Enx Group (JSE: ENX)

R2.36 now, that's a proper jump today

2.36 now, that's lekker.

R2.07 now, eish. Down hard today hey.

R2.07 now. Ouch.

R2.38 now, that's a jump today!

2.38 now, that's a proper jump today!

2.38 now, that's a proper move up.

R2.06 now, eish. Proper hammering today.

2.06 now, that's rough. What happened?

2.06 now. That's a hard hit today.

2.06 now. That's a proper hammering.

2.06 now, good day to top up.

Been through the latest SENS filings, balance sheet's getting squeezed ngl

Good Morning Everyone. ENX closed at R2.06, market cap sitting around 600m rand if I've got the share count right. Equipment leasing in SA is tough when corporates are pulling capex, but the long game here is asset-light recurring revenue once the balance sheet cleans up. Worth watching the next earnings for lease utilization rates.

Equipment rental outfits usually print money in a cycle like this, but ENX hasn't exactly been the money printer. At R2.06 you're paying peanuts for the asset base, which means either the market knows something about the returns or it's actually cheap. Hard to tell without seeing if management can actually sweat those assets properly.

ENX sitting at R2.06 is painful but lease companies are getting crushed on rate hikes and weak capex spend. Long-term view hasn't changed, balance sheet is solid, but yeah the macro is just not helping anything in industrials right now. Inflation very high, banks won't budge on rates, so rental demand stays soft. I'll keep holding as long as it takes but ngl this is a slog.

Took the opportunity to add to my ENX position on this 6% pullback since the logistics narrative remains intact and the dividend yield is starting to look attractive at these levels.

ENX sitting at R2.49 is pretty rough ngl, equipment leasing should be steady money but feels like everyone's holding back on capex right now. Company's got the right business model for recovery when things pick up again, just gotta survive the next couple quarters without the rand going fully sideways on them.

Equipment leasing plays like this one get hammered when credit tightens and capex budgets dry up, but ENX has the balance sheet to weather it unlike some of the smaller players. At R2.49 the market's pricing in recession, not structural decline, which is why I reckon this is positioned perfectly for the eventual recovery. Competitor comparison would be Reunert but they've got more diversification, so ENX carries more cycle risk, fair point.

rental gear getting hammered, balance sheet looks thin