MASSMART (ZA), a company active in the Broadline Retailers industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date May 28, 2021, the closing price was ZAR 65.00 and its potential was...
Weak discretionary spend has been severely plaguing Massmart's (MSM's) sales, with the company making its first interim loss in over a decade of R647m. The MSM share price fell by 50% over the last six months, with rising concern to long-term sustainability of the Group. Over the last three years, MSM has been re-engineering its supply chain towards a centralised, omni-channel platform. Delays with the implementation of the new SAP Hybris IT system as well as a slew of management changes, are...
MSM reported poor H1 '18 results, with adjusted HEPS down 20% yoy to 132cps (-42% yoy to 96cps after restructuring costs of R110m), following lower volumes and deflation. Management is rationalising its cost base to align to ongoing weak discretionary spend. Ultimately, we believe the Group needs more volumes to drive earnings growth. However, given the nascent retail environment, we forecast a modest rebound in margins over the next year following a leaner cost base and an effective supply c...
Massmart has focused on consistent expansion since its acquisition by US retail giant Wal-Mart in June 2011. This acquisition strengthened Massmart’s supply chain in South Africa and the company’s aggressive growth strategy is focused on creating efficiencies in its supply chain, grocery retailing, product diversification and footprint expansion. Massmart’s four divisions in South Africa are focused on the high-volume, low-margin and low-cost distribution of branded consumer products cater...
Massmart Holdings has been focusing on expansion since its acquisition by US retail giant Wal-Mart Stores in June 2011. This helped to boost the strength of Massmart’s supply chain in South Africa. Massmart’s aggressive growth strategy focuses on investment in the supply chain, food retailing, product diversification and footprint expansion. Massmart’s four divisions in South Africa focus on high-volume, low-margin and low-cost distribution of branded consumer products across all income ba...
Massmart has been on a major expansion drive since its acquisition by US-based multinational retail giant Wal-Mart in June 2011, which helped to boost the strength of Massmart’s supply chain in South Africa. Massmart’s aggressive growth strategy is focused on investment in its supply chain, food retailing, product diversification and footprint expansion. Massmart’s four divisions in South Africa are focused on high-volume, low-margin and low-cost distribution of branded consumer products...
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