company background image
DCP

Dis-Chem PharmaciesJSE:DCP Stock Report

Market Cap

R26.8b

7D

3.0%

1Y

81.2%

Updated

15 Oct, 2021

Data

Company Financials +
DCP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends0/6

DCP Overview

Dis-Chem Pharmacies Limited, together with its subsidiaries, engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa.

Dis-Chem Pharmacies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dis-Chem Pharmacies
Historical stock prices
Current Share PriceR31.19
52 Week HighR17.20
52 Week LowR32.60
Beta0.19
1 Month Change6.41%
3 Month Change-2.53%
1 Year Change81.23%
3 Year Change11.04%
5 Year Changen/a
Change since IPO45.21%

Recent News & Updates

Shareholder Returns

DCPZA Consumer RetailingZA Market
7D3.0%1.1%1.6%
1Y81.2%32.4%21.3%

Return vs Industry: DCP exceeded the ZA Consumer Retailing industry which returned 29.9% over the past year.

Return vs Market: DCP exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is DCP's price volatile compared to industry and market?
DCP volatility
DCP Beta0.19
Industry Beta0.57
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
197818,700Ivan Saltzmanhttps://dischemgroup.com

Dis-Chem Pharmacies Limited, together with its subsidiaries, engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. It operates through two segments, Retail and Wholesale. It operates a chain of retail stores that offers a range of products, including dispensary, personal care and beauty, healthcare and nutrition, and baby care products, as well as other products, such as confectionary and household goods; and offers ancillary services that include clinics, and hair and beauty salons.

Dis-Chem Pharmacies Fundamentals Summary

How do Dis-Chem Pharmacies's earnings and revenue compare to its market cap?
DCP fundamental statistics
Market CapR26.83b
Earnings (TTM)R668.69m
Revenue (TTM)R26.28b

40.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DCP income statement (TTM)
RevenueR26.28b
Cost of RevenueR20.44b
Gross ProfitR5.84b
ExpensesR5.17b
EarningsR668.69m

Last Reported Earnings

Feb 28, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)0.78
Gross Margin22.21%
Net Profit Margin2.54%
Debt/Equity Ratio39.6%

How did DCP perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is Dis-Chem Pharmacies undervalued compared to its fair value and its price relative to the market?

14.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DCP (ZAR31.19) is trading below our estimate of fair value (ZAR36.57)

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


Price To Earnings Ratio

PE vs Industry: DCP is poor value based on its PE Ratio (40.1x) compared to the ZA Consumer Retailing industry average (28.7x).

PE vs Market: DCP is poor value based on its PE Ratio (40.1x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: DCP is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: DCP is overvalued based on its PB Ratio (9.2x) compared to the ZA Consumer Retailing industry average (6.2x).


Future Growth

How is Dis-Chem Pharmacies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DCP's forecast earnings growth (19.8% per year) is above the savings rate (8.8%).

Earnings vs Market: DCP's earnings (19.8% per year) are forecast to grow faster than the ZA market (12.5% per year).

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

Revenue vs Market: DCP's revenue (10.4% per year) is forecast to grow faster than the ZA market (6.2% per year).

High Growth Revenue: DCP's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DCP's Return on Equity is forecast to be high in 3 years time (27.2%)


Past Performance

How has Dis-Chem Pharmacies performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DCP has high quality earnings.

Growing Profit Margin: DCP's current net profit margins (2.5%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: DCP's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: DCP's earnings growth over the past year (11.8%) exceeds its 5-year average (2.6% per year).

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


Return on Equity

High ROE: DCP's Return on Equity (23.3%) is considered high.


Financial Health

How is Dis-Chem Pharmacies's financial position?


Financial Position Analysis

Short Term Liabilities: DCP's short term assets (ZAR8.4B) exceed its short term liabilities (ZAR6.8B).

Long Term Liabilities: DCP's short term assets (ZAR8.4B) exceed its long term liabilities (ZAR3.4B).


Debt to Equity History and Analysis

Debt Level: DCP's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: DCP's debt to equity ratio has reduced from 187.9% to 39.6% over the past 5 years.

Debt Coverage: DCP's debt is well covered by operating cash flow (99.4%).

Interest Coverage: DCP's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Dividend

What is Dis-Chem Pharmacies's current dividend yield, its reliability and sustainability?

1.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DCP's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: DCP's dividend (1%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

Stable Dividend: DCP is not paying a notable dividend for the ZA market, therefore no need to check if payments are stable.

Growing Dividend: DCP 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: DCP is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DCP'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?

12.8yrs

Average management tenure


CEO

Ivan Saltzman (71 yo)

16.42yrs

Tenure

R13,494,000

Compensation

Mr. Ivan Leon Saltzman has been the Chief Executive Officer and Executive Director of Dis-Chem Pharmacies Limited since May 25, 2005. Mr. Saltzman has 41 years of experience in the pharmaceutical sector in...


CEO Compensation Analysis

Compensation vs Market: Ivan's total compensation ($USD922.82K) is about average for companies of similar size in the ZA market ($USD921.12K).

Compensation vs Earnings: Ivan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DCP's management team is seasoned and experienced (12.8 years average tenure).


Board Members

Experienced Board: DCP's board of directors are considered experienced (7.1 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

Dis-Chem Pharmacies Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Dis-Chem Pharmacies Limited
  • Ticker: DCP
  • Exchange: JSE
  • Founded: 1978
  • Industry: Drug Retail
  • Sector: Consumer Retailing
  • Market Cap: R26.826b
  • Shares outstanding: 860.08m
  • Website: https://dischemgroup.com

Number of Employees


Location

  • Dis-Chem Pharmacies Limited
  • 23 Stag Road
  • Glen Austin
  • Midrand
  • Gauteng
  • 1682
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:44
End of Day Share Price2021/10/15 00:00
Earnings2021/02/28
Annual Earnings2021/02/28


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.