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MRP

Mr Price GroupJSE:MRP Stock Report

Market Cap

R53.5b

7D

3.5%

1Y

57.2%

Updated

16 Oct, 2021

Data

Company Financials +
MRP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends4/6

MRP Overview

Mr Price Group Limited, together with its subsidiaries, operates as a fashion retailer serving women, men, and children in South Africa and internationally.

Mr Price Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Mr Price Group
Historical stock prices
Current Share PriceR206.74
52 Week HighR121.84
52 Week LowR242.25
Beta0.96
1 Month Change3.14%
3 Month Change3.60%
1 Year Change57.16%
3 Year Change-8.30%
5 Year Change31.68%
Change since IPO3,345.67%

Recent News & Updates

Shareholder Returns

MRPZA Specialty RetailZA Market
7D3.5%3.0%1.6%
1Y57.2%69.9%21.3%

Return vs Industry: MRP underperformed the ZA Specialty Retail industry which returned 70.3% over the past year.

Return vs Market: MRP exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is MRP's price volatile compared to industry and market?
MRP volatility
MRP Beta0.96
Industry Beta0.91
Market Beta1

Stable Share Price: MRP is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MRP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188517,831Mark Blairhttps://www.mrpricegroup.com

Mr Price Group Limited, together with its subsidiaries, operates as a fashion retailer serving women, men, and children in South Africa and internationally. The company operates through four segments: Apparel, Home, Telecoms, and Financial Services and Cellular. It offers clothing, underwear, footwear, cosmetics, and accessories; furniture and kids merchandise; sporting, outdoor, and fitness products comprising footwear, apparel, equipment, and accessories; women’s smart and casual fashion and intimate wear; and home textile and décor products for bedroom, living-room, bathroom, kitchen, and dining-room.

Mr Price Group Fundamentals Summary

How do Mr Price Group's earnings and revenue compare to its market cap?
MRP fundamental statistics
Market CapR53.46b
Earnings (TTM)R2.66b
Revenue (TTM)R22.55b

20.1x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRP income statement (TTM)
RevenueR22.55b
Cost of RevenueR12.54b
Gross ProfitR10.01b
ExpensesR7.36b
EarningsR2.66b

Last Reported Earnings

Apr 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)10.27
Gross Margin44.40%
Net Profit Margin11.78%
Debt/Equity Ratio0.04%

How did MRP perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

66%

Payout Ratio

Valuation

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

20.13x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MRP (ZAR206.74) is trading above our estimate of fair value (ZAR113.21)

Significantly Below Fair Value: MRP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRP is poor value based on its PE Ratio (20.1x) compared to the ZA Specialty Retail industry average (10.1x).

PE vs Market: MRP is poor value based on its PE Ratio (20.1x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: MRP is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MRP is overvalued based on its PB Ratio (4.9x) compared to the ZA Specialty Retail industry average (1.6x).


Future Growth

How is Mr Price Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRP's forecast earnings growth (8.7% per year) is below the savings rate (8.8%).

Earnings vs Market: MRP's earnings (8.7% per year) are forecast to grow slower than the ZA market (12.5% per year).

High Growth Earnings: MRP's earnings are forecast to grow, but not significantly.

Revenue vs Market: MRP's revenue (7.7% per year) is forecast to grow faster than the ZA market (6.2% per year).

High Growth Revenue: MRP's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRP's Return on Equity is forecast to be high in 3 years time (26.8%)


Past Performance

How has Mr Price Group performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRP has high quality earnings.

Growing Profit Margin: MRP's current net profit margins (11.8%) are lower than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: MRP's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: MRP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MRP had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Specialty Retail industry average (137.3%).


Return on Equity

High ROE: MRP's Return on Equity (24.5%) is considered high.


Financial Health

How is Mr Price Group's financial position?


Financial Position Analysis

Short Term Liabilities: MRP's short term assets (ZAR10.6B) exceed its short term liabilities (ZAR4.2B).

Long Term Liabilities: MRP's short term assets (ZAR10.6B) exceed its long term liabilities (ZAR4.8B).


Debt to Equity History and Analysis

Debt Level: MRP's debt to equity ratio (0.04%) is considered satisfactory.

Reducing Debt: MRP's debt to equity ratio has reduced from 0.6% to 0.04% over the past 5 years.

Debt Coverage: MRP's debt is well covered by operating cash flow (119175%).

Interest Coverage: MRP's interest payments on its debt are well covered by EBIT (19x coverage).


Balance Sheet


Dividend

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

4.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRP's dividend (4.48%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: MRP's dividend (4.48%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

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

Growing Dividend: MRP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.5%), MRP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MRP's dividends in 3 years are forecast to be covered by earnings (63.1% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Mark Blair (55 yo)

2.75yrs

Tenure

R19,000,000

Compensation

Mr. Mark McNeil Blair, CA (SA), has been Chief Executive Officer of Mr Price Group Limited since January 1, 2019 and serves as its Member of Group Management Board. Mr. Blair serves as Special Projects Dir...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.30M) is about average for companies of similar size in the ZA market ($USD1.26M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MRP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MRP's board of directors are considered experienced (6.2 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

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


Key Information

  • Name: Mr Price Group Limited
  • Ticker: MRP
  • Exchange: JSE
  • Founded: 1885
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: R53.455b
  • Shares outstanding: 258.56m
  • Website: https://www.mrpricegroup.com

Number of Employees


Location

  • Mr Price Group Limited
  • North Concourse
  • Upper Level
  • Durban
  • KwaZulu-Natal
  • 4001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:03
End of Day Share Price2021/10/15 00:00
Earnings2021/04/03
Annual Earnings2021/04/03


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.