DB:C1B1

Stock Analysis Report

Companhia Brasileira de Distribuição

Executive Summary

Companhia Brasileira de Distribuição engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores in Brazil.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Companhia Brasileira de Distribuição's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: C1B1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

C1B1

3.4%

DE Consumer Retailing

-0.6%

DE Market


1 Year Return

-46.6%

C1B1

-6.5%

DE Consumer Retailing

-20.9%

DE Market

Return vs Industry: C1B1 underperformed the German Consumer Retailing industry which returned -6.5% over the past year.

Return vs Market: C1B1 underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

C1B1IndustryMarket
7 Day1.8%3.4%-0.6%
30 Day-19.9%-2.3%-16.6%
90 Day-39.9%-6.9%-26.0%
1 Year-46.5%-46.6%-2.8%-6.5%-18.6%-20.9%
3 Year-34.4%-36.1%1.0%-8.9%-19.0%-25.8%
5 Year-61.6%-63.3%-5.5%-20.0%-21.1%-31.8%

Price Volatility Vs. Market

How volatile is Companhia Brasileira de Distribuição's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Companhia Brasileira de Distribuição undervalued compared to its fair value and its price relative to the market?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: C1B1 (€11.3) is trading below our estimate of fair value (€19.23)

Significantly Below Fair Value: C1B1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: C1B1 is poor value based on its PE Ratio (38x) compared to the Consumer Retailing industry average (17.4x).

PE vs Market: C1B1 is poor value based on its PE Ratio (38x) compared to the German market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: C1B1 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: C1B1 is overvalued based on its PB Ratio (1.5x) compared to the XE Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is Companhia Brasileira de Distribuição forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

48.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: C1B1's forecast earnings growth (48.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: C1B1's earnings (48.3% per year) are forecast to grow faster than the German market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: C1B1's revenue (12.9% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: C1B1's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: C1B1's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Companhia Brasileira de Distribuição performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: C1B1 has a large one-off loss of R$459.0M impacting its December 31 2019 financial results.

Growing Profit Margin: C1B1's current net profit margins (0.8%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: C1B1's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: C1B1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: C1B1 had negative earnings growth (-56.7%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2.2%).


Return on Equity

High ROE: C1B1's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is Companhia Brasileira de Distribuição's financial position?


Financial Position Analysis

Short Term Liabilities: C1B1's short term assets (R$19.9B) do not cover its short term liabilities (R$23.1B).

Long Term Liabilities: C1B1's short term assets (R$19.9B) do not cover its long term liabilities (R$21.3B).


Debt to Equity History and Analysis

Debt Level: C1B1's debt to equity ratio (106.8%) is considered high.

Reducing Debt: C1B1's debt to equity ratio has increased from 67.4% to 106.8% over the past 5 years.

Debt Coverage: C1B1's debt is not well covered by operating cash flow (7.9%).

Interest Coverage: C1B1's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: C1B1 has a high level of physical assets or inventory.

Debt Coverage by Assets: C1B1's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Companhia Brasileira de Distribuição's current dividend yield, its reliability and sustainability?

2.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: C1B1's dividend (2.55%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: C1B1's dividend (2.55%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: C1B1's dividend payments have been volatile in the past 10 years.

Growing Dividend: C1B1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.6%), C1B1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: C1B1's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Peter Paul Estermann (62yo)

2s

Tenure

Mr. Peter Paul Lourenço Estermann serves as Director at Almacenes Éxito S.A. since January 23, 2020. He has been Chief Executive Officer at Companhia Brasileira de Distribuição since April 27, 2018 and has ...


Leadership Team

NamePositionTenureCompensationOwnership
Peter Paul Estermann
CEO, President & Member of the Executive Board2yrsno datano data
Christophe José Hidalgo
CFO, VP of Finance8.25yrsno datano data
Belmiro de Figueiredo Gomes
Real Estate Business Director & Member of the Executive Board4.08yrsno datano data
Isabela Cadenassi
Investor Relations Officer & Member of Executive Boardno datano datano data
Marcelo Bazzali
Head of BU Paão de Açúcar Brazil & Food E-Commerceno datano datano data
Laurent Cadillat
Head of Pão de Açúcar1.25yrsno datano data
Ana Silva
Secretaryno datano datano data
Jorge Faiçal
CEO of Multivarejono datano datano data
Frederic Garcia
Executive Officer of Proximityno datano datano data
Rodrigo Machado
Director of Operations - Extra Marketno datano datano data

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: C1B1's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Charles Naouri
Chairman of the Board7.25yrsno datano data
Ronaldo dos Santos Pereira
Co Vice-president of the Board2yrsno datano data
Luiz Pereira
Member of Advisory Boardno datano datano data
Eleazar de Carvalho Filho
Independent Director7.83yrsno datano data
Luiz Marcelo Sales
Member of Advisory Boardno datano datano data
Manuel Carlos de Abreu
Member of Advisory Boardno datano datano data
Luiz Felipe D'Avila
Member of Advisory Boardno datano datano data
Arnaud Daniel Charles Walter Joachim Strasser
Co Vice-president of the Board8.25yrsno datano data
Luiz Nelson de Carvalho
Independent Director2.83yrsno datano data
Luiz de Castro Neves
Independent Director7.83yrsno datano data

7.5yrs

Average Tenure

70yo

Average Age

Experienced Board: C1B1's board of directors are considered experienced (7.5 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

Companhia Brasileira de Distribuição's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Companhia Brasileira de Distribuição
  • Ticker: C1B1
  • Exchange: DB
  • Founded: 1948
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: R$17.981b
  • Listing Market Cap: R$3.140b
  • Shares outstanding: 285.81m
  • Website: https://www.gpari.com.br

Number of Employees


Location

  • Companhia Brasileira de Distribuição
  • Avenida Brigadeiro Luiz Antonio, 3142
  • São Paulo
  • São Paulo
  • 01402-901
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBDNYSE (New York Stock Exchange)SPONSORED ADR FORMERLY GLOBALUSUSDNo data
CBDNYSE (New York Stock Exchange)ADR EACH REPR 1 PRF NPVUSUSDOct 1995
C1B1DB (Deutsche Boerse AG)ADR EACH REPR 1 PRF NPVDEEUROct 1995
CBD NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 PRF NPVMXMXNOct 1995
PCAR3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLMay 2000

Biography

Companhia Brasileira de Distribuição engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores in Brazil. The company operates through two segments, Food Retail; and Cash and Carry. The Food retail segment sells non-perishables, beverages, fruits, vegetables, meat, breads, cold cuts, dairy products, cleaning products, disposable products, and personal care products; and home appliances and non-food products, such as clothing and baby items, shoes and accessories, household articles, books, magazines, CDs and DVDs, stationery, handcrafts, toys, sports and camping gears, furniture, mobile phones, mattresses, pet products, and gardening equipment and tools, as well as electronic products, including personal computers, software, computer accessories, and sound and image systems. This segment also offers medications and cosmetics at its drugstores; and non-food products at gas stations, as well as rents commercial spaces. It operates its supermarkets under the banners of Pão de Açúcar, Extra Supermercado, Mercado Extra, and Compre Bem; hypermarkets under the banner of Extra Hiper; and proximity stores under the banners of Mini Extra, Minuto Pão de Açúcar, Pão de Açúcar Adega, and Aliados Minimercado; and gas stations and drugstores under the banners of Extra and Pão de Açúcar, as well as sells its products through its Websites, paodeacucar.com and extra.com.br. The Cash and Carry segment sells grocery, food, perishable, beverage, wrapping, hygiene and cleaning products, and other products to resellers, intermediate consumers, and retail customers through the Assaí banner. As of December 31, 2017, the company operated 863 stores, 71 gas stations, and 123 drugstores, as well as 22 distribution centers and depots in Brazilian states and the Federal District. The company was founded in 1948 and is headquartered in São Paulo, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 21:35
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
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.