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Pick n Pay Stores

JSE:PIK
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PIK
JSE
ZAR33B
Market Cap
  1. Home
  2. ZA
  3. Consumer Retailing
Company description

Pick n Pay Stores Limited, an investment holding company, engages in the retail of food, clothing, general merchandise, pharmaceuticals, and liquor in South Africa and Rest of Africa. The last earnings update was 25 days ago. More info.


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PIK Share Price and Events
7 Day Returns
-0.6%
JSE:PIK
-0.9%
ZA Consumer Retailing
-1%
ZA Market
1 Year Returns
-2.3%
JSE:PIK
-3%
ZA Consumer Retailing
-2%
ZA Market
PIK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pick n Pay Stores (PIK) -0.6% 13.8% 14.2% -2.3% 7.2% 25.5%
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
  • PIK matched the Consumer Retailing industry (-3%) over the past year.
  • PIK matched the South Africa Market (-2%) over the past year.
Price Volatility
PIK
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Pick n Pay Stores 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 Pick n Pay Stores 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 Pick n Pay Stores.

JSE:PIK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 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:PIK
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%) (56.62%))
0.789
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:PIK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pick n Pay Stores 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:PIK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 7.5%)
2020 2,131.00 Analyst x1 1,982.36
2021 2,168.00 Analyst x1 1,876.11
2022 2,143.00 Analyst x1 1,725.13
2023 2,144.54 Est @ 0.07% 1,605.95
2024 2,163.17 Est @ 0.87% 1,506.92
2025 2,194.05 Est @ 1.43% 1,421.82
2026 2,233.94 Est @ 1.82% 1,346.70
2027 2,280.67 Est @ 2.09% 1,278.97
2028 2,332.74 Est @ 2.28% 1,216.92
2029 2,389.13 Est @ 2.42% 1,159.41
Present value of next 10 years cash flows ZAR15,120.00
JSE:PIK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR2,389.13 × (1 + 2.73%) ÷ (7.5% – 2.73%)
ZAR51,475.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR51,475.56 ÷ (1 + 7.5%)10
ZAR24,980.28
JSE:PIK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR15,120.00 + ZAR24,980.28
ZAR40,100.28
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR40,100.28 / 476.18
ZAR84.21
JSE:PIK Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR84.21
Current discount Discount to share price of ZAR68.40
= -1 x (ZAR68.40 - ZAR84.21) / ZAR84.21
18.8%

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

Current Discount
Amount off the current price Pick n Pay Stores is available for.
Intrinsic value
19%
Share price is ZAR68.4 vs Future cash flow value of ZAR84.21
Current Discount Checks
For Pick n Pay Stores to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Pick n Pay Stores's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Pick n Pay Stores's share price is below the future cash flow value, but not 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 Pick n Pay Stores's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pick n Pay Stores's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:PIK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-01) in ZAR ZAR3.48
JSE:PIK Share Price ** JSE (2019-11-14) in ZAR ZAR68.4
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 Pick n Pay Stores.

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

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

= 68.4 ÷ 3.48

19.67x

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

  • Pick n Pay Stores is good value based on earnings compared to the ZA Consumer Retailing industry average.
  • Pick n Pay Stores is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Pick n Pay Stores's expected growth come at a high price?
Raw Data
JSE:PIK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
12.1%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:PIK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.67x ÷ 12.1%

1.63x

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

  • Pick n Pay Stores is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Pick n Pay Stores's assets?
Raw Data
JSE:PIK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-01) in ZAR ZAR4.88
JSE:PIK Share Price * JSE (2019-11-14) in ZAR ZAR68.4
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:PIK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 68.4 ÷ 4.88

14.03x

* Primary Listing of Pick n Pay Stores.

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

  • Pick n Pay Stores is overvalued based on assets compared to the ZA Consumer Retailing industry average.
X
Value checks
We assess Pick n Pay Stores'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. Pick n Pay Stores has a total score of 1/6, 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 Pick n Pay Stores expected to perform in the next 1 to 3 years based on estimates from 9 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
12.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pick n Pay Stores expected to grow at an attractive rate?
  • Pick n Pay Stores's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Pick n Pay Stores's earnings growth is positive but not above the South Africa market average.
  • Pick n Pay Stores's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:PIK Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:PIK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 12.1%
JSE:PIK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6.9%
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:PIK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:PIK Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-02-28 105,753 4,676 2,040 8
2021-02-28 98,173 4,402 1,786 9
2020-02-29 91,784 4,153 1,561 9
2019-11-15
JSE:PIK Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-09-01 92,206 2,690 1,654
2019-06-01 91,206 2,313 1,652
2019-03-03 90,206 1,936 1,650
2018-12-03 87,339 1,480
2018-08-26 84,673 3,485 1,417
2018-05-26 83,489 3,069 1,357
2018-02-25 82,306 2,653 1,296
2017-11-25 81,016 1,196
2017-08-27 79,726 1,961 1,095
2017-05-27 78,606 1,771 1,153
2017-02-26 77,486 1,580 1,210
2016-11-26 76,216 2,081 1,173

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pick n Pay Stores's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).
  • Pick n Pay Stores's revenue is expected to grow by 6.9% 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:PIK 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 9 Analyst Estimates (S&P Global) See Below

All data from Pick n Pay Stores Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:PIK Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-02-28 4.10 4.85 3.68 5.00
2021-02-28 3.63 4.20 3.34 6.00
2020-02-29 3.20 3.54 3.02 6.00
2019-11-15
JSE:PIK Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-09-01 3.48
2019-06-01 3.47
2019-03-03 3.47
2018-12-03 3.13
2018-08-26 3.00
2018-05-26 2.87
2018-02-25 2.74
2017-11-25 2.50
2017-08-27 2.27
2017-05-27 2.39
2017-02-26 2.51
2016-11-26 2.44

*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.
  • Pick n Pay Stores is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Pick n Pay Stores'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.
Pick n Pay Stores has a total score of 2/6, 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 Pick n Pay Stores 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 Pick n Pay Stores'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.
  • Pick n Pay Stores's year on year earnings growth rate has been positive over the past 5 years.
  • Pick n Pay Stores's 1-year earnings growth exceeds its 5-year average (16.4% vs 15.4%)
  • Pick n Pay Stores's earnings growth has exceeded the ZA Consumer Retailing industry average in the past year (16.4% vs 15%).
Earnings and Revenue History
Pick n Pay Stores'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 Pick n Pay Stores Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:PIK Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-01 92,206.40 1,653.70 17,215.60
2019-06-01 91,206.30 1,651.60 16,853.45
2019-03-03 90,206.20 1,649.50 16,491.30
2018-12-03 87,339.10 1,480.20 15,522.20
2018-08-26 84,672.80 1,417.30 15,128.10
2018-05-26 83,489.15 1,356.80 15,159.55
2018-02-25 82,305.50 1,296.30 15,191.00
2017-11-25 81,015.55 1,195.75 15,138.20
2017-08-27 79,725.60 1,095.20 15,085.40
2017-05-27 78,605.85 1,152.75 14,664.40
2017-02-26 77,486.10 1,210.30 14,243.40
2016-11-26 76,216.25 1,172.90 13,190.75
2016-08-28 74,946.40 1,108.00 12,918.80
2016-05-28 73,695.75 1,078.60 12,672.05
2016-02-28 72,445.10 1,049.20 12,425.30
2015-11-28 71,065.55 980.20 12,215.30
2015-08-30 69,686.00 911.20 12,005.30
2015-05-30 68,313.40 883.20 11,747.30
2015-03-01 66,940.80 855.20 11,489.30
2014-12-01 66,050.40 754.60 11,062.30
2014-08-31 65,160.00 654.00 10,815.30
2014-05-31 64,138.50 618.85 10,672.75
2014-03-02 63,117.00 583.70 10,530.20
2013-12-02 62,074.95 572.75 10,494.10
2013-09-01 61,032.90 561.80 10,458.00
2013-06-01 60,152.10 556.20 10,229.95
2013-03-03 59,271.30 550.60 10,001.90
2012-12-03 58,092.30 617.95 9,712.35

*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.
  • Whilst Pick n Pay Stores made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Pick n Pay Stores used its assets less efficiently than the ZA Consumer Retailing industry average last year based on Return on Assets.
  • Pick n Pay Stores's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Pick n Pay Stores'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.
Pick n Pay Stores 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 Pick n Pay Stores'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 Pick n Pay Stores's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pick n Pay Stores's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Pick n Pay Stores's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Pick n Pay Stores'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 4.6x 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 Pick n Pay Stores Company Filings, last reported 2 months ago.

JSE:PIK Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-01 2,321.50 2,700.30 2,063.30
2019-06-01 2,321.50 2,700.30 2,063.30
2019-03-03 4,316.80 3,125.00 1,503.20
2018-12-03 4,316.80 3,125.00 1,503.20
2018-08-26 3,777.20 1,585.50 1,209.00
2018-05-26 3,777.20 1,585.50 1,209.00
2018-02-25 4,023.60 2,208.80 1,129.10
2017-11-25 4,023.60 2,208.80 1,129.10
2017-08-27 3,442.50 1,928.60 966.30
2017-05-27 3,442.50 1,928.60 966.30
2017-02-26 3,855.70 1,821.20 961.90
2016-11-26 4,079.30 1,821.20 961.90
2016-08-28 3,475.60 885.30 1,080.90
2016-05-28 3,475.60 885.30 1,080.90
2016-02-28 3,897.80 532.10 982.90
2015-11-28 3,897.80 532.10 982.90
2015-08-30 3,028.90 536.10 1,439.90
2015-05-30 3,028.90 536.10 1,439.90
2015-03-01 3,261.80 1,197.80 1,024.50
2014-12-01 3,130.10 1,197.80 1,173.80
2014-08-31 2,539.70 1,101.30 1,285.40
2014-05-31 2,539.70 1,101.30 1,285.40
2014-03-02 2,702.60 2,070.30 1,540.30
2013-12-02 2,702.60 2,070.30 1,540.30
2013-09-01 2,307.60 1,601.90 1,340.30
2013-06-01 2,307.60 1,601.90 1,340.30
2013-03-03 2,416.00 2,633.60 1,255.70
2012-12-03 2,416.00 2,633.60 1,255.70
  • Pick n Pay Stores's level of debt (116.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (39.9% vs 116.3% today).
  • Debt is well covered by operating cash flow (99.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 20.7x coverage).
X
Financial health checks
We assess Pick n Pay Stores'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. Pick n Pay Stores 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.

Dividends

 What is Pick n Pay Stores'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
3.38%
Current annual income from Pick n Pay Stores dividends. Estimated to be 3.8% next year.
If you bought ZAR2,000 of Pick n Pay Stores shares you are expected to receive ZAR68 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?
  • Pick n Pay Stores's pays a higher dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Pick n Pay Stores's dividend is below the markets top 25% of dividend payers in South Africa (8.76%).
Upcoming dividend payment

Purchase Pick n Pay Stores 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:PIK 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 9 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:PIK Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-02-28 2.92 8.00
2021-02-28 2.61 9.00
2020-02-29 2.30 9.00
2019-11-15
JSE:PIK Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-06-10 2.311 3.620
2019-04-26 2.311 3.322
2018-06-04 1.888 2.670
2018-04-19 1.888 2.444
2017-06-15 1.763 2.769
2017-04-19 1.763 2.897
2016-05-31 1.494 2.154
2016-04-26 1.494 2.026
2015-04-21 1.181 1.932
2014-04-15 0.923 1.676
2013-10-22 0.841 1.749
2013-06-04 0.840 2.156
2013-04-23 0.840 2.065
2012-10-24 1.231 2.827
2012-01-03 1.309 2.970
2011-04-29 1.425 3.524
2011-04-18 1.425 3.396
2010-10-21 1.718 3.693
2010-04-21 1.745 4.014

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

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Pick n Pay Stores's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Pick n Pay Stores'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 Pick n Pay Stores afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pick n Pay Stores has a total score of 4/6, 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 Pick n Pay Stores'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
Richard William Brasher
COMPENSATION ZAR64,467,400
AGE 57
TENURE AS CEO 6.8 years
CEO Bio

Mr. Richard William Peter Brasher, BSc (Hons) has been the Chief Executive Officer of Pick n Pay Stores Ltd. since January 23, 2013. Mr. Brasher served as the Chief Executive Officer of the U K and ROI at Tesco PLC since March 2011. He served as the Director of Commercial & Marketing at Tesco PLC until March 2011. He served as Head of Financial Reporting at Coca-Cola Hellenic Bottling Company S.A. He served as Marketing Director of UK Operations of Tesco PLC since March 2006 and its Director of Commercial and Trading since September 2003. He joined Tesco PLC from RHM in 1983 and also worked at Unilever. For three years, he led Tesco PLC's Non-food Commercial and Trading Activities. Prior to that, Mr. Brasher served as UK Marketing Director since 1996 and spent Time as a Store Manager and in a number of buying roles. He moved Tesco Stores Group PLC in 1987. He became a Director of Fresh Food Buying in 1990, where he was responsible for convenience foods and Metro stores strategy. He served in Finance and Marketing positions at Unilever. He joined Rank Hovis McDougall PLC in 1985. Mr. Brasher has been an Executive Director of Pick n Pay Stores Ltd. since 2013. He has been a Non-Executive Director of Dobbies Garden Centres Ltd (Formerly, Dobbies Garden Centres plc) since September 12, 2008. He served as an Executive Director of Tesco plc from March 15, 2004 to March 15, 2012. He served as a Non Executive Director of Business Systems Group Holdings plc from June 2000 to June 17, 2004. Mr. Brasher graduated in 1983 with a Degree in Food Technology.

CEO Compensation
  • Richard William's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Richard William's remuneration is higher than average for companies of similar size in South Africa.
Management Team Tenure

Average tenure and age of the Pick n Pay Stores management team in years:

2.3
Average Tenure
57
Average Age
  • The tenure for the Pick n Pay Stores management team is about average.
Management Team

Richard William Brasher

TITLE
CEO & Executive Director
COMPENSATION
ZAR64M
AGE
57
TENURE
6.8 yrs

Richard S. van Rensburg

TITLE
Chief Information Officer & Executive Director
COMPENSATION
ZAR15M
AGE
57

Suzanne Ackerman-Berman

TITLE
Director of Transformation & Executive Director
COMPENSATION
ZAR7M
AGE
56

Jonathan Ackerman

TITLE
Customer Director & Executive Director
COMPENSATION
ZAR4M
AGE
52

Wendy Ackerman

TITLE
Honorary Life President
COMPENSATION
ZAR65K

Raymond Ackerman

TITLE
Founder
COMPENSATION
ZAR65K
AGE
88

Lerena Olivier

TITLE
CFO & Executive Director
TENURE
0.2 yrs

Penny Gerber

TITLE
Divisional Director of Corporate Finance

Debbie Muller

TITLE
Head of Legal Department & Company Secretary
AGE
57

Paula Disberry

TITLE
Executive of Commercial & Marketing
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Pick n Pay Stores board of directors in years:

9.7
Average Tenure
61
Average Age
  • The tenure for the Pick n Pay Stores board of directors is about average.
Board of Directors

Gareth Ackerman

TITLE
Non-Executive Chairman
COMPENSATION
ZAR4M
AGE
61
TENURE
9.7 yrs

Richard William Brasher

TITLE
CEO & Executive Director
COMPENSATION
ZAR64M
AGE
57
TENURE
6.8 yrs

Richard S. van Rensburg

TITLE
Chief Information Officer & Executive Director
COMPENSATION
ZAR15M
AGE
57
TENURE
10.4 yrs

Suzanne Ackerman-Berman

TITLE
Director of Transformation & Executive Director
COMPENSATION
ZAR7M
AGE
56
TENURE
9.7 yrs

Jonathan Ackerman

TITLE
Customer Director & Executive Director
COMPENSATION
ZAR4M
AGE
52
TENURE
9.7 yrs

Raymond Ackerman

TITLE
Founder
COMPENSATION
ZAR65K
AGE
88

Lerena Olivier

TITLE
CFO & Executive Director
TENURE
0.2 yrs

Hugh Herman

TITLE
Lead Independent Non Executive Director
COMPENSATION
ZAR910K
AGE
79
TENURE
10.1 yrs

Jeff van Rooyen

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR883K
AGE
69
TENURE
12.7 yrs

Dave Robins

TITLE
Non-Executive Director
COMPENSATION
ZAR413K
AGE
65
TENURE
17.8 yrs
Who owns this company?
Recent Insider Trading
  • Pick n Pay Stores individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
12. Nov 19 Sell Alex Mathole Individual 11. Nov 19 11. Nov 19 -1,786 ZAR68.23 ZAR-121,859
06. Nov 19 Sell Richard S. van Rensburg Individual 05. Nov 19 05. Nov 19 -291,439 ZAR69.91 ZAR-20,116,082
02. Sep 19 Buy Jonathan Ackerman Individual 30. Aug 19 30. Aug 19 3,456 ZAR57.05 ZAR197,165
26. Aug 19 Buy Alex Mathole Individual 22. Aug 19 22. Aug 19 1,700 ZAR58.60 ZAR99,620
21. Aug 19 Buy David Friedland Individual 20. Aug 19 20. Aug 19 2,500 ZAR58.75 ZAR146,875
19. Aug 19 Buy David Friedland Individual 16. Aug 19 16. Aug 19 2,500 ZAR60.11 ZAR150,275
15. Aug 19 Buy Gareth Ackerman Individual 14. Aug 19 14. Aug 19 17,000 ZAR60.28 ZAR1,023,660
29. Apr 19 Buy The Jongus Trust Company 26. Apr 19 26. Apr 19 14,200 ZAR69.73 ZAR989,908
10. Dec 18 Sell Richard William Brasher Individual 06. Dec 18 07. Dec 18 -141,192 ZAR72.13 ZAR-10,176,763
X
Management checks
We assess Pick n Pay Stores'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. Pick n Pay Stores 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

Pick n Pay Stores Limited, an investment holding company, engages in the retail of food, clothing, general merchandise, pharmaceuticals, and liquor in South Africa and Rest of Africa. It owns, franchises, and invests in hypermarkets, supermarkets, local stores, clothing stores, liquor stores, pharmacy stores, superstores, build stores, punch stores, and express stores under the Pick n Pay and Boxer brands, which offer food products, wine, clothing, and health and wellness products. The company also offers its products through online. In addition, it acquires and develops retail and distribution sites; and provides financial, travel, bill and electricity payment, Web ticket, and courier services, as well as gift cards. The company operates a network of 1,795 owned and franchised stores. The company was founded in 1967 and is based in Cape Town, South Africa.

Details
Name: Pick n Pay Stores Limited
PIK
Exchange: JSE
Founded: 1967
ZAR32,570,417,880
476,175,700
Website: http://www.pnp.co.za
Address: Pick n Pay Stores Limited
Pick n Pay Office Park,
101 Rosmead Avenue,
Cape Town,
Western Cape, 7708,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE PIK Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 25. Nov 1992
DB PIK Ordinary Shares Deutsche Boerse AG DE EUR 25. Nov 1992
OTCPK PKPY.Y ADR Pink Sheets LLC US USD 23. Oct 2008
Number of employees
Current staff
Staff numbers
0
Pick n Pay Stores employees.
Industry
Food Retail
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: 2019/10/21
Last earnings reported: 2019/09/01
Last annual earnings reported: 2019/03/03


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.