Risk factor
Limited trading liquidity
Profitability factor
Greatly undervalued vs peers
About
The Foschini Group (TFG), together with its various subsidiary businesses, oversees a network of retail stores operating in South Africa and numerous other countries. The company's activities are organized into key segments: TFG Africa Retail, Credit services, TFG London, and TFG Australia. TFG offers a wide array of merchandise including clothing for men, women, and children; exquisite jewelry; mobile communication devices; fashion accessories; cosmetics; athletic and outdoor apparel, footwear, and equipment; alongside homeware and furniture. These products are distributed under a multitude of recognized brands such as @home, @homelivingspace, American Swiss, Archive, Connor, Donna, Exact, Fabiani, The FIX, Foschini, Galaxy & Co, G-Star RAW, Hi, Hobbs, Jet, Johnny Bigg, Markham, Phase Eight, Relay Jeans, RFO, Rockwear, Sneaker Factory, SODA Bloc, Sportscene, Sterns, Tarocash, Totalsports, Whistles, and yd. As of March 31, 2022, the group boasted 4,351 retail locations across 26 countries. Furthermore, TFG extends its product offerings through online sales channels. Initially known as Foschini Limited, the company rebranded to The Foschini Group Limited in September 2010. Founded in 1924, TFG 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
Target Price
The average target price of TFG.JO is 7658 and suggests 31% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr