Dis-Chem Pharmacies (DCP.JO)
Healthcare · JSE · South Africa
Fundamentals
Valuation and ratings
Dis-Chem Pharmacies trades at R32.50, which is 60% above the R13.04 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 43 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 28.6 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Dis-Chem Pharmacies
Dis-Chem Pharmacies Limited, together with its subsidiaries, engages in the retail and wholesale of healthcare products and pharmaceuticals in South Africa. The company operates through two segments: Retail and Wholesale. It owns and operates a chain of retail stores that offers various products, including dispensaries, personal care and beauty, healthcare and nutrition, baby care, and other products. The company also provides pharmaceutical, health, and front shop products in the wholesale market, health insurance products, occupational health clinics, and a psychological wellbeing platform. In addition, it offers customer loyalty programs. The company was founded in 1978 and is headquartered in Midrand, South Africa.
DCP.JO passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Dis-Chem Pharmacies (DCP.JO) undervalued?
Against our discounted cash flow estimate of R13.04, DCP.JO at R32.50 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DCP.JO's P/E ratio?
DCP.JO trades at 28.6 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.