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Dis-Chem Pharmacies

JSE:DCP
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DCP
JSE
ZAR21B
Market Cap
  1. Home
  2. ZA
  3. Consumer Retailing
Company description

Dis-Chem Pharmacies Limited engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. The last earnings update was 8 days ago. More info.


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DCP Share Price and Events
7 Day Returns
-0.2%
JSE:DCP
-0.9%
ZA Consumer Retailing
-1%
ZA Market
1 Year Returns
-21.2%
JSE:DCP
-3%
ZA Consumer Retailing
-2%
ZA Market
DCP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dis-Chem Pharmacies (DCP) -0.2% 3.9% 18.9% -21.2% 15.5% -
ZA Consumer Retailing -0.9% 4.5% 12.8% -3% 10.2% 14.5%
ZA Market -1% 1.7% -1% -2% 3.2% 2.4%
1 Year Return vs Industry and Market
  • DCP underperformed the Consumer Retailing industry which returned -3% over the past year.
  • DCP underperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
DCP
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Dis-Chem Pharmacies's competitors could be found in our database.

Value

 Is Dis-Chem Pharmacies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dis-Chem Pharmacies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dis-Chem Pharmacies.

JSE:DCP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:DCP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.487 (1 + (1- 28%) (20.58%))
0.704
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for JSE:DCP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Dis-Chem Pharmacies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

JSE:DCP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 7.5%)
2020 887.00 Analyst x1 825.13
2021 504.00 Analyst x1 436.14
2022 596.00 Analyst x1 479.78
2023 665.12 Est @ 11.6% 498.08
2024 724.57 Est @ 8.94% 504.75
2025 775.83 Est @ 7.08% 502.77
2026 820.61 Est @ 5.77% 494.69
2027 860.49 Est @ 4.86% 482.55
2028 896.80 Est @ 4.22% 467.84
2029 930.64 Est @ 3.77% 451.63
Present value of next 10 years cash flows ZAR5,143.00
JSE:DCP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR930.64 × (1 + 2.73%) ÷ (7.5% – 2.73%)
ZAR20,051.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR20,051.32 ÷ (1 + 7.5%)10
ZAR9,730.59
JSE:DCP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR5,143.00 + ZAR9,730.59
ZAR14,873.59
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR14,873.59 / 860.08
ZAR17.29
JSE:DCP Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR17.29
Current discount Discount to share price of ZAR24.80
= -1 x (ZAR24.80 - ZAR17.29) / ZAR17.29
-43.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Dis-Chem Pharmacies is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dis-Chem Pharmacies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dis-Chem Pharmacies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:DCP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in ZAR ZAR0.66
JSE:DCP Share Price ** JSE (2019-11-14) in ZAR ZAR24.8
South Africa Consumer Retailing Industry PE Ratio Median Figure of 7 Publicly-Listed Consumer Retailing Companies 20.07x
South Africa Market PE Ratio Median Figure of 207 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dis-Chem Pharmacies.

JSE:DCP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:DCP Share Price ÷ EPS (both in ZAR)

= 24.8 ÷ 0.66

37.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dis-Chem Pharmacies is overvalued based on earnings compared to the ZA Consumer Retailing industry average.
  • Dis-Chem Pharmacies is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Dis-Chem Pharmacies's expected growth come at a high price?
Raw Data
JSE:DCP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
27.7%per year
South Africa Consumer Retailing Industry PEG Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 1.98x
South Africa Market PEG Ratio Median Figure of 75 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

JSE:DCP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.77x ÷ 27.7%

1.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dis-Chem Pharmacies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Dis-Chem Pharmacies's assets?
Raw Data
JSE:DCP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in ZAR ZAR2.35
JSE:DCP Share Price * JSE (2019-11-14) in ZAR ZAR24.8
South Africa Consumer Retailing Industry PB Ratio Median Figure of 8 Publicly-Listed Consumer Retailing Companies 4.72x
South Africa Market PB Ratio Median Figure of 267 Publicly-Listed Companies 0.89x
JSE:DCP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:DCP Share Price ÷ Book Value per Share (both in ZAR)

= 24.8 ÷ 2.35

10.54x

* Primary Listing of Dis-Chem Pharmacies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dis-Chem Pharmacies is overvalued based on assets compared to the ZA Consumer Retailing industry average.
X
Value checks
We assess Dis-Chem Pharmacies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Dis-Chem Pharmacies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Dis-Chem Pharmacies expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dis-Chem Pharmacies expected to grow at an attractive rate?
  • Dis-Chem Pharmacies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Dis-Chem Pharmacies's earnings growth is expected to exceed the South Africa market average.
  • Dis-Chem Pharmacies's revenue growth is expected to exceed the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:DCP Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:DCP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 27.7%
JSE:DCP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 11.8%
South Africa Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
South Africa Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.8%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:DCP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:DCP Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 30,193 1,148 1,102 6
2021-02-28 26,979 1,149 907 7
2020-02-29 23,998 871 647 4
2019-11-15
JSE:DCP Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-08-31 22,803 542 565
2019-05-31 22,111 590 650
2019-02-28 21,420 638 735
2018-11-30 20,898 852 722
2018-08-31 20,376 948 718
2018-05-31 19,928 765 701
2018-02-28 19,480 581 684
2017-11-30 18,941 910 715
2017-08-31 18,359 1,239 746
2017-05-31 17,814 1,154 679
2017-02-28 17,268 1,069 612
2016-11-30 16,794 628 548

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dis-Chem Pharmacies's earnings are expected to grow significantly at over 20% yearly.
  • Dis-Chem Pharmacies's revenue is expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:DCP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Dis-Chem Pharmacies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:DCP Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 1.26 1.47 0.97 6.00
2021-02-28 1.04 1.18 0.87 7.00
2020-02-29 0.81 0.90 0.68 6.00
2019-11-15
JSE:DCP Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-08-31 0.66
2019-05-31 0.76
2019-02-28 0.85
2018-11-30 0.84
2018-08-31 0.83
2018-05-31 0.82
2018-02-28 0.80
2017-11-30 0.84
2017-08-31 0.88
2017-05-31 0.82
2017-02-28 0.75
2016-11-30 0.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Dis-Chem Pharmacies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Dis-Chem Pharmacies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the South Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the South Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dis-Chem Pharmacies has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Dis-Chem Pharmacies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dis-Chem Pharmacies's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dis-Chem Pharmacies's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Dis-Chem Pharmacies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Dis-Chem Pharmacies's 1-year earnings growth is negative, it can't be compared to the ZA Consumer Retailing industry average.
Earnings and Revenue History
Dis-Chem Pharmacies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dis-Chem Pharmacies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:DCP Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 22,802.72 564.70 3,387.50
2019-05-31 22,111.37 649.71 3,387.50
2019-02-28 21,420.02 734.72 3,387.50
2018-11-30 20,897.95 722.02 3,209.18
2018-08-31 20,375.88 717.85 3,030.85
2018-05-31 19,927.72 701.05 3,030.85
2018-02-28 19,479.55 684.25 3,030.85
2017-11-30 18,941.07 714.99 2,892.01
2017-08-31 18,358.79 745.62 2,631.11
2017-05-31 17,813.63 678.98 2,631.11
2017-02-28 17,268.48 612.35 2,631.11
2016-11-30 16,794.39 548.13 1,577.42
2016-08-31 16,320.30 483.92 523.74
2016-05-31 15,690.80 498.35 523.74
2016-02-29 15,061.29 512.78 523.74
2015-02-28 12,910.59 433.65 2,321.14
2014-02-28 10,321.00 408.59 1,834.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Dis-Chem Pharmacies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Dis-Chem Pharmacies used its assets more efficiently than the ZA Consumer Retailing industry average last year based on Return on Assets.
  • Dis-Chem Pharmacies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dis-Chem Pharmacies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dis-Chem Pharmacies has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Dis-Chem Pharmacies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dis-Chem Pharmacies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dis-Chem Pharmacies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Dis-Chem Pharmacies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Dis-Chem Pharmacies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dis-Chem Pharmacies Company Filings, last reported 2 months ago.

JSE:DCP Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 2,101.62 1,727.33 657.31
2019-05-31 2,101.62 1,727.33 657.31
2019-02-28 2,105.98 1,175.46 177.43
2018-11-30 2,105.98 1,175.46 177.43
2018-08-31 2,034.13 1,470.38 903.79
2018-05-31 2,034.13 1,470.38 903.79
2018-02-28 1,686.14 1,005.92 280.00
2017-11-30 1,687.20 1,005.92 280.00
2017-08-31 1,488.79 933.05 185.77
2017-05-31 1,488.79 933.05 185.77
2017-02-28 1,130.48 987.72 294.70
2016-11-30 1,130.48 987.72 294.70
2016-08-31 223.53 2,301.50 121.37
2016-05-31 223.53 2,301.50 121.37
2016-02-29 839.68 1,556.73 273.21
2015-02-28 1,301.54 504.40 26.95
2014-02-28 1,005.09 406.07 23.34
  • Dis-Chem Pharmacies's level of debt (82.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.5% vs 82.2% today).
  • Debt is well covered by operating cash flow (31.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6x coverage).
X
Financial health checks
We assess Dis-Chem Pharmacies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dis-Chem Pharmacies has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Dis-Chem Pharmacies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.38%
Current annual income from Dis-Chem Pharmacies dividends. Estimated to be 1.77% next year.
If you bought ZAR2,000 of Dis-Chem Pharmacies shares you are expected to receive ZAR28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dis-Chem Pharmacies's pays a lower dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Dis-Chem Pharmacies's dividend is below the markets top 25% of dividend payers in South Africa (8.76%).
Upcoming dividend payment

Purchase Dis-Chem Pharmacies before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:DCP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
South Africa Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.3%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 179 Stocks 4%
South Africa Minimum Threshold Dividend Yield 10th Percentile 1.9%
South Africa Bottom 25% Dividend Yield 25th Percentile 3.3%
South Africa Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:DCP Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-02-28 0.55 7.00
2021-02-28 0.43 8.00
2020-02-29 0.30 5.00
2019-11-15
JSE:DCP Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-06-28 0.342 1.490
2019-05-16 0.342 1.336
2018-06-22 0.315 1.115
2018-05-04 0.315 1.099
2017-10-20 0.375 1.068
2017-06-23 0.147 0.503
2017-05-17 0.147 0.529

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dis-Chem Pharmacies is not paying a notable dividend for South Africa, therefore no need to check if the payments are stable.
  • Dis-Chem Pharmacies is not paying a notable dividend for South Africa, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Dis-Chem Pharmacies's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Dis-Chem Pharmacies's dividends as it is not paying a notable one for South Africa.
Future Payout to shareholders
  • No need to calculate the sustainability of Dis-Chem Pharmacies's dividends in 3 years as they are not expected to pay a notable one for South Africa.
X
Income/ dividend checks
We assess Dis-Chem Pharmacies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dis-Chem Pharmacies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dis-Chem Pharmacies has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Dis-Chem Pharmacies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ivan Saltzman
COMPENSATION ZAR12,836,000
AGE 69
TENURE AS CEO 14.5 years
CEO Bio

Mr. Ivan Leon Saltzman has been the Chief Executive Officer and Executive Director of Dis-Chem Pharmacies Limited since May 25, 2005. Mr. Saltzman has 41 years of experience in the pharmaceutical sector in South Africa and has spent 36 years of them at Dis-Chem. He is a qualified pharmacist with a Diploma in Pharmacy.

CEO Compensation
  • Ivan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ivan's remuneration is lower than average for companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Dis-Chem Pharmacies management team in years:

14.5
Average Tenure
67
Average Age
  • The average tenure for the Dis-Chem Pharmacies management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ivan Saltzman

TITLE
CEO & Executive Director
COMPENSATION
ZAR13M
AGE
69
TENURE
14.5 yrs

Rui Morais

TITLE
CFO & Executive Director
COMPENSATION
ZAR5M
AGE
35
TENURE
7.3 yrs

Lynette Saltzman

TITLE
MD & Executive Director
COMPENSATION
ZAR10M
AGE
67
TENURE
14.5 yrs

Kim Sim

TITLE
Chief Information & Innovation Officer

Caryn Barker

TITLE
Human Resources Director

Whitney Green

TITLE
Company Secretary
Board of Directors Tenure

Average tenure and age of the Dis-Chem Pharmacies board of directors in years:

5.2
Average Tenure
54
Average Age
  • The tenure for the Dis-Chem Pharmacies board of directors is about average.
Board of Directors

Larry Nestadt

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR3M
AGE
69

Ivan Saltzman

TITLE
CEO & Executive Director
COMPENSATION
ZAR13M
AGE
69
TENURE
14.5 yrs

Rui Morais

TITLE
CFO & Executive Director
COMPENSATION
ZAR5M
AGE
35
TENURE
7.3 yrs

Lynette Saltzman

TITLE
MD & Executive Director
COMPENSATION
ZAR10M
AGE
67
TENURE
14.5 yrs

Mark Bowman

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR566K
AGE
52
TENURE
3.1 yrs

Anuschka Coovadia

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR362K
AGE
43
TENURE
3.1 yrs

Joe Mthimunye

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR666K
AGE
54
TENURE
3.1 yrs

Mac Gani

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR451K
AGE
66
TENURE
2.5 yrs

Saul Saltzman

TITLE
Alternate Executive Director
COMPENSATION
ZAR5M
AGE
39
TENURE
12.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
X
Management checks
We assess Dis-Chem Pharmacies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dis-Chem Pharmacies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Dis-Chem Pharmacies Limited engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. The company operates big box, alternative, and Dis-Chem the local choice format stores that offer a range of products, including dispensary, personal care and beauty, healthcare and nutrition, baby care, and other products, as well as medicine, food products, and shoes and electronics. Its stores also provides click and collect services; private labeled products; and ancillary services, such as hair salons and nail bars. In addition, the company operates retail stores of pharmaceuticals and household items, an e-commerce Website, and corporate wellness clinics, as well as offers courier services. Further, it is involved in the wholesale of pharmaceuticals comprising front shop to Dis-Chem retail stores and independent pharmacies; and provision of loyalty program services. As at February 28, 2018, the company operated 129 retail pharmacies that include 3 stores in Namibia; and 225 store clinics. Dis-Chem Pharmacies Limited was founded in 1978 and is headquartered in Midrand, South Africa. Dis-Chem Pharmacies Limited is a subsidiary of Ivlyn Proprietary Limited.

Details
Name: Dis-Chem Pharmacies Limited
DCP
Exchange: JSE
Founded: 1978
ZAR21,330,095,178
860,084,483
Website: http://dischemgroup.com
Address: Dis-Chem Pharmacies Limited
23 Stag Road,
Glen Austin,
Midrand,
Gauteng, 1685,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE DCP Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 18. Nov 2016
Number of employees
Current staff
Staff numbers
15,223
Dis-Chem Pharmacies employees.
Industry
Drug Retail
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:44
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/11/07
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/02/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.