Board Change • May 21
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Announcement • Sep 10
Egypt Free Shops Co. announces Annual dividend, payable on September 30, 2025 Egypt Free Shops Co. announced Annual dividend of EGP 3.3345 per share payable on September 30, 2025, ex-date on September 28, 2025 and record date on September 29, 2025. Announcement • Aug 07
Egypt Free Shops Co., Annual General Meeting, Aug 31, 2025 Egypt Free Shops Co., Annual General Meeting, Aug 31, 2025, at 15:00 Egypt Standard Time. Location: cairo Egypt Board Change • May 14
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. No independent directors (12 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Oct 08
Upcoming dividend of ج.م2.87 per share Eligible shareholders must have bought the stock before 15 October 2024. Payment date: 17 October 2024. Payout ratio is on the higher end at 100%, and the cash payout ratio is above 100%. Trailing yield: 8.9%. Within top quartile of Egyptian dividend payers (5.9%). Higher than average of industry peers (3.3%). New Risk • Oct 02
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 116% Dividend yield: 8.6% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 116% Minor Risks Share price has been volatile over the past 3 months (7.6% average weekly change). Market cap is less than US$100m (ج.م3.14b market cap, or US$65.0m). New Risk • Sep 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Egyptian stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (110% cash payout ratio). Share price has been volatile over the past 3 months (7.4% average weekly change). Market cap is less than US$100m (ج.م3.32b market cap, or US$68.5m). Valuation Update With 7 Day Price Move • Sep 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ج.م32.77, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 10x in the Specialty Retail industry in Africa. Total returns to shareholders of 509% over the past three years. Valuation Update With 7 Day Price Move • Aug 29
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ج.م30.15, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 8x in the Specialty Retail industry in Africa. Total returns to shareholders of 406% over the past three years. Reported Earnings • Aug 10
Full year 2024 earnings released Full year 2024 results: Revenue: ج.م1.20b (up 3.3% from FY 2023). Net income: ج.م350.4m (up 39% from FY 2023). Profit margin: 29% (up from 22% in FY 2023). The increase in margin was primarily driven by lower expenses. Announcement • Aug 08
Egypt Free Shops Co., Annual General Meeting, Sep 18, 2024 Egypt Free Shops Co., Annual General Meeting, Sep 18, 2024, at 15:00 Egypt Standard Time. New Risk • Jul 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Egyptian stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (35% accrual ratio). Minor Risks Dividend is not well covered by cash flows (120% cash payout ratio). Share price has been volatile over the past 3 months (7.1% average weekly change). Market cap is less than US$100m (ج.م2.39b market cap, or US$49.2m). Reported Earnings • Jun 04
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: ج.م184.7m (down 38% from 3Q 2023). Net income: ج.م67.5m (down 19% from 3Q 2023). Profit margin: 37% (up from 28% in 3Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has increased by 58% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • May 02
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ج.م25.82, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 8x in the Specialty Retail industry in Africa. Total returns to shareholders of 447% over the past three years. Reported Earnings • Feb 29
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: ج.م241.1m (down 22% from 2Q 2023). Net income: ج.م65.0m (down 17% from 2Q 2023). Profit margin: 27% (up from 26% in 2Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has increased by 63% per year, which means it is tracking significantly ahead of earnings growth. Reported Earnings • Nov 29
First quarter 2024 earnings released First quarter 2024 results: Revenue: ج.م474.4m (up 104% from 1Q 2023). Net income: ج.م119.3m (up 184% from 1Q 2023). Profit margin: 25% (up from 18% in 1Q 2023). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Nov 23
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ج.م28.80, the stock trades at a trailing P/E ratio of 10.7x. Average trailing P/E is 8x in the Specialty Retail industry in Africa. Total returns to shareholders of 632% over the past three years. Valuation Update With 7 Day Price Move • Nov 08
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ج.م24.12, the stock trades at a trailing P/E ratio of 9x. Average trailing P/E is 8x in the Specialty Retail industry in Africa. Total returns to shareholders of 502% over the past three years. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ج.م19.97, the stock trades at a trailing P/E ratio of 7.4x. Average trailing P/E is 7x in the Specialty Retail industry in Africa. Total returns to shareholders of 430% over the past three years. Buying Opportunity • Sep 24
Now 26% undervalued Over the last 90 days, the stock is up 14%. The fair value is estimated to be ج.م27.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has grown by 39%. Upcoming Dividend • Sep 17
Upcoming dividend of ج.م2.73 per share at 13% yield Eligible shareholders must have bought the stock before 24 September 2023. Payment date: 26 September 2023. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 13%. Within top quartile of Egyptian dividend payers (7.8%). Higher than average of industry peers (5.3%). Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to ج.م21.46, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 7x in the Specialty Retail industry in Africa. Total returns to shareholders of 387% over the past three years. New Risk • Aug 15
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (25% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (ج.م1.65b market cap, or US$53.4m). New Risk • Jun 29
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Egyptian stocks, typically moving 6.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.6% average weekly change). Market cap is less than US$100m (ج.م1.65b market cap, or US$53.4m). Valuation Update With 7 Day Price Move • May 31
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ج.م15.96, the stock trades at a trailing P/E ratio of 6.9x. Average trailing P/E is 6x in the Specialty Retail industry in Africa. Total returns to shareholders of 315% over the past three years. Reported Earnings • May 30
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: ج.م297.6m (up 61% from 3Q 2022). Net income: ج.م83.4m (up 176% from 3Q 2022). Profit margin: 28% (up from 16% in 3Q 2022). The increase in margin was driven by higher revenue. Reported Earnings • Nov 29
First quarter 2023 earnings released First quarter 2023 results: Revenue: ج.م232.8m (down 1.8% from 1Q 2022). Net income: ج.م48.9m (up 22% from 1Q 2022). Profit margin: 21% (up from 17% in 1Q 2022). The increase in margin was driven by lower expenses. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment deteriorated over the past week After last week's 19% share price decline to ج.م7.95, the stock trades at a trailing P/E ratio of 5.2x. Average trailing P/E is 7x in the Specialty Retail industry in Africa. Total returns to shareholders of 91% over the past three years. Upcoming Dividend • Sep 18
Upcoming dividend of ج.م1.52 per share Eligible shareholders must have bought the stock before 25 September 2022. Payment date: 27 September 2022. Payout ratio is on the higher end at 79%, and the cash payout ratio is above 100%. Trailing yield: 12%. Within top quartile of Egyptian dividend payers (10%). Higher than average of industry peers (4.4%). Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Buying Opportunity • Mar 22
Now 23% undervalued Over the last 90 days, the stock is up 5.7%. The fair value is estimated to be ج.م11.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has been flat over the last 3 years. Valuation Update With 7 Day Price Move • Jan 25
Investor sentiment improved over the past week After last week's 19% share price gain to ج.م10.10, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 10x in the Specialty Retail industry in Africa. Total returns to shareholders of 128% over the past three years. Reported Earnings • Dec 04
First quarter 2022 earnings: Revenues in line with analyst expectations First quarter 2022 results: Revenue: ج.م237.0m (up 64% from 1Q 2021). Net income: ج.م46.6m (up 99% from 1Q 2021). Profit margin: 20% (up from 16% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Sep 22
Investor sentiment deteriorated over the past week After last week's 22% share price decline to ج.م7.15, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 10x in the Specialty Retail industry in Africa. Total returns to shareholders of 74% over the past three years. Reported Earnings • Aug 05
Full year 2021 earnings released The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ج.م692.0m (up 2.4% from FY 2020). Net income: ج.م131.9m (up 21% from FY 2020). Profit margin: 19% (up from 16% in FY 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 2% per year. Reported Earnings • Feb 12
Second quarter 2021 earnings released: EPS ج.م0.47 (vs ج.م0.40 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ج.م211.4m (up 9.2% from 2Q 2020). Net income: ج.م43.8m (up 16% from 2Q 2020). Profit margin: 21% (up from 20% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 3% per year. Is New 90 Day High Low • Feb 08
New 90-day high: ج.م6.56 The company is up 8.0% from its price of ج.م6.05 on 10 November 2020. The Egyptian market is up 13% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 20% over the same period. Is New 90 Day High Low • Jan 21
New 90-day high: ج.م6.22 The company is up 4.0% from its price of ج.م5.97 on 22 October 2020. The Egyptian market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Specialty Retail industry, which is up 17% over the same period. Is New 90 Day High Low • Sep 23
New 90-day low: ج.م5.92 The company is down 3.0% from its price of ج.م6.11 on 25 June 2020. The Egyptian market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Specialty Retail industry, which is also down 3.0% over the same period.