Falabella (SNSE:FALABELLA) - Share price, News & Analysis

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

FALABELLA Stock Overview

Falabella S.A. engages in the physical and online retail trade business in Chile, Peru, Colombia, Argentina, Brazil, Uruguay, and Mexico.

Rewards

Trading at 34.4% below our estimate of its fair value

Earnings are forecast to grow 9.82% per year

Earnings grew by 288.4% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 4.58% is not well covered by earnings

Falabella Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Falabella
Historical stock prices
Current Share Price	CL$2,075.00
52 Week High	CL$3,304.60
52 Week Low	CL$1,975.00
Beta	1.22
1 Month Change	-7.78%
3 Month Change	-18.60%
1 Year Change	-35.10%
3 Year Change	-53.11%
5 Year Change	-61.96%
Change since IPO	489.49%

Recent News & Updates

Jun 17

Are Investors Undervaluing Falabella S.A. (SNSE:FALABELLA) By 34%?

Does the June share price for Falabella S.A. ( SNSE:FALABELLA ) reflect what it's really worth? Today, we will estimate...

May 06

These 4 Measures Indicate That Falabella (SNSE:FALABELLA) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Apr 20

Returns On Capital At Falabella (SNSE:FALABELLA) Have Hit The Brakes

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

	FALABELLA	CL Multiline Retail	CL Market
7D	1.7%	1.1%	-2.6%
1Y	-35.1%	-56.9%	-10.3%

Return vs Industry: FALABELLA exceeded the CL Multiline Retail industry which returned -57.3% over the past year.

Return vs Market: FALABELLA underperformed the CL Market which returned -11.3% over the past year.

Price Volatility

Is FALABELLA's price volatile compared to industry and market?
FALABELLA volatility
FALABELLA Average Weekly Movement	4.3%
Multiline Retail Industry Average Movement	5.0%
Market Average Movement	4.0%
10% most volatile stocks in CL Market	6.7%
10% least volatile stocks in CL Market	1.5%

Stable Share Price: FALABELLA is not significantly more volatile than the rest of CL stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FALABELLA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1889	94,516	Gaston Bottazzini	https://www.falabella.com

Falabella S.A. engages in the physical and online retail trade business in Chile, Peru, Colombia, Argentina, Brazil, Uruguay, and Mexico. The company operates department stores that offer fashion, decoration, and electronics through 111 stores; home improvement stores that provide a range of solutions for home construction, decoration, and maintenance through 254 stores; and hypermarkets, supermarkets, and other convenience price formats with 146 stores. It also provides financial services, including credit cards, banking, insurance, and insurance brokerage services; and develops, operates, and manages shopping centers in Chile, Peru, and Colombia.

Falabella Fundamentals Summary

How do Falabella's earnings and revenue compare to its market cap?
FALABELLA fundamental statistics
Market Cap	CL$5.21t
Earnings (TTM)	CL$587.24b
Revenue (TTM)	CL$11.92t

8.9x

P/E Ratio

0.4x

P/S Ratio

Is FALABELLA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FALABELLA income statement (TTM)
Revenue	CL$11.92t
Cost of Revenue	CL$7.61t
Gross Profit	CL$4.31t
Other Expenses	CL$3.72t
Earnings	CL$587.24b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	234.07
Gross Margin	36.14%
Net Profit Margin	4.93%
Debt/Equity Ratio	71.9%

How did FALABELLA perform over the long term?

See historical performance and comparison

Dividends

4.6%

Current Dividend Yield

41%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is FALABELLA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FALABELLA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FALABELLA. This is calculated by dividing FALABELLA's market cap by their current preferred multiple.
What is FALABELLA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CL$5.21t

FALABELLA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	8.8x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does FALABELLA's PE Ratio compare to its peers?

FALABELLA PE Ratio vs Peers

The above table shows the PE ratio for FALABELLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	90.2x

Forward PE

Price-To-Earnings vs Peers: FALABELLA is good value based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (90.2x).

Price to Earnings Ratio vs Industry

How does FALABELLA's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

Price-To-Earnings vs Industry: FALABELLA is expensive based on its Price-To-Earnings Ratio (8.9x) compared to the South American Multiline Retail industry average (8.8x)

Price to Earnings Ratio vs Fair Ratio

What is FALABELLA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FALABELLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.9x
Fair PE Ratio	11.6x

Price-To-Earnings vs Fair Ratio: FALABELLA is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).

Share Price vs Fair Value

What is the Fair Price of FALABELLA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FALABELLA (CLP2075) is trading below our estimate of fair value (CLP3162.05)

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

Price to Earnings Growth Ratio

PEG Ratio: FALABELLA is good value based on its PEG Ratio (0.9x)

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Future Growth

How is Falabella forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

9.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FALABELLA's forecast earnings growth (9.8% per year) is above the savings rate (7.6%).

Earnings vs Market: FALABELLA's earnings (9.8% per year) are forecast to grow faster than the CL market (3.6% per year).

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

Revenue vs Market: FALABELLA's revenue (4.4% per year) is forecast to grow faster than the CL market (3.6% per year).

High Growth Revenue: FALABELLA's revenue (4.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FALABELLA's Return on Equity is forecast to be low in 3 years time (8.9%).

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Past Performance

How has Falabella 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

-11.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FALABELLA has high quality earnings.

Growing Profit Margin: FALABELLA's current net profit margins (4.9%) are higher than last year (1.6%).

Past Earnings Growth Analysis

Earnings Trend: FALABELLA's earnings have declined by 11.1% per year over the past 5 years.

Accelerating Growth: FALABELLA's earnings growth over the past year (288.4%) exceeds its 5-year average (-11.1% per year).

Earnings vs Industry: FALABELLA earnings growth over the past year (288.4%) exceeded the Multiline Retail industry 141.3%.

Return on Equity

High ROE: FALABELLA's Return on Equity (9.5%) is considered low.

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Financial Health

How is Falabella'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: FALABELLA's short term assets (CLP10,734.6B) exceed its short term liabilities (CLP4,255.7B).

Long Term Liabilities: FALABELLA's short term assets (CLP10,734.6B) do not cover its long term liabilities (CLP10,860.0B).

Debt to Equity History and Analysis

Debt Level: FALABELLA's net debt to equity ratio (66.2%) is considered high.

Reducing Debt: FALABELLA's debt to equity ratio has reduced from 78.1% to 71.9% over the past 5 years.

Debt Coverage: FALABELLA's debt is not well covered by operating cash flow (8%).

Interest Coverage: FALABELLA's interest payments on its debt are well covered by EBIT (5.1x coverage).

Balance Sheet

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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

4.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FALABELLA's dividend (4.58%) is higher than the bottom 25% of dividend payers in the CL market (4.47%).

High Dividend: FALABELLA's dividend (4.58%) is low compared to the top 25% of dividend payers in the CL market (13.58%).

Stability and Growth of Payments

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

Growing Dividend: FALABELLA's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.6%), FALABELLA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (744%), FALABELLA's dividend payments are not well covered by cash flows.

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Management

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

3.9yrs

Average management tenure

CEO

Gaston Bottazzini (52 yo)

4yrs

Tenure

Mr. Gaston Bottazzini has been Chief Executive Officer Falabella S.A. since June 1, 2018 and had served as its Corporate Chief Executive Officer of Falabella Financiero since October 2008 and served its Ch...

Leadership Team

Experienced Management: FALABELLA's management team is considered experienced (3.9 years average tenure).

Board Members

Experienced Board: FALABELLA's board of directors are seasoned and experienced ( 19.9 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31