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Shoprite Holdings (JSE:SHP) ROE % : 21.41% (As of Jun. 2024)


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What is Shoprite Holdings ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Shoprite Holdings's annualized net income for the quarter that ended in Jun. 2024 was R5,818 Mil. Shoprite Holdings's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was R27,179 Mil. Therefore, Shoprite Holdings's annualized ROE % for the quarter that ended in Jun. 2024 was 21.41%.

The historical rank and industry rank for Shoprite Holdings's ROE % or its related term are showing as below:

JSE:SHP' s ROE % Range Over the Past 10 Years
Min: 15.01   Med: 22.85   Max: 24.53
Current: 23.29

During the past 13 years, Shoprite Holdings's highest ROE % was 24.53%. The lowest was 15.01%. And the median was 22.85%.

JSE:SHP's ROE % is ranked better than
85.82% of 1079 companies
in the Retail - Cyclical industry
Industry Median: 5.58 vs JSE:SHP: 23.29

Shoprite Holdings ROE % Historical Data

The historical data trend for Shoprite Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Shoprite Holdings ROE % Chart

Shoprite Holdings Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.00 23.66 24.53 22.81 23.17

Shoprite Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.79 24.30 21.32 25.34 21.41

Competitive Comparison of Shoprite Holdings's ROE %

For the Department Stores subindustry, Shoprite Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Shoprite Holdings's ROE % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Shoprite Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Shoprite Holdings's ROE % falls into.



Shoprite Holdings ROE % Calculation

Shoprite Holdings's annualized ROE % for the fiscal year that ended in Jun. 2024 is calculated as

ROE %=Net Income (A: Jun. 2024 )/( (Total Stockholders Equity (A: Jun. 2023 )+Total Stockholders Equity (A: Jun. 2024 ))/ count )
=6248/( (26130+27791)/ 2 )
=6248/26960.5
=23.17 %

Shoprite Holdings's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=5818/( (26567+27791)/ 2 )
=5818/27179
=21.41 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Shoprite Holdings  (JSE:SHP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=5818/27179
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(5818 / 239278)*(239278 / 110150.5)*(110150.5 / 27179)
=Net Margin %*Asset Turnover*Equity Multiplier
=2.43 %*2.1723*4.0528
=ROA %*Equity Multiplier
=5.28 %*4.0528
=21.41 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=5818/27179
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (5818 / 8916) * (8916 / 11636) * (11636 / 239278) * (239278 / 110150.5) * (110150.5 / 27179)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6525 * 0.7662 * 4.86 % * 2.1723 * 4.0528
=21.41 %

Note: The net income data used here is two times the semi-annual (Jun. 2024) net income data. The Revenue data used here is two times the semi-annual (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Shoprite Holdings ROE % Related Terms

Thank you for viewing the detailed overview of Shoprite Holdings's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shoprite Holdings Business Description

Traded in Other Exchanges
Address
Cnr William Dabs Street and Old Paarl Road, Brackenfell, WC, ZAF, 7560
Shoprite Holdings Ltd is part of The Shoprite Group of Companies, an African food retailer, which operates in countries across Africa and the Indian Ocean Islands. The primary business is food retailing. Besides food retailing, the company is operating in furniture, house products, fast foods, pharmacies, and liquor business segments. The company is targeting consumers at all income levels. The Checkers, Checkers Hyper, and House & Home stores address higher-income groups, while Shoprite Usave focuses on the lower end of the market. Shoprite and OK Furniture offer products for the middle- to lower-income market. The company's reportable segment includes, Supermarkets RSA, Supermarkets Non-RSA, Furniture and Other operating segment.

Shoprite Holdings Headlines

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