Argent Industrial - Cash flush

Argent Industrial (Argent) is primarily a steel-based beneficiation group, bolstered by offshore investments in both existing and new ventures, and by promoting exports. Its strategy of moving away from solely South Africa (SA) to the UK and US has established a solid diversified foundation for sustainable growth locally and internationally. Consequently, there has been a CAGR in headline earnings per share of 33% over the past five years, with 76% of this growth derived from regular business operations and the remainder fuelled by a steady share buyback strategy. Net cash of ZAR403m is equivalent to ZAR7.40 per share, or 35% of the current market value. The stock trades at a P/E of 4.9x (compared to international peers at 8.5x) and offers a dividend yield of 5.4%.

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