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5 Cheapest Shares on the JSE

Updated 15 Aug 2022
5 Cheapest Shares on the JSE

The 5 Cheapest Shares on the JSE revealed. We have carried out extensive fundamental and technical analysis to identify the 5 shares that are currently the cheapest on the JSE.

This is a complete guide to the 5 Cheapest Shares on the JSE

In this in-depth guide you’ll learn:

  • Why are cheap shares so popular?
  • 5 Cheapest Shares on the JSE
  • How to choose the Right Share Broker in South Africa
  • The Best Share Brokers in South Africa

And lots more…

So, if you’re ready to go “all in” with the 5 Cheapest Shares on the JSE…

Let’s dive right in…

The phrase “undervalued” can also be used to indicate inexpensive or low-cost equities.

One of the reasons that “cheap” shares are popular relate to an undervalued firm may have solid fundamentals, but the market has not yet caught on, and the present stock price does not reflect the company’s real, greater worth.

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5 Cheapest Shares on the JSE

Curro Holdings Limited (JSE: COH)

Curro Holdings Limited is involved in the supply of independent schools and education services. The Company develops, buys, and administers independent schools across South Africa.

The Company’s segments include Curro and Meridian. The Curro division provides independent education and other services.

Curro Holdings Limited is the 138th most valuable stock on the JSE, with a market value of ZAR 6.63 billion, representing about 0.033% of the Johannesburg Stock Exchange equity market.

Growth and Valuation Information
Share Price 11.08 ZAR
Market Capitalization 6.63 billion ZAR
Earnings per share 0.40 ZAR
Price/Earnings Ratio 27.09
Dividend Yield 0.72%
Gross Turnover 3.43 million ZAR

Brikor Limited (JSE: BIK)

Brikor is a maker and supplier of bricks for a wide range of applications, including affordable housing, residential, commercial, industrial, civil engineering, and infrastructure projects, as well as coal for local markets and coal traders.

Brikor maintains two plants that produce Semi Face Bricks and Clay Stock Bricks at its Nigel Operations. Ilangabi supplies Brikor’s enterprises with brick-making clay and low-grade coal and sells coal to coal dealers.

It has coal mining rights in Vlakfontein and Grootfontein, and Brikor Limited is the 362nd most valuable stock on the JSE, having a market value of ZAR 151 million, which represents about 0.0008% of the Johannesburg Stock Exchange equity market.

Growth and Valuation Information
Share Price 0.18 ZAR
Market Capitalization 151 million ZAR
Earnings per share 0.01 ZAR
Price/Earnings Ratio 16.36
Dividend Yield 11.1%
Gross Turnover 1,104.00 ZAR

Delta Property Fund Ltd (JSE: DLT)

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Delta Property Fund Ltd is a South African-based property portfolio, and the purpose of the Fund is to maximize total return on capital, including current income and capital gains.

These are compatible with a diversified, risk-managed real estate investment portfolio, via investments in non-government offices, retail, and industrial buildings.

The company provides access to a portfolio of government and parastatal tenanted properties, which provide stable revenue streams and significant single tenant occupancy.

It contains around 100 properties with 909 984 square meters of gross lettable space. Delta Property Fund Limited is the 332nd most valuable stock on the JSE with a market value of ZAR 300 million, which represents about 0.0015% of the Johannesburg Stock Exchange’s equity market.

Growth and Valuation Information
Share Price 0.42 ZAR
Market Capitalization 300 million ZAR
Earnings per share 0.39 ZAR
Price/Earnings Ratio 1.06
Dividend Yield 28.6%
Gross Turnover 32,122 ZAR

4Sight Holdings Limited (JSE: 4SI)

A multi-national, diversified investment holding company founded in 2017, 4Sight Holdings Limited uses the broad range of products and services offered by its subsidiaries, including Industry 4.0 technology solutions, and more.

Through its subsidiaries, 4Sight Holdings Limited offers technological solutions to a variety of sectors, especially in South Africa.

It has a focus on robotic process automation, big data, cloud computing, business intelligence, digital twins as well as simulation, information and operational technologies, production scheduling, horizontal and vertical integration, the industrial internet of things, VR, and more.

Companies in the telecommunications, mining, manufacturing, energy, chemicals, private, and public sectors are among the recipients of the firm’s services.

With a current market value of ZAR 145 million, or around 0.0007% of the equity market on the Johannesburg Company Exchange, 4Sight Holdings Limited is the 364th most valuable stock on the JSE.

Growth and Valuation Information
Share Price 0.22 ZAR
Market Capitalization 145 million ZAR
Earnings per share 0.01 ZAR
Price/Earnings Ratio 12.50
Dividend Yield
Gross Turnover 22,795 ZAR

Capital & Counties Properties PLC (JSE: CCO)

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Located in the heart of the capital city, Capital & Counties Properties PLC is a leading developer in the region. The firm is involved in the buying, selling, and development of commercial and retail properties.

One of the major central London real estate corporations is Capital & Counties Properties PLC (Capco). Important properties include the ones at Covent Garden and Earls Court. Capital & Counties manages assets, makes strategic investments, and builds selectively to generate and expand wealth.

At a market value of ZAR 25.6 billion, or around 0.128% of the equity market on the Johannesburg Company Exchange, Capital & Counties Properties Plc is the 79th most valuable stock currently.

Growth and Valuation Information
Share Price 30.11 ZAR
Market Capitalization 25.6 billion ZAR
Earnings per share 1.07 ZAR
Price/Earnings Ratio 27.94
Dividend Yield 1%
Gross Turnover 133 million ZAR

How to choose the Cheap Shares in South Africa

Use a Stock Screener

First, evaluate the available stock screeners. Most traders will find that many internet stockbrokers have them, as do several financial websites.

The screener enables you to sort by every conceivable attribute, and you can easily specify your desired outcomes characteristics, such as yearly sales growth beyond a specified threshold.

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In addition, more sophisticated screeners, such as those that require a monthly or annual subscription, will provide additional criteria and customization options.

Set a target for the growth rate on any future earnings

The rate of a company’s expansion is a standard criterion for determining its quality. Investors tend to put a higher value on rapidly developing firms, making them an appealing spot to begin their hunt for excellent companies.

Create a screen for a company’s projected profit growth rate on your chosen screener. A decent starting point, for instance, could be 10% every year for the next five years.

Next, consider raising this to 15% or even 20% to see what is accessible. Earnings growth of more than 20% is astronomical.

If the screener does not have a screen for future profit growth, apply the sales growth screen. Look for firms whose sales are rising at the desired pace. And if the screener does not provide profit estimates for the future, examine the prior five years’ earnings or sales growth instead.

Use the Price/Earnings Ratio of the company to find undervalued shares

To determine the worth of a company, investors often divide the current share price by its yearly profits per share.

This ratio is known as the price-to-earnings ratio, or P/E ratio, and the lower the P/E ratio, the more affordable the firm and its shares.

If you pay less for the profits, you are receiving a better bargain, and you should always add other criteria for the company’s current P/E ratio to the screener to compare it with other parameters.

Emphasize the market cap to filter out any risky companies

The screener should provide you with dozens of inexpensive firms that experts believe will have strong future profit growth based on the metrics that you entered.

Set the minimum size of the firm, as determined by its market capitalization, to avoid smaller, riskier equities if you wind up with more companies than you need. Overall, you must remember that the riskier a corporation is, the lower its market capitalization.

Conclusion

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Buy Low, Sell High is a simple motto, yet it is difficult to implement. This investing approach is built on the notion of market timing, which is difficult for even seasoned investors to execute.

You could use moving averages to identify whether to purchase or sell a stock, but you need also to do stock research to evaluate if a company’s earnings are likely to revive.

We have provided South Africans with a list of the cheapest stocks now that have positive P/E Ratios, EPS, and decent dividend yields to help them navigate “buy low, sell high” strategies.

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