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CENC

CencosudSNSE:CENCOSUD Stock Report

Market Cap

CL$3.7t

7D

11.1%

1Y

-5.0%

Updated

26 Nov, 2021

Data

Company Financials +
CENCOSUD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends2/6

CENCOSUD Stock Overview

Cencosud S.A., together with its subsidiaries, operates as a retail conglomerate in Argentina, Brazil, Chile, Peru, and Colombia.

Cencosud Competitors

Industrial and Commercial Bank of China

SEHK:1398

HK$1.9t

Banco Santander

BME:SAN

€47.6b

Banco Bilbao Vizcaya Argentaria

BME:BBVA

€32.2b

Carrefour

ENXTPA:CA

€11.9b

Price History & Performance

Summary of all time highs, changes and price drops for Cencosud
Historical stock prices
Current Share PriceCL$1,300.00
52 Week HighCL$1,700.00
52 Week LowCL$1,150.00
Beta0.75
1 Month Change9.06%
3 Month Change-12.04%
1 Year Change-5.04%
3 Year Change4.28%
5 Year Change-33.28%
Change since IPO77.11%

Recent News & Updates

Nov 03
Is Cencosud (SNSE:CENCOSUD) A Risky Investment?

Is Cencosud (SNSE:CENCOSUD) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Sep 21
Returns Are Gaining Momentum At Cencosud (SNSE:CENCOSUD)

Returns Are Gaining Momentum At Cencosud (SNSE:CENCOSUD)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to...

Shareholder Returns

CENCOSUDCL Consumer RetailingCL Market
7D11.1%-1.1%4.8%
1Y-5.0%12.0%-2.1%

Return vs Industry: CENCOSUD underperformed the CL Consumer Retailing industry which returned 12% over the past year.

Return vs Market: CENCOSUD underperformed the CL Market which returned -2.1% over the past year.

Price Volatility

Is CENCOSUD's price volatile compared to industry and market?
CENCOSUD volatility
CENCOSUD Average Weekly Movement8.2%
Consumer Retailing Industry Average Movement4.6%
Market Average Movement5.0%
10% most volatile stocks in CL Market7.6%
10% least volatile stocks in CL Market1.9%

Stable Share Price: CENCOSUD is more volatile than 90% of CL stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: CENCOSUD's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of CL stocks.

About the Company

FoundedEmployeesCEOWebsite
1963114,884Matías Videla Soláhttps://www.cencosud.com

Cencosud S.A., together with its subsidiaries, operates as a retail conglomerate in Argentina, Brazil, Chile, Peru, and Colombia. The company operates supermarkets, home improvement stores, department stores, shopping centers, and insurance brokerage and family entertainment centers; and provides financial services. As of December 31, 2020, it operated 1,064 retail stores, such as 915 supermarkets, 98 Home Improvement Stores, 51 Department Stores, and 67 Shopping Malls covering 3.39 million square meters of salesrooms.

Cencosud Fundamentals Summary

How do Cencosud's earnings and revenue compare to its market cap?
CENCOSUD fundamental statistics
Market CapCL$3.74t
Earnings (TTM)CL$473.38b
Revenue (TTM)CL$10.96t

7.8x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CENCOSUD income statement (TTM)
RevenueCL$10.96t
Cost of RevenueCL$7.81t
Gross ProfitCL$3.15t
ExpensesCL$2.68t
EarningsCL$473.38b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)167.39
Gross Margin28.76%
Net Profit Margin4.32%
Debt/Equity Ratio54.6%

How did CENCOSUD perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

17%

Payout Ratio

Valuation

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

7.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CENCOSUD (CLP1300) is trading above our estimate of fair value (CLP775.85)

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


Price To Earnings Ratio

PE vs Industry: CENCOSUD is good value based on its PE Ratio (7.8x) compared to the South American Consumer Retailing industry average (15.4x).

PE vs Market: CENCOSUD is good value based on its PE Ratio (7.8x) compared to the CL market (8.5x).


Price to Earnings Growth Ratio

PEG Ratio: CENCOSUD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CENCOSUD is good value based on its PB Ratio (0.9x) compared to the XS Consumer Retailing industry average (1.7x).


Future Growth

How is Cencosud forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CENCOSUD's earnings are forecast to decline over the next 3 years (-9.1% per year).

Earnings vs Market: CENCOSUD's earnings are forecast to decline over the next 3 years (-9.1% per year).

High Growth Earnings: CENCOSUD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CENCOSUD's revenue (3.9% per year) is forecast to grow slower than the CL market (6.3% per year).

High Growth Revenue: CENCOSUD's revenue (3.9% 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 (9.1%).


Past Performance

How has Cencosud performed over the past 5 years?

-21.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CENCOSUD has high quality earnings.

Growing Profit Margin: CENCOSUD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CENCOSUD's earnings have declined by 21.3% per year over the past 5 years.

Accelerating Growth: CENCOSUD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CENCOSUD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (37.2%).


Return on Equity

High ROE: CENCOSUD's Return on Equity (10.7%) is considered low.


Financial Health

How is Cencosud's financial position?


Financial Position Analysis

Short Term Liabilities: CENCOSUD's short term assets (CLP3,329.4B) exceed its short term liabilities (CLP2,839.3B).

Long Term Liabilities: CENCOSUD's short term assets (CLP3,329.4B) do not cover its long term liabilities (CLP3,950.4B).


Debt to Equity History and Analysis

Debt Level: CENCOSUD's net debt to equity ratio (23.6%) is considered satisfactory.

Reducing Debt: CENCOSUD's debt to equity ratio has reduced from 83.7% to 54.6% over the past 5 years.

Debt Coverage: CENCOSUD's debt is well covered by operating cash flow (45.4%).

Interest Coverage: CENCOSUD's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

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

2.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CENCOSUD's dividend (2.15%) isn’t notable compared to the bottom 25% of dividend payers in the CL market (2.54%).

High Dividend: CENCOSUD's dividend (2.15%) is low compared to the top 25% of dividend payers in the CL market (8.95%).


Stability and Growth of Payments

Stable Dividend: CENCOSUD's dividend payments have been volatile in the past 10 years.

Growing Dividend: CENCOSUD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), CENCOSUD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CENCOSUD's dividends in 3 years are forecast to be well covered by earnings (42.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Matías Videla Solá (49 yo)

1.92yrs

Tenure

Mr. Matías Videla Solá serves as Chief Executive Officer & Corporate General Manager of Cencosud S.A. since December 1, 2019. He serves as Vice President of Board at Cencosud S.A. (Argentina), Agropecuaria...


Leadership Team

Experienced Management: CENCOSUD's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: CENCOSUD's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 employee growth, exchange listings and data sources


Key Information

  • Name: Cencosud S.A.
  • Ticker: CENCOSUD
  • Exchange: SNSE
  • Founded: 1963
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: CL$3.739t
  • Shares outstanding: 2.83b
  • Website: https://www.cencosud.com

Number of Employees


Location

  • Cencosud S.A.
  • Av. Kennedy 9001
  • Las Condes
  • Region Metropolitana (Santiago)
  • Chile

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 22:01
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.