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LEW

Lewis GroupJSE:LEW Stock Report

Market Cap

R2.8b

7D

4.0%

1Y

158.8%

Updated

17 Oct, 2021

Data

Company Financials
LEW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends2/6

LEW Overview

Lewis Group Limited engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia.

Lewis Group Competitors

Shoprite Holdings

JSE:SHP

R100.1b

Foschini Group

JSE:TFG

R42.0b

Pick n Pay Stores

JSE:PIK

R27.9b

Massmart Holdings

JSE:MSM

R13.3b

Price History & Performance

Summary of all time highs, changes and price drops for Lewis Group
Historical stock prices
Current Share PriceR45.00
52 Week HighR15.20
52 Week LowR46.99
Beta0.52
1 Month Change4.65%
3 Month Change21.95%
1 Year Change158.77%
3 Year Change59.12%
5 Year Change7.66%
Change since IPO50.75%

Recent News & Updates

Shareholder Returns

LEWZA Specialty RetailZA Market
7D4.0%3.0%1.6%
1Y158.8%69.9%21.3%

Return vs Industry: LEW exceeded the ZA Specialty Retail industry which returned 69.9% over the past year.

Return vs Market: LEW exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is LEW's price volatile compared to industry and market?
LEW volatility
LEW Beta0.52
Industry Beta0.91
Market Beta1

Stable Share Price: LEW is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LEW's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19348,519Johan Enslinhttps://www.lewisgroup.co.za

Lewis Group Limited engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia. Its stores offer home electronics; sound and vision equipment; and lounge, dining room, and bedroom furniture products under the Lewis, Best Home and Electric, United Furniture Outlets, Monarch Insurance, and Beares brands. In addition, the company provides microinsurance to customers purchasing merchandise on credit.

Lewis Group Fundamentals Summary

How do Lewis Group's earnings and revenue compare to its market cap?
LEW fundamental statistics
Market CapR2.78b
Earnings (TTM)R432.90m
Revenue (TTM)R6.73b

6.4x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LEW income statement (TTM)
RevenueR6.73b
Cost of RevenueR2.29b
Gross ProfitR4.44b
ExpensesR4.00b
EarningsR432.90m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 24, 2021

Earnings per share (EPS)7.01
Gross Margin65.97%
Net Profit Margin6.44%
Debt/Equity Ratio0%

How did LEW perform over the long term?

See historical performance and comparison

Dividends

7.3%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Lewis Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LEW (ZAR45) is trading below our estimate of fair value (ZAR164.21)

Significantly Below Fair Value: LEW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LEW is good value based on its PE Ratio (6.4x) compared to the ZA Specialty Retail industry average (10.2x).

PE vs Market: LEW is good value based on its PE Ratio (6.4x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LEW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LEW is good value based on its PB Ratio (0.6x) compared to the ZA Specialty Retail industry average (1.6x).


Future Growth

How is Lewis Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

33.3%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lewis Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Lewis Group performed over the past 5 years?

-26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LEW has high quality earnings.

Growing Profit Margin: LEW's current net profit margins (6.4%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: LEW's earnings have declined by 26.3% per year over the past 5 years.

Accelerating Growth: LEW's earnings growth over the past year (137.3%) exceeds its 5-year average (-26.3% per year).

Earnings vs Industry: LEW earnings growth over the past year (137.3%) underperformed the Specialty Retail industry 137.3%.


Return on Equity

High ROE: LEW's Return on Equity (8.9%) is considered low.


Financial Health

How is Lewis Group's financial position?


Financial Position Analysis

Short Term Liabilities: LEW's short term assets (ZAR5.0B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: LEW's short term assets (ZAR5.0B) exceed its long term liabilities (ZAR655.7M).


Debt to Equity History and Analysis

Debt Level: LEW is debt free.

Reducing Debt: LEW has no debt compared to 5 years ago when its debt to equity ratio was 36.2%.

Debt Coverage: LEW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LEW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Lewis Group current dividend yield, its reliability and sustainability?

7.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LEW's dividend (7.29%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: LEW's dividend (7.29%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

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

Growing Dividend: LEW's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), LEW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Johan Enslin (47 yo)

12yrs

Tenure

R10,670,000

Compensation

Mr. Johan Enslin has been Chief Executive Officer and Executive Director of Lewis Group Limited since October 1, 2009. Mr. Enslin served as the Chief Operating Officer of Lewis Group Ltd. since April 1, 20...


CEO Compensation Analysis

Compensation vs Market: Johan's total compensation ($USD729.70K) is above average for companies of similar size in the ZA market ($USD494.06K).

Compensation vs Earnings: Johan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LEW's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: LEW's board of directors are considered experienced (4.3 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

Lewis Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Lewis Group Limited
  • Ticker: LEW
  • Exchange: JSE
  • Founded: 1934
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: R2.778b
  • Shares outstanding: 61.73m
  • Website: https://www.lewisgroup.co.za

Number of Employees


Location

  • Lewis Group Limited
  • Universal House
  • 53A Victoria Road
  • Cape Town
  • Western Cape
  • 7925
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 17:05
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.