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MSM

Massmart HoldingsJSE:MSM Stock Report

Market Cap

R13.3b

7D

-2.5%

1Y

88.7%

Updated

19 Oct, 2021

Data

Company Financials +
MSM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

MSM Overview

Massmart Holdings Limited operates as a retail and wholesale distributor.

Massmart Holdings Competitors

Industria de Diseño Textil

BME:ITX

€98.9b

H & M Hennes & Mauritz

OM:HM B

kr283.9b

Atacadão

BOVESPA:CRFB3

R$37.2b

Clicks Group

JSE:CLS

R68.8b

Price History & Performance

Summary of all time highs, changes and price drops for Massmart Holdings
Historical stock prices
Current Share PriceR61.44
52 Week HighR32.32
52 Week LowR71.39
Beta1.07
1 Month Change6.22%
3 Month Change11.75%
1 Year Change88.70%
3 Year Change-32.85%
5 Year Change-44.63%
Change since IPO342.01%

Recent News & Updates

Shareholder Returns

MSMZA Consumer RetailingZA Market
7D-2.5%1.9%1.0%
1Y88.7%31.6%20.8%

Return vs Industry: MSM exceeded the ZA Consumer Retailing industry which returned 33.4% over the past year.

Return vs Market: MSM exceeded the ZA Market which returned 20.7% over the past year.

Price Volatility

Is MSM's price volatile compared to industry and market?
MSM volatility
MSM Beta1.07
Industry Beta0.58
Market Beta1

Stable Share Price: MSM is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MSM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199041,000Mitch Slapehttps://www.massmart.co.za

Massmart Holdings Limited operates as a retail and wholesale distributor. It operates through four segments: Game, Builders, Cambridge and Rhino, and Massmart Wholesale. The Game segment engages in the retail of appliances, electronics, lifestyle merchandise, groceries, and liquor, as well as provides value-added services.

Massmart Holdings Fundamentals Summary

How do Massmart Holdings's earnings and revenue compare to its market cap?
MSM fundamental statistics
Market CapR13.27b
Earnings (TTM)-R1.63b
Revenue (TTM)R88.64b

0.1x

P/S Ratio

-8.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MSM income statement (TTM)
RevenueR88.64b
Cost of RevenueR70.53b
Gross ProfitR18.11b
ExpensesR19.74b
Earnings-R1.63b

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-7.55
Gross Margin20.43%
Net Profit Margin-1.84%
Debt/Equity Ratio526.9%

How did MSM perform over the long term?

See historical performance and comparison

Valuation

Is Massmart Holdings undervalued compared to its fair value and its price relative to the market?

7.66x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MSM (ZAR61.44) is trading above our estimate of fair value (ZAR12.02)

Significantly Below Fair Value: MSM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSM is unprofitable, so we can't compare its PE Ratio to the ZA Consumer Retailing industry average.

PE vs Market: MSM is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MSM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MSM is overvalued based on its PB Ratio (7.7x) compared to the ZA Consumer Retailing industry average (6.3x).


Future Growth

How is Massmart Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

161.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: MSM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MSM's is expected to become profitable in the next 3 years.

Revenue vs Market: MSM's revenue (2.8% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: MSM's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSM's Return on Equity is forecast to be high in 3 years time (24.6%)


Past Performance

How has Massmart Holdings performed over the past 5 years?

-63.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSM is currently unprofitable.

Growing Profit Margin: MSM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MSM is unprofitable, and losses have increased over the past 5 years at a rate of 63.2% per year.

Accelerating Growth: Unable to compare MSM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MSM is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (11.8%).


Return on Equity

High ROE: MSM has a negative Return on Equity (-90.13%), as it is currently unprofitable.


Financial Health

How is Massmart Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MSM's short term assets (ZAR17.7B) do not cover its short term liabilities (ZAR24.0B).

Long Term Liabilities: MSM's short term assets (ZAR17.7B) exceed its long term liabilities (ZAR11.7B).


Debt to Equity History and Analysis

Debt Level: MSM's debt to equity ratio (526.9%) is considered high.

Reducing Debt: MSM's debt to equity ratio has increased from 131% to 526.9% over the past 5 years.

Debt Coverage: MSM's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: MSM's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

What is Massmart Holdings's current dividend yield, its reliability and sustainability?

1.83%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MSM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MSM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MSM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MSM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MSM is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

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

2.1yrs

Average management tenure


CEO

Mitch Slape (53 yo)

2.08yrs

Tenure

R24,273,000

Compensation

Mr. Mitchell W. Slape, also known as Mitch, has been the Group Chief Executive Officer of Massmart Holdings Ltd since October 2020 and Executive Director since September 1, 2019. He was the Chief Operating...


CEO Compensation Analysis

Compensation vs Market: Mitch's total compensation ($USD1.67M) is above average for companies of similar size in the ZA market ($USD891.99K).

Compensation vs Earnings: Insufficient data to compare Mitch's compensation with company performance.


Leadership Team

Experienced Management: MSM's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: MSM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Massmart Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Massmart Holdings Limited
  • Ticker: MSM
  • Exchange: JSE
  • Founded: 1990
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: R13.271b
  • Shares outstanding: 216.00m
  • Website: https://www.massmart.co.za

Number of Employees


Location

  • Massmart Holdings Limited
  • Massmart House
  • 16 Peltier Drive
  • Sandton
  • Gauteng
  • 2157
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:41
End of Day Share Price2021/10/19 00:00
Earnings2021/06/27
Annual Earnings2020/12/27


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.