Clicks Group Limited (CLS.JO) stock analysis

In our weekly check, Clicks Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Clicks Group Limited

Clicks Group Limited is a Healthcare company (Medical - Pharmaceuticals) based in South Africa, listed on JNB as CLS.JO.

What our checks show for CLS.JO

Red flags

• Operating profit does not cover the interest bill (0.7x): interest is paid from cash or new debt.
• The dividend takes 1067% of profit: little cushion if profit falls.
• A small company (market value $29 million): usually riskier and followed by fewer analysts.

Warning signs

• The net margin fell by 0.6 points over 5 years, to 6.1%: the company keeps less of each sale as profit.
• Analysts expect only about 3.8% a year of growth in revenue.
• The net margin is only 6.1%: little room if costs rise.
• The stock has fallen as much as 54% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• The gross margin is 25.1% and has risen by 3.8 points: pricing power is holding.
• Operating cash flow is 1.45x net profit: the profit arrives as real cash.
• Earnings per share grew 10.9% a year over the last 3 years.
• Beta 0.12: the stock usually moves less than the market.
• Return on capital (ROCE) is 48.8%: the business earns well on the money put into it.
• Pay in shares is only 0% of free cash flow.

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Questions

What grade does Clicks Group Limited (CLS.JO) have?

In our weekly check, Clicks Group Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of CLS.JO stock?

This week's biggest flags for Clicks Group Limited: Weak interest cover, Dividend stretched, Small company. In total 8 of 25 checks show a warning or a red flag.

What does Clicks Group Limited do?

Clicks Group Limited is a Healthcare company (Medical - Pharmaceuticals) based in South Africa, listed on JNB as CLS.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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