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Lewis Group Limited (LEW) Fair Value & Analysis

Consumer Cyclical · ZA · Market cap 5.1B ZAC

LG Lewis Group Limited LEW · JSE
PriceR83.50
Fair ValueR203.57
Upside+143.8%
Quality68/100
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Strengths

Trades 59% below our fair value of R203.57
Low debt · generates free cash flow
Ranks above peers (12/15)

Risks

!Mixed Growth (revenue 5y +13.6 %/yr)
!Thin margins · 8.3% net margin
!Moderate moat 57/100
Mixed Growth (revenue 5y +13.6 %/yr)
Thin margins · 8.3% net margin
Low debt · generates free cash flow
Ranks above peers (12/15)
Moderate moat 57/100
Evidence: High Range R108.27 – R325.82 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 12 days ago

Fair value updated Aug 13, 2026, revised from R278.30 to R203.57 (−26.9%) since Jul 11, 2026. Share price −6.2% over the past month.

A solid business, trading 59% below our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (R108.27). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (R108.27 to R325.82). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

R99.62 R22.90 Fair Value R203.57 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R22.90 – R99.62 · fair‑value band R108.27 – R325.82 · the R83.50 price screens below the R203.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Lewis Group Limited (LEW) currently trades at R83.50, while our model-based Fair Value estimate is R203.57, implying the stock looks roughly 143.8% undervalued today. The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Lewis Group Limited generated revenue of 10.3B ZAR at a net margin of 8.3%. Revenue grew 11.0% year over year. It earns a return on equity of 16.2%. Net debt stands at 2.2B ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R108.27 (bear case) to R325.82 (bull case); at R83.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -11% fair-value upside, at 144%, LEW screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF R75.05 R123.30 R191.08 80
Residual Income R106.06 R134.60 R300.78 76
Rev-Margin DCF R115.30 R212.79 R327.54 74
All 26 models by family
DCF Models
FCF DCF R74.21 R130.15 R214.60 38
Owner Earnings R221.55 R362.25 R574.68 31
5Y Revenue Exit R115.30 R214.57 R344.30 39
5Y EBITDA Exit R191.45 R360.18 R562.27 41
5Y P/E Exit R168.93 R317.11 R476.80 38
10Y Revenue Exit R94.03 R180.24 R301.54 36
10Y EBITDA Exit R146.94 R280.25 R467.53 37
10Y P/E Exit R132.77 R250.67 R402.44 35
Earnings-Based
Graham-Dodd R112.41 R388.26 R521.46 54
Lynch FV R89.80 R128.28 R166.77 50
PEG = 1.0 R89.80 R128.28 R166.77 46
EPV R169.69 R200.12 R226.37 59
Dividend Discount
Gordon GGM R74.11 R147.67 R223.61 70
DDM Multi-Stage R74.11 R126.38 R155.87 61
Multiples
P/E Multiple R272.77 R363.69 R454.62 63
P/S Multiple R179.84 R239.78 R299.73 58
P/B Multiple R210.78 R281.04 R351.30 55
EV/EBIT R336.63 R456.51 R576.39 53
EV/EBITDA R288.79 R392.72 R496.66 54
EV/Revenue R144.83 R216.76 R288.70 43
Asset-Based
NCAV (Graham) R53.11 R71.16 R106.21 50
Growth DCF
Growth DCF R75.05 R123.30 R191.08 80
Rev-Margin DCF R115.30 R212.79 R327.54 74
Economic Profit
Residual Income R106.06 R134.60 R300.78 76
ROIC Compounder R183.29 R239.30 R306.90 72
Growth Earnings
Growth-Adj P/E R232.81 R332.58 R432.36 68

Widest divergence: Growth Earnings (R332.58) versus Asset-Based (R71.16). Highest evidence: Growth DCF (80).

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Key figures & financial health

P/E ratio 5.3
P/S ratio 0.49 TTM
Net margin 8.3% TTM
Return on equity 16.2% TTM
Return on assets 9.8% TTM
Operating margin 15.2% TTM
More key figures
Profitability
EPS (TTM) R15.87
Growth
Revenue (TTM) 10.3B ZAC TTM
Revenue growth (YoY) +11.0% 3y avg +18.8%
EPS growth (YoY) +12.7%
Balance sheet & cash flow
Free cash flow 453M ZAC FY2026
Net debt 2.2B ZAC FY2026 · ≈ 4.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 68/100

Of which business quality 64 · Market factors (momentum, volatility) 57

Profitability 69
Margins and returns on capital today
Quality Growth 65
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 45
Distance to the 52-week high (market factor)
Net Issuance 90
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Lewis Group Limited, together with its subsidiaries, engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia. It operates through Traditional, and Speciality segments.

Full company description

Lewis Group Limited, together with its subsidiaries, engages in the retail of household furniture, home appliances, electronic goods, and homewares in South Africa, Botswana, Lesotho, Eswatini, and Namibia. It operates through Traditional, and Speciality segments. The company retails electrical appliances; sound and vision equipment; beds and mattresses; and various furniture products through its stores under the Lewis, Best Home and Electric, Bedzone, United Furniture Outlets, and Beares brand names. It also provides microinsurance to customers purchasing merchandise on credit under the Monarch Insurance brand. Lewis Group Limited was founded in 1934 and is based in Cape Town, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Lewis Group Limited reported revenue of R10.3B in FY2026 versus R6.0B in FY2022, a compound +14.6%/yr. Reported net income was R854M in FY2026, compounding +15.3%/yr from FY2022.

Growth Quality 80/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
10.3B ZAR
Latest YoY
+11.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.6%
Avg. revenue growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.1%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+22.9% (22.9 + 0.0)
Revenue +14.6%/yr
FY22 R6.0B
FY23 R6.1B
FY24 R8.2B
FY25 R9.3B
FY26 R10.3B
Net income +15.3%/yr
FY22 R483M
FY23 R411M
FY24 R436M
FY25 R755M
FY26 R854M
Character of growth · EPS growth decomposed (2015-2026) +5.0 % p.a.
Revenue per share +15.1 pp

of which total revenue +8.9 pp · buybacks/dilution +6.2 pp

EBIT margin −5.4 pp
Tax rate +0.4 pp
Residual (interest, one-offs) −5.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Lewis Group Limited Fair Value". https://www.fairvalue-calculator.com/stock/LEW

Peer Group

Specialty Retail · 228 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 68 · Top 25%
Fair Value upside +144% · Top 25%
Return on equity (TTM) 16% · Above median
Return on assets 10% · Top 25%
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 11% · Above median
Dividend yield (TTM) 9.2% · Top 25%
Debt / equity 0.25× · Higher than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 5.3× · Cheaper than 75% of peers
P/B 0.93× · Cheaper than median
P/S (TTM) 0.49× · Pricier than median
P/FCF 0.7× · Cheaper than 75% of peers
EV/EBITDA 4.2× · Cheaper than 75% of peers
PEG 39.33× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 32
FUTURE55 · sector 25
PAST65 · sector 26
HEALTH88 · sector 96
DIVIDEND100 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Casey's General Stores, Inc CASY $828.38 $398.90 -52%
Williams-Sonoma, Inc WSM $245.15 $162.63 -34%
Ulta Beauty, Inc ULTA $531.89 $475.40 -11%
DICK'S Sporting Goods, Inc DKS $202.66 $181.10 -11%
Best Buy Co BBY $83.00 $108.04 +30%
China Tourism Group 601888 ¥54.97 ¥40.40 -27%
Tractor Supply Company TSCO $36.43 $35.52 -2%
Murphy USA Inc MUSA $574.12 $423.35 -26%
Five Below, Inc FIVE $238.15 $117.29 -51%

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Frequently asked questions

Is Lewis Group Limited (LEW) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R203.57 versus a price of R83.50, about +144% (undervalued).
What is the fair value of LEW?
Our model-based fair value for Lewis Group Limited is R203.57 (as of Aug 13, 2026), built from audited fundamentals. The current price: R83.50.
What is the quality score of LEW?
Lewis Group Limited has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Lewis Group Limited (LEW)?
Lewis Group Limited reported trailing-twelve-month revenue of about 10.3B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of LEW?
The net profit margin of Lewis Group Limited is about 8.3%, meaning it keeps roughly 8.3% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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