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Italtile Limited (ITE) Fair Value & Analysis

Consumer Cyclical · ZA · Market cap 12.3B ZAC

IL Italtile Limited ITE · JSE
PriceR9.70
Fair ValueR24.80
Upside+155.7%
Quality69/100
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Expensive Growth
Solidly profitable · 15.7% net margin
Low debt · generates free cash flow
Ranks above peers (9/15)
Wide moat 68/100
Evidence: High Range R13.09 – R33.60 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 27 days ago

Share price +0.5% over the past month.

A solid business, screening 156% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R13.09). The market is more pessimistic than our downside scenario.
  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R13.09 to R33.60) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

R17.11 R7.79 Fair Value R24.80 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range R7.79 – R17.11 · fair‑value band R13.09 – R33.60 · the R9.70 price screens below the R24.80 fair value. Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Italtile Limited (ITE) currently trades at R9.70, while our model-based Fair Value estimate is R24.80, implying the stock looks roughly 155.7% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Italtile Limited generated revenue of 8.8B ZAR at a net margin of 15.7%. Revenue declined 1.7% year over year. It earns a return on equity of 18.2%. The balance sheet holds a net cash position of 1.2B ZAR. Fundamentals as of Jul 14, 2026

Our scenario range runs from R13.09 (bear case) to R33.60 (bull case); at R9.70, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -21% fair-value upside, at 156%, ITE screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R5.98 R9.01 R14.07 80
Residual Income R7.94 R9.63 R21.42 76
Rev-Margin DCF R7.34 R11.76 R17.39 74
All 26 models by family
DCF Models
FCF DCF R6.00 R9.26 R14.85 38
Owner Earnings R20.87 R35.73 R61.21 31
5Y Revenue Exit R7.34 R11.91 R18.15 39
5Y EBITDA Exit R15.31 R28.18 R44.47 41
5Y P/E Exit R16.02 R29.62 R45.25 38
10Y Revenue Exit R6.63 R10.82 R17.27 36
10Y EBITDA Exit R12.11 R22.67 R39.08 37
10Y P/E Exit R12.58 R23.72 R39.73 35
Earnings-Based
Graham-Dodd R8.52 R38.07 R52.16 54
Lynch FV R9.90 R14.14 R18.38 50
PEG = 1.0 R9.90 R14.14 R18.38 46
EPV R13.65 R15.63 R17.35 59
Dividend Discount
Gordon GGM R12.06 R25.07 R39.76 70
DDM Multi-Stage R12.06 R21.14 R26.31 61
Multiples
P/E Multiple R20.68 R27.58 R34.47 63
P/S Multiple R6.70 R8.94 R11.17 58
P/B Multiple R15.98 R21.31 R26.63 55
EV/EBIT R25.09 R32.85 R40.61 53
EV/EBITDA R21.36 R27.87 R34.39 54
EV/Revenue R8.07 R10.76 R13.44 43
Asset-Based
NCAV (Graham) R3.39 R4.55 R6.79 50
Growth DCF
Growth DCF R5.98 R9.01 R14.07 80
Rev-Margin DCF R7.34 R11.76 R17.39 74
Economic Profit
Residual Income R7.94 R9.63 R21.42 76
ROIC Compounder R15.17 R19.51 R24.97 72
Growth Earnings
Growth-Adj P/E R16.59 R23.70 R30.81 68

Widest divergence: Growth Earnings (R23.70) versus Asset-Based (R4.55). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 8.8B ZAC
Revenue growth (YoY) -1.7%
Net margin 15.7%
Return on equity 18.2%
Free cash flow 392M ZAC FY2025
P/E ratio 7.4
More key figures
Operating margin 21.5%
EPS (TTM) R1.15
Dividend yield 0.1%
EPS growth (YoY) -14.6%
Net cash 1.2B ZAC FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 66 · Market factors (momentum, volatility) 56

Profitability 69
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 93
Balance sheet, leverage, solvency risk
Investment 78
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 89
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Italtile Limited manufactures, retails, and franchises tiles, bathroom ware, and related home-finishing products in South Africa, rest of Africa, and Australia.

Full company description

Italtile Limited manufactures, retails, and franchises tiles, bathroom ware, and related home-finishing products in South Africa, rest of Africa, and Australia. The company imports, distributes, and retails brassware and accessories, laminate and vinyl floor boards, bathroom furniture, shower enclosures, sanitaryware, décor, and other home finishing products; tiles, and bathware and related products; taps, shower enclosures, and bathroom furniture and accessories; and paint, ceiling décor, lighting, laminate flooring, window blinds, and tile adhesives. It also manufactures and sells glazed porcelain floor tiles, ceramic wall and floor tiles, vitreous China sanitary ware, acrylic baths, adhesives, shower trays, grout, adhesives, paints, and related products. In addition, the company provides logistics and warehousing services. It sells its products under the Italtile Retail, CTM, and TopT brands through retail stores and online. The company was incorporated in 1955 and is headquartered in Bryanston, South Africa. Italtile Limited operates as a subsidiary of Rallen Proprietary Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Italtile Limited reported revenue of R8.9B in FY2025 versus R9.1B in FY2021, a compound −0.7%/yr. Reported net income was R1.5B in FY2025, compounding −3.4%/yr from FY2021.

Growth Quality 55/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
8.9B ZAR
Latest YoY
−2.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.8%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.3%
Revenue −0.7%/yr
FY21 R9.1B
FY22 R9.0B
FY23 R9.1B
FY24 R9.1B
FY25 R8.9B
Net income −3.4%/yr
FY21 R1.7B
FY22 R1.9B
FY23 R1.6B
FY24 R1.5B
FY25 R1.5B
Character of growth · EPS growth decomposed (2014-2025) +6.9 % p.a.
Revenue per share +9.9 pp

of which total revenue +12.5 pp · buybacks/dilution −2.6 pp

EBIT margin −2.8 pp
Tax rate −0.1 pp
Residual (interest, one-offs) −0.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Italtile Limited Fair Value". https://www.fairvalue-calculator.com/stock/ITE

Peer Group

Home Improvement Retail · 36 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside +156% · Top 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%

Valuation Multiples vs Home Improvement Retail median · lower = cheaper

P/E (TTM) 9.0× · Cheaper than 75% of peers
P/B 1.52× · Pricier than median
P/S (TTM) 1.40× · Pricier than 75% of peers
P/FCF 1.9× · Pricier than median
EV/EBITDA 4.4× · Cheaper than 75% of peers
PEG 45.21× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 25
FUTURE 0 · sector 11
PAST 73 · sector 30
HEALTH 100 · sector 95
DIVIDEND 1 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Home Improvement Retail stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
The Home Depot, Inc HD $337.74 $236.85 -30%
Lowe's Companies, Inc LOW $209.66 $186.32 -11%
Wesfarmers Limited WES A$92.80 A$50.50 -46%
Floor & Decor Holdings FND $56.40 $32.81 -42%
Mr D.I.Y. Group 5296 1.70 MYR 1.47 MYR -14%
Home Product Center Public Company HMPROR 6.65 THB 6.31 THB -5%
Siam Global House Public Company GLOBAL 7.50 THB 5.96 THB -21%
Dohome Public Company DOHOME 3.86 THB 2.90 THB -25%
Haverty Furniture Companies, Inc HVT $25.66 $22.53 -12%
Test-Rite International Co 2908 22.00 TWD 9.18 TWD -58%

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Frequently asked questions

Is Italtile Limited (ITE) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of R24.80 versus a price of R9.70, about +156% (undervalued).
What is the fair value of ITE?
Our model-based fair value for Italtile Limited is R24.80 (as of Jul 14, 2026), built from audited fundamentals. The current price is R9.70.
What is the quality score of ITE?
Italtile Limited has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Italtile Limited (ITE)?
Italtile Limited reported trailing-twelve-month revenue of about 8.8B ZAR (latest available figure, as of Jul 14, 2026).
What is the net profit margin of ITE?
The net profit margin of Italtile Limited is about 15.7%, meaning it keeps roughly 15.7% of revenue as net income. Based on the latest reported figures.
Does Italtile Limited pay a dividend?
Italtile Limited currently shows a dividend yield of about 0.05% relative to its recent price (as of Jul 14, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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