Clicks Group
Market Cap
R58.5b
Last Updated
2020/05/31 18:34 UTC
Data Sources
Company Financials +
Executive Summary
Clicks Group Limited engages in the retail of health, beauty, and homeware products primarily in South Africa.
Rewards
Risk Analysis
No risks detected for CLS from our risk checks.
Snowflake Analysis
Flawless balance sheet with outstanding track record.
Similar Companies
Share Price & News
How has Clicks Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CLS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.6%
CLS
3.4%
ZA Consumer Retailing
-0.7%
ZA Market
1 Year Return
22.1%
CLS
-21.3%
ZA Consumer Retailing
-23.8%
ZA Market
Return vs Industry: CLS exceeded the ZA Consumer Retailing industry which returned -21.1% over the past year.
Return vs Market: CLS exceeded the ZA Market which returned -23.6% over the past year.
Shareholder returns
| CLS | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.6% | 3.4% | -0.7% |
| 30 Day | 0.9% | -2.3% | -0.6% |
| 90 Day | -4.1% | -8.8% | -8.1% |
| 1 Year | 24.3%22.1% | -19.2%-21.3% | -13.0%-23.8% |
| 3 Year | 84.3%74.2% | -16.6%-22.2% | 0.3%-18.8% |
| 5 Year | 209.1%177.7% | 1.6%-10.5% | 9.9%-17.5% |
Price Volatility Vs. Market
How volatile is Clicks Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Clicks Group undervalued compared to its fair value and its price relative to the market?
32.6x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CLS (ZAR232.76) is trading above our estimate of fair value (ZAR105.44)
Significantly Below Fair Value: CLS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CLS is poor value based on its PE Ratio (32.6x) compared to the Consumer Retailing industry average (17.6x).
PE vs Market: CLS is poor value based on its PE Ratio (32.6x) compared to the ZA market (8x).
Price to Earnings Growth Ratio
PEG Ratio: CLS is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: CLS is overvalued based on its PB Ratio (12.1x) compared to the ZA Consumer Retailing industry average (4x).
Next Steps
Future Growth
How is Clicks Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
8.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CLS's forecast earnings growth (8.8% per year) is below the savings rate (9.5%).
Earnings vs Market: CLS's earnings (8.8% per year) are forecast to grow slower than the ZA market (19.2% per year).
High Growth Earnings: CLS's earnings are forecast to grow, but not significantly.
Revenue vs Market: CLS's revenue (9.2% per year) is forecast to grow faster than the ZA market (8.5% per year).
High Growth Revenue: CLS's revenue (9.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CLS's Return on Equity is forecast to be high in 3 years time (36.2%)
Next Steps
Past Performance
How has Clicks Group performed over the past 5 years?
13.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CLS has high quality earnings.
Growing Profit Margin: CLS's current net profit margins (5.5%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: CLS's earnings have grown by 13.9% per year over the past 5 years.
Accelerating Growth: CLS's earnings growth over the past year (16.4%) exceeds its 5-year average (13.9% per year).
Earnings vs Industry: CLS earnings growth over the past year (16.4%) exceeded the Consumer Retailing industry 6.2%.
Return on Equity
High ROE: CLS's Return on Equity (37.1%) is considered high.
Next Steps
Financial Health
How is Clicks Group's financial position?
Financial Position Analysis
Short Term Liabilities: CLS's short term assets (ZAR10.6B) exceed its short term liabilities (ZAR9.3B).
Long Term Liabilities: CLS's short term assets (ZAR10.6B) exceed its long term liabilities (ZAR1.8B).
Debt to Equity History and Analysis
Debt Level: CLS is debt free.
Reducing Debt: CLS has no debt compared to 5 years ago when its debt to equity ratio was 10.4%.
Debt Coverage: CLS has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CLS has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Clicks Group's current dividend yield, its reliability and sustainability?
1.91%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CLS's dividend (1.91%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (4.59%).
High Dividend: CLS's dividend (1.91%) is low compared to the top 25% of dividend payers in the ZA market (12.95%).
Stability and Growth of Payments
Stable Dividend: CLS is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.
Growing Dividend: CLS is not paying a notable dividend for the ZA market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: CLS is not paying a notable dividend for the ZA market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CLS's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Vikesh Ramsunder (48yo)
1.33yrs
Tenure
R24,270,500
Compensation
Mr. Vikesh Ramsunder, B.Com, MBL, has been the Chief Executive Officer and Executive Director at Clicks Group Limited since January 1, 2019. Mr. Ramsunder served as the Chief Operating Officer of the Click ...
CEO Compensation Analysis
Compensation vs Market: Vikesh's total compensation ($USD1.38M) is about average for companies of similar size in the ZA market ($USD1.21M).
Compensation vs Earnings: Insufficient data to compare Vikesh's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.33yrs | R24.27m | 0.0044% ZAR2.6m | |
| CFO & Executive Director | 9.17yrs | R26.43m | 0.012% ZAR7.1m | |
| Group HR Director & Executive Director | 12.17yrs | R18.19m | 0.030% ZAR17.5m | |
| Group Head of Legal Counsel & Company Secretary | 3.42yrs | no data | no data | |
| Group Head of Information Technology | no data | no data | no data | |
| Chief Commercial Officer | no data | no data | no data | |
| Chief Store Operations Officer | no data | no data | no data | |
| Chief Support Services Officer | no data | no data | no data | |
| Head of Retail Finance | no data | no data | no data |
6.3yrs
Average Tenure
50yo
Average Age
Experienced Management: CLS's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.33yrs | R24.27m | 0.0044% ZAR2.6m | |
| CFO & Executive Director | 9.17yrs | R26.43m | 0.012% ZAR7.1m | |
| Group HR Director & Executive Director | 12.17yrs | R18.19m | 0.030% ZAR17.5m | |
| Lead Independent Non-Executive Director | no data | R716.00k | 0.0088% ZAR5.1m | |
| Independent Non-Executive Chairman | no data | R1.30m | 0.040% ZAR23.3m | |
| Independent Non-Executive Director | 12.17yrs | R640.00k | no data | |
| Independent Non-Executive Director | 12.17yrs | R737.00k | no data | |
| Independent Non-Executive Director | 14yrs | R396.00k | 0.00080% ZAR468.4k | |
| Independent Non-Executive Director | 3.17yrs | R494.00k | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data |
10.7yrs
Average Tenure
58.5yo
Average Age
Experienced Board: CLS's board of directors are seasoned and experienced ( 10.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Clicks Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Clicks Group Limited
- Ticker: CLS
- Exchange: JSE
- Founded: 1968
- Industry: Drug Retail
- Sector: Consumer Retailing
- Market Cap: R58.545b
- Shares outstanding: 251.52m
- Website: https://www.clicksgroup.co.za
Number of Employees
Location
- Clicks Group Limited
- Cnr Searle and Pontac Streets
- Cape Town
- Western Cape
- 8001
- South Africa
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CLS | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Mar 1996 |
| CLCG.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | May 2010 |
Biography
Clicks Group Limited engages in the retail of health, beauty, and homeware products primarily in South Africa. The company operates in two segments, Retail and Distribution. It operates a retail pharmacy chain with 545 in-store pharmacies, and health and beauty retail chains for the middle to upper income markets under the Clicks name. The company also retails natural beauty products under The Body Shop name; specialty health and wellness products, including vitamins, mineral and herbal supplements, sports nutrition, and slimming products under the General Nutrition Corporation (GNC) name; and fashionable jewelry and accessories for young women and girls under the Claire’s name. In addition, it retails music and related entertainment merchandise, such as music and movie DVDs; computer games; and technology and accessories comprising headphones portable speakers, phone and tablet covers, docking stations, and tablets under the Musica name. Further, the company is involved in the wholesale and supply of pharmaceutical products to retail pharmacies, private hospitals, dispensing doctors, and retail health stores, as well as pharmaceutical manufacturers under the UPD name. It operates through a network of 870 stores that include 49 stores in Namibia, Botswana, Swaziland, and Lesotho. The company was formerly known as New Clicks Holdings Limited and changed its name to Clicks Group Limited in June 2009. Clicks Group Limited was founded in 1968 and is based in Cape Town, South Africa.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/31 18:34 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/02/29 |
| Annual Earnings | 2019/08/31 |
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.