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Shoprite Holdings

DB:HY7
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HY7
DB
ZAR99B
Market Cap
  1. Home
  2. DE
  3. Consumer Retailing
Company description

Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business. The last earnings update was 52 days ago. More info.


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HY7 Share Price and Events
7 Day Returns
4.1%
DB:HY7
-0.5%
Europe Consumer Retailing
2.4%
DE Market
1 Year Returns
-33.2%
DB:HY7
0.9%
Europe Consumer Retailing
-6.2%
DE Market
HY7 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Shoprite Holdings (HY7) 4.1% 13.4% -6.9% -33.2% 7.3% -5.6%
Europe Consumer Retailing -0.5% -0.5% 2.2% 0.9% -4.5% -8.5%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • HY7 underperformed the Consumer Retailing industry which returned 0.9% over the past year.
  • HY7 underperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
HY7
Industry
5yr Volatility vs Market
Related Companies

HY7 Value

 Is Shoprite Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Shoprite Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Shoprite Holdings.

DB:HY7 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HY7
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.465 (1 + (1- 28%) (14.1%))
0.673
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:HY7 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Shoprite Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:HY7 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 5%)
2019 94.00 Analyst x1 89.53
2020 2,533.00 Analyst x2 2,297.68
2021 2,164.00 Analyst x2 1,869.56
2022 6,059.00 Analyst x1 4,985.51
2023 8,803.09 Est @ 45.29% 6,898.76
2024 11,599.92 Est @ 31.77% 8,658.02
2025 14,187.64 Est @ 22.31% 10,085.58
2026 16,412.85 Est @ 15.68% 11,112.25
2027 18,226.02 Est @ 11.05% 11,752.68
2028 19,647.91 Est @ 7.8% 12,066.71
Present value of next 10 years cash flows ZAR69,816.28
DB:HY7 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ZAR19,647.91 × (1 + 0.23%) ÷ (5% – 0.23%)
ZAR413,018.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR413,018.27 ÷ (1 + 5%)10
ZAR253,654.01
DB:HY7 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR69,816.28 + ZAR253,654.01
ZAR323,470.29
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR323,470.29 / 554.33
ZAR583.53
DB:HY7 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HY7 represents 0.0619x of JSE:SHP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.0619x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 583.53 x 0.0619
€36.12
Value per share (EUR) From above. €36.12
Current discount Discount to share price of €11.03
= -1 x (€11.03 - €36.12) / €36.12
69.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Shoprite Holdings is available for.
Intrinsic value
>50%
Share price is €11.03 vs Future cash flow value of €36.12
Current Discount Checks
For Shoprite Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Shoprite Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Shoprite Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Shoprite Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Shoprite Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HY7 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-30) in ZAR ZAR8.20
JSE:SHP Share Price ** JSE (2019-04-18) in ZAR ZAR178.2
Europe Consumer Retailing Industry PE Ratio Median Figure of 32 Publicly-Listed Consumer Retailing Companies 19.38x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Shoprite Holdings.

DB:HY7 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:SHP Share Price ÷ EPS (both in ZAR)

= 178.2 ÷ 8.20

21.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shoprite Holdings is overvalued based on earnings compared to the Europe Consumer Retailing industry average.
  • Shoprite Holdings is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Shoprite Holdings's expected growth come at a high price?
Raw Data
DB:HY7 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
10.9%per year
Europe Consumer Retailing Industry PEG Ratio Median Figure of 24 Publicly-Listed Consumer Retailing Companies 1.71x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:HY7 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.74x ÷ 10.9%

1.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shoprite Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Shoprite Holdings's assets?
Raw Data
DB:HY7 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-30) in ZAR ZAR47.01
JSE:SHP Share Price * JSE (2019-04-18) in ZAR ZAR178.2
Europe Consumer Retailing Industry PB Ratio Median Figure of 41 Publicly-Listed Consumer Retailing Companies 1.58x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:HY7 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:SHP Share Price ÷ Book Value per Share (both in ZAR)

= 178.2 ÷ 47.01

3.79x

* Primary Listing of Shoprite Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Shoprite Holdings is overvalued based on assets compared to the Europe Consumer Retailing industry average.
X
Value checks
We assess Shoprite Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Shoprite Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HY7 Future Performance

 How is Shoprite Holdings expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Shoprite Holdings expected to grow at an attractive rate?
  • Shoprite Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Shoprite Holdings's earnings growth is positive but not above the Germany market average.
  • Shoprite Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HY7 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HY7 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 10.9%
DB:HY7 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 7.3%
Europe Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 12%
Europe Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HY7 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HY7 Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 185,795 10,455 6,921 1
2021-06-30 173,279 7,629 5,849 10
2020-06-30 160,883 7,263 5,306 11
2019-06-30 149,332 6,894 4,778 11
DB:HY7 Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-12-30 145,439 7,695 4,547
2018-09-30 145,373 9,047 4,874
2018-07-01 145,306 10,398 5,201
2018-04-01 145,297 8,161 5,552
2017-12-31 145,407 5,923 5,902
2017-09-30 143,204 5,929 5,665
2017-07-02 141,000 5,934 5,428
2017-04-02 139,903 5,353 5,256
2017-01-01 138,806 4,771 5,084
2016-10-01 134,417 4,183 4,964
2016-07-03 130,028 3,595 4,844
2016-04-03 124,386 4,890 4,576

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Shoprite Holdings's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • Shoprite Holdings's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HY7 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Shoprite Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HY7 Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 10.57 11.76 9.82 7.00
2020-06-30 9.59 10.54 9.05 8.00
2019-06-30 8.30 8.82 7.57 8.00
DB:HY7 Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-12-30 8.20
2018-09-30 8.77
2018-07-01 9.34
2018-04-01 9.99
2017-12-31 10.65
2017-09-30 10.33
2017-07-02 10.00
2017-04-02 9.75
2017-01-01 9.50
2016-10-01 9.28
2016-07-03 9.06
2016-04-03 8.56

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Shoprite Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Shoprite Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Shoprite Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HY7 Past Performance

  How has Shoprite Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Shoprite Holdings's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Shoprite Holdings's year on year earnings growth rate has been positive over the past 5 years.
  • Shoprite Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Shoprite Holdings's 1-year earnings growth is negative, it can't be compared to the Europe Consumer Retailing industry average.
Earnings and Revenue History
Shoprite Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Shoprite Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HY7 Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-30 145,439.00 4,547.00 18,000.00
2018-09-30 145,372.50 4,874.00 17,750.00
2018-07-01 145,306.00 5,201.00 17,500.00
2018-04-01 145,297.00 5,551.50 17,343.00
2017-12-31 145,407.00 5,902.00 17,186.00
2017-09-30 143,203.50 5,665.00 16,908.50
2017-07-02 141,000.00 5,428.00 16,631.00
2017-04-02 139,903.00 5,256.00 15,222.50
2017-01-01 138,806.00 5,084.00 13,814.00
2016-10-01 134,417.00 4,964.00 13,399.50
2016-07-03 130,028.00 4,844.00 12,985.00
2016-04-03 124,386.00 4,575.50 12,788.00
2015-12-31 118,744.00 4,336.00 12,360.00
2015-09-30 116,219.00 4,230.00 12,072.50
2015-06-30 113,694.00 4,124.00 11,785.00
2015-03-31 111,138.50 4,009.00 11,416.00
2014-12-31 108,583.00 3,894.00 11,047.00
2014-09-30 105,393.50 3,812.00 10,735.50
2014-06-30 102,204.00 3,730.00 10,424.00
2014-03-31 99,589.35 3,726.16 10,118.55
2013-12-31 96,974.71 3,722.33 9,813.10
2013-09-30 94,715.85 3,659.66 9,607.55
2013-06-30 92,457.00 3,597.00 9,402.00
2013-03-31 90,353.16 3,450.67 9,199.02
2012-12-31 88,249.32 3,304.34 8,996.05
2012-09-30 85,489.95 3,165.45 8,754.82
2012-06-30 82,730.59 3,026.56 8,513.58

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Shoprite Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Shoprite Holdings used its assets more efficiently than the Europe Consumer Retailing industry average last year based on Return on Assets.
  • Shoprite Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Shoprite Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Shoprite Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HY7 Health

 How is Shoprite Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Shoprite Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Shoprite Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Shoprite Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Shoprite Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Shoprite Holdings Company Filings, last reported 3 months ago.

DB:HY7 Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-30 26,148.00 13,930.00 9,425.00
2018-09-30 26,148.00 13,930.00 9,425.00
2018-07-01 27,477.00 10,972.00 9,065.00
2018-04-01 27,477.00 10,972.00 9,065.00
2017-12-31 26,416.00 11,098.00 9,747.00
2017-09-30 26,416.00 11,098.00 9,747.00
2017-07-02 27,749.00 8,332.00 7,767.00
2017-04-02 27,749.00 8,332.00 7,767.00
2017-01-01 21,532.00 8,184.00 7,586.00
2016-10-01 21,532.00 8,184.00 7,586.00
2016-07-03 21,139.00 8,089.00 6,784.00
2016-04-03 21,403.00 8,134.00 6,784.00
2015-12-31 20,827.00 5,111.00 8,254.00
2015-09-30 20,827.00 5,111.00 8,254.00
2015-06-30 19,160.00 4,879.00 7,061.00
2015-03-31 19,160.00 4,879.00 7,061.00
2014-12-31 18,318.00 5,010.00 8,758.00
2014-09-30 18,318.00 5,010.00 8,758.00
2014-06-30 17,283.00 4,773.00 8,161.00
2014-03-31 17,283.00 4,773.00 8,161.00
2013-12-31 16,021.72 4,392.84 7,752.74
2013-09-30 16,021.72 4,392.84 7,752.74
2013-06-30 15,252.00 4,202.00 6,122.00
2013-03-31 15,252.00 4,202.00 6,122.00
2012-12-31 13,477.43 4,355.94 7,401.02
2012-09-30 13,477.43 4,355.94 7,401.02
2012-06-30 12,807.72 4,065.96 7,939.33
  • Shoprite Holdings's level of debt (53.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (27.4% vs 53.3% today).
  • Debt is well covered by operating cash flow (55.2%, greater than 20% of total debt).
  • Shoprite Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Shoprite Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Shoprite Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HY7 Dividends

 What is Shoprite Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.72%
Current annual income from Shoprite Holdings dividends. Estimated to be 2.64% next year.
If you bought €2,000 of Shoprite Holdings shares you are expected to receive €54 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Shoprite Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • Shoprite Holdings's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HY7 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Europe Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 3.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HY7 Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 5.27 10.00
2020-06-30 4.72 11.00
2019-06-30 4.17 11.00
DB:HY7 Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2018-10-01 4.840 2.715
2018-09-28 4.840 2.525
2018-08-21 4.840 2.429
2017-08-23 5.040 2.227
2016-09-30 4.520 2.353
2016-08-23 4.520 2.382
2015-08-18 3.860 2.441
2015-02-24 3.610 2.183
2014-08-21 3.500 2.216
2014-02-26 3.470 2.182
2013-08-20 3.380 2.073
2013-02-19 3.170 1.823
2012-08-21 3.030 1.698
2012-02-21 0.000 0.000
2011-10-03 2.530 1.986
2011-08-23 2.530 2.286
2010-08-25 2.270 2.305
2010-02-23 2.100 2.593
2009-08-24 2.000 3.128
2009-04-20 1.400 2.543

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Shoprite Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Shoprite Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Shoprite Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Shoprite Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HY7 Management

 What is the CEO of Shoprite Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Pieter Engelbrecht
COMPENSATION ZAR20,364,000
AGE 49
TENURE AS CEO 2.3 years
CEO Bio

Mr. Pieter C. Engelbrecht, BCompt Hons CA(SA), has been the Chief Executive Officer and Executive Director of Shoprite Holdings Limited since January 1, 2017. Mr. Engelbrecht served as the Chief Operating Officer of Shoprite Holdings Ltd. since 2007. Mr. Engelbrecht focusing on driving down costs while continuing the rapid expansion of the business. On the international front, he has been instrumental in the establishment of Shoprite’s position as the Number One retailer in Africa. Mr. Engelbrecht is passionate about all aspects retail and is committed to growing the Shoprite Group through a relentless focus on lowering prices for consumers. Mr. Engelbrecht appointed as the Chief Operating Officer of Shoprite Checkers (Pty) Ltd in 2005 and served as Personal Assistant to Chief Executive Officer of Shoprite Holdings Ltd. He serves as a Director of Shoprite Checkers (Pty) Ltd and various other group subsidiaries. He joined Coopers & Lybrand in 1993, gaining experience through various roles in the firm’s Auditing and Corporate Finance Divisions. Mr Engelbrecht subsequently joined Shoprite Checkers (Pty) Ltd in 1997, spending 10 years leading the project office, establishing new brands into multi-billion rand businesses. During this time, he launched MoneyMarket, USave and LiquorShop and led the acquisitions of Computicket and Transpharm Pharmaceutical Wholesalers. He was appointed to the Board of Directors of Shoprite Checkers (Pty) Ltd in 2003. A Chartered Accountant by profession, Mr Engelbrecht holds an Honours degree in Accounting Science from UNISA and a Bachelor of Commerce in Accounting from Stellenbosch University.

CEO Compensation
  • Pieter's compensation has been consistent with company performance over the past year.
  • Pieter's remuneration is lower than average for companies of similar size in Germany.
Management Team

Pieter Engelbrecht

TITLE
CEO & Executive Director
COMPENSATION
ZAR20M
AGE
49
TENURE
2.3 yrs

Ram Harisunker

TITLE
Divisional Manager & Executive Director
COMPENSATION
ZAR6M
AGE
66

Anton de Bruyn

TITLE
CFO & Executive Director
AGE
46
TENURE
0.8 yrs

P. du Preez

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Shoprite Holdings board of directors in years:

2.9
Average Tenure
60
Average Age
  • The average tenure for the Shoprite Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Christo Wiese

TITLE
Non-Executive Chairman
COMPENSATION
ZAR570K
AGE
77
TENURE
28.3 yrs

Johannes Basson

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR499K
AGE
66
TENURE
0.5 yrs

Pieter Engelbrecht

TITLE
CEO & Executive Director
COMPENSATION
ZAR20M
AGE
49
TENURE
2.3 yrs

Ram Harisunker

TITLE
Divisional Manager & Executive Director
COMPENSATION
ZAR6M
AGE
66
TENURE
16.4 yrs

Anton de Bruyn

TITLE
CFO & Executive Director
AGE
46
TENURE
0.8 yrs

Chr Kieswetter

TITLE
Lead Independent Director
COMPENSATION
ZAR324K
AGE
60
TENURE
3.5 yrs

Anna Theresa Mokgokong

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR270K
AGE
61
TENURE
6.7 yrs

Joseph Rock

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR364K
AGE
48
TENURE
6.9 yrs

Shirley Zinn

TITLE
Independent Non-Executive Director
AGE
56
TENURE
0.7 yrs

A. le Roux

TITLE
Independent Non-Executive Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
02. Nov 18 Buy Pieter Engelbrecht Individual 01. Nov 18 01. Nov 18 5,791 €10.98 €63,590
21. May 18 Sell Marius Bosman Individual 16. May 18 16. May 18 -6,750 €16.32 €-109,935
X
Management checks
We assess Shoprite Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Shoprite Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HY7 News

Simply Wall St News

HY7 Company Info

Description

Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, furniture, bedding, loose carpeting, home entertainment, and floor covering products; and cosmetics, liquors, electrical and household appliances, and soft furnishings. As of July 1, 2018, the company operated 639 Shoprite supermarkets; 221 Checkers supermarkets; 37 Checkers Hyper supermarkets; 400 Usave supermarkets; 430 OK Furniture outlets; 54 House & Home outlets; 440 liquor shops, including 260 under the Shoprite LiquorShop and 180 under the Checkers LiquorShop brand names; and 418 franchise stores under the OK Foods, OK MiniMark, OK Express, Megasave, OK Liquor, and Sentra brand names. It also operates 163 MediRite pharmacies within stores; and 53 Hungry Lion outlets. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. Further, it operates under the OK Power Express brand name. Additionally, the company provides financial, ticketing, and car rental and accommodation services; and stadium management, capacity management, travel management, and access control solutions. It also supplies products to hospitality and catering industries. The company operates in 15 countries across Africa and the Indian Ocean Islands. Shoprite Holdings Limited was founded in 1979 and is based in Brackenfell, South Africa.

Details
Name: Shoprite Holdings Limited
HY7
Exchange: DB
Founded: 1979
ZAR6,240,781,746
554,329,386
Website: http://www.shopriteholdings.co.za
Address: Shoprite Holdings Limited
Cnr William Dabbs and Old Paarl Roads,
Brackenfell,
Western Cape, 7560,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE SHP Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 16. Jul 1992
OTCPK SRHG.F Ordinary Shares Pink Sheets LLC US USD 16. Jul 1992
DB HY7 Ordinary Shares Deutsche Boerse AG DE EUR 16. Jul 1992
NMSE SRH Ordinary Shares Namibian Stock Exchange NA ZAR 16. Jul 1992
LUSE SHOPRITE Ordinary Shares Lusaka Stock Exchange ZM ZMW 16. Jul 1992
OTCPK SRGH.Y SPONSORED ADR Pink Sheets LLC US USD 23. Oct 2008
Number of employees
Current staff
Staff numbers
147,478
Shoprite Holdings employees.
Industry
Food Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 21:28
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/30
Last annual earnings reported: 2018/07/01


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.