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PPH

Pepkor HoldingsJSE:PPH Stock Report

Market Cap

R86.1b

7D

0.7%

1Y

76.2%

Updated

25 Oct, 2021

Data

Company Financials +
PPH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends0/6

PPH Overview

Pepkor Holdings Limited, together with its subsidiaries, operates as a retailer focusing on discount, value, and specialized goods in Angola, Botswana, eSwatini, Lesotho, Mozambique, Malawi, Namibia, Nigeria, South Africa, and Zambia.

Rewards

Trading at 75.3% below our estimate of its fair value

Earnings are forecast to grow 50.91% per year

Risk Analysis

No risks detected for PPH from our risk checks.

Pepkor Holdings Competitors

Mr Price Group

JSE:MRP

R53.0b

Foschini Group

JSE:TFG

R41.5b

Truworths International

JSE:TRU

R21.3b

Shoprite Holdings

JSE:SHP

R100.9b

Price History & Performance

Summary of all time highs, changes and price drops for Pepkor Holdings
Historical stock prices
Current Share PriceR23.33
52 Week HighR11.85
52 Week LowR23.89
Beta0.75
1 Month Change11.41%
3 Month Change15.55%
1 Year Change76.21%
3 Year Change32.56%
5 Year Changen/a
Change since IPO8.41%

Recent News & Updates

Oct 21
Pepkor Holdings' (JSE:PPH) Returns On Capital Are Heading Higher

Pepkor Holdings' (JSE:PPH) Returns On Capital Are Heading Higher

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jul 22
Investors Will Want Pepkor Holdings' (JSE:PPH) Growth In ROCE To Persist

Investors Will Want Pepkor Holdings' (JSE:PPH) Growth In ROCE To Persist

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Jun 16
Is Pepkor Holdings (JSE:PPH) Using Too Much Debt?

Is Pepkor Holdings (JSE:PPH) Using Too Much Debt?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 19
Here’s What’s Happening With Returns At Pepkor Holdings (JSE:PPH)

Here’s What’s Happening With Returns At Pepkor Holdings (JSE:PPH)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

PPHZA Specialty RetailZA Market
7D0.7%-0.6%-0.03%
1Y76.2%54.2%19.0%

Return vs Industry: PPH exceeded the ZA Specialty Retail industry which returned 54.2% over the past year.

Return vs Market: PPH exceeded the ZA Market which returned 19% over the past year.

Price Volatility

Is PPH's price volatile compared to industry and market?
PPH volatility
PPH Beta0.75
Industry Beta0.91
Market Beta1

Stable Share Price: PPH is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
2017n/aLeon Lourenshttps://www.pepkor.co.za

Pepkor Holdings Limited, together with its subsidiaries, operates as a retailer focusing on discount, value, and specialized goods in Angola, Botswana, eSwatini, Lesotho, Mozambique, Malawi, Namibia, Nigeria, South Africa, and Zambia. The company offers clothing products, general merchandise, household goods, furniture, appliances, consumer electronics, cellular products and services, financial, and fintech services. As of September 30, 2020, it operated approximately 5,254 stores.

Pepkor Holdings Fundamentals Summary

How do Pepkor Holdings's earnings and revenue compare to its market cap?
PPH fundamental statistics
Market CapR86.07b
Earnings (TTM)-R1.83b
Revenue (TTM)R66.43b

1.3x

P/S Ratio

-47.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPH income statement (TTM)
RevenueR66.43b
Cost of RevenueR43.34b
Gross ProfitR23.08b
ExpensesR24.92b
Earnings-R1.83b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 19, 2021

Earnings per share (EPS)-0.50
Gross Margin34.75%
Net Profit Margin-2.76%
Debt/Equity Ratio19.7%

How did PPH perform over the long term?

See historical performance and comparison

Valuation

Is Pepkor Holdings 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: PPH (ZAR23.33) is trading below our estimate of fair value (ZAR94.58)

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


Price To Earnings Ratio

PE vs Industry: PPH is unprofitable, so we can't compare its PE Ratio to the ZA Specialty Retail industry average.

PE vs Market: PPH is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PPH's PB Ratio (1.6x) is in line with the ZA Specialty Retail industry average.


Future Growth

How is Pepkor Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: PPH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PPH's is expected to become profitable in the next 3 years.

Revenue vs Market: PPH's revenue (7.5% per year) is forecast to grow faster than the ZA market (6.4% per year).

High Growth Revenue: PPH's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PPH's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Pepkor Holdings performed over the past 5 years?

-40.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPH is currently unprofitable.

Growing Profit Margin: PPH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PPH is unprofitable, and losses have increased over the past 5 years at a rate of 40.1% per year.

Accelerating Growth: Unable to compare PPH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PPH is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (148%).


Return on Equity

High ROE: PPH has a negative Return on Equity (-3.33%), as it is currently unprofitable.


Financial Health

How is Pepkor Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PPH's short term assets (ZAR27.5B) exceed its short term liabilities (ZAR18.7B).

Long Term Liabilities: PPH's short term assets (ZAR27.5B) exceed its long term liabilities (ZAR26.7B).


Debt to Equity History and Analysis

Debt Level: PPH's debt to equity ratio (19.7%) is considered satisfactory.

Reducing Debt: PPH's debt to equity ratio has reduced from 28.5% to 19.7% over the past 5 years.

Debt Coverage: PPH's debt is well covered by operating cash flow (93.5%).

Interest Coverage: PPH's interest payments on its debt are not well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is Pepkor Holdings's current dividend yield, its reliability and sustainability?

2.38%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PPH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PPH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PPH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PPH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PPH is not paying a notable dividend for the ZA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PPH's dividend in 3 years as they are not forecast to pay a notable one for the ZA market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Leon Lourens (55 yo)

3.83yrs

Tenure

R13,613,000

Compensation

Mr. Leon Marius Lourens, HND (Human Resources), BCom (Marketing) has been Chief Executive Officer of Pepkor Holdings Limited (formerly Steinhoff Africa Retail Limited) since December 6, 2017. He served as...


CEO Compensation Analysis

Compensation vs Market: Leon's total compensation ($USD925.43K) is below average for companies of similar size in the ZA market ($USD1.93M).

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


Leadership Team

Experienced Management: PPH's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: PPH's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pepkor Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Pepkor Holdings Limited
  • Ticker: PPH
  • Exchange: JSE
  • Founded: 2017
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: R86.072b
  • Shares outstanding: 3.70b
  • Website: https://www.pepkor.co.za

Number of Employees


Location

  • Pepkor Holdings Limited
  • 36 Stellenberg Road
  • Parow Industria
  • Cape Town
  • Western Cape
  • 7493
  • 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 17:02
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.