Should I buy Clicks Group stock in 2025?

What is the Clicks Group?

How much is the Clicks Group stock?

The price of Clicks Group stock is rising this week. As of today, the CLS share price is R391.57, up 1.86% over the past 24 hours and posting a gain of 3.5% for the week. The company holds a market capitalisation of R93.2 billion, with an average trading volume of 882,470 shares over the past three months.

A beta of 0.34 indicates low volatility for the stock.

With its strong market position and stable performance, Clicks Group continues to present attractive potential for risk-conscious South African investors.

Our full analysis on the Clicks Group stock

Having conducted a comprehensive review of Clicks Group’s most recent financial disclosures and meticulously tracked the stock’s three-year performance trajectory, we have harnessed our proprietary analytics—blending financial metrics, technical signals, comparative analysis, and sector intelligence—to parse the investment landscape. In this context, Clicks Group’s robust numbers and sustained momentum warrant closer investor scrutiny as the JSE’s retail and pharmaceutical landscape continues to evolve. So, why might Clicks Group stock once again become a strategic entry point into the South African consumer healthcare sector in 2025?

Recent Performance and Market Context

Clicks Group (JSE:CLS) has delivered a truly impressive performance over the past twelve months, closing at R391.57 on May 30, 2025—representing a notable +31% gain year-on-year. Despite a marginal 0.34% pullback over the last six months, the stock has demonstrated resilience, with a swift 3.5% increase in the past week and an intraday climb of 1.86%.

This upswing has been buttressed by a series of positive corporate developments:

• Aggressive store expansion, with the company on track to surpass 1,000 locations—a milestone in deepening market penetration.
• Share buyback initiative, reflecting management’s conviction in underlying value and boosting shareholder confidence.
• Increased interim dividend, marking R2.38 per share, further rewarding investors and reinforcing commitment to capital return.

Against a macroeconomic backdrop defined by elevated consumer health attention, a resilient local healthcare spend, and persistently defensive consumption patterns, Clicks Group’s business model emerges as particularly robust. South Africa’s consumer retail sector has seen a migration toward essential goods and trusted brands; Clicks’ ability to capitalise on this trend is evident in its expanding top-line and growing market share.

Technical Analysis

From a technical standpoint, Clicks Group is manifesting compelling momentum. As of the end of May 2025:

• Price action is well supported above all key moving averages:
• 20-day SMA at R38,558
• 50-day SMA at R36,595
• 100-day SMA at R36,037
• 200-day SMA at R37,017
• All denote continued buy signals and validate the trend’s integrity.
• Relative Strength Index (RSI, 14-day): Sits at 62, reflecting ongoing healthy momentum without overheated conditions.
• MACD: While a technical “sell” signal is flagged, the aggregate technical summary points to a strong buy on balance, suggesting that any near-term consolidation is likely to be shallow and constructive for longer-term positioning.
• Strong support at R37,142, with resistance eyed at R42,902—a setup positioning CLS for potential upside breakouts should momentum persist.

Short- to medium-term momentum thus appears favourable, with the stock structure providing an appealing entry ahead of the next bullish phase. The technical landscape, reinforced by institutional accumulation and robust support levels, further justifies renewed tactical interest.

Fundamental Analysis

Clicks Group’s latest interim results (H1 2025) tell a story of unwavering fundamental excellence:

• Group turnover advanced 6.2% to R23.2 billion, with retail turnover up 6.4%.
• Headline earnings up 12.9% (R1.4 billion), underpinning a solid 13.2% rise in diluted headline EPS—indicating operational leverage and margin enhancement.
• Annual revenue for 2024 climbed 9.17% (R45.44 billion), with net profit margin steady at 6.41% and net income at R2.84 billion.

Valuation remains attractive within a sector context:

• P/E (TTM) at 31.07 reflects the company’s premium positioning and growth profile—justified by double-digit earnings expansion and dominant market status.
• Price/Sales (1.96x) and Price/Book (14.25x) ratios capture the low-volatility, premium-ROI nature of the business.
• Dividend yield at 2.05% with a prudent payout ratio (64%) signals sustainability and scope for future increases.

Structurally, Clicks combines:

• A leading market share in essential retail (health, wellness, pharma, beauty).
• Consistent innovation: Digital and loyalty programmes (notably ClubCard) drive differentiation and customer retention.
• A formidable brand portfolio and geographic reach spanning South Africa and select international markets.

All told, these fundamentals underscore a growth-oriented, high-quality, defensive retail story that remains well insulated from economic headwinds—making CLS a standout within the ZA retail sector.

Volume and Liquidity

The stock’s average daily volume of 882,470 shares (three-month rolling) highlights deep liquidity, facilitating both institutional and retail investor entry and exit strategies. Sustained trading turnover—especially during upswings and key event windows—signals ongoing market confidence and positions Clicks for dynamic price discovery.

A widely-held free float, complemented by strong institutional ownership, enhances valuation transparency and supports a continuously tight bid-ask spread. Additionally, the initiation of a 5% equity buyback program serves as a vote of confidence by management—even as it actively improves per-share metrics for remaining investors.

Catalysts and Positive Outlook

Looking forward, several compelling growth catalysts underpin Clicks Group’s bullish outlook:

• Accelerated store roll-out: Targeting over 1,000 locations in 2025, expanding physical reach and underpinning organic growth.
• Digital and ClubCard enhancements: Strategic investments in the ClubCard loyalty programme, e-commerce, and omni-channel retailing are positioned to unlock incremental wallet share and customer stickiness.
• Executive share buying: Recent insider accumulation—R4.2 million worth of shares, including CEO participation—reflects internal conviction.
• Share buyback program: Management’s plan to repurchase 5% of outstanding equity not only signals confidence but actively supports per-share value.
• ESG and brand reputation: Continued focus on environmental sustainability, health access, and corporate governance secures appeal among socially conscious investors.
• Favourable industry dynamics driven by demographic trends, healthcare sector growth, and regulatory support for local pharmaceutical expansion.

Analyst consensus currently marks the stock as a “Strong Buy,” with a mean price target of R430 (+9.8% upside from current levels), while some fair value models suggest scope up to R509 (+30%). Against a backdrop of steady forecasted earnings (12.1% CAGR), revenue (9.1% CAGR), and EPS growth (12.5% CAGR), Clicks Group seems primed to benefit from sustained sector and structural tailwinds.

Investment Strategies

Given this confluence of technical, fundamental, and sentiment factors, several entry strategies for Clicks Group emerge:

Short-term:

• Entry at or just above key support (R37,142) may offer opportunistic upside, with R42,902 as an initial resistance/target level.
• Trading around corporate events, such as upcoming results or ahead of interim dividend dates (notably July 2, 2025), could unlock tactical gains.

Medium-term:

• Accumulating on technical consolidations, as price holds above longer-term moving averages, allows investors to benefit from both trend continuation and dividend growth over subsequent quarters.

Long-term:

• Building a core position in CLS leverages the company’s structural strengths—sector leadership, cash generation, brand equity, and ongoing store expansion. This strategy favours capital appreciation and growing income streams, appealing to both growth and income-oriented investors alike.

For all timeframes, Clicks Group’s balance-sheet health and sector resilience provide a margin of safety, while the current share price—backed by analyst targets—suggests the potential for a new multi-year bullish cycle.

Is it the Right Time to Buy Clicks Group?

In summary, Clicks Group’s fusion of solid earnings momentum, market-defining brand strength, and proactive capital management positions it at the forefront of the South African consumer healthcare and retail landscape. The combination of strong fundamentals, technical momentum, compelling volume dynamics, and a pipeline of organic and strategic catalysts creates a compelling case for renewed investor attention.

The fundamentals, supported by favourable technical structure and a consensus “Strong Buy” rating, justify serious consideration for portfolio inclusion. As macroeconomic tailwinds and operational execution continue to shape the company’s outlook, Clicks Group appears poised to enter a new bullish phase—one that could redefine its role within both retail and healthcare equity portfolios.

In this environment, Clicks Group represents an excellent opportunity for investors seeking high-quality, growth-focused exposure to a resilient and defensive sector—one with the added benefit of reliable cashflows, proven management, and visible upside potential through 2025 and beyond.

Investors searching for the next phase of South Africa’s consumer growth story may find that Clicks Group offers not only robust fundamentals but also the momentum and stability to outperform in the years ahead.

How to buy Clicks Group stock in South Africa?

Buying shares in Clicks Group online has never been easier or safer for South African investors. By choosing a reputable, regulated broker, you can access Clicks Group shares directly from your device with confidence. There are two main ways to invest: you can either buy the shares outright (spot buying), or trade via Contracts for Difference (CFDs), which let you speculate on price movements. Each method offers unique opportunities and risk profiles. To find the platform that best suits your needs, we invite you to compare brokers and their fees in the dedicated table further down the page.

Spot Buying

When you buy Clicks Group (JSE:CLS) shares "for cash," you become a direct shareholder in the company. This means you own the shares in your name, benefit from any dividends, and participate in long-term capital growth. On the JSE, most local brokers charge a fixed commission per order—typically around R75 per transaction.

Important Example

Example: Suppose the Clicks Group share price is R391.57. With a R19,780 stake (approximately $1,000), after a typical R75 brokerage fee, you could buy about 50 shares.
- Gain Scenario: If the share price rises by 10% to R430.73, your shares would then be worth R21,073.
- Result: This is a gross gain of R1,295 (+10% return) before any taxes or fees.

Trading via CFD

CFD trading allows you to speculate on the price movement of Clicks Group shares without owning the underlying asset. With CFDs, you can use leverage (borrowed funds), typically up to 5x your initial amount, to amplify potential returns—or losses. Costs usually include the spread (difference between buy/sell prices) and overnight financing fees if you hold the position longer than a day.

Important Example

Example: With R19,780 ($1,000) and 5x leverage, your market exposure jumps to R98,900 ($5,000).
- Gain Scenario: If Clicks Group shares rise by 8%, your position gains 40% (8% x 5).
- Result: You make a gross profit of R7,912 ($400) on your initial R19,780 stake—excluding any fees or charges.

Final Advice

Before you invest, it’s vital to compare brokers’ fees, commissions, and available trading features. While owning shares directly is suitable for long-term investors seeking dividends and capital growth, CFDs might appeal to those comfortable with higher risk and short-term strategies. Ultimately, your choice should align with your own financial goals, investment horizon, and appetite for risk. For a detailed side-by-side comparison, consult our broker comparator further down this page.

Our 7 tips for buying Clicks Group stock

The latest news about Clicks Group

Clicks Group shares rose 3.5% over the past week, outperforming the JSE and signaling renewed investor confidence. This positive momentum aligns with a broader rally in South African consumer stocks and reflects robust local sentiment after the release of interim results. The stock’s current price of R391.57 represents a strong year-on-year performance, up 31%, underlining both its resilience against market volatility and ongoing appeal in the South African retail environment.

The company’s recent interim results for the six months ended February 2025 showed headline earnings up 12.9% and retail turnover growth of 6.4%. Clicks Group’s turnover reached R23.2 billion for the period, demonstrating strong underlying operational performance and improved trading margins by 60 basis points. Analysts point to sustained basic EPS growth (+13.1%) and effective cost management as critical drivers of these above-market results, further strengthening the investment case for local shareholders amid economic headwinds.

Clicks Group has launched a 5% share buyback program and reported increased insider purchases, boosting market confidence in corporate governance and future prospects. Executive management, including the CEO, purchased shares worth R4.2 million, sending a constructive signal of leadership commitment to the business. Such internal buying activity is often viewed as a strong endorsement of future growth potential, especially in the context of planned network expansion toward 1,000 stores in 2025 and consistent dividend growth.

Technical indicators remain favorable, with the stock trading above all key moving averages and a consensus 'Strong Buy' rating from analysts. Both short- and long-term moving averages (20, 50, 100, and 200-day) are flashing buy signals, and the Relative Strength Index (RSI) sits comfortably at 62, indicating healthy momentum with no immediate signs of overbought conditions. Despite a neutral MACD signal, technical analysis supports ongoing bullish sentiment and price upside, with an average target price of R430 (+9.8% potential) and further room to appreciate from current levels.

Dividend prospects have improved, with an interim dividend increase to R2.38 and an upcoming ex-dividend date set for July 2, 2025. The dividend yield now stands at 2.05%, underpinned by a solid payout ratio of 64% and sound cash generation. For South African investors, these enhancements to shareholder returns offer an attractive combination of capital appreciation and defensive income, reinforcing Clicks Group’s status as a cornerstone holding in local portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.