Clicks vs Dis-Chem in the premium league
Both are quality stocks holding strong market positions, with many analysts considering them equal in terms of value. But not all agree
There has long been concern about the unflinching premium rating investors attach to health and beauty retailer Clicks. A recent dip in the group’s share price has fuelled debate about whether the priced-for-perfection rating — a historic earnings multiple of about 30 — is justified and sustainable.
Clicks’s heady valuation reflects its strong market position, consistent financial performance, defensive characteristics and growth potential. Investors (many from overseas, given a 59% foreign share ownership) view it as a quality stock that can deliver returns in stable and challenging economic conditions...
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