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The SPAR Group (SGPPY) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of The SPAR Group $5.18, price $2.78, upside +86.3%, quality 50 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? No
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Some data
Sep 24, 2026
Some data
Sep 24, 2026
The SPAR Group
SGPPY · USCheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.
✓Fair value $5.18 · Strongly undervalued (+86.3%)
!Quality 50/100
!Weak Growth (revenue 5y +1.1 %/yr)
!Loss-making · -3.7% net margin (TTM)
✓Moderate debt · generates free cash flow
!Narrow moat 26/100
!Evidence only medium, so the estimate is less certain
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What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $2.78 – $16.33 · fair‑value band $3.40 – $8.46 · the $2.78 price screens below the $5.18 fair value. Dashed = 300-day average. As of Sep 24, 2026.
Company profile
The SPAR Group Ltd engages in the wholesale and distribution of goods and services to grocery stores and other group retail outlets in South Africa and internationally.
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The SPAR Group Ltd engages in the wholesale and distribution of goods and services to grocery stores and other group retail outlets in South Africa and internationally. The company offers fresh produce, in-store bakery, butchery, deli, ready-to-eat meals, home-meal replacements, groceries, general merchandise, baked foods, liquor products, building and hardware products, coffee, dispensary and health-related products, confectionery, health and beauty, frozen foods, catering products, wines, and non-food items. The SPAR Group Ltd operates stores under the SUPERSPAR, SPAR, KWIKSPAR, SPAR EXPRESS, PHARMACY at SPAR, TOPS at SPAR, and SAVEMOR brands. The company was founded in 1932 and is headquartered in Pinetown, South Africa.
Stock analysis
The SPAR Group (SGPPY) currently trades at $2.78, while our model-based Fair Value estimate is $5.18, implying the stock looks roughly 46.3% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $9.35 per share, and 11 of the 12 models we run sit above the $2.78 price.
Bear case: the Asset-Based group reads lowest at $1.11, and 1 of the 12 models stay below the price. Evidence for this calculation is medium.
Scenario range: $3.40 (bear) to $8.46 (bull), the price of $2.78 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 50/100 (below-average quality), in the Consumer Defensive sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
The SPAR Group reported revenue of 131B ZAR in FY2025 versus 128B ZAR in FY2021, a compound +0.7%/yr. Reported net income was −4.6B ZAR in FY2025.
Key figures
Market cap $747M · P/E ratio 25.3 · EPS (TTM) $0.1100 · Net margin −3.5% · Return on equity 10.5% · Return on assets (EBIT) 5.2% · Operating margin 2.0% · Revenue (TTM) 131B ZAR.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (medium confidence).
What moves the price
The share trades about 56% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Defensive peers we cover trades at −10% fair-value upside, at 86%, SGPPY screens cheaper than that median.
Fair Value models
Bear $3.40
Fair Value $5.18
Bull $8.46
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.1100 per share) are deliberately not added.
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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
$2.42
$4.25
$6.79
78
Growth DCF
$2.42
$4.13
$6.41
77
EPV
$2.61
$3.12
$3.55
74
All 12 models by family
DCF Models
FCF DCF
$2.42
$4.25
$6.79
78
5Y Revenue Exit
$3.51
$6.73
$10.94
70
5Y EBITDA Exit
$6.16
$11.83
$18.64
73
10Y Revenue Exit
$2.87
$5.55
$9.33
64
10Y EBITDA Exit
$4.58
$8.84
$14.85
66
Earnings-Based
EPV
$2.61
$3.12
$3.55
74
Multiples
EV/EBIT
$6.72
$9.35
$11.98
66
EV/EBITDA
$9.74
$13.38
$17.01
67
EV/Revenue
$4.46
$6.87
$9.29
53
Asset-Based
NCAV (Graham)
$0.8300
$1.11
$1.66
54
Growth DCF
Growth DCF
$2.42
$4.13
$6.41
77
Economic Profit
ROIC Compounder
$2.82
$3.77
$4.88
72
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Set up alert →Quality Score breakdown
Overall quality
50/100
Of which business quality 47 · Market factors (momentum, volatility) 15
Profitability
31
Margins and returns on capital today
Quality Growth
35
Are margins and returns improving?
Cashflow
35
Earnings quality: real cash, not paper profit
Fin. Strength
32
Balance sheet, leverage, solvency risk
Investment
100
Disciplined investing over empire-building
Low Volatility
50
Calm price path (market factor)
Momentum
0
Price trend over the last 3–12 months (market factor)
52W Momentum
0
Distance to the 52-week high (market factor)
Net Issuance
82
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
39/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
−13.7%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−1.0%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+1.1%
Start year 2020 (pandemic). Over 10 years: +6.0% a year
Revenue growth 20 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+12.0%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
2.8% (2020) → 1.5% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+35.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in ZAR, South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +31.0% a year for the price and −0.4% for the forecasts.
Forecast 2026 (sales)+3.0%
Forecast 2027 (sales)+3.0%
Projected 2028 (sales)+2.9%
Projected 2029 (sales)+2.8%
Projected 2030 (sales)+2.6%
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Compare The SPAR Group with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Food Distribution · 84 stocks
Beats the industry median on 6/12 measures
A mixed picture versus its industry peers.
Valuation Multiplesvs Food Distribution median · lower = cheaper
Context: sector, industry, market
- Is the Consumer Staples sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: US Stocks
- Valuation of the USA market
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 Food Distribution stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Sysco Corporation SYY | $78.57 | $70.95 | −10% |
| US Foods Holding USFD | $93.33 | $60.25 | −35% |
| Performance Food Group PFGC | $91.55 | $47.10 | −49% |
| Jerónimo Martins, SGPS, S.A JMT | €17.62 | €21.59 | +23% |
| CP Axtra Public Company CPAXT | 14.50 THB | 12.98 THB | −10% |
| The Chefs' Warehouse, Inc CHEF | $110.27 | $41.87 | −62% |
| Olam Group VC2 | 0.9650 SGD | 2.47 SGD | +156% |
| United Natural Foods, Inc UNFI | $44.79 | $34.58 | −23% |
| The Andersons, Inc ANDE | $65.70 | $32.38 | −51% |
| Metcash Limited MTS | A$2.86 | A$5.33 | +86% |
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Frequently asked questions
Is The SPAR Group (SGPPY) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $5.18 versus the last price from Sep 25, 2026 of $2.78, about +86% upside (undervalued).
What is the fair value of SGPPY?
Our model-based fair value for The SPAR Group is $5.18 (as of Sep 24, 2026), built from audited fundamentals. Last price (from Sep 25, 2026): $2.78.
What is the quality score of SGPPY?
The SPAR Group has a Quality Score of 50/100. 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 price target for The SPAR Group (SGPPY)?
Our model-based price target is the fair value of $5.18 (as of Sep 24, 2026) from 12 valuation models. Cautious scenario $3.40, optimistic scenario $8.46. It is a calculation from audited fundamentals, not an analyst target.
What is the The SPAR Group stock forecast for 2026?
Our models put fair value at $5.18, about +86% upside versus the last price from Sep 25, 2026 of $2.78 (undervalued). Cautious scenario $3.40, optimistic scenario $8.46. The calculation is refreshed regularly with new filings.
What is the revenue of The SPAR Group (SGPPY)?
The SPAR Group reported trailing-twelve-month revenue of about 131B ZAR (latest available figure, as of Sep 24, 2026).
What growth is priced into The SPAR Group (SGPPY)?
For today's price to be fair in a discounted-cash-flow model, The SPAR Group would have to grow free cash flow by +35.3 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.1 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of SGPPY use?
Our models discount The SPAR Group at 9.8 %: a base by market capitalisation (small), damped by beta 0.05, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For The SPAR Group that is +35.3 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has The SPAR Group (SGPPY) delivered so far?
Over the past 5 years revenue at The SPAR Group grew +1.1 % a year. The price currently implies +35.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of The SPAR Group (SGPPY) growing?
The median revenue growth in the sector is +2.9 % a year. That is the yardstick for the growth priced into The SPAR Group (+35.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of The SPAR Group (SGPPY)?
The free-cash-flow yield on the price is 2.10 %: that much free cash flow The SPAR Group produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of The SPAR Group (SGPPY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For The SPAR Group it is $5.18 per share (as of Sep 24, 2026), against a price of $2.78. It is the blended result of 12 valuation models (cash flow, earnings, asset, dividend).
Is The SPAR Group stock overvalued or undervalued in 2026?
As of Sep 24, 2026, SGPPY trades below its calculated fair value: price $2.78, fair value $5.18, a gap of about +86% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SGPPY?
No. The price is what the market pays today ($2.78); the fair value is what the company's own numbers justify ($5.18). For The SPAR Group the two are $2.40 per share apart. That gap is exactly why we show both numbers side by side.
How much is The SPAR Group worth?
The market values The SPAR Group at about $747M (market capitalisation, as of Sep 24, 2026). Per share that is $2.78; our models calculate a fair value of $5.18 per share.
What do the bullish and bearish scenarios say about SGPPY?
Our models span a range for The SPAR Group: cautious scenario $3.40, base $5.18, optimistic $8.46 per share (as of Sep 24, 2026, price $2.78). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SGPPY?
The SPAR Group trades at a price-to-earnings ratio of 25.3 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $5.18 is built from several models across several years. Other multiples: P/B 0.1, EV/EBITDA 1.4.
How solid is the balance sheet of The SPAR Group (SGPPY)?
Balance-sheet figures for The SPAR Group (as of Sep 24, 2026): return on equity 10.5%, debt of 1.23 per unit of equity. They feed the Quality Score of 50/100, which measures business quality independently of the share price.
How far is SGPPY from its 52-week high?
The SPAR Group trades at $2.78, about 56% below its 52-week high of $6.36 and at the low of $2.78 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of $5.18 is for.
Which stocks are comparable to The SPAR Group?
From the same area (Consumer Defensive) we also value Sysco Corporation, US Foods Holding, Performance Food Group, Jerónimo Martins, SGPS, S.A, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is The SPAR Group stock attractive at the current price?
The data as of Sep 24, 2026: price $2.78, calculated fair value $5.18 (+86%), Quality Score 50/100, from 12 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SGPPY calculated?
We run The SPAR Group through 12 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $5.18, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. The SPAR Group currently trades 46 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of The SPAR Group (SGPPY)?
The latest price we hold is from Sep 25, 2026 and stands at $2.78. Our model-based fair value is $5.18, about +86% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with The SPAR Group right now?
The price is below even our cautious bear case ($3.40). The market is more pessimistic than our downside scenario. Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($3.40 to $8.46) leaves room in how you read the outcome.
Where does the earnings growth of The SPAR Group (SGPPY) come from?
Earnings per share at The SPAR Group grew −15.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +8.3 %, EBIT margin −6.1 %, tax rate −6.1 %, residual (interest, one-offs) −11.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of The SPAR Group
How large is the market capitalisation of The SPAR Group (SGPPY)?
The market capitalisation of The SPAR Group is $747M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of The SPAR Group (SGPPY)?
Earnings per share at The SPAR Group are $0.1100 (price ÷ EPS = P/E 25.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of The SPAR Group (SGPPY)?
The net margin of The SPAR Group is −3.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of The SPAR Group (SGPPY)?
The return on equity (ROE) of The SPAR Group is 10.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of The SPAR Group (SGPPY)?
On an EBIT basis the return on assets of The SPAR Group is 5.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of The SPAR Group (SGPPY)?
The operating margin of The SPAR Group is 2.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at The SPAR Group (SGPPY)?
Revenue at The SPAR Group is growing −2.0% versus a year earlier (3y avg −1.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at The SPAR Group (SGPPY)?
Earnings per share at The SPAR Group are growing −93.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does The SPAR Group (SGPPY) carry?
The net debt of The SPAR Group is 13.5B ZAR (fiscal year 2025, ≈ 72.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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