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PICK N PAY STORES sees an upgrade to Positive due to a better fundamen...
The general evaluation of PICK N PAY STORES (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 3 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 March 25, 2022, the closing price was Z...
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 y...
- 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 cont...
- 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 di...
- 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...
- 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 i...
- Jiten Bechoo
- Shamil Ismail
Pick n Pay (PIK) - Mind the Gaps
Summary Our analysis shows that growth in the Pick n Pay owned SA supermarket chain may have stalled in 1H18. Through a series of store visits, we attempt to uncover the key issues hampering a definitive turnaround of PIK. Our research shows that store discipline in some areas may have lapsed, which could have resulted in lost sales. A review of some customers comments on their Pick n Pay store experience were consistent with our findings. We believe that in the context of PIK’s cost cuts in ...
- Shamil Ismail
Pick n Pay (PIK) - Saving Private Label
We consider some of the factors that could be contributing to the anemic growth of PIK in its corporate supermarkets, and note that the growth in private label participation may have been aided by management keeping this category’s prices in check relative to national brands. This strategy does however curtail topline growth.
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...
PIK SJ: Company Update - Risk/Reward justified
17bps uplift in gross margin on improved distribution and effective management of employee costs (+5.1% y/y, LfL 1.7%) helped PIK expand its EBIT margins by 16bps in H1 17A (ACe: 27bps), offsetting mounting cost pressures.Based on our estimates, PIK’s Clothing business could have contributed 2.3bps to the 16bps uplift in EBIT margin in H1 17A. PIK’s clothing business grew revenues at c.20% y/y in the last three years and now contributes c.1-2% to PIK’s revenue and over 8% to EBIT, in our v...
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