Shoprite Holdings (SRGHY) AI Stock Analysis

• Market Cap: $9.11B
• Dividend Yield: 2.04%
• Average Volume (3M): 390.00
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.81
• Revenue Growth: 8.19%
• EPS Growth: N/A
• Country: US
• Employees: 140,000
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Department Stores
• EPS (TTM): 0.39
• Shares Outstanding: 591,339,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 390
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 0.67
• 1Y Price Target: $17.50
• Price Target Upside: 5.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $17.50 ▲(5.36% Upside)

Shoprite Holdings demonstrates strong financial performance with robust revenue growth and operational efficiency. However, high leverage and declining free cash flow pose risks. The technical analysis suggests a mild upward trend but potential overbought conditions. The valuation indicates the stock may be overvalued, with a moderate dividend yield providing some investor income.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Operational Efficiency

Stable gross profit margins reflect effective cost control, enhancing profitability and competitive positioning in the retail sector.

Return on Equity

High return on equity indicates efficient management and strong financial performance, attracting investor confidence and supporting growth.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Declining Free Cash Flow

A decline in free cash flow limits the company's ability to invest in new opportunities and maintain financial flexibility, posing long-term challenges.

Low Net Profit Margin

A low net profit margin may indicate inefficiencies or pricing pressures, potentially affecting long-term profitability and competitive edge.

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 Other Operating segments. It also offers clothing, general merchandise, cosmetic, and liquor products; furniture, home entertainment, and floor covering products; and liquors, electrical and household appliances, and soft furnishings. In addition, the company distributes various pharmaceutical products and surgical equipment to pharmacies, hospitals, clinics, dispensing doctors, and veterinary surgeons. As of July 04, 2021, it operated 2,913 stores under the Shoprite, Shoprite Hyper, Checkers, Checkers Hyper, Usave, Shoprite LiquorShop, Checkers LiquorShop, House & Home, OK Furniture & Power Express, MediRite Pharmacy, TransPharm, Computicket, Computicket Travel, Checkers Food Services, Freshmark, k'nect, OK Foods, OK Grocer, OK MiniMark, OK Express, Sentra, OK Liquor, and Megasave brands. Further, the company provides ticketing, and car rental and accommodation services; stadium management, capacity management, travel management, and access control solutions; and short-term insurance and treasury management services. Shoprite Holdings Limited was founded in 1979 and is based in Brackenfell, South Africa.

How the Company Makes Money

Shoprite Holdings makes money primarily through the sale of groceries and related products in its extensive network of supermarkets and stores. The company's revenue model is driven by high-volume sales of food products, household goods, and general merchandise. Key revenue streams include grocery retail, which accounts for the majority of its income, and non-grocery segments such as furniture retail, liquor sales, and fast food outlets. Shoprite Holdings strategically leverages its large-scale operations and economies of scale to maintain competitive pricing, thereby attracting a broad customer base. Additionally, the company benefits from its extensive supply chain network and logistics capabilities, which optimize inventory management and distribution. Significant partnerships with suppliers and brands also contribute to Shoprite's ability to offer a diverse range of products, enhancing customer satisfaction and driving sales.

Shoprite Holdings Financial Statement Overview

Summary

Shoprite Holdings shows strong revenue growth and operational efficiency, but faces challenges with high leverage and declining free cash flow. The company needs to focus on improving profitability and managing debt levels to ensure long-term financial stability.

Income Statement

Shoprite Holdings has demonstrated consistent revenue growth over the years, with a 4.98% increase in the latest period. The gross profit margin has remained stable, indicating efficient cost management. However, the net profit margin is relatively low at 3.00%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy, reflecting strong operational performance.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.85, indicating significant leverage, which could pose a risk if not managed carefully. However, the return on equity is strong at 25.12%, showcasing effective use of shareholder funds. The equity ratio suggests a balanced capital structure, but the high debt levels warrant caution.

Cash Flow

Shoprite Holdings has experienced a significant decline in free cash flow growth, down by 69.61%, which is a concern. The operating cash flow to net income ratio is moderate, indicating decent cash generation relative to earnings. The free cash flow to net income ratio is lower than ideal, suggesting potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	248.27B	252.70B	240.72B	214.96B	184.08B	168.03B
Gross Profit	56.91B	61.44B	54.81B	51.71B	45.06B	41.21B
EBITDA	16.57B	24.66B	21.80B	19.68B	17.25B	15.78B
Net Income	6.63B	7.58B	6.25B	5.89B	5.71B	4.84B
Balance Sheet
Total Assets	125.76B	124.94B	112.33B	102.36B	91.45B	77.07B
Cash, Cash Equivalents and Short-Term Investments	11.48B	10.07B	13.02B	13.26B	11.11B	8.57B
Total Debt	55.19B	55.88B	49.37B	48.55B	42.13B	34.22B
Total Liabilities	98.11B	94.83B	84.60B	76.08B	65.83B	55.86B
Stockholders Equity	27.74B	30.19B	27.79B	26.13B	25.48B	21.08B
Cash Flow
Free Cash Flow	6.20B	2.98B	6.11B	3.12B	4.78B	4.76B
Operating Cash Flow	14.40B	10.98B	13.84B	9.83B	9.91B	7.98B
Investing Cash Flow	-7.20B	-7.37B	-6.78B	-6.23B	-4.06B	-653.00M
Financing Cash Flow	-9.81B	-4.30B	-7.75B	-2.85B	-7.24B	-9.74B

Shoprite Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 16.61 is above the 20-day moving average (MA) of 15.50, above the 50-day MA of 15.30, and above the 200-day MA of 15.38, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 95.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	79 Outperform	$8.97B	9.88	17.79%	2.64%	-5.24%	-12.89%
KSS	77 Outperform	$1.71B	8.35	5.36%	5.72%	-7.23%	-27.81%
URBN	77 Outperform	$6.07B	13.25	19.72%	―	9.63%	56.06%
SRGHY	75 Outperform	$9.11B	21.54	25.27%	2.04%	8.19%	―
GAP	75 Outperform	$8.50B	9.84	28.07%	2.75%	-0.05%	15.17%
M	62 Neutral	$4.55B	9.63	11.31%	4.25%	-3.43%	169.28%
Sector *	61 Neutral	$18.17B	12.71	-2.56%	3.03%	1.42%	-15.85%