Which food retailer offers the best value?
Food inflation is still high, 12.7% YonY for December.
But likely peaked (good rains, diesel lower and reducing input costs)
Preferred food retailer?
- Always Shoprite* (JSE code: SHP). But expensive, forward PE 19.5x
- Pick n Pay (JSE code: PIK). Forward PE 20.5x and not as good as Shoprite.
- Woolies* (JSE code: WHL). Exited disaster that is Australia. Forward PE 15x and if they can also fix clothing, real winner.
- Spar (JSE code: SPP). CEO and chair exiting after bad press recently. Poland issues but forward PE 10x.
* I hold ungeared positions.