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SHP

Shoprite HoldingsJSE:SHP Stock Report

Market Cap

R101.4b

7D

1.3%

1Y

30.3%

Updated

25 Oct, 2021

Data

Company Financials +
SHP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends3/6

SHP Overview

Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business in South Africa and internationally.

Shoprite Holdings Competitors

Pick n Pay Stores

JSE:PIK

R27.9b

Walmart

NYSE:WMT

US$418.4b

Costco Wholesale

NasdaqGS:COST

US$216.5b

Target

NYSE:TGT

US$127.1b

Price History & Performance

Summary of all time highs, changes and price drops for Shoprite Holdings
Historical stock prices
Current Share PriceR185.01
52 Week HighR124.58
52 Week LowR191.50
Beta0.097
1 Month Change-2.82%
3 Month Change18.31%
1 Year Change30.29%
3 Year Change1.65%
5 Year Change-7.03%
Change since IPO16,694.62%

Recent News & Updates

Shareholder Returns

SHPZA Consumer RetailingZA Market
7D1.3%0.7%-0.3%
1Y30.3%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

Is SHP's price volatile compared to industry and market?
SHP volatility
SHP Beta0.097
Industry Beta0.56
Market Beta1

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

FoundedEmployeesCEOWebsite
1979140,000Pieter Engelbrechthttps://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

How do Shoprite Holdings's earnings and revenue compare to its market cap?
SHP fundamental statistics
Market CapR101.42b
Earnings (TTM)R4.70b
Revenue (TTM)R168.03b

21.6x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SHP income statement (TTM)
RevenueR168.03b
Cost of RevenueR128.89b
Gross ProfitR39.14b
ExpensesR34.45b
EarningsR4.70b

Last Reported Earnings

Jul 04, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.57
Gross Margin23.30%
Net Profit Margin2.80%
Debt/Equity Ratio30.7%

How did SHP perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

64%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:35
End of Day Share Price2021/10/25 00:00
Earnings2021/07/04
Annual Earnings2021/07/04


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.