Returns On Capital At HomeChoice International (JSE:HIL) Paint A Concerning Picture
Apr 17
South African (JSE) Specialty Stores Industry Analysis
UpdatedApr 22, 2024
DataAggregated Company Financials
Companies15
- 7D-2.9%
- 3M-5.0%
- 1Y-0.6%
- YTD-8.5%
Over the last 7 days, the Specialty Stores industry has dropped 2.9%, driven by a pullback from Pepkor Holdings of 3.7%. Meanwhile, HomeChoice International actually outperformed within the industry, gaining 11% in the last week. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 25% annually.
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 |
|---|---|---|---|---|---|---|
| Mon, 22 Apr 2024 | R212.7b | R421.0b | R14.9b | 6.9x | 14.3x | 0.5x |
| Wed, 20 Mar 2024 | R218.6b | R421.0b | R15.0b | 5.9x | 14.6x | 0.5x |
| Fri, 16 Feb 2024 | R226.5b | R410.9b | R15.7b | 5.9x | 14.4x | 0.6x |
| Sun, 14 Jan 2024 | R224.0b | R410.9b | R15.7b | 6x | 14.3x | 0.5x |
| Tue, 12 Dec 2023 | R218.5b | R410.9b | R15.7b | 5.9x | 13.9x | 0.5x |
| Thu, 09 Nov 2023 | R219.6b | R399.9b | R23.1b | 7.4x | 9.5x | 0.5x |
| Sat, 07 Oct 2023 | R198.2b | R399.4b | R23.1b | 6.6x | 8.6x | 0.5x |
| Mon, 04 Sep 2023 | R211.7b | R399.7b | R23.4b | 6.8x | 9.1x | 0.5x |
| Wed, 02 Aug 2023 | R215.8b | R382.9b | R23.4b | 7.2x | 9.2x | 0.6x |
| Fri, 30 Jun 2023 | R201.0b | R382.9b | R23.4b | 6.9x | 8.6x | 0.5x |
| Sun, 28 May 2023 | R187.0b | R373.2b | R24.5b | 6.5x | 7.6x | 0.5x |
| Tue, 25 Apr 2023 | R205.5b | R372.5b | R24.6b | 6.9x | 8.4x | 0.6x |
| Thu, 23 Mar 2023 | R200.7b | R372.1b | R24.6b | 7.7x | 8.2x | 0.5x |
| Sat, 18 Feb 2023 | R233.3b | R354.6b | R24.0b | 8.3x | 9.7x | 0.7x |
| Mon, 16 Jan 2023 | R233.0b | R354.6b | R24.0b | 7.4x | 9.7x | 0.7x |
| Wed, 14 Dec 2022 | R224.4b | R354.4b | R24.0b | 7x | 9.3x | 0.6x |
| Fri, 11 Nov 2022 | R250.5b | R346.4b | R22.9b | 6.9x | 10.9x | 0.7x |
| Sun, 09 Oct 2022 | R238.5b | R345.8b | R22.8b | 7.4x | 10.5x | 0.7x |
| Tue, 06 Sep 2022 | R250.6b | R345.7b | R22.8b | 7.6x | 11x | 0.7x |
| Thu, 04 Aug 2022 | R234.1b | R335.9b | R21.3b | 8.3x | 11x | 0.7x |
| Sat, 02 Jul 2022 | R227.2b | R335.9b | R21.3b | 8.3x | 10.7x | 0.7x |
| Mon, 30 May 2022 | R255.2b | R328.6b | R16.1b | 8.2x | 15.8x | 0.8x |
| Wed, 27 Apr 2022 | R267.2b | R327.8b | R16.1b | 8.4x | 16.6x | 0.8x |
| Fri, 25 Mar 2022 | R259.3b | R327.6b | R16.0b | 9.5x | 16.2x | 0.8x |
| Sun, 20 Feb 2022 | R273.8b | R326.1b | R15.0b | 10.7x | 18.2x | 0.8x |
| Tue, 18 Jan 2022 | R270.1b | R326.1b | R15.0b | 10.4x | 18x | 0.8x |
| Thu, 16 Dec 2021 | R251.5b | R326.1b | R14.9b | 10x | 16.9x | 0.8x |
| Sat, 13 Nov 2021 | R271.4b | R305.0b | R7.2b | 9.6x | 37.9x | 0.9x |
| Mon, 11 Oct 2021 | R257.8b | R303.1b | R7.0b | 9.8x | 36.8x | 0.9x |
| Wed, 08 Sep 2021 | R266.1b | R303.0b | R6.9b | 10.5x | 38.7x | 0.9x |
| Fri, 06 Aug 2021 | R269.8b | R303.0b | R6.9b | 9.9x | 39.2x | 0.9x |
| Mon, 10 May 2021 | R221.9b | R293.6b | R3.7b | 13.9x | 59.9x | 0.8x |
Price to Earnings Ratio
59.9x
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 14.3x which is lower than its 3-year average PE of 18.5x.
- 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 | -2.11% | |
| Consumer Discretionary | -1.41% | |
| Specialty Stores | -2.91% | |
| Home Furnishing Retail | 5.14% | |
| Computer and Electronics Retail | 0% | |
| Specialty Stores | 0% | |
| Home Improvement Retail | -0.98% | |
| Apparel Retail | -3.18% | |
| Automotive Retail | -3.52% | |
Industry PE
- Investors are most optimistic about the Apparel Retail industry even though it's trading below its 3-year average PE ratio of 29.8x.
- Analysts are expecting annual earnings growth of 26.7%, 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 | |
|---|---|---|---|---|---|
| TRU Truworths International | R73.58 | 1.8% +R479.0m | 34.5% | PE8.1x | |
| HIL HomeChoice International | R25.00 | 11.2% +R261.8m | 25.1% | PE7.8x | |
| CSB Cashbuild | R143.50 | 6.1% +R174.0m | -18.5% | PS0.3x | |
| CMH Combined Motor Holdings | R25.75 | 3.0% +R56.1m | -9.6% | PE4.6x |
