ABOUT CLICKS GROUP
📊 The Clicks Group was first founded in Cape Town, South Africa, in 1968, when it was conceived as a drugstore. However, legislation at the time meant that corporate ownership of pharmacies in South Africa was not possible until 2003, when legislation was changed and the first Clicks pharmacy opened in 2004.
📊 This hiccup in its pharmaceutical operations meant that the group broadened its reach in its retail offering, growing to become one of the leading retail-led healthcare groups in 2019, with 657 stores in South Africa today and a further 34 stores divided between Namibia, Botswana, Swaziland and Lesotho.
📊 While the Group controls such well-established retail chains as Musica, The Body Shop, GNC and Claire’s, it is best known for its Clicks subsidiary, which is South Africa’s largest retail pharmacy chain with 528 in-store pharmacies.
📊 Clicks Group shares have been listed on the Johannesburg Stock Exchange (JSE) since 1979, where it currently trades under the stock symbol -CLS with a market cap of almost R50 billion. Retail accounted for 82% of operating profits in 2015, and distribution via Clicks Medicines Direct and UPD contributed 18%.
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CLICKS GROUP PERFORMANCE
- The Clicks Group has been able to maintain steady growth, good profits and strong dividends due to its wide portfolio that ranges from retail and cosmetics to pharmaceuticals. The Group’s in-store pharmacies showed a doubling in growth of its front shop medicines, vitamins and supplements, boosted by its strategy of providing customers with low-price generic medicines.
- On the retail front, the Group’s products which are targeted at the middle to upper income sector of the South African consumer economy have led the retail market with a return on equity of an average 55% per year. Added to this, Musica rakes in high returns on the entertainment retail market, controlling a 60% share of the South Africa’s CD market and a 43% share of its DVD market, while UPD continues to contribute to the Group’s growth as it increases turnover by 21.6%.
CLICKS GROUP INVESTOR TIPS
- The Clicks share price continues to sustain its climb on the live online stocks chart, and data from financial forecasts show that the group will be able to maintain its strong performance going forward, owing largely to the fact that the core health and beauty markets remain resistant to economic instability, while the group’s good value proposition, bolstered by its competitive price strategy, make it popular with the consumer market.
- The South African healthcare market is also defensive, offering long-term growth opportunities as an increasing number of the population enters the private healthcare market. Improved living standards, increasing urbanisation and longer life expectancy also add to the growing number of customers who wish to buy health and beauty products.
- The group’s massive cash-generation capabilities are furthered by its ability to expand its market presence due to its considerable resources, with a capital expenditure of R455 million invested in the 2016 financial year alone. The group’s long-term goal is to grow the Clicks store base to 900, with a pharmacy operating in every store. Online store and national pharmacy delivery will also be further integrated in order to complement the group’s retail footprint.
- Due to these fantastic positive growth drivers, the Clicks share price will continue to rise, making it a valuable buy for investors who choose to purchase shares today.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy CLICKS GROUP Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN CLICKS GROUP STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE CLICKS GROUP STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of CLICKS GROUP stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy CLICKS GROUP stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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