Cashbuild investment potential

 Cashbuild investment potential

Cashbuild investment potential.

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Company overview

Cashbuild was established in 1978 and is headquartered in Johannesburg, South Africa. Cashbuild Ltd trades its shares on the JSE under the stock symbol CSB. Cashbuild specialises in the retailing of building materials and associated products. It provides cement, timber, roofing and decorative products for various industries and home use. Cashbuild serves a variety of clients such as contractors, homebuilders, home improvers, farmers, traders and others. As of 2020, Cashbuild has 318 stores, consisting of 256 Cashbuild stores, 61 P&L Hardware stores and one other DIY store, spread across South Africa, Swaziland, Botswana, Lesotho, Namibia, Malawi and Zambia. The trailing 12 month (TTM) financial performance for Cashbuild indicates revenues of R10 090 910, gross profit of R2 525 050 and operating income of R473 120. The TTM EBIT indicated stands at R585 111 and the EBITDA at R939 931.

Investment potential

CSB share performance over the past year increased substantially, from R20 833 on December 11 last year to the current R24 385. However, there was a notable sharp drop on March 23 to a price of R10 101, attributable to the nationwide lockdown to curb the spread of Covid-19 in South Africa. Despite this severe decrease, prices made a recovery soon after, with a gradual increase noticeable from June 1. On November 26, prices reached an all-year high of R26 001 per share. The current consensus forecast on CSB stocks indicates a 50% buy and 50% sell. However, shareholders are urged, according to analyst coverage, to hold onto their shares for the time being.

Chris Louw

Featured Financial Writer for SA Shares - Read more about Chris's Bio -

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