Fact based stock research
Pepkor (JSE:PPH)
ZAE000259479
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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.
Pepkor stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Pepkor (Apparel Retail, South Africa) shares have much better financial characteristics than comparable stocks. Shares of Pepkor are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives). But they show above-average growth (Growth Rank of 57) and are safely financed (Safety Rank of 68, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Pepkor's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Pepkor exhibits low value (Obermatt Value Rank of 47), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 57). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 68) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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 | Apparel Retail |
| Index | Good Governace Growth Markets, Independent Boards Growth Markets, SDG 1, SDG 4, SDG 8, Timber Industry, 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.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Pepkor
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 17 |
|
75 |
|
81 |
|
47 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
25 |
|
33 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
73 |
|
62 |
|
68 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
3 |
|
3 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
37 |
|
32 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Pepkor (Apparel Retail, South Africa) shares have much better financial characteristics than comparable stocks. Shares of Pepkor are low in value (priced high) with a consolidated Value Rank of 47 (worse than 53% of alternatives). But they show above-average growth (Growth Rank of 57) and are safely financed (Safety Rank of 68, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Pepkor's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Pepkor exhibits low value (Obermatt Value Rank of 47), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 57). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 68) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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 | 17 |
|
75 |
|
81 |
|
47 |
|
| GROWTH | ||||||||
| GROWTH | 88 |
|
25 |
|
33 |
|
57 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
73 |
|
62 |
|
68 |
|
| COMBINED | ||||||||
| COMBINED | 38 |
|
65 |
|
68 |
|
78 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 47 (worse than 53% compared with alternatives), Pepkor shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for Pepkor. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 75, which means that the stock price is lower compared with invested capital than for 75% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 40 which means the stock price compared with what market professionals expect for future profits is higher than 60% of comparable companies, indicating a low value concerning Pepkor's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 75 and for the dividend yields rank which is lower than for 68% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 47, is a hold recommendation based on Pepkor's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for Pepkor, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. 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 essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 47 |
|
48 |
|
53 |
|
40 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 1 |
|
60 |
|
71 |
|
42 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 61 |
|
90 |
|
89 |
|
75 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
61 |
|
51 |
|
32 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 17 |
|
75 |
|
81 |
|
47 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Pepkor 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 half of the indicators below and half above average for Pepkor. Sales Growth has a rank of 61 which means that currently professionals expect the company to grow more than 61% of its competitors. Stock Returns are also above average with a rank of 87. But Capital Growth has only a rank of 40, which means that currently professionals expect the company to grow its invested capital less than 60% of its competitors. Profit Growth is also low, with a rank of only 46, which means that, currently, professionals expect the company to grow its profits below average. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 87% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. 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, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 68 |
|
17 |
|
38 |
|
61 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | n/a |
|
28 |
|
45 |
|
46 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
26 |
|
48 |
|
40 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 86 |
|
89 |
|
41 |
|
87 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 88 |
|
25 |
|
33 |
|
57 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 68 (better than 68% compared with alternatives), the company Pepkor has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Pepkor is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Pepkor.Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors.Refinancing is at a rank of 59, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 68 (better than 68% compared with alternatives), Pepkor has a financing structure that is safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Pepkor more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 48 |
|
84 |
|
78 |
|
78 |
|
| REFINANCING | ||||||||
| REFINANCING | 71 |
|
63 |
|
65 |
|
59 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 74 |
|
49 |
|
42 |
|
46 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 72 |
|
73 |
|
62 |
|
68 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
14 |
|
22 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
29 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
49 |
|
32 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
40 |
|
28 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
3 |
|
3 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Pepkor from December 19, 2024.
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