Delta Sugar Company (EGX:SUGR)
On 7th April 2025 close at 47.30 EGP/Share
Overview
Delta Sugar Company engages in the manufacture and sale of sugar beets in Egypt. The company was founded in 1978.
📊 Financial Snapshot
✅ Strengths:
• EPS (Trailing): 7.60 → Solid earnings power.
• PE Ratio: 6.22 → Undervalued vs. market.
• Book Value/Share: 23.71 EGP → P/B ratio ≈ 2 → Moderately priced on asset basis.
• Strong ROE: 39.38%
• ROIC: 22.22% → Efficient capital use.
• Net cash position: +557.5 million → No leverage risk, ample liquidity.
⚠️ Weaknesses:
• Free Cash Flow: -181.79 million → Negative FCF is a concern, suggests reinvestment isn't translating into near-term cash.
• Operating CF: -38.57 million → Not generating core operational cash right now.
Fair Value Estimates:
• Cairo Financial Holding: 71.80 EGP
• Ostoul Securities Brokerage
• Sector-based Book Value Multiple 76.58 EGP/Share
• Sector-based PE Multiple 98.069 EGP/Share
Financial Highlights – FY 2024
EGX:SUGR has a market cap or net worth of EGP 6.89 billion. The enterprise value is 8.5 billion.
Enterprise Valuation
The stock's EV/EBITDA ratio is 6.91, with an EV/FCF ratio of -46.75.
Income Statement
In the last 12 months, EGX:SUGR had revenue of EGP 6.22 billion and earned 1.08 billion in profits. Earnings per share was 7.60 with Perpetual growth rate is 3%
Balance Sheet
The company has 557.70 million in cash and 193,412 in debt, giving a net cash position of 557.50 million or 3.92 per share.
Cash Flow
In the last 12 months, operating cash flow was -38.57 million and capital expenditures -143.22 million, giving a free cash flow of -181.79 million.
Financial Efficiency
Return on equity (ROE) is 39.38% and return on invested capital (ROIC) is 22.22%.
📌 Investment Strategy Summary
For Long-Term Investors:
• The current zone of 44–54 EGP is seen as accumulation by smart money.
• Money flow profile (ROC) is 55 EGP/Share
• Price is still under EMA 200, but any breakout with ROC reversal could confirm Wave 5 uptrend.
• Targets:
Refer to Gann analysis
o TP1: 61.13 EGP (July 2025)
o TP2: 77.8 EGP (Nov 2025)
Refer Elliott Wave Analysis Wave 5 Target Zone: 98–132 EGP/share (2025–2026 outlook)
🧠 Final Thoughts
Delta Sugar is currently fundamentally undervalued with a strong balance sheet, but cash flow concerns persist. The technical setup indicates it's near the end of a corrective phase, and potential for a strong Wave 5 rally exists — though the key breakout zone is 54–55 EGP
On 7th April 2025 close at 47.30 EGP/Share
Overview
Delta Sugar Company engages in the manufacture and sale of sugar beets in Egypt. The company was founded in 1978.
📊 Financial Snapshot
✅ Strengths:
• EPS (Trailing): 7.60 → Solid earnings power.
• PE Ratio: 6.22 → Undervalued vs. market.
• Book Value/Share: 23.71 EGP → P/B ratio ≈ 2 → Moderately priced on asset basis.
• Strong ROE: 39.38%
• ROIC: 22.22% → Efficient capital use.
• Net cash position: +557.5 million → No leverage risk, ample liquidity.
⚠️ Weaknesses:
• Free Cash Flow: -181.79 million → Negative FCF is a concern, suggests reinvestment isn't translating into near-term cash.
• Operating CF: -38.57 million → Not generating core operational cash right now.
Fair Value Estimates:
• Cairo Financial Holding: 71.80 EGP
• Ostoul Securities Brokerage
• Sector-based Book Value Multiple 76.58 EGP/Share
• Sector-based PE Multiple 98.069 EGP/Share
Financial Highlights – FY 2024
EGX:SUGR has a market cap or net worth of EGP 6.89 billion. The enterprise value is 8.5 billion.
Enterprise Valuation
The stock's EV/EBITDA ratio is 6.91, with an EV/FCF ratio of -46.75.
Income Statement
In the last 12 months, EGX:SUGR had revenue of EGP 6.22 billion and earned 1.08 billion in profits. Earnings per share was 7.60 with Perpetual growth rate is 3%
Balance Sheet
The company has 557.70 million in cash and 193,412 in debt, giving a net cash position of 557.50 million or 3.92 per share.
Cash Flow
In the last 12 months, operating cash flow was -38.57 million and capital expenditures -143.22 million, giving a free cash flow of -181.79 million.
Financial Efficiency
Return on equity (ROE) is 39.38% and return on invested capital (ROIC) is 22.22%.
📌 Investment Strategy Summary
For Long-Term Investors:
• The current zone of 44–54 EGP is seen as accumulation by smart money.
• Money flow profile (ROC) is 55 EGP/Share
• Price is still under EMA 200, but any breakout with ROC reversal could confirm Wave 5 uptrend.
• Targets:
Refer to Gann analysis
o TP1: 61.13 EGP (July 2025)
o TP2: 77.8 EGP (Nov 2025)
Refer Elliott Wave Analysis Wave 5 Target Zone: 98–132 EGP/share (2025–2026 outlook)
🧠 Final Thoughts
Delta Sugar is currently fundamentally undervalued with a strong balance sheet, but cash flow concerns persist. The technical setup indicates it's near the end of a corrective phase, and potential for a strong Wave 5 rally exists — though the key breakout zone is 54–55 EGP
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.