Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Pepkor Holdings

JSE:PPH
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PPH
JSE
ZAR35B
Market Cap
  1. Home
  2. ZA
  3. Retail
Company description

Pepkor Holdings Limited, together with its subsidiaries, operates as a retailer focusing on discount, value, and specialized goods in Angola, Botswana, Lesotho, Mozambique, Malawi, Namibia, Nigeria, South Africa, Swaziland, Uganda, and Zambia. The last earnings update was 130 days ago. More info.


Add to Portfolio Compare Print
  • Pepkor Holdings has significant price volatility in the past 3 months.
PPH Share Price and Events
7 Day Returns
-5.6%
JSE:PPH
-12.1%
ZA Specialty Retail
-5.2%
ZA Market
1 Year Returns
-44.4%
JSE:PPH
-50.2%
ZA Specialty Retail
-33.8%
ZA Market
PPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pepkor Holdings (PPH) -5.6% -35.8% -44.2% -44.4% - -
ZA Specialty Retail -12.1% -37.6% -45.2% -50.2% -47.5% -59.8%
ZA Market -5.2% -21.1% -29% -33.8% -28% -31.7%
1 Year Return vs Industry and Market
  • PPH outperformed the Specialty Retail industry which returned -50.2% over the past year.
  • PPH underperformed the Market in South Africa which returned -33.8% over the past year.
Price Volatility
PPH
Industry
5yr Volatility vs Market

Value

 Is Pepkor 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 Pepkor 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 Pepkor Holdings.

JSE:PPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.8%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 8.6%

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:PPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 8.6%
Equity Risk Premium S&P Global 8.2%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.738 (1 + (1- 28%) (49.59%))
1.001
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 8.6% + (1.001 * 8.23%)
16.84%

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

The calculations below outline how an intrinsic value for Pepkor 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:PPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 16.84%)
2020 2,246.00 Analyst x2 1,922.33
2021 3,044.85 Analyst x2 2,230.49
2022 3,266.95 Analyst x2 2,048.31
2023 3,499.39 Est @ 7.11% 1,877.86
2024 3,763.96 Est @ 7.56% 1,728.75
2025 4,060.27 Est @ 7.87% 1,596.10
2026 4,388.77 Est @ 8.09% 1,476.61
2027 4,750.56 Est @ 8.24% 1,368.00
2028 5,147.25 Est @ 8.35% 1,268.63
2029 5,580.92 Est @ 8.43% 1,177.28
Present value of next 10 years cash flows ZAR16,694.00
JSE:PPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR5,580.92 × (1 + 8.6%) ÷ (16.84% – 8.6%)
ZAR73,576.25
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR73,576.25 ÷ (1 + 16.84%)10
ZAR15,520.77
JSE:PPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR16,694.00 + ZAR15,520.77
ZAR32,214.77
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR32,214.77 / 3,450.00
ZAR9.34
JSE:PPH Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR9.34
Current discount Discount to share price of ZAR10.15
= -1 x (ZAR10.15 - ZAR9.34) / ZAR9.34
-8.7%

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

  • The current share price of Pepkor Holdings 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 Pepkor Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pepkor Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:PPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in ZAR ZAR0.65
JSE:PPH Share Price ** JSE (2020-04-02) in ZAR ZAR10.15
South Africa Specialty Retail Industry PE Ratio Median Figure of 12 Publicly-Listed Specialty Retail Companies 8.38x
South Africa Market PE Ratio Median Figure of 201 Publicly-Listed Companies 8.08x

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

** Primary Listing of Pepkor Holdings.

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

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

= 10.15 ÷ 0.65

15.7x

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

  • Pepkor Holdings is overvalued based on earnings compared to the ZA Specialty Retail industry average.
  • Pepkor Holdings is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Pepkor Holdings's expected growth come at a high price?
Raw Data
JSE:PPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
21.2%per year
South Africa Specialty Retail Industry PEG Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 0.92x
South Africa Market PEG Ratio Median Figure of 78 Publicly-Listed Companies 0.84x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.7x ÷ 21.2%

0.74x

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

  • Pepkor Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Pepkor Holdings's assets?
Raw Data
JSE:PPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in ZAR ZAR16.40
JSE:PPH Share Price * JSE (2020-04-02) in ZAR ZAR10.15
South Africa Specialty Retail Industry PB Ratio Median Figure of 12 Publicly-Listed Specialty Retail Companies 1.18x
South Africa Market PB Ratio Median Figure of 271 Publicly-Listed Companies 0.67x
JSE:PPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 10.15 ÷ 16.40

0.62x

* Primary Listing of Pepkor Holdings.

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

  • Pepkor Holdings is good value based on assets compared to the ZA Specialty Retail industry average.
X
Value checks
We assess Pepkor 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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. Pepkor Holdings has a total score of 2/6, 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 Pepkor Holdings expected to perform in the next 1 to 3 years based on estimates from 5 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
21.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pepkor Holdings expected to grow at an attractive rate?
  • Pepkor Holdings's earnings growth is expected to exceed the low risk savings rate of 8.6%.
Growth vs Market Checks
  • Pepkor Holdings's earnings growth is expected to exceed the South Africa market average.
  • Pepkor Holdings's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:PPH Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:PPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 21.2%
JSE:PPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.2%
South Africa Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
South Africa Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16%
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:PPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:PPH Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 83,564 4,541 4,696 5
2021-09-30 77,856 4,373 4,146 5
2020-09-30 72,409 3,196 3,704 5
2020-04-03
JSE:PPH Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-09-30 69,634 1,518 2,230
2019-03-31 66,468 1,533 3,387
2018-12-31 65,318 2,033 3,136
2018-09-30 63,912 2,532 2,874
2018-06-30 63,256 3,075 2,930
2018-03-31 62,358 3,618 2,975
2017-12-31 60,104 3,914 3,263
2017-09-30 57,850 4,210 3,550

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Pepkor Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Pepkor Holdings's revenue is expected to grow by 6.2% 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:PPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Pepkor Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:PPH Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 1.26 1.50 1.00 4.00
2021-09-30 1.10 1.29 0.83 4.00
2020-09-30 0.97 1.11 0.69 4.00
2020-04-03
JSE:PPH Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-09-30 0.65
2019-03-31 0.98
2018-12-31 0.91
2018-09-30 0.83
2018-06-30 0.89
2018-03-31 0.96
2017-12-31 1.13
2017-09-30 1.33

*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.
  • Pepkor Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Pepkor 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.
Pepkor 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.

Past Performance

  How has Pepkor 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 Pepkor Holdings's growth in the last year to its industry (Specialty Retail).
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.
  • Pepkor Holdings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Pepkor Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Pepkor Holdings's 1-year earnings growth is negative, it can't be compared to the ZA Specialty Retail industry average.
Earnings and Revenue History
Pepkor 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 Pepkor Holdings Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:PPH Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 69,634.00 2,230.00 18,158.00
2019-03-31 66,468.00 3,387.00 15,257.00
2018-12-31 65,318.00 3,136.00 15,269.00
2018-09-30 63,912.00 2,874.00 17,155.00
2018-06-30 63,255.50 2,930.00 15,909.00
2018-03-31 62,358.00 2,975.00 16,475.00
2017-12-31 60,104.00 3,262.50 15,634.50
2017-09-30 57,850.00 3,550.00 14,794.00
2016-09-30 48,923.20 1,032.00 12,740.80
2015-06-30 43,578.00 1,097.00 12,415.00

*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.
  • Pepkor Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Pepkor Holdings used its assets less efficiently than the ZA Specialty Retail industry average last year based on Return on Assets.
  • Pepkor Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Pepkor 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 Specialty Retail 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.
Pepkor Holdings has a total score of 2/6, 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 Pepkor 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 Pepkor Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Pepkor Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Pepkor Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Pepkor 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 1.5x 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 Pepkor Holdings Company Filings, last reported 6 months ago.

JSE:PPH Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 56,598.00 17,347.00 3,925.00
2019-03-31 56,332.00 18,553.00 3,140.00
2018-12-31 56,332.00 18,553.00 3,140.00
2018-09-30 55,711.00 16,194.00 3,835.00
2018-06-30 55,711.00 16,231.00 3,835.00
2018-03-31 53,359.00 16,845.00 2,921.00
2017-12-31 53,359.00 16,845.00 2,921.00
2017-09-30 52,917.00 15,957.00 3,797.00
2016-09-30 52,695.00 18,400.00 2,771.00
2015-06-30 57,430.00 11,241.00 2,326.00
  • Pepkor Holdings's level of debt (30.6%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Pepkor Holdings's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (8.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Pepkor 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. Pepkor Holdings 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 Pepkor 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
2.06%
Current annual income from Pepkor Holdings dividends. Estimated to be 3.93% next year.
If you bought ZAR2,000 of Pepkor Holdings shares you are expected to receive ZAR41 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?
  • Pepkor Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in South Africa (4.65%).
  • Pepkor Holdings's dividend is below the markets top 25% of dividend payers in South Africa (13.76%).
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:PPH 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 5 Analyst Estimates (S&P Global) See Below
South Africa Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 7.1%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 170 Stocks 5.5%
South Africa Minimum Threshold Dividend Yield 10th Percentile 2.6%
South Africa Bottom 25% Dividend Yield 25th Percentile 4.6%
South Africa Top 25% Dividend Yield 75th Percentile 13.8%

Industry and Market average data is calculated daily.

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

JSE:PPH Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 0.48 5.00
2021-09-30 0.39 5.00
2020-09-30 0.33 5.00
2020-04-03
JSE:PPH Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-11-25 0.209 1.345
2018-11-26 0.278 1.512

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

  • Pepkor Holdings is not paying a notable dividend for South Africa, therefore no need to check if the payments are stable.
  • Pepkor Holdings 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 Pepkor Holdings's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Pepkor Holdings's dividends as it is not paying a notable one for South Africa.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Pepkor Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.6%) - 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 Pepkor Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pepkor 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.

Management

 What is the CEO of Pepkor 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
Leon Lourens
COMPENSATION ZAR15,858,000
AGE 53
TENURE AS CEO 2.3 years
CEO Bio

Mr. Leon Marius Lourens, HND (Human Resources), BCom (Marketing) has been Chief Executive Officer of Pepkor Holdings Limited (formerly Steinhoff Africa Retail Limited) since December 6, 2017. He served as Chief Operating Officer at Steinhoff Africa Retail Limited until December 6, 2017. Mr. Lourens served as Chief Operating Officer of Retail Operations at Steinhoff Africa Retail Limited. He serves as Managing Director of Pep at Pepkor Limited. Mr. Lourens serves as Sales Director at Pep Limited. He serves as Executive Director at Pepkor Holdings Proprietary Limited and Pepkor Limited. Mr. Lourens serves as Director at Pepkor Limited. He has been with Pepkor for over 27 years. He has been Director at Pepkor Trading (Pty) Ltd since September 1, 2017. Mr. Lourens serves as Director at Pep Limited; Flash Mobile Vending (Pty) Ltd; Leon Lourens Beleggings (Pty) Ltd; Pep (Pty) Ltd; Pep Reef Properties (Pty) Ltd; Pepkor Holdings (Pty) Ltd; Pepkor SA (Pty) Ltd; and Printkor (Pty) Ltd. He has been Director of Pepkor Holdings Limited since December 6, 2017. Mr. Lourens served as a Director at Pep Retail (Pty) Ltd; Pep Stores Peninsula Holdings(Pty) Ltd; Pepkor Retail (Pty) Ltd; and Pepprop (Michell's Plain) (Pty) Ltd.

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

Leon Lourens

TITLE
CEO & Director
COMPENSATION
ZAR16M
AGE
53
TENURE
2.3 yrs

Riaan Hanekom

TITLE
CFO & Director
COMPENSATION
ZAR11M
AGE
49
TENURE
2.7 yrs

Jaap Hamman

TITLE
Chief Executive Officer of Pep SA
AGE
48

Charl Cronjé

TITLE
Chief Executive Officer of Ackermans
AGE
58

Peter Griffiths

TITLE
Chief Executive Officer of JD Group & Poco SA
AGE
55

Bernard Mostert

TITLE
Chief Executive Officer of Speciality

Garth Napier

TITLE
Chief Executive Officer of Pep Africa
AGE
40

Eugene Beneke

TITLE
Chief Executive Officer of Steinbuild
Board of Directors Tenure

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

2.3
Average Tenure
51
Average Age
  • The average tenure for the Pepkor Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jayendra Naidoo

TITLE
Non-Executive Chairman
COMPENSATION
ZAR2M
AGE
59
TENURE
2.7 yrs

Leon Lourens

TITLE
CEO & Director
COMPENSATION
ZAR16M
AGE
53
TENURE
2.3 yrs

Riaan Hanekom

TITLE
CFO & Director
COMPENSATION
ZAR11M
AGE
49
TENURE
2.7 yrs

Johann Cilliers

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
59
TENURE
1.9 yrs

Steve Müller

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
57
TENURE
2.7 yrs

Jacob Wiese

TITLE
Non-Executive Director
COMPENSATION
ZAR621K
AGE
38
TENURE
2.7 yrs

Louis Du Preez

TITLE
Non-Executive Director
AGE
49
TENURE
2.3 yrs

Fagmeedah Petersen-Cook

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
43
TENURE
2 yrs

Wendy Luhabe

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR354K
AGE
61
TENURE
1.3 yrs

Theo De Klerk

TITLE
Non-Executive Director
AGE
48
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Pepkor Holdings individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
26. Feb 20 Buy Louis Du Preez Individual 25. Feb 20 25. Feb 20 10,122 ZAR15.35 ZAR155,373
30. Jan 20 Buy Louis Du Preez Individual 27. Jan 20 27. Jan 20 122 ZAR17.07 ZAR2,083
30. Jan 20 Buy Leon Lourens Individual 27. Jan 20 27. Jan 20 856 ZAR17.07 ZAR14,613
X
Management checks
We assess Pepkor 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. Pepkor 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.

News

Simply Wall St News

Company Info

Description

Pepkor Holdings Limited, together with its subsidiaries, operates as a retailer focusing on discount, value, and specialized goods in Angola, Botswana, Lesotho, Mozambique, Malawi, Namibia, Nigeria, South Africa, Swaziland, Uganda, and Zambia. The company retails clothing products, general merchandise, furniture, appliances, consumer electronics, building materials, and fintech services. It operates approximately 5,415 stores. The company was formerly known as Steinhoff Africa Retail Limited and changed its name to Pepkor Holdings Limited in August 2018. The company was founded in 2017 and is based in Cape Town, South Africa. Pepkor Holdings Limited is a subsidiary of Steinhoff International Holdings N.V.

Details
Name: Pepkor Holdings Limited
PPH
Exchange: JSE
Founded: 2017
ZAR35,017,500,000
3,450,000,000
Website: http://www.pepkor.co.za
Address: Pepkor Holdings Limited
36 Stellenberg Road,
Parow Industria,
Cape Town,
Western Cape, 7493,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE PPH Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 20. Sep 2017
DB S1VA Ordinary Shares Deutsche Boerse AG DE EUR 20. Sep 2017
Number of employees
Current staff
Staff numbers
0
Pepkor Holdings employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 16:44
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2019/11/25
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/09/30


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.