The SPAR Group Ltd engages in the wholesale and distribution of goods and services to SPAR grocery stores and various other branded group retail outlets in Southern Africa, Ireland, Switzerland, and Poland.
SPAR Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||R197.36|
|52 Week High||R171.11|
|52 Week Low||R213.47|
|1 Month Change||-3.26%|
|3 Month Change||7.69%|
|1 Year Change||6.45%|
|3 Year Change||14.43%|
|5 Year Change||4.06%|
|Change since IPO||886.80%|
Recent News & Updates
|SPP||ZA Consumer Retailing||ZA Market|
Return vs Industry: SPP underperformed the ZA Consumer Retailing industry which returned 25.9% over the past year.
Return vs Market: SPP underperformed the ZA Market which returned 19.5% over the past year.
Stable Share Price: SPP is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SPP's weekly volatility (3%) has been stable over the past year.
About the Company
The SPAR Group Ltd engages in the wholesale and distribution of goods and services to SPAR grocery stores and various other branded group retail outlets in Southern Africa, Ireland, Switzerland, and Poland. The company offers fresh produce, in-store bakery, butchery, deli, ready-to-eat meals, home-meal replacements, groceries, general merchandise, baked foods, liquor products, Building and hardware products, dispensary and health-related products, confectionery, health and beauty, frozen foods, catering products, wines, and non-food items. It operates 4,357 stores.
SPAR Group Fundamentals Summary
|SPP fundamental statistics|
Is SPP overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SPP income statement (TTM)|
|Cost of Revenue||R113.15b|
Last Reported Earnings
Mar 31, 2021
Next Earnings Date
Nov 17, 2021
|Earnings per share (EPS)||13.04|
|Net Profit Margin||1.95%|
How did SPP perform over the long term?See historical performance and comparison
4.8%Current Dividend Yield
Is SPAR Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SPP (ZAR197.36) is trading below our estimate of fair value (ZAR446.52)
Significantly Below Fair Value: SPP is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SPP is good value based on its PE Ratio (15.1x) compared to the ZA Consumer Retailing industry average (25.3x).
PE vs Market: SPP is poor value based on its PE Ratio (15.1x) compared to the ZA market (11.4x).
Price to Earnings Growth Ratio
PEG Ratio: SPP is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SPP is good value based on its PB Ratio (4.9x) compared to the ZA Consumer Retailing industry average (6.2x).
How is SPAR Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SPP's forecast earnings growth (12.1% per year) is above the savings rate (8.8%).
Earnings vs Market: SPP's earnings (12.1% per year) are forecast to grow slower than the ZA market (12.2% per year).
High Growth Earnings: SPP's earnings are forecast to grow, but not significantly.
Revenue vs Market: SPP's revenue (5.1% per year) is forecast to grow slower than the ZA market (6.3% per year).
High Growth Revenue: SPP's revenue (5.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SPP's Return on Equity is forecast to be high in 3 years time (30.9%)
How has SPAR Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SPP has high quality earnings.
Growing Profit Margin: SPP's current net profit margins (2%) are higher than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: SPP's earnings have grown by 5.9% per year over the past 5 years.
Accelerating Growth: SPP's earnings growth over the past year (31.3%) exceeds its 5-year average (5.9% per year).
Earnings vs Industry: SPP earnings growth over the past year (31.3%) exceeded the Consumer Retailing industry 14.2%.
Return on Equity
High ROE: Whilst SPP's Return on Equity (31.39%) is high, this metric is skewed due to their high level of debt.
How is SPAR Group's financial position?
Financial Position Analysis
Short Term Liabilities: SPP's short term assets (ZAR22.9B) exceed its short term liabilities (ZAR22.7B).
Long Term Liabilities: SPP's short term assets (ZAR22.9B) exceed its long term liabilities (ZAR20.1B).
Debt to Equity History and Analysis
Debt Level: SPP's debt to equity ratio (149.7%) is considered high.
Reducing Debt: SPP's debt to equity ratio has increased from 130.3% to 149.7% over the past 5 years.
Debt Coverage: SPP's debt is well covered by operating cash flow (45.4%).
Interest Coverage: SPP's interest payments on its debt are well covered by EBIT (14.1x coverage).
What is SPAR Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SPP's dividend (4.79%) is higher than the bottom 25% of dividend payers in the ZA market (3.15%).
High Dividend: SPP's dividend (4.79%) is low compared to the top 25% of dividend payers in the ZA market (7.54%).
Stability and Growth of Payments
Stable Dividend: SPP's dividends per share have been stable in the past 10 years.
Growing Dividend: SPP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.4%), SPP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SPP's dividends in 3 years are forecast to be covered by earnings (69.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brett Botten (56 yo)
Mr. Brett Walker Botten, B.Com, CA(SA), serves as Group Chief Executive officer at The SPAR Group Ltd since March 01, 2021. He had been the Divisional Managing Director of SPAR South Rand of Spar Group Ltd...
Experienced Management: SPP's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: SPP's board of directors are considered experienced (4.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
The SPAR Group Ltd's employee growth, exchange listings and data sources
- Name: The SPAR Group Ltd
- Ticker: SPP
- Exchange: JSE
- Founded: 1932
- Industry: Food Distributors
- Sector: Consumer Retailing
- Market Cap: R37.994b
- Shares outstanding: 192.51m
- Website: https://www.spar.co.za
Number of Employees
- The SPAR Group Ltd
- 22 Chancery Lane
- South Africa
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/26 21:18|
|End of Day Share Price||2021/10/26 00:00|
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.