Shoprite Holdings Limited
Shoprite Holdings Limited Fundamental Analysis
Shoprite Holdings Limited (SRGHY) shows moderate financial fundamentals with a PE ratio of 18.88, profit margin of 2.91%, and ROE of 24.31%. The company generates $254.5B in annual revenue with moderate year-over-year growth of 4.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SRGHY's fundamental strength across five key dimensions:
Efficiency Score
WeakSRGHY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSRGHY trades at attractive valuation levels.
Growth Score
ModerateSRGHY shows steady but slowing expansion.
Financial Health Score
ModerateSRGHY shows balanced financial health with some risks.
Profitability Score
ModerateSRGHY maintains healthy but balanced margins.
Key Financial Metrics
Is SRGHY Expensive or Cheap?
P/E Ratio
SRGHY trades at 18.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SRGHY's PEG of -0.72 indicates potential undervaluation.
Price to Book
The market values Shoprite Holdings Limited at 4.55 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.17 times EBITDA. This is generally considered low.
How Well Does SRGHY Make Money?
Net Profit Margin
For every $100 in sales, Shoprite Holdings Limited keeps $2.91 as profit after all expenses.
Operating Margin
Core operations generate 5.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.31 in profit for every $100 of shareholder equity.
ROA
Shoprite Holdings Limited generates $5.41 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shoprite Holdings Limited generates limited operating cash flow of $23.97B, signaling weaker underlying cash strength.
Free Cash Flow
Shoprite Holdings Limited produces free cash flow of $16.38B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $30.28 in free cash annually.
FCF Yield
SRGHY converts 11.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.72
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.55
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.16
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How SRGHY Stacks Against Its Sector Peers
| Metric | SRGHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.88 | 24.26 | Better (Cheaper) |
| ROE | 24.31% | 1131.00% | Weak |
| Net Margin | 2.91% | 639.00% | Weak |
| Debt/Equity | 1.86 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.16 | 2.56 | Neutral |
| ROA | 5.41% | -8481.00% (disorted) | Weak |
SRGHY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shoprite Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.56%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
130.86%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
2.10%
Industry Style: Cyclical, Growth, Discretionary
Growing