SNSE:CENCOSUD

Stock Analysis Report

Executive Summary

Cencosud S.A., together with its subsidiaries, operates as a multi-brand retailer in Chile, Argentina, Brazil, Colombia, and Peru.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Cencosud's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CENCOSUD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

32.6%

CENCOSUD

-0.5%

CL Consumer Retailing

8.4%

CL Market


1 Year Return

-29.3%

CENCOSUD

1.5%

CL Consumer Retailing

-34.1%

CL Market

Return vs Industry: CENCOSUD underperformed the CL Consumer Retailing industry which returned 1.7% over the past year.

Return vs Market: CENCOSUD exceeded the CL Market which returned -35.8% over the past year.


Shareholder returns

CENCOSUDIndustryMarket
7 Day32.6%-0.5%8.4%
30 Day-9.7%-7.4%-16.6%
90 Day-14.1%-6.2%-24.9%
1 Year-28.7%-29.3%4.1%1.5%-31.7%-34.1%
3 Year-54.6%-56.8%17.6%8.8%-23.7%-30.5%
5 Year-36.6%-43.2%36.5%18.1%-6.8%-26.8%

Price Volatility Vs. Market

How volatile is Cencosud's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cencosud undervalued compared to its fair value and its price relative to the market?

22.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CENCOSUD (CLP890.11) is trading above our estimate of fair value (CLP486.25)

Significantly Below Fair Value: CENCOSUD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CENCOSUD is poor value based on its PE Ratio (22.3x) compared to the Consumer Retailing industry average (21.6x).

PE vs Market: CENCOSUD is poor value based on its PE Ratio (22.3x) compared to the CL market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: CENCOSUD is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CENCOSUD is good value based on its PB Ratio (0.6x) compared to the XS Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is Cencosud forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENCOSUD's forecast earnings growth (27.7% per year) is above the savings rate (7.5%).

Earnings vs Market: CENCOSUD's earnings (27.7% per year) are forecast to grow faster than the CL market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CENCOSUD's revenue (2.7% per year) is forecast to grow slower than the CL market (6.1% per year).

High Growth Revenue: CENCOSUD's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CENCOSUD's Return on Equity is forecast to be low in 3 years time (5.4%).


Next Steps

Past Performance

How has Cencosud performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CENCOSUD has a large one-off gain of CLP289.7B impacting its December 31 2019 financial results.

Growing Profit Margin: CENCOSUD's current net profit margins (1.2%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: CENCOSUD's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: CENCOSUD's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CENCOSUD had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-10.4%).


Return on Equity

High ROE: CENCOSUD's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Cencosud's financial position?


Financial Position Analysis

Short Term Liabilities: CENCOSUD's short term assets (CLP3,211.8B) exceed its short term liabilities (CLP2,537.2B).

Long Term Liabilities: CENCOSUD's short term assets (CLP3,211.8B) do not cover its long term liabilities (CLP4,721.2B).


Debt to Equity History and Analysis

Debt Level: CENCOSUD's debt to equity ratio (64.8%) is considered high.

Reducing Debt: CENCOSUD's debt to equity ratio has reduced from 73.1% to 64.8% over the past 5 years.

Debt Coverage: CENCOSUD's debt is well covered by operating cash flow (23.6%).

Interest Coverage: CENCOSUD's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: CENCOSUD has a high level of physical assets or inventory.

Debt Coverage by Assets: CENCOSUD's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Cencosud's current dividend yield, its reliability and sustainability?

1.12%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CENCOSUD's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the CL market (3.13%).

High Dividend: CENCOSUD's dividend (1.12%) is low compared to the top 25% of dividend payers in the CL market (6.95%).


Stability and Growth of Payments

Stable Dividend: CENCOSUD is not paying a notable dividend for the CL market, therefore no need to check if payments are stable.

Growing Dividend: CENCOSUD is not paying a notable dividend for the CL market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CENCOSUD is not paying a notable dividend for the CL market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CENCOSUD's dividend in 3 years as they are not forecast to pay a notable one for the CL market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Matías Videla (46yo)

0.33

Tenure

Mr. Matías Videla serves as Chief Executive Officer of Cencosud S.A. since December 1, 2019. Mr. Videla served as Chief Financial Officer of Cencosud S.A. since January 2019. Mr. Videla served as Controlli ...


Leadership Team

NamePositionTenureCompensationOwnership
Horst Paulmann Kemna
Founder & Chairman41.42yrsCL$215.37m2.46% CLP62.6b
Matías Videla
Chief Executive Officer0.33yrno datano data
Fredy Astudillo
Principal Accounting Officerno datano datano data
Maria Soledad Fernández
Head of Investor Relationsno datano datano data
Sebastián Rivera
Corporate Legal Affairs & Institutional Relations Manager1.17yrsno datano data
Sebastián Donoso
Corporate Human Resources Manager1.25yrsno datano data
Bronislao Jandzio
Audit Managing Director22.25yrsno datano data

1.2yrs

Average Tenure

60yo

Average Age

Experienced Management: CENCOSUD's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Horst Paulmann Kemna
Founder & Chairman41.42yrsCL$215.37m2.46% CLP62.6b
Mario Alejandro Valcarce Durán
Director4yrsCL$143.58mno data
Julio Neto
Director8.58yrsno datano data
Roberto Oscar Philipps
Director4yrsCL$143.58mno data
Peter Paulmann Koepfer
Director23.58yrsCL$107.69mno data
Heike Paulmann Koepfer
Director21yrsCL$107.69mno data
Alejandro Pérez Rodríguez
Director1yrno datano data
Hans Eben
Director1yrno datano data
Jorge Pérez Alati
Director1yrno datano data

4.0yrs

Average Tenure

68yo

Average Age

Experienced Board: CENCOSUD's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cencosud S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cencosud S.A.
  • Ticker: CENCOSUD
  • Exchange: SNSE
  • Founded: 1960
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: CL$2.541t
  • Shares outstanding: 2.86b
  • Website: https://www.cencosud.com

Number of Employees


Location

  • Cencosud S.A.
  • Avenida Kennedy 9001
  • Piso 4
  • Las Condes
  • Region Metropolitana (Santiago)
  • Chile

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CENCOSUDSNSE (Santiago Stock Exchange)YesOrdinary SharesCLCLPMay 2004

Biography

Cencosud S.A., together with its subsidiaries, operates as a multi-brand retailer in Chile, Argentina, Brazil, Colombia, and Peru. The company operates supermarkets, home improvement stores, department stores, shopping centers, and insurance brokerage and family entertainment centers; and provides financial services, including credit cards. As of December 31, 2017, it operated 1,111 stores and 54 shopping centers covering 3.6 million square meters of sales area; and leased 783 thousand square meters area to third parties. Cencosud S.A. was founded in 1960 and is headquartered in Las Condes, Chile. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 18:02
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.