Since 30 August there have been 22 results releases from companies on the JSE.
Some good, some bad…
And some have been phenomenal.
Right now there are 4 small cap companies that reported results you really need to pay attention to!
Small Cap #1 – Bell Equipment
Bell Equipment released results for the year ended 30 June 2023 and the company had a smashing year!
Revenue soared from R4.2 billion to R6 billion, with profit for the period jumping from R210 million to R348 million.
Earnings per share came in at 343c, compared to 209c. At 343c the stock is on a PE ratio of only 5.32.
What’s more, the company’s net asset value per share has shot up to R51.34 from R41.89. With the share price at R18.27 it is selling at a discount of R33.07 or 64%.
The company is moving production of more of its articulated dump trucks to its Germany facility. That means it is positioned closer to suppliers and clients in large markets, and it doesn’t have to worry about loadshedding as much.
The company is also installing a large grid-tied solar plant at its Richard’s Bay facility that will provide 20% of the plant’s electricity requirements in its first phase.
Small Cap #2 – Caxton
The company saw a 16.6% increase in revenue, with profit from operating activities growing 25.8% and earnings per share shooting up 34.4% to 203.3cps. That puts the stock on a PE ratio of only 5.07.
On the back of these positive results Caxton increased its dividend from 50cps in 2022 to 60cps this year. That is also around a 6% dividend yield!
Including dividends received we’re now up 76% on Caxton since I first recommended the stock.
The share has a net asset value of R20.22 compared to the current share price of R10.31.
Small Cap #3 – Calgro M3
Homebuilders are traditionally sensitive to higher interest rates. And Calgro is no exception.
But despite this, the company just announced that it expects profits to be more than 20% higher than its results for the six months ended 30 August 2022.
That means earnings per share will come in at least at 68.4cps.
This share is trading on a PE ratio of only 2.79. Effectively the stock market is pricing it as if it is bankrupt – yet it is highly profitable. The share price has grown 32.92% in the past three months, and I am cautiously optimistic that it is in an uptrend on the back of these great results.
Small Cap #4 – Clientele
Clientele’s results for the year were released on 31 August 2023.
The company increased its diluted headline earnings per share by 15% to 145.32cps. At its current share price that puts the company on a PE ratio of only 8.
The company also announced a bigger dividend – with its dividend being declared coming in at 125cps compared to 120cps in 2022.
At 125cps we’re looking at a dividend yield of 10.6%!
The company’s net insurance premiums written for the year decreased slightly by 1.7% compared to 2022. This was as the tough economy saw some people withdraw their policies.
It’s been a tough year. The results are decent, not smashing but not bad either.
The dividend coming for shareholders is simply spectacular.
In the next couple of weeks there are scores more companies due to release results. Think of Mustek, Attacq, Pan African Resources, Afrocentric Investments, York Timber, Ethos Capital and more…
I read through hundreds of company filings and SENS announcements, and share the most important information with my Red Hot Penny Shares readers on a weekly basis. To find out more about this, and the opportunities you could uncover click here.
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