SMU (SNSE:SMU) - Share price, News & Analysis

SMU fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

SMU Stock Overview

SMU S.A. operates as a food retailer in Chile and Peru.

Rewards

Trading at 90.7% below our estimate of its fair value

Earnings are forecast to grow 13.32% per year

Earnings grew by 170.6% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

SMU Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SMU
Historical stock prices
Current Share Price	CL$87.95
52 Week High	CL$103.11
52 Week Low	CL$69.00
Beta	0.26
1 Month Change	6.89%
3 Month Change	4.42%
1 Year Change	-4.22%
3 Year Change	-51.01%
5 Year Change	-41.75%
Change since IPO	-23.23%

Shareholder Returns

	SMU	CL Consumer Retailing	CL Market
7D	6.0%	3.5%	-0.7%
1Y	-4.2%	4.2%	-13.5%

Return vs Industry: SMU underperformed the CL Consumer Retailing industry which returned 4.2% over the past year.

Return vs Market: SMU exceeded the CL Market which returned -13.5% over the past year.

Price Volatility

Is SMU's price volatile compared to industry and market?
SMU volatility
SMU Average Weekly Movement	4.6%
Consumer Retailing Industry Average Movement	4.9%
Market Average Movement	4.3%
10% most volatile stocks in CL Market	6.7%
10% least volatile stocks in CL Market	1.1%

Stable Share Price: SMU is not significantly more volatile than the rest of CL stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SMU's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	26,205	Marcelo Patricio Galvez Saldias	https://www.smu.cl

SMU S.A. operates as a food retailer in Chile and Peru. The company offers fresh items, such as fruits and vegetables, white and red meats, and dairy products, as well as dry goods, wine and spirits, frozen and cleaning products, and various non-food items; and ready meals, chocolates, beverages, pastries, bread, and tobacco products. It operates food retail business through various formats comprising supermarkets under the Unimarc name; cash and carry stores under the Mayorista 10, Alvi, Mayorsa, and Maxiahorro names; convenience stores under the Ok Market name; and online through Telemercados name.

SMU Fundamentals Summary

How do SMU's earnings and revenue compare to its market cap?
SMU fundamental statistics
Market Cap	CL$507.70b
Earnings (TTM)	CL$69.87b
Revenue (TTM)	CL$2.47t

7.3x

P/E Ratio

0.2x

P/S Ratio

Is SMU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMU income statement (TTM)
Revenue	CL$2.47t
Cost of Revenue	CL$1.75t
Gross Profit	CL$720.73b
Other Expenses	CL$650.87b
Earnings	CL$69.87b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 16, 2022

Earnings per share (EPS)	12.10
Gross Margin	29.15%
Net Profit Margin	2.83%
Debt/Equity Ratio	64.3%

How did SMU perform over the long term?

See historical performance and comparison

Dividends

9.2%

Current Dividend Yield

67%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SMU (CLP87.95) is trading below our estimate of fair value (CLP946.46)

Significantly Below Fair Value: SMU is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SMU is good value based on its PE Ratio (7.3x) compared to the South American Consumer Retailing industry average (14.2x).

PE vs Market: SMU is poor value based on its PE Ratio (7.3x) compared to the CL market (7.1x).

Price to Earnings Growth Ratio

PEG Ratio: SMU is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: SMU is good value based on its PB Ratio (0.7x) compared to the XS Consumer Retailing industry average (1.6x).

Future Growth

How is SMU forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMU's forecast earnings growth (13.3% per year) is above the savings rate (7.6%).

Earnings vs Market: SMU's earnings (13.3% per year) are forecast to grow faster than the CL market (2.8% per year).

High Growth Earnings: SMU's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMU's revenue (4.6% per year) is forecast to grow slower than the CL market (4.7% per year).

High Growth Revenue: SMU's revenue (4.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SMU's Return on Equity is forecast to be low in 3 years time (11.2%).

Past Performance

How has SMU performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMU has a large one-off loss of CLP16.4B impacting its December 31 2021 financial results.

Growing Profit Margin: SMU's current net profit margins (2.8%) are higher than last year (1.1%).

Past Earnings Growth Analysis

Earnings Trend: SMU's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: SMU's earnings growth over the past year (170.6%) exceeds its 5-year average (26.5% per year).

Earnings vs Industry: SMU earnings growth over the past year (170.6%) exceeded the Consumer Retailing industry 28%.

Return on Equity

High ROE: SMU's Return on Equity (9.3%) is considered low.

Financial Health

How is SMU's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMU's short term assets (CLP528.3B) do not cover its short term liabilities (CLP626.6B).

Long Term Liabilities: SMU's short term assets (CLP528.3B) do not cover its long term liabilities (CLP841.1B).

Debt to Equity History and Analysis

Debt Level: SMU's net debt to equity ratio (49.2%) is considered high.

Reducing Debt: SMU's debt to equity ratio has reduced from 196.2% to 64.3% over the past 5 years.

Debt Coverage: SMU's debt is well covered by operating cash flow (49.5%).

Interest Coverage: SMU's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

9.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SMU's dividend (9.22%) is higher than the bottom 25% of dividend payers in the CL market (3.94%).

High Dividend: SMU's dividend (9.22%) is low compared to the top 25% of dividend payers in the CL market (10.36%).

Stability and Growth of Payments

Stable Dividend: SMU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SMU's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67%), SMU's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.2%), SMU's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

4.3yrs

Average management tenure

CEO

Marcelo Patricio Galvez Saldias

9yrs

Tenure

Mr. Marcelo Patricio Galvez Saldias is Chief Executive Officer of SMU S.A. from 2018. He joined the SMU S.A. on May 08, 2013. He was General Manager of SMU S.A. until 2018.

Leadership Team

Experienced Management: SMU's management team is considered experienced (4.3 years average tenure).

Board Members

Experienced Board: SMU's board of directors are considered experienced (4.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31