Shoprite Holdings (SRGHY) AI Stock Analysis

• Market Cap: $8.67B
• Dividend Yield: 1.96%
• Average Volume (3M): 279.00
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.88
• Revenue Growth: 9.00%
• EPS Growth: N/A
• Country: US
• Employees: 140,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Department Stores
• EPS (TTM): 0.38
• Shares Outstanding: 591,339,000
• 10 Day Avg. Volume: 443
• 30 Day Avg. Volume: 279
• PEG Ratio: 3.74
• Price to Book (P/B): 5.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $16.50 ▲(4.50%Upside)

Shoprite Holdings demonstrates strong financial performance with solid revenue growth and efficient operations. However, technical indicators suggest neutral to slightly bearish short-term trends, and the stock appears potentially overvalued based on its P/E ratio. Investors should consider the stable dividend yield as a benefit.

Shoprite Holdings Business Overview & Revenue Model

Company Description

Shoprite Holdings Ltd is a prominent retail company in Africa, primarily operating in the grocery sector. It is headquartered in South Africa and has a strong presence across the continent with more than 2,800 stores. The company operates under various brand names, including Shoprite, Checkers, Usave, and OK Furniture, offering a wide range of products such as groceries, household goods, and general merchandise. Shoprite Holdings is known for its focus on providing affordable prices and accessible locations to cater to a broad customer base.

How the Company Makes Money

Shoprite Holdings generates revenue primarily through the sale of consumer goods in its retail stores. The company's revenue streams include the sale of groceries, clothing, household items, and furniture. A significant portion of its income comes from its extensive network of supermarkets under the Shoprite and Checkers brands. The company also earns revenue from its Usave discount stores and OK Furniture outlets. Additionally, Shoprite benefits from economies of scale, supplier partnerships, and an efficient supply chain that help maintain competitive pricing and profitability. Furthermore, the company has expanded its digital offerings and online shopping platform, which contributes to its earnings by tapping into the growing e-commerce market in Africa.

Shoprite Holdings Financial Statement Overview

Summary

Shoprite Holdings shows robust revenue growth and efficient operations with healthy profit margins. The balance sheet is stable despite moderate leverage, and cash flow generation is strong. Overall, the financial performance suggests resilience and operational efficiency, though debt levels should be monitored.

Income Statement

Shoprite Holdings shows a robust revenue growth rate of 12% year-over-year, coupled with strong gross and net profit margins at 22.76% and 2.59% respectively. The EBIT margin is healthy at 5.47%, and EBITDA margin stands at 9.06%, indicating efficient operations and cost management. Continuous revenue growth and solid margins suggest a strong market position and operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.78, reflecting a moderate level of leverage. Return on equity is solid at 22.48%, indicating effective utilization of shareholder funds. The equity ratio is relatively low at 24.74%, suggesting potential risks if leverage increases. Overall, the balance sheet reflects a stable financial position with manageable debt levels.

Cash Flow

Operating cash flow has significantly increased, showing a 40.79% growth from the previous year, highlighting strong cash generation capabilities. Free cash flow to net income ratio is favorable at 0.98, indicating healthy cash retention. The operating cash flow to net income ratio is 2.21, showcasing a strong conversion of income to cash. These metrics demonstrate robust cash flow management and liquidity.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	240.72B	214.96B	184.08B	168.03B	156.85B
Gross Profit	54.81B	51.71B	45.06B	41.21B	37.53B
EBITDA	21.80B	19.68B	17.25B	15.78B	13.93B
Net Income	6.25B	5.89B	5.71B	4.84B	3.36B
Balance Sheet
Total Assets	112.33B	102.36B	91.45B	77.07B	82.73B
Cash, Cash Equivalents and Short-Term Investments	13.02B	13.26B	11.11B	8.57B	14.55B
Total Debt	49.37B	48.55B	42.13B	34.22B	37.38B
Total Liabilities	84.60B	76.08B	65.83B	55.86B	62.73B
Stockholders Equity	27.79B	26.13B	25.48B	21.08B	19.85B
Cash Flow
Free Cash Flow	6.11B	3.12B	4.78B	4.76B	7.76B
Operating Cash Flow	13.84B	9.83B	9.91B	7.98B	10.99B
Investing Cash Flow	-6.78B	-6.23B	-4.06B	-653.00M	-389.00M
Financing Cash Flow	-7.75B	-2.85B	-7.24B	-9.74B	-3.99B

Shoprite Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRGHY, the sentiment is Neutral. The current price of 15.79 is above the 20-day moving average (MA) of 15.63, above the 50-day MA of 15.55, and above the 200-day MA of 15.74, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRGHY.

Shoprite Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.22B	14.54	19.55%	―	8.38%	52.18%
M	75 Outperform	$3.08B	5.74	12.92%	6.43%	-3.77%	4607.98%
GAP	72 Outperform	$8.17B	9.54	29.16%	3.01%	1.07%	28.03%
SRGHY	69 Neutral	$8.67B	23.66	25.35%	1.96%	9.00%	―
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
KSS	60 Neutral	$945.63M	7.82	3.19%	5.92%	-7.03%	-56.59%