JSE:CLS

Stock Analysis Report

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Executive Summary

Clicks Group Limited engages in the retail of health, beauty, and homeware products primarily in South Africa.

Rewards

Revenue is forecast to grow 9.24% per year

Earnings grew by 16.4% over the past year

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

CLSIndustryMarket
7 Day4.6%3.4%-0.7%
30 Day0.9%-2.3%-0.6%
90 Day-4.1%-8.8%-8.1%
1 Year24.3%22.1%-19.2%-21.3%-13.0%-23.8%
3 Year84.3%74.2%-16.6%-22.2%0.3%-18.8%
5 Year209.1%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

NamePositionTenureCompensationOwnership
Vikesh Ramsunder
CEO & Executive Director1.33yrsR24.27m0.0044% ZAR2.6m
Michael Fleming
CFO & Executive Director9.17yrsR26.43m0.012% ZAR7.1m
Bertina Engelbrecht
Group HR Director & Executive Director12.17yrsR18.19m0.030% ZAR17.5m
Matthew Welz
Group Head of Legal Counsel & Company Secretary3.42yrsno datano data
Christopher Tugman
Group Head of Information Technologyno datano datano data
Rachel Wrigglesworth
Chief Commercial Officerno datano datano data
Sedick Arendse
Chief Store Operations Officerno datano datano data
Gordon Traill
Chief Support Services Officerno datano datano data
Nina Hind
Head of Retail Financeno datano datano 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

NamePositionTenureCompensationOwnership
Vikesh Ramsunder
CEO & Executive Director1.33yrsR24.27m0.0044% ZAR2.6m
Michael Fleming
CFO & Executive Director9.17yrsR26.43m0.012% ZAR7.1m
Bertina Engelbrecht
Group HR Director & Executive Director12.17yrsR18.19m0.030% ZAR17.5m
John Bester
Lead Independent Non-Executive Directorno dataR716.00k0.0088% ZAR5.1m
David Nurek
Independent Non-Executive Chairmanno dataR1.30m0.040% ZAR23.3m
Fatima Daniels
Independent Non-Executive Director12.17yrsR640.00kno data
Fatima Abrahams
Independent Non-Executive Director12.17yrsR737.00kno data
Martin Rosen
Independent Non-Executive Director14yrsR396.00k0.00080% ZAR468.4k
Nonkululeko Gobodo
Independent Non-Executive Director3.17yrsR494.00kno data
Mfondiso Johnson Njeke
Independent Non-Executive Director0.33yrno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLSJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 1996
CLCG.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMay 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/31 18:34
End of Day Share Price2020/05/29 00:00
Earnings2020/02/29
Annual Earnings2019/08/31


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.