
Financial Director & Executive Director
COMPENSATION
ZAR7M
AGE
64
TENURE
3.8 yrs

Eddy Oblowitz

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR555K
AGE
60
TENURE
15.8 yrs

Roddy Sparks

TITLE
Lead Independent Director
COMPENSATION
ZAR521K
AGE
60
TENURE
2.1 yrs

Jimmy McQueen

TITLE
Non-Executive Director
COMPENSATION
ZAR263K
AGE
74
TENURE
23.7 yrs

Herman Wessels

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR521K
AGE
74
TENURE
8.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
X
Management checks
We assess Trencor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Trencor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TRE News

Simply Wall St News

TRE Company Info

Description

Trencor Limited, an investment holding company, owns, leases, manages, and trades in dry freight, tank, and refrigerated marine cargo containers to transportation and other companies worldwide. It is also involved in container finance activities. The company was founded in 1929 and is headquartered in Cape Town, South Africa.

Details
Name: Trencor Limited
TRE
Exchange: JSE
Founded: 1929
ZAR1,587,842,285
173,534,676
Website: http://www.trencor.net
Address: Trencor Limited
The Towers South,
13th Floor,
Cape Town,
Western Cape, 8001,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE TRE Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 02. Jan 1992
Number of employees
Current staff
Staff numbers
12
Trencor employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/28 16:31
End of day share price update: 2020/01/27 00:00
Last estimates confirmation: 2018/05/22
Last earnings filing: 2019/09/30
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.