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AEP Energy Africa (JSE:AEY) Net-Net Working Capital : R3.23 (As of Dec. 2018)


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What is AEP Energy Africa Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

AEP Energy Africa's Net-Net Working Capital for the quarter that ended in Dec. 2018 was R3.23.

The industry rank for AEP Energy Africa's Net-Net Working Capital or its related term are showing as below:

JSE:AEY's Price-to-Net-Net-Working-Capital is not ranked *
in the Utilities - Regulated industry.
Industry Median: 6.99
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

AEP Energy Africa Net-Net Working Capital Historical Data

The historical data trend for AEP Energy Africa's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

AEP Energy Africa Net-Net Working Capital Chart

AEP Energy Africa Annual Data
Trend Jun17 Jun18 Jun19
Net-Net Working Capital
- 5.65 1.82

AEP Energy Africa Semi-Annual Data
Dec17 Jun18 Dec18 Jun19
Net-Net Working Capital 6.77 5.65 3.23 1.82

Competitive Comparison of AEP Energy Africa's Net-Net Working Capital

For the Utilities - Diversified subindustry, AEP Energy Africa's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

AEP Energy Africa's Price-to-Net-Net-Working-Capital Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, AEP Energy Africa's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where AEP Energy Africa's Price-to-Net-Net-Working-Capital falls into.


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AEP Energy Africa Net-Net Working Capital Calculation

AEP Energy Africa's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jun. 2019 is calculated as

Net-Net Working Capital(A: Jun. 2019 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(11.862+0.75 * 0+0.5 * 0-2.298
-0-0)/5.256
=1.82

AEP Energy Africa's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2018 is calculated as

Net-Net Working Capital(Q: Dec. 2018 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(19.472+0.75 * 0+0.5 * 0-2.512
-0-0)/5.256
=3.23

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

AEP Energy Africa  (JSE:AEY) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

AEP Energy Africa Net-Net Working Capital Related Terms

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AEP Energy Africa Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » AEP Energy Africa Ltd (JSE:AEY) » Definitions » Net-Net Working Capital
Comparable Companies
JSE:MAP JSE:AVR
Traded in Other Exchanges
N/A
Address
28 Fricker Road, Illovo, 2nd Floor, Sandton, Johannesburg, ZAF, 2196
Website
http://www.aep.co.za
AEP Energy Africa Ltd owns, operates and maintain a portfolio of clean, distributed energy assets which generate electricity and associated by-products, such as heating and cooling, as well as associated infrastructure for transportation and storage of primary fuels. The company serves a diverse range of markets including mining companies, drying industries, curing and forming companies, hospitals, airports, and shopping centers. Its business model is to acquire energy infrastructure or businesses that are operating and cash generative or assets under construction that are not more than 12 months from commercial operations.

AEP Energy Africa Headlines

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