Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Established in 2008 and headquartered in Cape Town, South Africa, Novus Holdings Limited is a diversified enterprise with operations spanning South Africa and international markets. The company's core activities encompass packaging, printing, and tissue manufacturing, structured across three main segments: Printing, Packaging, and Other. The Printing segment utilizes a wide array of advanced technologies, including gravure, heatset web offset, coldset, sheet-fed, and digital inkjet methods. This technological breadth allows for the production of a broad spectrum of printed materials, such as books, directories, magazines, newspapers, leaflets, flyers, newsletters, textbooks, workbooks, examination papers, answer books, and retail/promotional catalogues. A notable specialization involves the secure printing of sensitive documents, including ballot papers, voter registration forms, and census materials. Its Packaging segment is responsible for manufacturing diverse label types—wet-glue, wrap-around, and pressure-sensitive—alongside a range of flexible packaging solutions. These include boutique, retail, security, and carrier bags, as well as form-fill-seal bags. These products serve various industries, such as fast-moving consumer goods (FMCG), pet care, chemicals, retail, and security. The 'Other' segment includes a training institution that delivers a variety of courses and programs, encompassing technical skills, life skills, management, leadership, and IT systems.
Company Valuation
Considering past and projected metrics, the stock is distinctly 'cheaper' than its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITDA, undervalue