SHP:JSEShoprite Holdings Limited Analysis
Data as of 2026-05-18 - not real-time
ZAC 29,235.00
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
Shoprite Holdings is trading firmly above its short‑term, intermediate‑term and long‑term moving averages, with momentum indicators such as RSI in the upper‑mid range and a bullish MACD crossover reinforcing a positive technical outlook.
Fundamentally, the company appears undervalued, as discounted cash‑flow analysis points to a sizable upside versus the current price, while a solid dividend yield and a payout ratio below 60% suggest sustainable shareholder returns. The balance sheet shows strong operating cash flow relative to debt, and profitability metrics like ROE are robust, supporting a blend of growth and value characteristics.
Fundamentally, the company appears undervalued, as discounted cash‑flow analysis points to a sizable upside versus the current price, while a solid dividend yield and a payout ratio below 60% suggest sustainable shareholder returns. The balance sheet shows strong operating cash flow relative to debt, and profitability metrics like ROE are robust, supporting a blend of growth and value characteristics.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 7/10
Key Factors
- Price is near a key resistance level but technicals remain bullish
- Stable volume trends support liquidity
- Moderate volatility suggests limited short‑term price swings
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- DCF valuation indicates meaningful upside potential
- Strong cash flow generation and manageable debt levels
- Attractive dividend yield with a sustainable payout ratio
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- High ROE and consistent revenue growth underpin long‑term earnings potential
- Low beta reflects defensive characteristics in a consumer‑cyclical context
- Diversified retail footprint and dividend reliability support enduring shareholder value
Key Metrics & Analysis
Financial Health
Revenue Growth7.20%
Profit Margin2.89%
P/E Ratio21.0
ROE25.89%
ROA7.11%
Debt/Equity186.59
P/B Ratio5.1
Op. Cash FlowZAC24.7B
Free Cash FlowZAC15.1B
Technical Analysis
TrendBullish
RSI64.1
SupportZAC 25,859.00
ResistanceZAC 29,607.00
MA 20ZAC 28,603.20
MA 50ZAC 27,676.14
MA 200ZAC 27,509.08
MACDBullish
VolumeStable
Fear & Greed Index88.64
Valuation
Fair ValueZAC 42,479.54
Target PriceZAC 31,618.75
Upside/Downside8.15%
GradeUndervalued
TypeBlend
Dividend Yield2.74%
Risk Assessment
Beta0.09
Volatility16.13%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.