Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Deneb Investments Ltd. is an investment company. It operates through the following segments: Branded Product Distribution, Property, Industrial Product Manufacturing, and Automotive Parts Manufacturing. The Branded Product Distribution segment is focused on the sourcing and distribution of branded products. The businesses operating in this segment include Prima Toys, Butterfly Products, HTIC, Seartec, and Sirius Sales. The Property segment includes vega properties that owns and manages a portfolio of industrial and commercial properties situated in KwaZulu-Natal, the Western Cape and Eastern Cape. The Industrial Product Manufacturing segment is involved in the manufacturing of industrial products and textiles. The businesses operating in this segment are Gold Reef Speciality Chemicals, Blue Reef Water Solutions, Explorius, The Polymer Group, Brits Nonwoven, Romatex, Custom Extrusion, Integrated Polypropylene Products, Premier Rainwatergoods, Picko Consulting, Picko Global, and Puretech. The Automotive Parts Manufacturing segment refers to Formex Industries that consists of Formex Pressings and Formex Tubing, and African Tooling Innovations, which is a manufacturer of tubular and exhaust-related components. The company was founded on June 4, 2013 and is headquartered in Cape Town, South Africa.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT