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CLS

Clicks GroupJSE:CLS Stock Report

Market Cap

R66.4b

7D

-0.5%

1Y

19.4%

Updated

21 Oct, 2021

Data

Company Financials +
CLS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance3/6
Financial Health6/6
Dividends4/6

CLS Overview

Clicks Group Limited operates as a health and beauty retailer, and pharmaceutical distributor and wholesaler primarily in South Africa.

Clicks Group Competitors

Dis-Chem Pharmacies

JSE:DCP

R27.2b

Shoprite Holdings

JSE:SHP

R100.5b

Foschini Group

JSE:TFG

R42.4b

SPAR Group

JSE:SPP

R37.1b

Price History & Performance

Summary of all time highs, changes and price drops for Clicks Group
Historical stock prices
Current Share PriceR270.50
52 Week HighR220.16
52 Week LowR311.63
Beta0.045
1 Month Change-11.96%
3 Month Change2.56%
1 Year Change19.43%
3 Year Change55.46%
5 Year Change119.99%
Change since IPO6,925.97%

Recent News & Updates

Shareholder Returns

CLSZA Consumer RetailingZA Market
7D-0.5%2.7%0.9%
1Y19.4%29.7%19.9%

Return vs Industry: CLS underperformed the ZA Consumer Retailing industry which returned 29.7% over the past year.

Return vs Market: CLS matched the ZA Market which returned 19.9% over the past year.

Price Volatility

Is CLS's price volatile compared to industry and market?
CLS volatility
CLS Beta0.045
Industry Beta0.58
Market Beta1

Stable Share Price: CLS is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CLS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196815,629Vikesh Ramsunderhttps://www.clicksgroup.co.za

Clicks Group Limited operates as a health and beauty retailer, and pharmaceutical distributor and wholesaler primarily in South Africa. The company operates in two segments, Retail and Distribution. It retails pharmacy, health and beauty through approximately 740 stores, and 580 in-store pharmacies for the middle to upper income markets under the Clicks name.

Clicks Group Fundamentals Summary

How do Clicks Group's earnings and revenue compare to its market cap?
CLS fundamental statistics
Market CapR66.42b
Earnings (TTM)R1.92b
Revenue (TTM)R35.64b

34.6x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLS income statement (TTM)
RevenueR35.64b
Cost of RevenueR28.29b
Gross ProfitR7.35b
ExpensesR5.43b
EarningsR1.92b

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Oct 21, 2021

Earnings per share (EPS)7.83
Gross Margin20.63%
Net Profit Margin5.39%
Debt/Equity Ratio0%

How did CLS perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

58%

Payout Ratio

Valuation

Is Clicks Group undervalued compared to its fair value and its price relative to the market?

5.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLS (ZAR270.5) is trading below our estimate of fair value (ZAR285.86)

Significantly Below Fair Value: CLS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CLS is poor value based on its PE Ratio (34.6x) compared to the ZA Consumer Retailing industry average (29.9x).

PE vs Market: CLS is poor value based on its PE Ratio (34.6x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: CLS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: CLS is overvalued based on its PB Ratio (15.3x) compared to the ZA Consumer Retailing industry average (6.3x).


Future Growth

How is Clicks Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLS's forecast earnings growth (15.6% per year) is above the savings rate (8.8%).

Earnings vs Market: CLS's earnings (15.6% per year) are forecast to grow faster than the ZA market (12.2% per year).

High Growth Earnings: CLS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLS's revenue (9.1% per year) is forecast to grow faster than the ZA market (6.3% per year).

High Growth Revenue: CLS's revenue (9.1% 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 (35.9%)


Past Performance

How has Clicks Group performed over the past 5 years?

13.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLS has high quality earnings.

Growing Profit Margin: CLS's current net profit margins (5.4%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CLS's earnings have grown by 13% per year over the past 5 years.

Accelerating Growth: CLS's earnings growth over the past year (8.1%) is below its 5-year average (13% per year).

Earnings vs Industry: CLS earnings growth over the past year (8.1%) underperformed the Consumer Retailing industry 11.8%.


Return on Equity

High ROE: CLS's Return on Equity (44.3%) is considered outstanding.


Financial Health

How is Clicks Group's financial position?


Financial Position Analysis

Short Term Liabilities: CLS's short term assets (ZAR10.4B) exceed its short term liabilities (ZAR9.6B).

Long Term Liabilities: CLS's short term assets (ZAR10.4B) exceed its long term liabilities (ZAR2.1B).


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 10.5%.

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


Dividend

What is Clicks Group current dividend yield, its reliability and sustainability?

1.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLS's dividend (1.66%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: CLS's dividend (1.66%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

Stable Dividend: CLS's dividends per share have been stable in the past 10 years.

Growing Dividend: CLS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.2%), CLS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLS's dividends in 3 years are forecast to be covered by earnings (65.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Vikesh Ramsunder (50 yo)

2.75yrs

Tenure

R32,135,000

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 ($USD2.20M) is above average for companies of similar size in the ZA market ($USD1.27M).

Compensation vs Earnings: Vikesh's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CLS's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: CLS's board of directors are seasoned and experienced ( 12.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Clicks Group Limited's 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: R66.423b
  • Shares outstanding: 245.56m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:57
End of Day Share Price2021/10/21 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.