Fact based stock research
Dis-Chem Pharmacies (JSE:DCP)

ZAE000227831

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Dis-Chem Pharmacies stock research in summary

dischemgroup.com

ANALYSIS: With an Obermatt Combined Rank of 28 (worse than 72% compared with investment alternatives), Dis-Chem Pharmacies (Drug Retail, South Africa) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Dis-Chem Pharmacies are low in value (priced high) with a consolidated Value Rank of 17 (worse than 83% of alternatives), and are riskily financed (Safety Rank of 40, which means above-average debt burdens) but show above-average growth (Growth Rank of 65). ...read more

RECOMMENDATION: A Combined Rank of 28, is a hold recommendation based on Dis-Chem Pharmacies's financial characteristics. As the company Dis-Chem Pharmacies shows low value with an Obermatt Value Rank of 17 (83% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 65% of comparable companies (Obermatt Growth Rank is 65). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 40 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Dis-Chem Pharmacies, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	17
Growth Rank	65
Safety Rank	40
Combined Rank	28

Country	South Africa
Industry	Drug Retail
Index	JSE All Shares
Size class	Small

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Dis-Chem Pharmacies

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	23	23	15	17
GROWTH
GROWTH	53	57	97	65
SAFETY
SAFETY	38	56	47	40
SENTIMENT
SENTIMENT	43	27	70	^new
360° VIEW
360° VIEW	29	28	75	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 28-Feb-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Dis-Chem Pharmacies is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	23	23	15	17
GROWTH
GROWTH	53	57	97	65
SAFETY
SAFETY	38	56	47	40
COMBINED
COMBINED	21	36	57	28

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Dis-Chem Pharmacies the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 17 (worse than 83% compared with alternatives), Dis-Chem Pharmacies shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Dis-Chem Pharmacies. Price-to-Sales (P/S) is 53, which means that the stock price compared with what market professionals expect for future sales is lower than 53% of comparable companies, indicating a good value concerning to Dis-Chem Pharmacies's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 26, meaning that dividends are expected to be lower than for 74% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 83% of alternatives (only 17% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 75% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 17, is a sell recommendation based on Dis-Chem Pharmacies's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Dis-Chem Pharmacies could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Dis-Chem Pharmacies looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	43	50	49	53
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	33	31	25	25
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	13	18	15	17
DIVIDEND YIELD
DIVIDEND YIELD	33	39	32	26
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	23	23	15	17

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Dis-Chem Pharmacies; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Dis-Chem Pharmacies shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Dis-Chem Pharmacies. Sales Growth has a value of 87 which means that currently professionals expect the company to grow more than 87% of its competitors. Profit Growth with a value of 53 and Capital Growth with a rank of 50 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 45, which means that stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Dis-Chem Pharmacies has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Dis-Chem Pharmacies, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	56	70	86	87
PROFIT GROWTH
PROFIT GROWTH	50	44	74	53
CAPITAL GROWTH
CAPITAL GROWTH	17	41	96	50
STOCK RETURNS
STOCK RETURNS	85	55	69	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	53	57	97	65

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Dis-Chem Pharmacies.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 40 (better than 40% compared with alternatives), the company Dis-Chem Pharmacies has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Dis-Chem Pharmacies is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Dis-Chem Pharmacies. Liquidity is at 55, meaning the company generates more profit to service its debt than 55% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 45, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 55% of its competitors. Leverage is also high at a rank of 34, which means that the company has an above-average debt-to-equity ratio. It has more debt than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 40 (worse than 60% compared with alternatives), Dis-Chem Pharmacies has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	28	36	31	34
REFINANCING
REFINANCING	51	53	52	45
LIQUIDITY
LIQUIDITY	47	60	57	55
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	38	56	47	40

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Dis-Chem Pharmacies and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	54	70	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	29	50	^new
PRO HOLDINGS
PRO HOLDINGS	65	31	83	^new
MARKET PULSE
MARKET PULSE	52	40	41	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	43	27	70	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Dis-Chem Pharmacies.
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