Cencosud
Market Cap
CL$2.5t
Last Updated
2020/04/01 18:02 UTC
Data Sources
Company Financials +
Executive Summary
Cencosud S.A., together with its subsidiaries, operates as a multi-brand retailer in Chile, Argentina, Brazil, Colombia, and Peru.
Rewards
Risk Analysis
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
| CENCOSUD | Industry | Market | |
|---|---|---|---|
| 7 Day | 32.6% | -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
2 weeks ago | Simply Wall St
How Does Cencosud's (SNSE:CENCOSUD) P/E Compare To Its Industry, After The Share Price Drop?2 weeks ago | Simply Wall St
Did You Manage To Avoid Cencosud's (SNSE:CENCOSUD) Painful 52% Share Price Drop?1 month ago | Simply Wall St
Cencosud (SNSE:CENCOSUD) Takes On Some Risk With Its Use Of DebtValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 41.42yrs | CL$215.37m | 2.46% CLP62.6b | |
| Chief Executive Officer | 0.33yr | no data | no data | |
| Principal Accounting Officer | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Corporate Legal Affairs & Institutional Relations Manager | 1.17yrs | no data | no data | |
| Corporate Human Resources Manager | 1.25yrs | no data | no data | |
| Audit Managing Director | 22.25yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman | 41.42yrs | CL$215.37m | 2.46% CLP62.6b | |
| Director | 4yrs | CL$143.58m | no data | |
| Director | 8.58yrs | no data | no data | |
| Director | 4yrs | CL$143.58m | no data | |
| Director | 23.58yrs | CL$107.69m | no data | |
| Director | 21yrs | CL$107.69m | no data | |
| Director | 1yr | no data | no data | |
| Director | 1yr | no data | no data | |
| Director | 1yr | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CENCOSUD | SNSE (Santiago Stock Exchange) | Yes | Ordinary Shares | CL | CLP | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 18:02 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.