Nampak (NPKLY) and Its Competitors Critical Review

Institutional and Insider Ownership

0.0% of Nampak shares are held by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are held by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Nampak pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. Nampak pays out 5.9% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.1% and pay out -106.6% of their earnings in the form of a dividend. Nampak lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Nampak and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nampak	N/A	N/A	N/A
Nampak Competitors	-28.74%	-31.79%	2.15%

Valuation & Earnings

This table compares Nampak and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nampak	N/A	N/A	11.67
Nampak Competitors	$8.00 billion	$208.36 million	14.38

Nampak’s peers have higher revenue and earnings than Nampak. Nampak is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Nampak peers beat Nampak on 7 of the 9 factors compared.

Nampak Company Profile

Nampak Limited manufactures and sells metal, plastic, and paper packaging products in South Africa and rest of Africa. It offers HDPE and PET bottles and jars, plastic closures, and crates and drums for the fruit juice, dairy, carbonated soft drink, water, alcoholic beverage, bakery, agriculture, chemical, petroleum, personal care, and household markets. The company also provides aluminum beverage cans and ends for the alcoholic, carbonated soft drink, fruit juice, energy drink, vegetable juice, and ice tea markets; tinplate food cans for the canned food market; and aluminum and tinplate cans, including aerosols, monoblocs, and paint and shoe polish cans to the personal care, household goods, and industrial markets, as well as crowns for the beverage market. In addition, it offers beverage cartons for milk, fruit juice, water, and traditional beer; self-opening paper bags for the flour and sugar markets; and corrugated cases/boxes for the tobacco, poultry, and food and general commercial markets, as well as labels and folding cartons for the tobacco, food, and beverage markets. The company is headquartered in Sandton, South Africa.