| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
SHP Overview
Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business in South Africa and internationally.
Shoprite Holdings Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | R185.01 |
| 52 Week High | R124.58 |
| 52 Week Low | R191.50 |
| Beta | 0.097 |
| 1 Month Change | -2.82% |
| 3 Month Change | 18.31% |
| 1 Year Change | 30.29% |
| 3 Year Change | 1.65% |
| 5 Year Change | -7.03% |
| Change since IPO | 16,694.62% |
Recent News & Updates
Shareholder Returns
| SHP | ZA Consumer Retailing | ZA Market | |
|---|---|---|---|
| 7D | 1.3% | 0.7% | -0.3% |
| 1Y | 30.3% | 25.9% | 19.5% |
Return vs Industry: SHP exceeded the ZA Consumer Retailing industry which returned 23.7% over the past year.
Return vs Market: SHP exceeded the ZA Market which returned 19% over the past year.
Price Volatility
| SHP volatility | |
|---|---|
| SHP Beta | 0.097 |
| Industry Beta | 0.56 |
| Market Beta | 1 |
Stable Share Price: SHP is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SHP's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1979 | 140,000 | Pieter Engelbrecht | https://www.shopriteholdings.co.za |
Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, cosmetic, and liquor products; furniture, home entertainment, and floor covering products; and liquors, electrical and household appliances, and soft furnishings.
Shoprite Holdings Fundamentals Summary
| SHP fundamental statistics | |
|---|---|
| Market Cap | R101.42b |
| Earnings (TTM) | R4.70b |
| Revenue (TTM) | R168.03b |
21.6x
P/E Ratio0.6x
P/S RatioIs SHP overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SHP income statement (TTM) | |
|---|---|
| Revenue | R168.03b |
| Cost of Revenue | R128.89b |
| Gross Profit | R39.14b |
| Expenses | R34.45b |
| Earnings | R4.70b |
Last Reported Earnings
Jul 04, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 8.57 |
| Gross Margin | 23.30% |
| Net Profit Margin | 2.80% |
| Debt/Equity Ratio | 30.7% |
How did SHP perform over the long term?
See historical performance and comparisonDividends
2.9%
Current Dividend Yield64%
Payout RatioValuation
Is Shoprite Holdings undervalued compared to its fair value and its price relative to the market?
21.59x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SHP (ZAR185.01) is trading above our estimate of fair value (ZAR142.69)
Significantly Below Fair Value: SHP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SHP is good value based on its PE Ratio (21.6x) compared to the ZA Consumer Retailing industry average (25.4x).
PE vs Market: SHP is poor value based on its PE Ratio (21.6x) compared to the ZA market (11.3x).
Price to Earnings Growth Ratio
PEG Ratio: SHP is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: SHP is good value based on its PB Ratio (4.8x) compared to the ZA Consumer Retailing industry average (6.3x).
Future Growth
How is Shoprite Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
10.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHP's forecast earnings growth (10% per year) is above the savings rate (8.8%).
Earnings vs Market: SHP's earnings (10% per year) are forecast to grow slower than the ZA market (12.1% per year).
High Growth Earnings: SHP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SHP's revenue (5.5% per year) is forecast to grow slower than the ZA market (6.4% per year).
High Growth Revenue: SHP's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SHP's Return on Equity is forecast to be high in 3 years time (23.5%)
Past Performance
How has Shoprite Holdings performed over the past 5 years?
-7.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SHP has high quality earnings.
Growing Profit Margin: SHP's current net profit margins (2.8%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: SHP's earnings have declined by 7.4% per year over the past 5 years.
Accelerating Growth: SHP's earnings growth over the past year (22.6%) exceeds its 5-year average (-7.4% per year).
Earnings vs Industry: SHP earnings growth over the past year (22.6%) exceeded the Consumer Retailing industry 14.2%.
Return on Equity
High ROE: SHP's Return on Equity (22.2%) is considered high.
Financial Health
How is Shoprite Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SHP's short term assets (ZAR32.1B) exceed its short term liabilities (ZAR28.3B).
Long Term Liabilities: SHP's short term assets (ZAR32.1B) exceed its long term liabilities (ZAR27.6B).
Debt to Equity History and Analysis
Debt Level: SHP's debt to equity ratio (30.7%) is considered satisfactory.
Reducing Debt: SHP's debt to equity ratio has reduced from 38.3% to 30.7% over the past 5 years.
Debt Coverage: SHP's debt is well covered by operating cash flow (158.7%).
Interest Coverage: SHP's interest payments on its debt are well covered by EBIT (4.6x coverage).
Balance Sheet
Dividend
What is Shoprite Holdings's current dividend yield, its reliability and sustainability?
2.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SHP's dividend (2.94%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (3.14%).
High Dividend: SHP's dividend (2.94%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).
Stability and Growth of Payments
Stable Dividend: SHP's dividend payments have been volatile in the past 10 years.
Growing Dividend: SHP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (63.9%), SHP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SHP's dividends in 3 years are forecast to be covered by earnings (56.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average management tenure
CEO
Pieter Engelbrecht (52 yo)
4.75yrs
Tenure
R39,997,000
Compensation
Mr. Pieter C. Engelbrecht, BCompt Hons CA(SA), has been the Chief Executive Officer and Executive Director of Shoprite Holdings Limited since January 1, 2017. Mr. Engelbrecht served as the Chief Operating...
CEO Compensation Analysis
Compensation vs Market: Pieter's total compensation ($USD2.72M) is above average for companies of similar size in the ZA market ($USD1.93M).
Compensation vs Earnings: Pieter's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SHP's management team is considered experienced (3.3 years average tenure).
Board Members
Experienced Board: SHP's board of directors are not considered experienced ( 3 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: SHP insiders have sold more shares than they have bought 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
Shoprite Holdings Limited's employee growth, exchange listings and data sources
Key Information
- Name: Shoprite Holdings Limited
- Ticker: SHP
- Exchange: JSE
- Founded: 1979
- Industry: Food Retail
- Sector: Consumer Retailing
- Market Cap: R101.418b
- Shares outstanding: 548.17m
- Website: https://www.shopriteholdings.co.za
Number of Employees
Location
- Shoprite Holdings Limited
- Cnr William Dabbs St & Old Paarl Road
- Brackenfell
- Western Cape
- 7560
- South Africa
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 21:35 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/07/04 |
| Annual Earnings | 2021/07/04 |
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.