Remgro Limited (REM.JO) stock analysis

In our weekly check, Remgro Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 10 pass, warnings: 5, red flags: 9.

About Remgro Limited

Remgro Limited is a Financial Services company (Asset Management) based in South Africa, listed on JNB as REM.JO.

What our checks show for REM.JO

Red flags

• Operating profit does not cover the interest bill (0.5x): interest is paid from cash or new debt.
• The net margin fell by 2.4 points over 5 years, to 2.8%: the company keeps less of each sale as profit.
• The gross margin fell by 8.2 points, to 20.3%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 0.1% a year.
• The net margin is only 2.8%: little room if costs rise.
• The dividend takes 4183% of profit: little cushion if profit falls.
• A small company (market value $67 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 2.7%.

Warning signs

• Analysts expect earnings per share to shrink about 100% a year.
• Revenue grew only 0.5% a year over the last 3 years.
• Earnings per share fell 46.7% a year over the last 3 years.
• Net profit fell 46.9% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0.04x equity.
• Operating cash flow is 6.74x net profit: the profit arrives as real cash.
• Free cash flow is 14.9% of revenue: cash for dividends, buybacks or growth.
• Beta 0.28: the stock usually moves less than the market.
• Pay in shares is only 0% of free cash flow.

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Questions

What grade does Remgro Limited (REM.JO) have?

In our weekly check, Remgro Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 10 pass, warnings: 5, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of REM.JO stock?

This week's biggest flags for Remgro Limited: Weak interest cover, Margins falling, Gross margin falling. In total 14 of 24 checks show a warning or a red flag.

What does Remgro Limited do?

Remgro Limited is a Financial Services company (Asset Management) based in South Africa, listed on JNB as REM.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 2026-10-24

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