Shoprite Holdings Limited (SRGHY)
OTHER OTC:SRGHY
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Shoprite Holdings
(OTC:SRGHY)
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Rating:74Outperform
Price Target:
$19.50
▲(16.77% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by solid underlying financial performance and a supportive earnings call featuring resilient sales/margins and strong cash generation. Offsetting factors include weaker free-cash-flow trends and elevated leverage, while technicals are mixed and valuation appears only moderately attractive.
Positive Factors
Sustained Revenue Growth
Shoprite's 7.2% group sales growth, driven by supermarkets RSA and like-for-like gains, evidences durable consumer demand and effective merchandising. Combined with ongoing store openings, consistent top-line expansion supports scale economics, supplier leverage and reinvestment capacity over the medium term.
Negative Factors
Elevated Leverage
A debt-to-equity ratio around 1.85 reflects significant leverage that increases interest and refinancing sensitivity. Elevated leverage can constrain strategic flexibility, raise the cost of capital in stressful environments, and limit the company's ability to pursue opportunistic investments without affecting cash returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Shoprite's 7.2% group sales growth, driven by supermarkets RSA and like-for-like gains, evidences durable consumer demand and effective merchandising. Combined with ongoing store openings, consistent top-line expansion supports scale economics, supplier leverage and reinvestment capacity over the medium term.
Read all positive factors
Shoprite Holdings (SRGHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.62B
Dividend Yield2.25%
Average Volume (3M)77.00
Price to Earnings (P/E)10.5
Beta (1Y)0.74
Revenue Growth7.84%
EPS GrowthN/A
CountryUS
Employees140,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)13.60
Shares Outstanding591,339,000
10 Day Avg. Volume0
30 Day Avg. Volume77
Financial Highlights & Ratios
PEG Ratio1.61
Price to Book (P/B)5.20
Price to Sales (P/S)0.62
P/FCF Ratio52.58
Enterprise Value/Market Cap20.34
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda8.35
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shoprite Holdings Business Overview & Revenue Model
Company Description
Shoprite Holdings Limited, an investment holding company, primarily engages in the food retailing business in South Africa and internationally. The company operates through four segments: Supermarkets RSA, Supermarkets Non-RSA, Furniture, and Othe...
How the Company Makes Money
Shoprite makes money primarily by buying merchandise (notably grocery and fast-moving consumer goods) from manufacturers and wholesalers and reselling it to consumers through its supermarket and retail store network at a markup. Revenue is generat...
Shoprite Holdings Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 08, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: robust sales growth (+7.2%), maintained group margins (trading margin 5.7%; RSA supermarkets 6.2%), improving returns (ROIC >19%) and strong cash generation (ZAR 13.3bn). Digital (Sixty60) and adjacent businesses showed high growth and strategic traction, and management is tightening CapEx while continuing an active store roll‑out. Key challenges include profitability pressure in non‑RSA markets (Mozambique/Angola), IFRS16‑driven finance/depreciation cost increases, low/deflationary price environment compressing monetary growth and elevated utilities costs. On balance the positive operational momentum, margin maintenance and cash strength outweigh the regional and accounting headwinds.Positive Updates
Solid top-line growth
Group sales grew 7.2% year-on-year, adding about ZAR 9.2 billion to reach almost ZAR 137 billion for the half year; Supermarkets RSA sales grew 7.1% to ~ZAR 115 billion with like‑for‑like sales +2.7%.
Negative Updates
Non‑RSA profitability pressure (Mozambique, Angola)
Supermarkets non‑RSA margins and profitability came under pressure: sales growth in non‑RSA was strong (+12.1% to ~ZAR 11.5 billion) but margins were hit by business interruptions in Mozambique, foreign currency shortages limiting imports, and Angola headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Solid top-line growth
Group sales grew 7.2% year-on-year, adding about ZAR 9.2 billion to reach almost ZAR 137 billion for the half year; Supermarkets RSA sales grew 7.1% to ~ZAR 115 billion with like‑for‑like sales +2.7%.
Read all positive updates
Company Guidance
Management guided to full‑year gross margin of about 23.9%–24.2% and a realistic trading‑margin outcome of 5.7%–5.9% (medium‑term target 6%), noted the Sixty60 delivery‑cost reclassification will slightly pressure gross margin early in the year, and reiterated an effective tax rate of ~27%–28%; operationally they plan to open ~123 stores in H2 (aiming to return space growth to ~5.5%–6% after H1’s 7.3%), expect full‑year CapEx of ~ZAR7.5bn (H1 ZAR3.9bn; ~82% expansion), aim to reduce depreciation/sales to ~3% (H1 3.1%), expect electricity/water around ~2.1%–2.2% of sales (H1 2.2%), see continued inventory and working‑capital improvement after H1 cash generated from operations of ZAR13.3bn and a ZAR5.4bn positive working‑capital move, and confirmed dividend policy unchanged (1.75x of full‑year diluted HEPS from continued operations) with the share‑buyback mandate still available.Shoprite Holdings Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.38B | 252.70B | 240.72B | 214.96B | 184.08B | 168.03B |
| Gross Profit | 53.74B | 61.44B | 54.81B | 51.71B | 45.06B | 41.21B |
| EBITDA | 23.44B | 24.66B | 21.80B | 19.68B | 17.25B | 15.78B |
| Net Income | 7.40B | 7.58B | 6.25B | 5.89B | 5.71B | 4.84B |
Balance Sheet | ||||||
| Total Assets | 136.82B | 124.94B | 112.33B | 102.36B | 91.45B | 77.07B |
| Cash, Cash Equivalents and Short-Term Investments | 15.10B | 10.07B | 13.02B | 13.26B | 11.11B | 8.57B |
| Total Debt | 57.08B | 55.88B | 49.37B | 48.55B | 42.13B | 34.22B |
| Total Liabilities | 106.23B | 94.83B | 84.60B | 76.08B | 65.83B | 55.86B |
| Stockholders Equity | 30.67B | 30.19B | 27.79B | 26.13B | 25.48B | 21.08B |
Cash Flow | ||||||
| Free Cash Flow | 16.37B | 2.98B | 6.11B | 3.12B | 4.78B | 4.76B |
| Operating Cash Flow | 23.96B | 10.98B | 13.84B | 9.83B | 9.91B | 7.98B |
| Investing Cash Flow | -6.84B | -7.37B | -6.78B | -6.23B | -4.06B | -653.00M |
| Financing Cash Flow | -8.62B | -4.30B | -7.75B | -2.85B | -7.24B | -9.74B |
Shoprite Holdings Technical Analysis
Positive
16.70
Price Trends
16.30
Positive
16.23
Positive
15.93
Positive
Market Momentum
0.40
Negative
68.53
Neutral
96.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRGHY, the sentiment is Positive. The current price of 16.7 is above the 20-day moving average (MA) of 16.51, above the 50-day MA of 16.30, and above the 200-day MA of 15.93, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 68.53 is Neutral, neither overbought nor oversold. The STOCH value of 96.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRGHY.
Shoprite Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $7.05B | 6.04 | 17.98% | 2.46% | -2.12% | -0.37% | |
74 Outperform | $9.62B | 10.51 | 24.87% | 2.25% | 7.84% | ― | |
68 Neutral | $6.13B | 16.50 | 17.66% | ― | 11.07% | 18.69% | |
64 Neutral | $8.97B | 15.26 | 22.98% | 2.45% | 1.86% | -2.54% | |
62 Neutral | $5.23B | 2.68 | 14.20% | 3.23% | -1.67% | 15.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | $1.62B | 3.91 | 6.91% | 2.33% | -4.28% | 146.27% |
* Consumer Cyclical Sector Average
SRGHY
Shoprite Holdings
17.55
2.30
15.08%
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VIPS
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9.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.