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PIK

Pick n Pay StoresJSE:PIK Stock Report

Market Cap

R27.9b

7D

0%

1Y

8.0%

Updated

25 Oct, 2021

Data

Company Financials +
PIK fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance3/6
Financial Health2/6
Dividends4/6

PIK Overview

Pick n Pay Stores Limited, an investment holding company, engages in the retail of food, clothing, general merchandise, pharmaceuticals, and liquor in South Africa and Rest of Africa.

Pick n Pay Stores Competitors

Shoprite Holdings

JSE:SHP

R100.9b

Industria de Diseño Textil

BME:ITX

€95.8b

Woolworths Group

ASX:WOW

AU$49.2b

Pepkor Holdings

JSE:PPH

R86.1b

Price History & Performance

Summary of all time highs, changes and price drops for Pick n Pay Stores
Historical stock prices
Current Share PriceR58.18
52 Week HighR47.14
52 Week LowR61.69
Beta0.022
1 Month Change-0.26%
3 Month Change15.99%
1 Year Change7.96%
3 Year Change-14.94%
5 Year Change-11.84%
Change since IPO428.91%

Recent News & Updates

Sep 24
Be Wary Of Pick n Pay Stores (JSE:PIK) And Its Returns On Capital

Be Wary Of Pick n Pay Stores (JSE:PIK) And Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Aug 03
Pick n Pay Stores (JSE:PIK) Takes On Some Risk With Its Use Of Debt

Pick n Pay Stores (JSE:PIK) Takes On Some Risk With Its Use Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

PIKZA Consumer RetailingZA Market
7D0%0.5%-0.03%
1Y8.0%23.7%19.0%

Return vs Industry: PIK underperformed the ZA Consumer Retailing industry which returned 23.7% over the past year.

Return vs Market: PIK underperformed the ZA Market which returned 19% over the past year.

Price Volatility

Is PIK's price volatile compared to industry and market?
PIK volatility
PIK Beta0.022
Industry Beta0.57
Market Beta1

Stable Share Price: PIK is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PIK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196790,000Pieter Boonehttps://www.pnp.co.za

Pick n Pay Stores Limited, an investment holding company, engages in the retail of food, clothing, general merchandise, pharmaceuticals, and liquor in South Africa and Rest of Africa. It owns, franchises, and invests in hypermarkets, supermarkets, local stores, clothing stores, liquor stores, pharmacy stores, superstores, build stores, punch stores, and express stores under the Pick n Pay and Boxer brands, which offer food products, wine, clothing, and health and wellness products. The company also offers its products through an online shopping platform www.pnp.co.za.

Pick n Pay Stores Fundamentals Summary

How do Pick n Pay Stores's earnings and revenue compare to its market cap?
PIK fundamental statistics
Market CapR27.91b
Earnings (TTM)R1.11b
Revenue (TTM)R97.26b

25.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PIK income statement (TTM)
RevenueR97.26b
Cost of RevenueR76.74b
Gross ProfitR20.51b
ExpensesR19.41b
EarningsR1.11b

Last Reported Earnings

Aug 29, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.30
Gross Margin21.09%
Net Profit Margin1.14%
Debt/Equity Ratio221.5%

How did PIK perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

85%

Payout Ratio

Does PIK pay a reliable dividends?

See PIK dividend history and benchmarks
When do you need to buy PIK by to receive an upcoming dividend?
Pick n Pay Stores dividend dates
Ex Dividend DateDec 01 2021
Dividend Pay DateDec 06 2021
Days until Ex dividend36 days
Days until Dividend pay date41 days

Does PIK pay a reliable dividends?

See PIK dividend history and benchmarks

Valuation

Is Pick n Pay Stores undervalued compared to its fair value and its price relative to the market?

25.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PIK (ZAR58.18) is trading above our estimate of fair value (ZAR53.97)

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


Price To Earnings Ratio

PE vs Industry: PIK is good value based on its PE Ratio (25.3x) compared to the ZA Consumer Retailing industry average (25.4x).

PE vs Market: PIK is poor value based on its PE Ratio (25.3x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: PIK is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PIK is overvalued based on its PB Ratio (9.6x) compared to the ZA Consumer Retailing industry average (6.3x).


Future Growth

How is Pick n Pay Stores forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

17.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PIK's forecast earnings growth (17.9% per year) is above the savings rate (8.8%).

Earnings vs Market: PIK's earnings (17.9% per year) are forecast to grow faster than the ZA market (12.1% per year).

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

Revenue vs Market: PIK's revenue (6% per year) is forecast to grow slower than the ZA market (6.4% per year).

High Growth Revenue: PIK's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PIK's Return on Equity is forecast to be very high in 3 years time (40.4%).


Past Performance

How has Pick n Pay Stores performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PIK has high quality earnings.

Growing Profit Margin: PIK's current net profit margins (1.1%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: PIK's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: PIK's earnings growth over the past year (14.2%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: PIK earnings growth over the past year (14.2%) underperformed the Consumer Retailing industry 14.2%.


Return on Equity

High ROE: Whilst PIK's Return on Equity (37.83%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Pick n Pay Stores's financial position?


Financial Position Analysis

Short Term Liabilities: PIK's short term assets (ZAR19.4B) do not cover its short term liabilities (ZAR23.2B).

Long Term Liabilities: PIK's short term assets (ZAR19.4B) exceed its long term liabilities (ZAR14.6B).


Debt to Equity History and Analysis

Debt Level: PIK's debt to equity ratio (221.5%) is considered high.

Reducing Debt: PIK's debt to equity ratio has increased from 23% to 221.5% over the past 5 years.

Debt Coverage: PIK's debt is well covered by operating cash flow (62.4%).

Interest Coverage: PIK's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

What is Pick n Pay Stores's current dividend yield, its reliability and sustainability?

3.38%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 25 2021Ex Dividend DateDec 01 2021Dividend Pay DateDec 06 20215 days from Ex DividendBuy in the next 36 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: PIK's dividend (3.38%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: PIK's dividend (3.38%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

Stable Dividend: PIK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (85.2%), PIK's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PIK's dividends in 3 years are forecast to be covered by earnings (77.4% payout ratio).


Next Steps

Management

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

10.5yrs

Average board tenure


CEO

Pieter Boone (54 yo)

0.50

Tenure

R2,445,500

Compensation

Mr. Pieter C. Boone serves as Chief Executive Officer of Pick n Pay Stores Limited since April 21, 2021 and serves as its Executive Director since April 21, 2021. He has been Member of Supervisory Board at...


CEO Compensation Analysis

Compensation vs Market: Pieter's total compensation ($USD166.25K) is below average for companies of similar size in the ZA market ($USD912.68K).

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


Board Members

Experienced Board: PIK's board of directors are seasoned and experienced ( 10.5 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

Pick n Pay Stores Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Pick n Pay Stores Limited
  • Ticker: PIK
  • Exchange: JSE
  • Founded: 1967
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: R27.912b
  • Shares outstanding: 479.76m
  • Website: https://www.pnp.co.za

Number of Employees


Location

  • Pick n Pay Stores Limited
  • Pick n Pay Office Park
  • 101 Rosmead Avenue
  • Cape Town
  • Western Cape
  • 7708
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:34
End of Day Share Price2021/10/25 00:00
Earnings2021/08/29
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.