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Shoprite Holdings
(OTC:SRGHY)
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Rating:74Outperform
Price Target:
$21.50
▲(13.52% Upside)
Action:Reiterated
Date:09/15/26
Overall score reflects solid financial quality (steady profitability and improved 2026 cash generation) and a very positive earnings call with clear growth and margin-maintenance targets. Technicals are supportive with a clear uptrend and healthy momentum, while valuation is the main moderating factor given the ~21x P/E despite a ~2.46% dividend yield.
Positive Factors
Market-share gains
Sustained customer acquisition and market-share gains indicate that Shoprite is strengthening its competitive position in a frequently purchased category. Growth driven by volumes rather than price increases supports durable traffic, purchasing power, and future sales density across the store network.
Negative Factors
Elevated leverage
Elevated leverage remains a structural constraint despite improved equity and strong returns. Higher debt increases sensitivity to interest rates and weaker operating conditions, potentially reducing financial flexibility for store expansion, acquisitions, shareholder returns, or absorbing prolonged margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Market-share gains
Sustained customer acquisition and market-share gains indicate that Shoprite is strengthening its competitive position in a frequently purchased category. Growth driven by volumes rather than price increases supports durable traffic, purchasing power, and future sales density across the store network.
Read all positive factors
Shoprite Holdings (SRGHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.52B
Dividend Yield2.75%
Average Volume (3M)1.83K
Price to Earnings (P/E)21.7
Beta (1Y)0.68
Revenue Growth15.22%
EPS GrowthN/A
CountryUS
Employees140,000
SectorConsumer Cyclical
Sector Strength84
IndustryGrocery Stores
Share Statistics
EPS (TTM)14.61
Shares Outstanding591,339,000
10 Day Avg. Volume1,324
30 Day Avg. Volume1,834
Financial Highlights & Ratios
PEG Ratio6.03
Price to Book (P/B)4.74
Price to Sales (P/S)0.60
P/FCF Ratio11.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shoprite Holdings Business Overview & Revenue Model
Company Description
Shoprite Holdings Limited functions as an investment holding company, primarily focusing on the food retail sector within South Africa and extending its reach to various international markets. The company's operations are divided into four main di...
How the Company Makes Money
Shoprite primarily makes money by selling merchandise through its retail and wholesale store network, with revenue driven by high-volume, frequently purchased consumer staples (especially groceries and household essentials) alongside discretionary...
Shoprite Holdings Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2027
Earnings Call Sentiment Positive
The call was strongly positive, characterized by record market-share gains, solid sales and profit growth, improved margins and returns, strong cash generation, store expansion, digital momentum and continued investment in the business. The company acknowledged low inflation and deflation, higher utility and security costs, challenges in Mozambique, franchise-related declines and transaction delays, but these issues were outweighed by the breadth and strength of the reported achievements.Positive Updates
Record Customer and Market Share Growth
Shoprite recorded 1.3 billion customer visits during the year, adding 1.1 million customers per week. Supermarkets RSA achieved an additional ZAR 7.5 billion in market share gains, with growth attributed to volume and customer growth rather than price increases.
Negative Updates
Low Inflation and Deflationary Pricing Environment
The group operated in a 0.8% inflation environment, with several categories in deflation and 11,500 product prices lower than the prior year. Shoprite and Usave recorded internal inflation of negative 0.6%, while management stated that customers were making more visits but finding it difficult to buy more items.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Customer and Market Share Growth
Shoprite recorded 1.3 billion customer visits during the year, adding 1.1 million customers per week. Supermarkets RSA achieved an additional ZAR 7.5 billion in market share gains, with growth attributed to volume and customer growth rather than price increases.
Read all positive updates
Company Guidance
For the 2027 financial year, the group expects a 53rd week, with the last 53rd week adding around ZAR 331 million of additional trading profit; it has already confirmed 211 new stores, will target a 6% increase in space, estimates space growth between 5.8% and 6%, and targets maintaining a 6% trading margin, inventory levels at 11.7%, and an effective tax rate between 26% and 26.5%. Capital expenditure is estimated at around ZAR 7.7 billion, below the 3% CapEx to sales ratio, continued investment is expected to be less than the 3% to revenue ratio, around 508 leases are planned for renewal, and the share buyback mandate is ZAR 1 billion per year for the next 5 years, with the size of the program being ZAR 5 billion.Shoprite Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 265.14B | 252.70B | 240.72B | 214.96B | 184.08B |
| Gross Profit | 56.62B | 61.44B | 54.81B | 51.71B | 45.06B |
| EBITDA | 25.21B | 24.66B | 21.80B | 19.68B | 17.25B |
| Net Income | 7.78B | 7.58B | 6.25B | 5.89B | 5.71B |
Balance Sheet | |||||
| Total Assets | 129.75B | 124.94B | 112.33B | 102.36B | 91.45B |
| Cash, Cash Equivalents and Short-Term Investments | 13.12B | 10.07B | 13.02B | 13.26B | 11.11B |
| Total Debt | 55.96B | 55.88B | 49.37B | 48.55B | 42.13B |
| Total Liabilities | 96.40B | 94.83B | 84.60B | 76.08B | 65.83B |
| Stockholders Equity | 33.43B | 30.19B | 27.79B | 26.13B | 25.48B |
Cash Flow | |||||
| Free Cash Flow | 13.29B | 2.98B | 6.11B | 3.12B | 4.78B |
| Operating Cash Flow | 19.96B | 10.98B | 13.84B | 9.83B | 9.91B |
| Investing Cash Flow | -6.12B | -7.37B | -6.78B | -6.23B | -4.06B |
| Financing Cash Flow | -10.28B | -4.30B | -7.75B | -2.85B | -7.24B |
Shoprite Holdings Technical Analysis
Neutral
18.94
Price Trends
18.46
Positive
17.93
Positive
17.08
Positive
Market Momentum
0.24
Positive
49.83
Neutral
36.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRGHY, the sentiment is Neutral. The current price of 18.94 is below the 20-day moving average (MA) of 19.33, above the 50-day MA of 18.46, and above the 200-day MA of 17.08, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 36.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SRGHY.
Shoprite Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.52B | 21.69 | 24.68% | 2.75% | 15.22% | ― | |
62 Neutral | $1.58B | 15.30 | 6.30% | 0.78% | 1.02% | 84.32% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.81B | 18.66 | 7.15% | 1.87% | 4.50% | -3.08% | |
58 Neutral | $34.62B | 31.88 | 17.16% | 2.42% | 1.58% | -53.21% | |
53 Neutral | $1.11B | -3.07 | -40.07% | ― | 5.12% | -4889.01% | |
49 Neutral | $5.63B | 147.19 | 2.91% | 5.46% | 2.75% | -95.14% |
* Consumer Cyclical Sector Average
SRGHY
Shoprite Holdings
19.11
3.36
21.33%
IMKTA
Ingles Markets
84.72
15.07
21.64%
KR
Kroger Company
59.48
-5.41
-8.34%
WMK
Weis Markets
72.62
2.42
3.45%
GO
Grocery Outlet Holding
11.77
-4.41
-27.26%
ACI
Albertsons Companies
11.72
-4.92
-29.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.