| Market cap | R36.9B |
|---|---|
| P/E | 12.2 |
| EPS | N/A |
| Div yield | 6.57% |
| 52W high | R384.60 |
| 52W low | R235.06 |
| Volume | 215K |
| Listed | N/A |
Price and fundamentals data is supplied by EODHD, with Yahoo Finance as a fallback source. Sentiment is computed by StockTalk SA from 38 live member stances recorded by registered members on this page.
For a first timer Frans, TBS is actually pretty solid because it makes stuff everyone buys like Jungle Oats and Selati sugar, so the business isn't going anywhere. Just don't expect it to rocket like a penny stock, it's more of a slow and steady hold that can pay you dividends if you're patient.
TBS makes the stuff you buy at Checkers, like Weetabix and All Gold, so if the country's eating it means they're making money. Problem is everyone's struggling with prices right now so whether people keep buying the same amount is the real question, share price is stuck around 245 so the market's not convinced either way yet.
A dividend is when the company shares part of its profit with you just for owning the shares, kind of like a thank you payment. Tiger Brands has paid them before when things went well, so if you owned 1000 shares and they paid 10 cents per share, you'd get R100 in your bank account without selling anything.
Tiger makes the stuff you buy at the shops, Jungle and Ace and all that. The thing is they need to shift more volume or get costs down, otherwise the margin just keeps getting squeezed.
A dividend is when the company makes profit and decides to share some of it with people like us who own the shares, instead of keeping it all. Tiger Brands pays one usually once or twice a year, and if you own even one share you get your cut, that's money in your account just for holding it.
tiger makes all the breakfast stuff and cooking oils most households have in their kitchen, so when load-shedding hits and people stay home eating more, it's actually decent for them. at 245 it's cheap enough for a beginner, you get a dividend sometimes too.
if tiger pays a dividend where does the money actually come from, like do they print it or is it from profits?
Kgosi's right though, what matters is whether people keep buying the stuff or not. If Tiger's selling the same amount of Jungle Oats as last year but paying more for the maize, there's less left over for them, and less left over means less profit to hand to shareholders like us.
At 245.16 we're not far from 250 but the real question is whether people are actually buying more Jungle Oats and All Gold when food inflation keeps squeezing them. Hard to see the upside if volumes are flat.
@uncle_sakhile exactly, that's the whole thing right there
When I started, I thought you needed a fortune. Truth is, on EasyEquities or FNB you can buy TBS with R100 or R200, the fee is tiny (couple of rand), and your money lands in a day or two. If you're going to hold longer than a few years, open a tax-free savings account first, it saves you tax on any gains.
@jozi_janet that's a really good point, people just grab what's familiar without thinking about the brand
tbs feeds half the country, literally. their stuff is in every till from cape town to polokwane, so when people are buying groceries they're buying tiger brands without even thinking about it.
Tiger makes stuff like flour, oil, and Jungle juice that you find in every till in the country, so when people eat they make money. A share is just your piece of that, so if Tiger does well and makes more profit, your piece gets worth more. Think of it like a shop, what is left over at the end of the month is what the owner gets richer from.
@bear_naidoo volume's one thing, but haven't their input costs stayed high even as shoppers pull back on quantity?
so when TBS says margins got squeezed, does that mean less dividend for us or what?
@trpine_patient ja, spot on mate.
@sipho_satrix_saver load-shedding is actually hectic