Shoprite Holdings Limited (SHP.JO) stock analysis

In our weekly check, Shoprite Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About Shoprite Holdings Limited

Shoprite Holdings Limited is a Consumer Cyclical company (Department Stores) based in South Africa, listed on JNB as SHP.JO.

What our checks show for SHP.JO

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The gross margin fell by 3.1 points, to 21.4%: costs are rising faster than prices.
• The net margin is only 2.9%: little room if costs rise.
• The dividend takes 912% of profit: little cushion if profit falls.
• A small company (market value $111 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.3 years.

Warning signs

• Net debt is 1.7x a year of EBITDA (debt/equity 1.66). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 0.2 points over 5 years, to 2.9%: the company keeps less of each sale as profit.

Strengths

• Operating cash flow is 2.57x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 12.7% a year over the next years.
• Earnings per share grew 10.7% a year over the last 3 years.
• Net profit grew 10.5% a year over the last 3 years.
• The price moves calmly: 19.8% annual volatility.
• Beta 0.32: the stock usually moves less than the market.

Similar companies

L.TO · BIMAS.IS · WOW.AX · WN.TO · KR · DNP.WA

Questions

What grade does Shoprite Holdings Limited (SHP.JO) have?

In our weekly check, Shoprite Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SHP.JO stock?

This week's biggest flags for Shoprite Holdings Limited: Weak interest cover, Gross margin falling, Thin margins. In total 9 of 25 checks show a warning or a red flag.

What does Shoprite Holdings Limited do?

Shoprite Holdings Limited is a Consumer Cyclical company (Department Stores) based in South Africa, listed on JNB as SHP.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 2026-10-24

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