What Mr Price Group Limited's (JSE:MRP) P/E Is Not Telling You
Apr 27
South African (JSE) Specialty Stores Industry Analysis
UpdatedMay 04, 2024
DataAggregated Company Financials
Companies15
- 7D4.3%
- 3M-4.9%
- 1Y11.1%
- YTD-1.3%
Pepkor Holdings is up 5.4%, leading the way for the Specialty Stores industry, which has gained 4.3%. This takes the industry's 12 month performance to a gain of 11%. As for the next few years, earnings are expected to grow by 25% per annum.
Industry Valuation and Performance
Has the South African Specialty Stores Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 04 May 2024 | R229.2b | R421.0b | R14.9b | 7x | 15.4x | 0.5x |
| Mon, 01 Apr 2024 | R220.8b | R421.0b | R14.9b | 6.5x | 14.8x | 0.5x |
| Wed, 28 Feb 2024 | R222.6b | R410.8b | R15.5b | 5.9x | 14.3x | 0.5x |
| Fri, 26 Jan 2024 | R231.0b | R410.9b | R15.7b | 5.8x | 14.7x | 0.6x |
| Sun, 24 Dec 2023 | R221.4b | R410.9b | R15.7b | 5.9x | 14.1x | 0.5x |
| Tue, 21 Nov 2023 | R224.0b | R402.9b | R22.9b | 7.3x | 9.8x | 0.6x |
| Thu, 19 Oct 2023 | R200.4b | R399.9b | R23.1b | 7.2x | 8.7x | 0.5x |
| Sat, 16 Sep 2023 | R199.5b | R399.4b | R23.1b | 7.1x | 8.6x | 0.5x |
| Mon, 14 Aug 2023 | R214.1b | R382.9b | R23.4b | 7.1x | 9.1x | 0.6x |
| Wed, 12 Jul 2023 | R206.4b | R382.9b | R23.4b | 6.8x | 8.8x | 0.5x |
| Fri, 09 Jun 2023 | R195.1b | R375.0b | R24.1b | 7.1x | 8.1x | 0.5x |
| Sun, 07 May 2023 | R198.7b | R373.1b | R24.5b | 6.7x | 8.1x | 0.5x |
| Tue, 04 Apr 2023 | R206.9b | R372.1b | R24.6b | 7.7x | 8.4x | 0.6x |
| Thu, 02 Mar 2023 | R220.7b | R369.7b | R24.4b | 7.9x | 9x | 0.6x |
| Sat, 28 Jan 2023 | R235.0b | R354.6b | R24.0b | 8.1x | 9.8x | 0.7x |
| Mon, 26 Dec 2022 | R224.3b | R354.4b | R24.0b | 6.8x | 9.3x | 0.6x |
| Wed, 23 Nov 2022 | R244.1b | R350.9b | R23.4b | 6.9x | 10.4x | 0.7x |
| Fri, 21 Oct 2022 | R234.8b | R346.4b | R22.9b | 6.6x | 10.3x | 0.7x |
| Sun, 18 Sep 2022 | R245.2b | R345.7b | R22.8b | 7.4x | 10.7x | 0.7x |
| Tue, 16 Aug 2022 | R254.3b | R335.9b | R21.3b | 8.6x | 11.9x | 0.8x |
| Thu, 14 Jul 2022 | R227.8b | R335.9b | R21.3b | 7.9x | 10.7x | 0.7x |
| Sat, 11 Jun 2022 | R247.1b | R328.6b | R16.1b | 8.1x | 15.3x | 0.8x |
| Mon, 09 May 2022 | R245.3b | R328.4b | R16.1b | 8.2x | 15.2x | 0.7x |
| Wed, 06 Apr 2022 | R265.8b | R327.8b | R16.1b | 8.6x | 16.5x | 0.8x |
| Fri, 04 Mar 2022 | R265.9b | R328.4b | R16.1b | 10x | 16.5x | 0.8x |
| Sun, 30 Jan 2022 | R257.7b | R326.1b | R15.0b | 10.5x | 17.2x | 0.8x |
| Tue, 28 Dec 2021 | R250.3b | R326.1b | R14.9b | 10x | 16.8x | 0.8x |
| Thu, 25 Nov 2021 | R254.0b | R311.5b | R7.8b | 9.6x | 32.7x | 0.8x |
| Sat, 23 Oct 2021 | R263.7b | R305.0b | R7.2b | 8.9x | 36.8x | 0.9x |
| Mon, 20 Sep 2021 | R255.9b | R303.0b | R6.9b | 10.6x | 37.2x | 0.8x |
| Wed, 18 Aug 2021 | R284.1b | R303.0b | R6.9b | 9.8x | 41.3x | 0.9x |
| Wed, 02 Jun 2021 | R260.0b | R293.6b | R3.7b | 13.8x | 70.2x | 0.9x |
Price to Earnings Ratio
70.2x
Current Industry PE
- Investors are pessimistic on the South African Specialty Retail industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 15.4x which is lower than its 3-year average PE of 17.3x.
- The industry is trading close to its 3-year average PS ratio of 0.68x.
Past Earnings Growth
- The earnings for companies in the Specialty Retail industry have grown 59% per year over the last three years.
- Revenues for these companies have grown 13% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the South African Consumer Discretionary industry?
| ZA Market | 1.90% | |
| Consumer Discretionary | 3.48% | |
| Specialty Stores | 4.34% | |
| Apparel Retail | 5.00% | |
| Automotive Retail | 4.90% | |
| Home Furnishing Retail | 0.51% | |
| Computer and Electronics Retail | 0% | |
| Specialty Stores | 0% | |
| Home Improvement Retail | -3.18% | |
Industry PE
- Investors are most optimistic about the Apparel Retail industry even though it's trading below its 3-year average PE ratio of 38.3x.
- Analysts are expecting annual earnings growth of 26.8%, which is higher than its past year's earnings decline of 17.1% per year.
- Investors are most pessimistic about the Home Furnishing Retail industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 5.9x.
Forecasted Growth
- Analysts are most optimistic on the Apparel Retail industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 17% per year.
- In contrast, the Automotive Retail industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| PPH Pepkor Holdings | R18.46 | 5.4% +R3.5b | 11.9% | PS0.8x | |
| MRP Mr Price Group | R180.85 | 7.0% +R3.1b | 22.7% | PE15.6x | |
| TFG Foschini Group | R99.84 | 3.8% +R1.2b | 11.1% | PE11.5x | |
| MTH Motus Holdings | R85.53 | 4.6% +R658.0m | -7.4% | PE5.1x | |
| WBC We Buy Cars Holdings | R20.77 | 8.1% +R645.4m | n/a | n/a |