DB:2GCB

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Grupo Comercial Chedraui. de

Executive Summary

Grupo Comercial Chedraui, S.A.B. de C.V. engages in the operation of self–service stores primarily in Mexico and the United States.


Snowflake Analysis

Undervalued with acceptable track record.


Similar Companies

Share Price & News

How has Grupo Comercial Chedraui. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2GCB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

2GCB

0.3%

DE Consumer Retailing

0.7%

DE Market


1 Year Return

-30.4%

2GCB

-1.6%

DE Consumer Retailing

3.9%

DE Market

Return vs Industry: 2GCB underperformed the German Consumer Retailing industry which returned -1.6% over the past year.

Return vs Market: 2GCB underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

2GCBIndustryMarket
7 Day0%0.3%0.7%
30 Day1.0%0.3%5.3%
90 Day1.0%3.4%17.3%
1 Year-29.2%-30.4%1.4%-1.6%6.2%3.9%
3 Year-41.3%-43.5%4.9%-5.5%1.8%-6.2%
5 Year-56.0%-58.2%3.3%-12.5%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Grupo Comercial Chedraui. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grupo Comercial Chedraui. de undervalued compared to its fair value and its price relative to the market?

48.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2GCB (€1.05) is trading below our estimate of fair value (€2.05)

Significantly Below Fair Value: 2GCB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2GCB is good value based on its PE Ratio (15.1x) compared to the XE Consumer Retailing industry average (19.5x).

PE vs Market: 2GCB is good value based on its PE Ratio (15.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2GCB is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: 2GCB is good value based on its PB Ratio (0.9x) compared to the XE Consumer Retailing industry average (1.4x).


Next Steps

Future Growth

How is Grupo Comercial Chedraui. de forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2GCB's forecast earnings growth (3.9% per year) is above the savings rate (0.2%).

Earnings vs Market: 2GCB's earnings (3.9% per year) are forecast to grow slower than the German market (22.3% per year).

High Growth Earnings: 2GCB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 2GCB's revenue (3.9% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: 2GCB'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: 2GCB's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Grupo Comercial Chedraui. de performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2GCB has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: 2GCB's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: 2GCB's earnings growth over the past year (8%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: 2GCB earnings growth over the past year (8%) exceeded the Consumer Retailing industry 3.1%.


Return on Equity

High ROE: 2GCB's Return on Equity (5.9%) is considered low.


Next Steps

Financial Health

How is Grupo Comercial Chedraui. de's financial position?


Financial Position Analysis

Short Term Liabilities: 2GCB's short term assets (MX$20.1B) do not cover its short term liabilities (MX$26.3B).

Long Term Liabilities: 2GCB's short term assets (MX$20.1B) do not cover its long term liabilities (MX$40.1B).


Debt to Equity History and Analysis

Debt Level: 2GCB's debt to equity ratio (52.9%) is considered high.

Reducing Debt: 2GCB's debt to equity ratio has increased from 23.7% to 52.9% over the past 5 years.

Debt Coverage: 2GCB's debt is well covered by operating cash flow (50.2%).

Interest Coverage: 2GCB's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Grupo Comercial Chedraui. de current dividend yield, its reliability and sustainability?

1.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2GCB's dividend (1.54%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 2GCB's dividend (1.54%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: 2GCB has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2GCB's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), 2GCB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 2GCB's dividends in 3 years are forecast to be thoroughly covered by earnings (13.8% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

José Antonio Chedraui Eguía (53yo)

25.5yrs

Tenure

Mr. José Antonio Chedraui Eguía has been the Chief Executive Officer of Grupo Comercial Chedraui, S.A.B. DE C.V since January 1995. Mr. Chedraui Eguía has been at Chedraui for 21 years. He served as Genera ...


Leadership Team

NamePositionTenureCompensationOwnership
José Antonio Chedraui Eguía
CEO & Director25.5yrsno datano data
Humberto Tafolla Núñez
Chief Financial Officer2.75yrsno datano data
Alberto Gutiérrez
Director of Operationsno datano datano data
Rafael Contreras Grosskelwing
Chief Administrative & Financial Officerno datano datano data
Jesús Arturo Velázquez Díaz
Head of Investor Relationsno datano datano data
Alma Deyanira Loeza Torres
Deputy Legal Directorno datano datano data
Sergio Estrada Rentería
Director of Human Resource2.25yrsno datano data
José Ramón Chedraui Eguía
Director of Private Label & Bodega Latina and Secretary of the Boardno datano datano data
Carlos Smith Matas
Chief Executive Officer of Bodega Latina23.5yrsno datano data
Eduardo Fuentes Durán
Director of Innovation & Other Channel Sales4.08yrsno datano data

4.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: 2GCB's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
José Antonio Chedraui Eguía
CEO & Director25.5yrsno datano data
Federico Carlos Fernández Senderos
Independent Director12.5yrsno datano data
Clemente Ismael Reyes-Retana Valdés
Independent Director11.5yrsno datano data
José Antonio Chedraui Obeso
Co-Founder & Directorno datano data76.37% MX$757.0m
Alfredo Chedraui Obeso
Co-Founder & Chairman of the Boardno datano datano data
Agustín Irurita Pérez
Independent Director20.5yrsno datano data
Julio Gutiérrez Mercadillo
Independent Director7.5yrsno datano data
Cecilia Goya Meade
Independent Directorno datano datano data
Martín Werner Wainfeld
Independent Directorno datano datano data

12.5yrs

Average Tenure

60yo

Average Age

Experienced Board: 2GCB's board of directors are seasoned and experienced ( 12.5 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

Grupo Comercial Chedraui, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Comercial Chedraui, S.A.B. de C.V.
  • Ticker: 2GCB
  • Exchange: DB
  • Founded: 1920
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: Mex$25.260b
  • Listing Market Cap: Mex$991.197m
  • Shares outstanding: 954.64m
  • Website: https://www.chedraui.com.mx

Number of Employees


Location

  • Grupo Comercial Chedraui, S.A.B. de C.V.
  • Avenida Constituyentes 1150
  • Colonia Lomas Altas
  • Mexico City
  • Distrito Federal
  • 11950
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHDRAUI BBMV (Bolsa Mexicana de Valores)YesSeries B SharesMXMXNMay 2010
GCHE.FOTCPK (Pink Sheets LLC)YesSeries B SharesUSUSDMay 2010
2GCBDB (Deutsche Boerse AG)YesSeries B SharesDEEURMay 2010

Biography

Grupo Comercial Chedraui, S.A.B. de C.V. engages in the operation of self–service stores primarily in Mexico and the United States. It operates through three segments: Retail in Mexico, Retail in the United States, and Real Estate. The company also sells electronic goods, perishables, cloths, groceries, and general merchandise. In addition, it leases commercial space to third parties; and operates shopping centers. The company operates 297 stores, including 193 tiendas chedraui, 62 super chedraui, 11 super che, and 31 supercito stores; and 7 distribution centers. It also operates a chain of 125 self-service stores under the El Super brand, which include 6 stores in Arizona, 52 stores in California, 3 in Nevada, 1 in New Mexico, and 63 in Texas; and 1 distribution center. The company was founded in 1920 and is headquartered in Mexico City, Mexico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 05:29
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.