In this article, we will look at 5 African Companies To Invest In Now. If you want to explore similar companies, you can also take a look at 10 African Companies To Invest In Now.
5. MiX Telematics Limited (NYSE:MIXT)
Number of Hedge Fund Holders: 4
MiX Telematics Limited (NYSE:MIXT) provides fleet and mobile asset management solutions through the software-as-a-service (Saas) delivery model. The company was founded in 1995 and is headquartered in South Africa. As of this February, Canaccord analyst T. Michael Walkley has a $22 price target on MiX Telematics Limited (NYSE:MIXT) along with a Buy rating on the shares.
On May 26, MiX Telematics Limited (NYSE:MIXT) posted a market-beating quarter and released earnings for the fiscal fourth quarter of 2022. The company reported earnings per share of $0.16, exceeding Wall Street expectations by $0.10. The company’s revenue came in at $36.10 million, up 5.05% year over year, and beat revenue estimates by $1.55 million. The company also offers dividends, and as of June 5, boasts a trailing twelve-month dividend yield of 2.51%, making it one of the best dividend-paying African companies to invest in now.
At the close of Q1 2022, 4 hedge funds were long MiX Telematics Limited (NYSE:MIXT) with stakes worth $12.46 million. This is compared to 6 hedge funds in the previous quarter with stakes of $15.50 million.
As of March 31, Renaissance Technologies is the top shareholder in MiX Telematics Limited (NYSE:MIXT), owning over 0.53 million shares. This amounts to a stake value of $6.05 million.
4. The Bidvest Group Limited (OTC:BDVSY)
Number of Hedge Fund Holders: N/A
The Bidvest Group Limited (OTC:BDVSY) operates in trading, services, and distribution businesses in South Africa and internationally. The company operates through seven business segments: Services, Branded Products, Freight, Automotive, Commercial Products, Financial Services, and Properties.
The Bidvest Group Limited (OTC:BDVSY) is undervalued and also happens to be a dividend player, which makes it one of the best African companies to invest in now. As of June 5, The Bidvest Group Limited (OTC:BDVSY) has a forward PE ratio of 13.66, a trailing-twelve-month yield of 3.28%, and has appreciated by 11.23% over the past twelve months.
This March, Investec analyst Anthony Geard upgraded The Bidvest Group Limited (OTC:BDVSY) to Buy from Hold with a ZAR 240 price target.
3. Nedbank Group Limited (OTC:NDBKY)
Number of Hedge Fund Holders: N/A
Nedbank Group Limited (OTC:NDBKY) operates as a financial services company in South Africa and provides various wholesale and retail banking services all around the world. The leading South African bank offers personal banking solutions, business banking solutions, corporate banking services, and transactional banking services. With interest rates on the rise, banking stocks are expected to soar, making Nedbank Group Limited (OTC:NDBKY) a compelling investment option for investors looking to invest in developing markets such as Africa.
Nedbank Group Limited (OTC:NDBKY) is attracting bullish ratings from expert analysts. This May, Citi analyst Simon Nellis upgraded Nedbank Group Limited (OTC:NDBKY) to Buy from Neutral and reiterated a ZAR 250 price target on the shares. Moreover, the company appears to be undervalued, having a trailing-twelve-month PE ratio of 10.38 as of June 5, and trading at $12.14 with a market capitalization of $7.29 billion.
2. MTN Group Limited (OTC:MTNOY)
Number of Hedge Fund Holders: N/A
MTN Group Limited (OTC:MTNOY) is a leading African communication services provider that operates in the mobile telecommunications industry. The company provides data, voice and SMS, digital and fintech, wholesale, interconnect, and roaming services, as well as sells mobile devices. MTN Group Limited (OTC:MTNOY) was incorporated in 1994 and is based in Johannesburg, South Africa.
As of this January, Barclays analyst Maurice Patrick has a ZAR 115 price target on MTN Group Limited (OTC:MTNOY) and an Underweight rating on the stock.
This March, MTN Group Limited (OTC:MTNOY) reported solid fiscal year 2021 results. The company reported revenue of ZAR 171.8 billion, up 18.3% year over year. The company also registered a 23.7% year-over-year increase in EBITDA which came in at ZAR 80.8 billion. Moreover, the company’s organic operating cash flow grew by 35.2% year over year and was reported to be ZAR 38.3 billion. The company also reportedly had 272.4 million subscribers at the end of 2021, up 2.9 million from the end of 2020. Strong balance sheets and solid free cash flows make MTN Group Limited (OTC:MTNOY) one of the top 10 African companies to invest in now.
1. Shoprite Holdings Limited (OTC:SRGHY)
Number of Hedge Fund Holders: N/A
Shoprite Holdings Limited (OTC:SRGHY) engages in the food retailing business in South Africa and internationally. The company operates through four business segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. The company is Africa’s largest supermarket retailer, operating more than 2,900 stores across the exotic continent, which makes it one of the best African companies to invest in now.
In addition to being a retail giant, Shoprite Holdings Limited (OTC:SRGHY) is one of the few African companies that is a dividend player as well. As of June 5, the company has a forward dividend yield of 2.32% and its shares have gained 18.45% over the past twelve months.
You can also take a look at 10 Best Psychedelic Companies to Watch and 10 Best Stocks Under $20 According to Jim Simons’ Fund.
