Fact based stock research
Pick n Pay Stores (JSE:PIK)
ZAE000005443
How to read the free ranks
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.
Pick n Pay Stores stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 20 (worse than 80% compared with investment alternatives), Pick n Pay Stores (Food Retail, South Africa) shares have lower financial characteristics compared with similar stocks. Shares of Pick n Pay Stores are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), and are riskily financed (Safety Rank of 4, which means above-average debt burdens) but show above-average growth (Growth Rank of 83). ...read more
RECOMMENDATION: A Combined Rank of 20, is a sell recommendation based on Pick n Pay Stores's financial characteristics. As the company Pick n Pay Stores shows low value with an Obermatt Value Rank of 29 (71% 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 83% of comparable companies (Obermatt Growth Rank is 83). 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 4 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 Pick n Pay Stores, 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
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360° Viewnew| Country | South Africa |
| Industry | Food Retail |
| Index | Low Emissions, Good Governace Growth Markets, Low Waste, Recycling, JSE All Shares |
| Size class | X-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Pick n Pay Stores
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
65 |
|
59 |
|
29 |
|
| GROWTH | ||||||||
| GROWTH | 72 |
|
23 |
|
1 |
|
83 |
|
| SAFETY | ||||||||
| SAFETY | 54 |
|
1 |
|
6 |
|
4 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
59 |
|
1 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
19 |
|
1 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 20 (worse than 80% compared with investment alternatives), Pick n Pay Stores (Food Retail, South Africa) shares have lower financial characteristics compared with similar stocks. Shares of Pick n Pay Stores are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives), and are riskily financed (Safety Rank of 4, which means above-average debt burdens) but show above-average growth (Growth Rank of 83). ...read more
RECOMMENDATION: A Combined Rank of 20, is a sell recommendation based on Pick n Pay Stores's financial characteristics. As the company Pick n Pay Stores shows low value with an Obermatt Value Rank of 29 (71% 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 83% of comparable companies (Obermatt Growth Rank is 83). 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 4 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 Pick n Pay Stores, 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 72 |
|
65 |
|
59 |
|
29 |
|
| GROWTH | ||||||||
| GROWTH | 72 |
|
23 |
|
1 |
|
83 |
|
| SAFETY | ||||||||
| SAFETY | 54 |
|
1 |
|
6 |
|
4 |
|
| COMBINED | ||||||||
| COMBINED | 73 |
|
9 |
|
1 |
|
20 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), Pick n Pay Stores shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Pick n Pay Stores. Price-to-Sales (P/S) is 83, which means that the stock price compared with what market professionals expect for future sales is lower than for 83% of comparable companies, indicating a good value concerning Pick n Pay Stores's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 70% of alternatives (30% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 3, 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 29, is a hold recommendation based on Pick n Pay Stores's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Pick n Pay Stores may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 86 |
|
84 |
|
97 |
|
83 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 65 |
|
66 |
|
40 |
|
3 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 6 |
|
18 |
|
37 |
|
70 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 78 |
|
75 |
|
59 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 72 |
|
65 |
|
59 |
|
29 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2024, Pick n Pay Stores shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Pick n Pay Stores. Profit Growth has a rank of 78 which means that currently professionals expect the company to grow its profits more than 78% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 81, and Stock Returns has a rank of 95 which means that the stock returns have recently been above 95% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 18 (82% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. 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 | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 75 |
|
23 |
|
45 |
|
18 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 42 |
|
34 |
|
4 |
|
78 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
40 |
|
10 |
|
81 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 86 |
|
57 |
|
3 |
|
95 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 72 |
|
23 |
|
1 |
|
83 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 4 (better than 4% compared with alternatives), the company Pick n Pay Stores has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Pick n Pay Stores 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 all three metrics below average for Pick n Pay Stores. Liquidity is at 8, meaning that the company generates less profit to service its debt than 92% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Finally, Refinancing is at a rank of 19 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 81% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 4 (worse than 96% compared with alternatives), Pick n Pay Stores has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Pick n Pay Stores because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 42 |
|
1 |
|
2 |
|
1 |
|
| REFINANCING | ||||||||
| REFINANCING | 60 |
|
7 |
|
7 |
|
19 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 60 |
|
14 |
|
16 |
|
8 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 54 |
|
1 |
|
6 |
|
4 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
56 |
|
1 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
11 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
61 |
|
17 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
42 |
|
14 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
59 |
|
1 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Pick n Pay Stores from December 19, 2024.
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