Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, China, and Taiwan.
The last earnings update was 54 days ago.
Discounted Cash Flow Calculation for DB:CAR1 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:CAR1 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Carrefour's share price is below the future cash flow value, and at a moderate discount (> 20%).
Carrefour's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Carrefour's earnings available for a low price, and how does
this compare to other companies in the same industry?
Carrefour's earnings are expected to grow significantly at over 20% yearly.
Carrefour's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Carrefour's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Alexandre Bompard has been the Chairman and Chief Executive Officer at Carrefour SA July 18, 2017. Mr. Bompard has been Chief Executive Officer of the Fnac Darty group since July 20, 2016. Mr. Bompard has been Chairman of FNAC at Kering SA since November 23, 2010. He served as the Chairman and Chief Executive Officer of Fnac Darty SA since joined in January 2011 until July 17, 2017 and served as its President. He was assigned to the Inspection générale des finances (Inspectorate General of Finance) from 1999 to 2002, subsequently becoming technical advisor to then-Minister of Social Affairs, Labour and Solidarity François Fillon from April 2003 to December 2003. From 2004 to 2008, he served several responsibilities with the Canal+ group: he served as Chief of staff of Chairman Bertrand Méheut from 2004 to 2005, then Director of Sports and Public Affairs for it from June 2005 to June 2008. Since June 2008, he served as Chairman and Chief Executive Officer of Europe 1 SAS and Europe 1 Sport. Mr. Bompard serves as Vice Chairman of Supervisory Board at Newsweb SA. He has been a Director of Darty plc since July 19, 2016. He was a Director of Les Éditions Indépendantes. He was Chairman and Chief Executive Officer of Fnac Darty Participations et Services until July 17, 2017. He then undertook an ambitious transformation plan of the Group, called “Fnac 2015”, to meet the challenge of the digital revolution and changes in customer expectations. On June 20, 2013, Alexandre Bompard also led Fnac’s initial public offering. He was a Director of Darty Ltd until July 17, 2017. He has been an Independent Director of Orange SA since December 7 2016. He has been a Member of the Supervisory Board of Banijay Group since April 7, 2016. He is the Chairman & Director of the Carrefour Fondation since September 8, 2017. He is a Member of Le Siècle (Association operating under Law 1901). In Autumn 2015, Fnac launched a takeover bid on the Darty Group. He was a Director of Fnac Darty SA since January 2011 until November 28, 2017. Mr. Bompard is also an alumnus of the École nationale d'administration (ENA, Cyrano de Bergerac class). He is a graduate of the Institut d'études politiques de Paris (Sciences Po) with a master's degree in public law and a post-graduate diploma in economics. He also holds a Master of Advanced Studies (DEA) in Economics.
Insufficient data for Alexandre to compare compensation growth.
Alexandre's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Carrefour management team is less than 2 years, this suggests a new team.
Chairman & CEO
Advisor to The CEO
Chief Financial Officer
Head of Financial Communication & Investor Relations
Executive Director of Communication for the Group & France
Executive Director of Human Resources for the Group & France
Executive Director for Italy
Javier de la Pena
Head of Operational Department -Dia Europe
Head of Food Marketing
François De Polignac
Executive Director for Merchandise
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Carrefour board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman & CEO
Chairman of Food Advisory Committee & General Secretary
Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, China, and Taiwan. The company operates hypermarkets, supermarkets, cash and carry stores, and hypercash stores; e-commerce sites and m-commerce channels; and service stations. Its stores offer fresh produce; local products; consumer goods; and non-food products, including small household goods, textiles, and home appliances. In addition, the company is involved in banking, insurance, property development, and franchise activities; the provision of travel agency services; and the rental of shopping malls. Carrefour SA was founded in 1959 and is based in Boulogne Billancourt, France.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.