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LEW trading flat at R89.56 but the dividend yield is looking decent if they maintain payouts through this cycle. With consumer credit under pressure, the P/E matters less than cash generation right now, and that's where I'm watching the next results.
LEW been getting hammered since the credit squeeze started but the furniture plays always bounce hard when rate cuts come. Stock's down what, 30% from highs but rental business still churning cash. If they can tighten working capital and get some volume back when people start spending again, R94.20 looks like a gift. Picked up more at R88 last month.
LEW getting squeezed between load-shedding killing foot traffic and credit impairments climbing. Last results showed receivables stress but the cash position held up ok. If they can get through this cycle without a rights issue the balance sheet stays intact, could be a decent recovery play when the economy stops choking itself out.
been reading through the h1 results and the credit book actually stabilised which is mad given where we were two years ago, receivables quality tightened and that's the real story here not just the topline. comparable retailers are still bleeding margin but lew managed to keep it flat, probably because furniture has structural scarcity right now. not saying it's a moonshot but if they can keep the credit discipline going the downside looks fairly protected from here.
LEW's down 1.29% today but the bigger picture is whether their credit impairments stabilize as the consumer tightens further. Trading around R93, the dividend yield still looks reasonable if they can maintain payout discipline through this cycle, though revenue growth will be key
LEW taking a knock today at R93.04, down 1.29% - not ideal when the retail environment's already tough, but the dividend yield's still looking decent if you're holding for income.
Do you think the furniture retail cycle matters here or is LEW just a credit story at this point. Cash sales seem to be getting squeezed, credit's holding up but for how long with rates where they are.
LEW closing at R94.26 is still cheap for furniture retail, especially if they can tighten up that credit book. Credit loss ratios have been gnawing at margins but demand side looks solid with all the load-shedding driving people to upgrade appliances. Furniture retailers usually trade 0.6x book, we're closer to 0.5x, feels like there's legs here if they execute.
LEW up 1.68% to R89.49 today but the stock's still down nearly 20% YTD. With that dividend yield looking decent at current levels, are we seeing oversold territory here or is there something fundamentally broken in their credit book that the market's pricing in?
lewis credit book is still dodgy after last rerates. h1 numbers showed stress in collections, debtors hitting harder with load shedding killing discretionary spend. furniture retail is cyclical anyway but lew's leverage on credit makes it messier than picks n pay or shoprite when things tighten up.
LEW at R91.50 is looking decent honestly, furniture retail has been brutal but at least they're still moving stock to regular people who need credit. compare that to the big boys struggling and lewis is holding up. might be a boring hold but the dividend keeps coming and thats what matters when everything else is noisy lol
Lewis credit book got hammered but at R91.50 the yield is starting to look decent if they can stabilize collections. Furniture retail is brutal in this economy, load-shedding killing the smaller players, but Lewis has scale that Ellerines doesn't. If they can get impairments under control next half then maybe worth holding through the cycle.
LEW sitting at R88.00 but the real question is whether they can grow credit sales without blowing out bad debts. Furniture retail is brutal right now with load-shedding killing foot traffic, but if they can stabilize margins and maybe do a decent BEE deal, there's value here. Need to see the next results before getting excited though.
LEW sitting at R88.00, furniture retail is brutal with load-shedding killing foot traffic but credit sales holding up okay. Need to see if they can push market share while competitors are struggling, balance sheet looks manageable. Once they land a decent contract with say Eskom or similar for bulk orders, that changes the story completely.
LEW sitting at R88.00 after that earnings miss last quarter, credit book still taking strain from the load-shedding impact on consumer spending. Furniture retail's getting hammered but Lewis's got the cash position to ride it out, unlike some of the weaker players. If they can stabilize bad debts and get store foot traffic moving again once power stabilizes, could be interesting value here for patient money.
Current R 88,00 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.