Pick 'n Pay Stores Ltd.

Pick n Pay is an investment holding company. Co. has two operating segments, namely South Africa and Rest of Africa. Co. provides food, non-edible groceries, clothing, liquor and tobacco, health and beauty products, building and hardware and general merchandise. Co.'s offer also includes additional services such as financial transactions at till points (including mobile money), ticketing services and the sale of gift cards. In addition to manufacturer-branded products, Co. has a number of Pick n Pay and Boxer private label products to suit every budget. Co. operates on both an owned and franchise basis. Co.'s stores range from hypermarkets to small convenience stores.
  • Ticker1062
  • ISINZAE000005443
  • ExchangeJohannesburg Stock Exchange
  • SectorFood & Drug Retailers
  • CountrySouth Africa

PICK N PAY STORES LTD. sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of PICK N PAY STORES LTD. (ZA), a company active in the Food Retailers & Wholesalers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 2 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date July 10, 2020, the closing price was ZAR 48.64 and its potential was estimated at ZAR 63.04.

Pick n Pay Stores Limited: 1 director sold

A director at Pick n Pay Stores Limited sold 291,439 shares at 69.023ZAR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The n...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | In the mix

Pick n Pay's (PIK) store mix has been shifting to a larger compliment of corporate-owned stores versus franchise outlets. Own store margins are higher which increased Group GP margins by 100bps y/y to 19.8% in H1 ‘20. PIK has grown its corporate-owned Clothing and Boxer stores aggressively over the last three years, with maturing trading densities supportive of further mix benefits. Boxer and Clothing carry inherently higher margins relative to the traditional supermarkets. Boxer will continue to deliver margin benefits from further centralisation and range optimisation. We expect the hig...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | Proxy voting recommendation

Pick n Pay Stores Ltd (PIK) receives a corporate governance score of 2.73 out of 5 (FY '18: 2.76) and is rated as ‘adequate'. By comparison, industry peer Shoprite Holdings (SHP) has a corporate governance score of 2.17 out of 5. We recommend voting against the following resolutions: Ordinary resolution 1: The election of H Herman as director Ordinary resoltion 3.2: The appointment of H Herman to the audit committee Special resolution 1: Directors' fees In our view, the non-executive director H Herman is non-independent as he has served on the board for 43 years. H Herman is the Lead I...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | A threat to Shoprite?

FY'19 was Pick n Pay's (PIK) strongest trading performance in over five years as like-for-like volumes grew by 5% yoy. A combination of effective promotional activity, competitive pricing and effective inventory management have led to significant market share gains for PIK in FY '19. We note there was an acceleration of like-for-like volume growth from 3.5% in H1 '19 to c.6.5% in H2 '19. Strikes at its direct peer's, Shoprite (SHP), largest distribution centre (in Gauteng) and IT issues led to a drop in on-shelf availability and c.R1bn of lost sales over the last six months, partly explaining ...

Pick n Pay Stores Limited: 1 director sold

A director at Pick n Pay Stores Limited sold 291,439 shares at 69.023ZAR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The n...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | In the mix

Pick n Pay's (PIK) store mix has been shifting to a larger compliment of corporate-owned stores versus franchise outlets. Own store margins are higher which increased Group GP margins by 100bps y/y to 19.8% in H1 ‘20. PIK has grown its corporate-owned Clothing and Boxer stores aggressively over the last three years, with maturing trading densities supportive of further mix benefits. Boxer and Clothing carry inherently higher margins relative to the traditional supermarkets. Boxer will continue to deliver margin benefits from further centralisation and range optimisation. We expect the hig...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | Proxy voting recommendation

Pick n Pay Stores Ltd (PIK) receives a corporate governance score of 2.73 out of 5 (FY '18: 2.76) and is rated as ‘adequate'. By comparison, industry peer Shoprite Holdings (SHP) has a corporate governance score of 2.17 out of 5. We recommend voting against the following resolutions: Ordinary resolution 1: The election of H Herman as director Ordinary resoltion 3.2: The appointment of H Herman to the audit committee Special resolution 1: Directors' fees In our view, the non-executive director H Herman is non-independent as he has served on the board for 43 years. H Herman is the Lead I...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | A threat to Shoprite?

FY'19 was Pick n Pay's (PIK) strongest trading performance in over five years as like-for-like volumes grew by 5% yoy. A combination of effective promotional activity, competitive pricing and effective inventory management have led to significant market share gains for PIK in FY '19. We note there was an acceleration of like-for-like volume growth from 3.5% in H1 '19 to c.6.5% in H2 '19. Strikes at its direct peer's, Shoprite (SHP), largest distribution centre (in Gauteng) and IT issues led to a drop in on-shelf availability and c.R1bn of lost sales over the last six months, partly explaining ...

Jiten Bechoo ...
  • Pratish Soni

Pick n Pay | Working together

PIK's H1'19 is its strongest six-month trading volume in over five years. Normalised diluted HEPS increased 17% yoy excluding retrenchment costs in H1 '18. Group and LFL turnover for H1 '19 grew 6.4% and 3.8% yoy respectively due to a reduction in the prices of every day grocery lines. LFL volumes grew by 3.5% yoy in H1 '19 which implies market share gains. Gross profit margin remains constant yoy at 18.6% for H1 '19 despite low internal inflation of 0.3%. Lower soft commodity prices and intense promotional actively should keep PIK internal inflation moderate over the short to medium ter...

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Shoprite Holdings Ltd - Strategy, SWOT and Corporate Finance Report

Shoprite Holdings Ltd - Strategy, SWOT and Corporate Finance Report Summary Shoprite Holdings Ltd - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Shoprite Holdings Ltd (Shoprite or 'the company'), an investment holding company, operates through its subsidiaries. The company offers fast moving consumer goods (FMCG) retail services by operating various hypermarke...

PICK N PAY STORES LTD. sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of PICK N PAY STORES LTD. (ZA), a company active in the Food Retailers & Wholesalers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 2 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date July 10, 2020, the closing price was ZAR 48.64 and its potential was estimated at ZAR 63.04.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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