Equites Property Fund Limited (EQU.JO) stock analysis

In our weekly check, Equites Property Fund Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 6, red flags: 7.

About Equites Property Fund Limited

Equites Property Fund Limited is a Real Estate company (REIT - Industrial) based in South Africa, listed on JNB as EQU.JO.

What our checks show for EQU.JO

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The net margin fell by 68.9 points over 5 years, to 51.6%: the company keeps less of each sale as profit.
• The gross margin fell by 43.4 points, to 56.6%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 11.4% a year.
• Revenue fell 0.5% a year over the last 3 years.
• The dividend takes 1462% of profit: little cushion if profit falls.
• A small company (market value $9 million): usually riskier and followed by fewer analysts.

Warning signs

• Net debt is 3.6x a year of EBITDA (debt/equity 0.63). That limits room in a downturn and raises refinancing risk.
• Operating cash flow is only 0.65x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 10.1% a year.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 6.1%.

Strengths

• Analysts expect the net margin to improve by 2.9 points from today's 51.6%.
• Earnings per share grew 33.5% a year over the last 3 years.
• The company keeps 51.6% of its revenue as net profit.
• Free cash flow is 33.5% of revenue: cash for dividends, buybacks or growth.
• The price is 7.5 times earnings (P/E), reasonable for its growth.
• The price moves calmly: 18.1% annual volatility.

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Questions

What grade does Equites Property Fund Limited (EQU.JO) have?

In our weekly check, Equites Property Fund Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of EQU.JO stock?

This week's biggest flags for Equites Property Fund Limited: Weak interest cover, Margins falling, Gross margin falling. In total 13 of 24 checks show a warning or a red flag.

What does Equites Property Fund Limited do?

Equites Property Fund Limited is a Real Estate company (REIT - Industrial) based in South Africa, listed on JNB as EQU.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-11-07

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