The SPAR Group (SPP.JO)
Consumer · JSE · South Africa
Fundamentals
Valuation and ratings
The SPAR Group trades at R47.91, which is 41% above the R28.05 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 14 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 26.5 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 The SPAR Group
The SPAR Group Ltd engages in the wholesale and distribution of goods and services to grocery stores and other group retail outlets in South Africa and internationally. The company offers fresh produce, in-store bakery, butchery, deli, ready-to-eat meals, home-meal replacements, groceries, general merchandise, baked foods, liquor products, building and hardware products, coffee, dispensary and health-related products, confectionery, health and beauty, frozen foods, catering products, wines, and non-food items. The SPAR Group Ltd operates stores under the SUPERSPAR, SPAR, KWIKSPAR, SPAR EXPRESS, PHARMACY at SPAR, TOPS at SPAR, and SAVEMOR brands. The company was founded in 1932 and is headquartered in Pinetown, South Africa.
SPP.JO passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is The SPAR Group (SPP.JO) undervalued?
Against our discounted cash flow estimate of R28.05, SPP.JO at R47.91 is 41% 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 SPP.JO's P/E ratio?
SPP.JO trades at 26.5 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.