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Massmart Holdings

JSE:MSM
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MSM
JSE
ZAR10B
Market Cap
  1. Home
  2. ZA
  3. Consumer Retailing
Company description

Massmart Holdings Limited operates as a retail and wholesale distributor. The last earnings update was 78 days ago. More info.


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MSM Share Price and Events
7 Day Returns
-4.8%
JSE:MSM
-0.9%
ZA Consumer Retailing
-1%
ZA Market
1 Year Returns
-55.6%
JSE:MSM
-3%
ZA Consumer Retailing
-2%
ZA Market
MSM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Massmart Holdings (MSM) -4.8% 0.4% -2% -55.6% -59.6% -67.3%
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
  • MSM underperformed the Consumer Retailing industry which returned -3% over the past year.
  • MSM underperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
MSM
Industry
5yr Volatility vs Market
Related Companies

MSM Value

 Is Massmart Holdings 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 Massmart Holdings 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 Massmart Holdings.

JSE:MSM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
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:MSM
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%) (194.98%))
1.114
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.114 * 5.96%)
9.37%

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

The calculations below outline how an intrinsic value for Massmart Holdings 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:MSM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 9.37%)
2020 3,560.00 Analyst x1 3,255.06
2021 3,452.00 Analyst x1 2,885.95
2022 3,411.75 Est @ -1.17% 2,607.98
2023 3,411.85 Est @ 0% 2,384.65
2024 3,439.86 Est @ 0.82% 2,198.29
2025 3,487.80 Est @ 1.39% 2,038.01
2026 3,550.39 Est @ 1.79% 1,896.88
2027 3,624.07 Est @ 2.08% 1,770.39
2028 3,706.39 Est @ 2.27% 1,655.51
2029 3,795.68 Est @ 2.41% 1,550.17
Present value of next 10 years cash flows ZAR22,242.00
JSE:MSM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR3,795.68 × (1 + 2.73%) ÷ (9.37% – 2.73%)
ZAR58,740.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR58,740.61 ÷ (1 + 9.37%)10
ZAR23,989.91
JSE:MSM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR22,242.00 + ZAR23,989.91
ZAR46,231.91
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR46,231.91 / 218.27
ZAR211.81
JSE:MSM Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR211.81
Current discount Discount to share price of ZAR44.00
= -1 x (ZAR44.00 - ZAR211.81) / ZAR211.81
79.2%

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

Current Discount
Amount off the current price Massmart Holdings is available for.
Intrinsic value
>50%
Share price is ZAR44 vs Future cash flow value of ZAR211.81
Current Discount Checks
For Massmart Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Massmart Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Massmart Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Massmart Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Massmart Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:MSM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR-0.66
JSE:MSM Share Price ** JSE (2019-11-14) in ZAR ZAR44
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 Massmart Holdings.

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

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

= 44 ÷ -0.66

-66.95x

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

  • Massmart Holdings is loss making, we can't compare its value to the ZA Consumer Retailing industry average.
  • Massmart Holdings is loss making, we can't compare the value of its earnings to the South Africa market.
Price based on expected Growth
Does Massmart Holdings's expected growth come at a high price?
Raw Data
JSE:MSM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -66.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
103.8%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 .

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

  • Unable to calculate PEG ratio for Massmart Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Massmart Holdings's assets?
Raw Data
JSE:MSM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR24.12
JSE:MSM Share Price * JSE (2019-11-14) in ZAR ZAR44
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:MSM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 44 ÷ 24.12

1.82x

* Primary Listing of Massmart Holdings.

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

  • Massmart Holdings is good value based on assets compared to the ZA Consumer Retailing industry average.
X
Value checks
We assess Massmart Holdings'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. Massmart Holdings has a total score of 3/6, 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.

MSM Future Performance

 How is Massmart Holdings expected to perform in the next 1 to 3 years based on estimates from 6 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
103.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Massmart Holdings expected to grow at an attractive rate?
  • Massmart Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Massmart Holdings's earnings growth is expected to exceed the South Africa market average.
  • Massmart Holdings's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:MSM Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:MSM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 103.8%
JSE:MSM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 5.5%
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:MSM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:MSM Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 106,451 4,901 694 5
2020-12-31 100,839 4,191 531 6
2019-12-31 95,442 2,863 -351 6
2019-11-15
JSE:MSM Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 93,216 2,842 -143
2019-03-31 92,079 2,467 373
2018-12-30 90,942 2,092 889
2018-09-30 91,864 2,094 1,102
2018-07-01 92,787 2,094 1,321
2018-04-01 93,261 2,730 1,408
2017-12-31 93,735 3,366 1,495
2017-09-30 92,590 2,733 1,441
2017-06-25 91,445 2,161 1,339
2017-03-25 91,348 2,285 1,332
2016-12-25 91,250 2,409 1,326
2016-09-25 89,688 2,344 1,248

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Massmart Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Massmart Holdings's revenue is expected to grow by 5.5% 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:MSM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Massmart Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:MSM Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.85 4.85 4.85 1.00
2020-12-31 3.64 3.64 3.64 1.00
2019-12-31 -1.59 0.89 -4.06 2.00
2019-11-15
JSE:MSM Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 -0.66
2019-03-31 1.72
2018-12-30 4.11
2018-09-30 5.11
2018-07-01 6.15
2018-04-01 6.55
2017-12-31 6.94
2017-09-30 6.68
2017-06-25 6.19
2017-03-25 6.16
2016-12-25 6.13
2016-09-25 5.77

*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.
  • Massmart Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Massmart Holdings'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.
Massmart Holdings has a total score of 3/6, 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.

MSM Past Performance

  How has Massmart Holdings 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 Massmart Holdings'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.
  • Massmart Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Massmart Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Massmart Holdings's 1-year growth to the ZA Consumer Retailing industry average as it is not currently profitable.
Earnings and Revenue History
Massmart Holdings'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 Massmart Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:MSM Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 93,215.60 -143.20 10,325.80
2019-03-31 92,078.60 372.70 10,700.00
2018-12-30 90,941.60 888.60 11,074.20
2018-09-30 91,864.45 1,101.55 10,968.80
2018-07-01 92,787.30 1,321.30 10,865.70
2018-04-01 93,261.25 1,408.10 10,725.60
2017-12-31 93,735.20 1,494.90 10,585.50
2017-09-30 92,590.30 1,441.20 10,513.20
2017-06-25 91,445.40 1,338.60 10,436.50
2017-03-25 91,347.70 1,332.10 10,458.15
2016-12-25 91,250.00 1,325.60 10,479.80
2016-09-25 89,687.65 1,247.85 10,300.35
2016-06-26 88,125.30 1,187.50 10,120.90
2016-03-26 86,428.55 1,150.15 9,885.40
2015-12-27 84,731.80 1,112.80 9,649.90
2015-09-27 83,081.30 1,062.10 9,447.05
2015-06-28 81,430.80 1,011.40 9,244.20
2015-03-28 79,802.00 1,045.60 9,016.00
2014-12-28 78,173.20 1,079.80 8,787.80
2014-09-28 76,863.50 1,115.65 8,595.85
2014-06-29 75,553.80 1,151.50 8,403.90
2014-03-29 73,908.60 1,217.25 8,191.35
2013-12-29 72,263.40 1,283.00 7,978.80
2013-06-23 68,492.00 1,173.30 7,484.10
2013-03-23 67,165.75 1,074.60 7,233.55
2012-12-23 65,839.50 975.90 6,983.00

*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.
  • It is difficult to establish if Massmart Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Massmart Holdings used its assets less efficiently than the ZA Consumer Retailing industry average last year based on Return on Assets.
  • It is difficult to establish if Massmart Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Massmart Holdings'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.
Massmart Holdings has a total score of 0/6, 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.

MSM Health

 How is Massmart Holdings'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 Massmart Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Massmart Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Massmart Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Massmart Holdings'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 2.1x 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 Massmart Holdings Company Filings, last reported 4 months ago.

JSE:MSM Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 5,280.30 8,318.30 1,358.20
2019-03-31 5,280.30 8,318.30 1,358.20
2018-12-30 6,528.60 4,064.40 2,393.20
2018-09-30 6,528.60 4,064.40 2,393.20
2018-07-01 6,078.30 8,592.80 1,161.40
2018-04-01 6,078.30 8,592.80 1,161.40
2017-12-31 6,341.70 3,577.10 2,397.50
2017-09-30 6,391.40 3,577.10 2,397.50
2017-06-25 5,813.10 7,584.00 1,246.70
2017-03-25 5,813.10 7,584.00 1,246.70
2016-12-25 5,755.80 4,464.70 2,807.40
2016-09-25 6,183.70 4,464.70 2,807.40
2016-06-26 5,503.70 7,352.30 1,449.40
2016-03-26 5,503.70 7,352.30 1,449.40
2015-12-27 5,791.10 3,467.30 2,074.40
2015-09-27 5,791.10 3,467.30 2,074.40
2015-06-28 5,212.50 6,482.30 1,528.60
2015-03-28 5,212.50 6,482.30 1,528.60
2014-12-28 5,527.20 3,541.10 2,111.00
2014-09-28 5,527.20 3,541.10 2,111.00
2014-06-29 5,041.00 4,688.40 1,417.30
2014-03-29 5,041.00 4,688.40 1,417.30
2013-12-29 5,369.60 2,364.30 2,222.60
2013-06-23 4,802.10 3,794.50 1,189.00
2013-03-23 4,802.10 3,794.50 1,189.00
2012-12-23 4,915.30 1,536.50 2,040.50
  • Massmart Holdings's level of debt (157.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (91.6% vs 157.5% today).
  • Debt is well covered by operating cash flow (34.2%, greater than 20% of total debt).
  • Massmart Holdings is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Massmart Holdings'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. Massmart Holdings has a total score of 2/6, 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.

MSM Dividends

 What is Massmart Holdings'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
0%
Current annual income from Massmart Holdings dividends. Estimated to be 3.26% next year.
If you bought ZAR2,000 of Massmart Holdings shares you are expected to receive ZAR0 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?
  • Unable to evaluate Massmart Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Massmart Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:MSM 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 6 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:MSM Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.34 2.00
2020-12-31 1.53 2.00
2019-12-31 0.44 2.00
2019-11-15
JSE:MSM Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-08-29 0.000 0.000
2019-04-18 2.080 3.398
2019-02-28 2.080 2.487
2018-02-22 3.470 3.077
2017-02-28 2.989 2.462
2016-08-25 1.482 1.208
2016-04-25 2.582 1.985
2016-02-26 2.582 2.057
2015-08-27 4.210 3.977
2015-02-26 4.210 2.882
2014-04-30 4.210 3.038
2014-02-26 4.210 3.243
2013-02-28 4.210 2.644
2012-10-05 3.980 2.187
2012-08-22 3.980 2.371
2011-10-18 3.860 2.296
2011-08-25 3.860 2.568
2011-02-24 3.860 2.743
2010-10-06 3.860 2.684
2010-08-26 3.860 2.916
2009-08-27 3.860 3.908
2009-07-15 3.860 4.979

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

  • Unable to perform a dividend volatility check as Massmart Holdings has not reported any payouts.
  • Unable to verify if Massmart Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Massmart Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Massmart Holdings has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Massmart Holdings'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 Massmart Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Massmart Holdings has a total score of 1/6, see the detailed checks below.


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

MSM Management

 What is the CEO of Massmart Holdings'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
Mitch Slape
AGE 52
TENURE AS CEO 0.2 years
CEO Bio

Mr. Mitchell Slape, also known as Mitch, had been the Chief Executive Officer and Executive Director of Massmart Holdings Ltd. since September 1, 2019. He was the Chief Operating Officer and Executive Vice President of Seiyu GK since August 17, 2015 until May 2019 and served as its Executive Officer until May 2019. Mr. Slape served as Vice-President of the Superama upmarket supermarket chain at Walmart de Mexico SAB de CV. He served as Chief Operating Officer of Future Retail Limited since April 2012. He was a Walmart veteran for 16 years. He served as a Director at Walmart Chile S.A. He is a career retailer and has been with Walmart since 1995. He has extensive leadership experience across a range of retail formats and Walmart markets, including the United States, Japan, India and Mexico. He served as Chief Operating Officer at Seiyu (Walmart Japan), Chief Operating Officer at Bharti Retail Ltd (India), Senior Vice President at Superama Supermarkets (Walmart de Mexico), Senior Vice President at International Business Development (Walmart International) and Vice President at International Real Estate & Construction (Walmart International). He holds a Bachelor of Business Administration in Finance and Economics from Wichita State University and a Master’s Degree in International Finance from Thunderbird, the American Graduate School of International Management, both in the United States of America. His well-established Walmart network and extensive retail experience uniquely positions him to leverage the relevant resources needed to elevate Massmart’s operating performance.

CEO Compensation
  • Insufficient data for Mitch to compare compensation growth.
  • Insufficient data for Mitch to establish whether their remuneration is reasonable compared to companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Massmart Holdings management team in years:

0.3
Average Tenure
48
Average Age
  • The average tenure for the Massmart Holdings management team is less than 2 years, this suggests a new team.
Management Team

Hans Van Lierop

TITLE
COMPENSATION
ZAR22M
AGE
52
TENURE
0.3 yrs

Mitch Slape

TITLE
CEO & Executive Director
AGE
52
TENURE
0.2 yrs

Mohammed Abdool-Samad

TITLE
Chief Financial Officer & Executive Director
AGE
48
TENURE
0.3 yrs

Richard J. Inskip

TITLE
Group Chief Information Officer and Group Supply Chain & Logistics Executive
AGE
57
TENURE
2.8 yrs

Joe Ralebepa

TITLE
Group Legal Executive
AGE
48
TENURE
3 yrs

Louise Lackay-Walters

TITLE
Group Chief Ethics & Compliance Officer
AGE
36
TENURE
0.4 yrs

Jane Bruyns

TITLE
Group Human Capital Executive
AGE
58
TENURE
4.5 yrs

Dhari Moodley

TITLE
Chief Audit Executive
AGE
46

Andrew Stein

TITLE
Interim Chief Executive Office of Massdiscounters
AGE
38
TENURE
0.3 yrs

Deepa Sita

TITLE
Interim Chief Executive Officer of Masscash
AGE
42
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Massmart Holdings board of directors in years:

1.1
Average Tenure
52
Average Age
  • The average tenure for the Massmart Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Kuseni Dlamini

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR2M
AGE
52
TENURE
5.6 yrs

Mitch Slape

TITLE
CEO & Executive Director
AGE
52
TENURE
0.2 yrs

Mohammed Abdool-Samad

TITLE
Chief Financial Officer & Executive Director
AGE
48
TENURE
0.3 yrs

Phumzile Langeni

TITLE
Lead Independent Director
COMPENSATION
ZAR2M
AGE
45
TENURE
0.5 yrs

Funke Ighodaro

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR533K
AGE
56
TENURE
1.5 yrs

Lulu Nobambiswano Gwagwa

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR845K
AGE
60
TENURE
13 yrs

John Suarez

TITLE
Non-Independent Non-Executive Director
AGE
55
TENURE
0.8 yrs

Enrique Ostalé Cambiaso

TITLE
Non-Independent Non-Executive Director
AGE
59
TENURE
3.8 yrs

Susan Muigai

TITLE
Non-Independent Non-Executive Director
AGE
49
TENURE
2.5 yrs

Lindiwe Mthimunye-Bakoro

TITLE
Independent Non-Executive Director
AGE
46
TENURE
0.8 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)
02. Sep 19 Buy Massmart Holdings Ltd., ESOP Company 29. Aug 19 30. Aug 19 300,000 ZAR45.25 ZAR13,090,279
02. Apr 19 Sell Guy Robert Hayward Individual 02. Apr 19 02. Apr 19 -14,935 ZAR89.51 ZAR-1,336,832
X
Management checks
We assess Massmart Holdings'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. Massmart Holdings 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.

MSM News

Simply Wall St News

MSM Company Info

Description

Massmart Holdings Limited operates as a retail and wholesale distributor. It operates through four divisions: Massdiscounters, Masswarehouse, Massbuild, and Masscash. The Massdiscounters division operates discount retail stores that offer general merchandise, fresh food, groceries, and liquor, as well as technological solutions in multimedia and hi-tech under the Game and DionWired retail formats. This division operates 171 stores in South Africa, Botswana, Ghana, Kenya, Lesotho, Malawi, Mozambique, Namibia, Nigeria, Tanzania, Uganda, and Zambia. The Masswarehouse division operates warehouse stores under the Makro and The Fruitspot names that sell food, liquor, and general merchandise for personal, commercial, and trading customers; and fresh and cut fruit and vegetables. This division operates 21 stores in South Africa. The Massbuild division operates DIY, home improvement, and building materials stores under the Builders Warehouse, Builders Express, Builders Superstore, and Builders Trade Depot brands. This division operates 114 stores in South Africa, Botswana, Mozambique, and Zambia. The Masscash division engages in the wholesale of food and cosmetic products under the CBW, Trident, Jumbo Cash & Carry, Sunshine, Eureka, Saverite, and Shield brands; and operation of retail outlets under the Cambridge Food and Rhino brands. This division operates 130 stores South Africa, Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zambia. Massmart Holdings Limited was founded in 1990 and is headquartered in Sandton, South Africa. Massmart Holdings Limited is a subsidiary of Main Street 830 Proprietary Limited.

Details
Name: Massmart Holdings Limited
MSM
Exchange: JSE
Founded: 1990
ZAR9,603,703,340
218,265,985
Website: http://www.massmart.co.za
Address: Massmart Holdings Limited
Massmart House,
16 Peltier Drive,
Sandton,
Gauteng, 2157,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE MSM Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 07. Jul 2000
OTCPK MMRT.F Ordinary Shares Pink Sheets LLC US USD 07. Jul 2000
OTCPK MMRT.Y UNSPONSORED ADS Pink Sheets LLC US USD 23. Oct 2008
Number of employees
Current staff
Staff numbers
46,500
Massmart Holdings employees.
Industry
Hypermarkets and Super Centers
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:32
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/06
Last earnings filing: 2019/08/29
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/30


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.