Shoprite Holdings
Market Cap
R57.2b
Last Updated
2020/05/30 18:51 UTC
Data Sources
Company Financials +
Executive Summary
Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business.
Snowflake Analysis
Adequate balance sheet second-rate dividend payer.
Similar Companies
Share Price & News
How has Shoprite Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SHP has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.5%
SHP
3.4%
ZA Consumer Retailing
-0.7%
ZA Market
1 Year Return
-39.8%
SHP
-21.3%
ZA Consumer Retailing
-23.8%
ZA Market
Return vs Industry: SHP underperformed the ZA Consumer Retailing industry which returned -19.6% over the past year.
Return vs Market: SHP underperformed the ZA Market which returned -20.4% over the past year.
Shareholder returns
| SHP | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.5% | 3.4% | -0.7% |
| 30 Day | -3.4% | -2.3% | -0.6% |
| 90 Day | -7.7% | -8.8% | -8.1% |
| 1 Year | -38.1%-39.8% | -19.2%-21.3% | -13.0%-23.8% |
| 3 Year | -46.4%-50.2% | -16.6%-22.2% | 0.3%-18.8% |
| 5 Year | -25.8%-34.3% | 1.6%-10.5% | 9.9%-17.5% |
Price Volatility Vs. Market
How volatile is Shoprite Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Shoprite Holdings undervalued compared to its fair value and its price relative to the market?
13.56x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SHP (ZAR104.71) is trading above our estimate of fair value (ZAR41.59)
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 (13.7x) compared to the Consumer Retailing industry average (17.9x).
PE vs Market: SHP is poor value based on its PE Ratio (13.7x) compared to the ZA market (8.1x).
Price to Earnings Growth Ratio
PEG Ratio: SHP is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: SHP is good value based on its PB Ratio (2.7x) compared to the ZA Consumer Retailing industry average (4x).
Next Steps
Future Growth
How is Shoprite Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SHP's forecast earnings growth (7.5% per year) is below the savings rate (9.5%).
Earnings vs Market: SHP's earnings (7.5% per year) are forecast to grow slower than the ZA market (19.4% per year).
High Growth Earnings: SHP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SHP's revenue (5.2% per year) is forecast to grow slower than the ZA market (8.6% per year).
High Growth Revenue: SHP's revenue (5.2% 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 low in 3 years time (16.3%).
Next Steps
Past Performance
How has Shoprite Holdings performed over the past 5 years?
1.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SHP has high quality earnings.
Growing Profit Margin: SHP's current net profit margins (2.7%) are lower than last year (3%).
Past Earnings Growth Analysis
Earnings Trend: SHP's earnings have grown by 1.5% per year over the past 5 years.
Accelerating Growth: SHP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SHP had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (6.2%).
Return on Equity
High ROE: SHP's Return on Equity (19.7%) is considered low.
Next Steps
Financial Health
How is Shoprite Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: SHP's short term assets (ZAR41.5B) exceed its short term liabilities (ZAR34.7B).
Long Term Liabilities: SHP's short term assets (ZAR41.5B) exceed its long term liabilities (ZAR30.1B).
Debt to Equity History and Analysis
Debt Level: SHP's debt to equity ratio (65.9%) is considered high.
Reducing Debt: SHP's debt to equity ratio has increased from 27.4% to 65.9% over the past 5 years.
Debt Coverage: SHP's debt is well covered by operating cash flow (44.3%).
Interest Coverage: SHP earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Shoprite Holdings's current dividend yield, its reliability and sustainability?
3.08%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SHP's dividend (3.05%) isn’t notable compared to the bottom 25% of dividend payers in the ZA market (4.34%).
High Dividend: SHP's dividend (3.05%) is low compared to the top 25% of dividend payers in the ZA market (12.38%).
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 reasonably low payout ratio (41.8%), SHP's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SHP's dividends in 3 years are forecast to be covered by earnings (50.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.3yrs
Average board tenure
CEO
Pieter Engelbrecht (50yo)
3.33yrs
Tenure
R21,271,000
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 ($USD1.22M) is about average for companies of similar size in the ZA market ($USD1.22M).
Compensation vs Earnings: Pieter's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.33yrs | R21.27m | 0.11% ZAR65.1m | |
| CFO & Executive Director | 1.83yrs | R6.74m | 0.0053% ZAR3.1m | |
| Divisional Manager & Executive Director | 17.5yrs | R5.72m | 0.079% ZAR45.3m | |
| Lead Independent Director | 0.50yr | R623.00k | no data | |
| Non-Executive Chairman | 29.33yrs | R1.21m | 11.42% ZAR6.5b | |
| Non-Executive Alternate Director | 15.33yrs | no data | 0.0027% ZAR1.5m | |
| Independent Non-Executive Director | 8yrs | R603.00k | no data | |
| Independent Non-Executive Director | 1.58yrs | R749.00k | 0.00018% ZAR102.9k | |
| Independent Non-Executive Director | 1.5yrs | R353.00k | 0.0025% ZAR1.4m |
3.3yrs
Average Tenure
50yo
Average Age
Experienced Board: SHP's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SHP insiders have only sold shares 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 company bio, 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: R57.182b
- Shares outstanding: 552.64m
- Website: https://www.shopriteholdings.co.za
Number of Employees
Location
- Shoprite Holdings Limited
- Cnr William Dabbs Street and Old Paarl Road
- Brackenfell
- Western Cape
- 7560
- South Africa
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SHOPRITE | LUSE (Lusaka Stock Exchange) | Yes | Ordinary Shares | ZM | ZMW | Jul 1992 |
| SRH | NMSE (Namibian Stock Exchange) | Yes | Ordinary Shares | NA | ZAR | Jul 1992 |
| SHP | JSE (The Johannesburg Securities Exchange) | Yes | Ordinary Shares | ZA | ZAR | Jul 1992 |
| SRHG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jul 1992 |
| HY7 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 1992 |
| SRGH.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Oct 2008 | |
| HY7A | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Oct 2008 |
Biography
Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Other Operating segments. It also offers clothing, general merchandise, furniture, bedding, loose carpeting, home entertainment, and floor covering products; and cosmetics, liquors, electrical and household appliances, and soft furnishings. As of June 30, 2019, the company operated 665 Shoprite supermarkets; 228 Checkers supermarkets; 37 Checkers Hyper supermarkets; 424 Usave supermarkets; 417 OK Furniture outlets; 48 House & Home outlets; 490 liquor shops under the Shoprite LiquorShop and Checkers LiquorShop brand names; and 460 franchise stores under the OK Foods, OK Grocer, OK MiniMark, OK Express, Megasave, OK Liquor, and Sentra brand names, as well as operates 155 MediRite pharmacies within stores. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. Further, it operates under the OK Power Express brand name. Additionally, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and short-term insurance and treasury management services. The company operates in South Africa and 14 other African countries. Shoprite Holdings Limited was founded in 1979 and is based in Brackenfell, South Africa.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/30 18:51 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/29 |
| Annual Earnings | 2019/06/30 |
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.