DB:JEM

Stock Analysis Report

Jerónimo Martins SGPS

Executive Summary

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Jerónimo Martins SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

12.1%

JEM

5.7%

DE Consumer Retailing

9.9%

DE Market


1 Year Return

21.1%

JEM

-9.2%

DE Consumer Retailing

-17.5%

DE Market

Return vs Industry: JEM exceeded the German Consumer Retailing industry which returned -9.4% over the past year.

Return vs Market: JEM exceeded the German Market which returned -17.7% over the past year.


Shareholder returns

JEMIndustryMarket
7 Day12.1%5.7%9.9%
30 Day-0.3%-1.8%-16.6%
90 Day6.6%-9.8%-24.8%
1 Year23.9%21.1%-5.6%-9.2%-15.0%-17.5%
3 Year8.8%-2.1%-2.4%-12.0%-17.4%-24.5%
5 Year60.0%34.3%-4.4%-19.0%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Jerónimo Martins SGPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Jerónimo Martins SGPS undervalued compared to its fair value and its price relative to the market?

5.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JEM (€15.9) is trading below our estimate of fair value (€16.9)

Significantly Below Fair Value: JEM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JEM is poor value based on its PE Ratio (25.8x) compared to the Consumer Retailing industry average (17.3x).

PE vs Market: JEM is poor value based on its PE Ratio (25.8x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: JEM is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: JEM is overvalued based on its PB Ratio (5.1x) compared to the XE Consumer Retailing industry average (1.3x).


Next Steps

Future Growth

How is Jerónimo Martins SGPS forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JEM's forecast earnings growth (8.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: JEM's earnings (8.1% per year) are forecast to grow slower than the German market (14.3% per year).

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

Revenue vs Market: JEM's revenue (4.5% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: JEM's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JEM's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Jerónimo Martins SGPS performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JEM has high quality earnings.

Growing Profit Margin: JEM's current net profit margins (2.1%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: JEM's earnings have grown by 2.8% per year over the past 5 years.

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

Earnings vs Industry: JEM had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Consumer Retailing industry average (2.2%).


Return on Equity

High ROE: JEM's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is Jerónimo Martins SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: JEM's short term assets (€2.4B) do not cover its short term liabilities (€5.0B).

Long Term Liabilities: JEM's short term assets (€2.4B) do not cover its long term liabilities (€2.5B).


Debt to Equity History and Analysis

Debt Level: JEM's debt to equity ratio (32.9%) is considered satisfactory.

Reducing Debt: JEM's debt to equity ratio has reduced from 43.9% to 32.9% over the past 5 years.

Debt Coverage: JEM's debt is well covered by operating cash flow (203.7%).

Interest Coverage: JEM's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: JEM's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

What is Jerónimo Martins SGPS's current dividend yield, its reliability and sustainability?

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JEM's dividend (2.16%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: JEM's dividend (2.16%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.6%), JEM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JEM's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Pedro de Castro Soares dos Santos (59yo)

9.92s

Tenure

€924,146

Compensation

Mr. Pedro Manuel de Castro Soares dos Santos serves as Manager of Friedman – Sociedade de Investimentos Mobiliários e Imobiliários, Lda, Hermes – Sociedade de Investimentos Mobiliários e Imobiliários,Lda.  ...


CEO Compensation Analysis

Compensation vs Market: Pedro's total compensation ($USD1.02M) is below average for companies of similar size in the German market ($USD4.93M).

Compensation vs Earnings: Pedro's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Pedro de Castro Soares dos Santos
Chairman of the Board & CEO9.92yrs€924.15k0.044% 4.4m
Ana Luísa Abreu Virgínia
Chief Financial Officer0.92yrno datano data
Cláudia Falcão
Head of Investor Relationsno datano datano data
Carlos Miguel Ferreira
Chief Legal Officerno datano datano data
Sara Miranda
Chief Communications & Corporate Responsibility Officerno datano datano data
André de Faria
Chief Marketing & Consumer Officer4.75yrsno datano data
Marta Maia
Head of Human Resourcesno datano datano data
Rita Marques
Head of Fiscal Affairsno datano datano data
Catarina Oliveira
Head of Risk Managementno datano datano data
Nuno Abrantes
Head of International Expansion and Strategy & Information Technologyno datano datano data

4.8yrs

Average Tenure

Experienced Management: JEM's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pedro de Castro Soares dos Santos
Chairman of the Board & CEO9.92yrs€924.15k0.044% 4.4m
Artur Kirsten
Non-Executive Director4.92yrs€80.00kno data
António Pedro de Carvalho Viana-Baptista
Independent Non-Executive Director9.92yrs€80.00kno data
Elizabeth Bastoni
Independent Non-Executive Director0.92yr€90.00kno data
Clara-Christina F. Streit
Independent Non-Executive Director4.92yrs€80.00k0.00013% 13.1k
Sérgio Rebelo
Independent Non-Executive Director6.92yrs€120.00kno data
Andrzej Szlezak
Non-Executive Director6.92yrs€83.00kno data
Francisco Manuel Seixas da Costa
Independent Non-Executive Director6.92yrs€80.00kno data
María Ángela Cuéllar
Independent Non-Executive Director0.92yr€80.00kno data
José dos Santos
Non-Executive Director0.92yrno datano data

5.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: JEM's board of directors are considered experienced (5.6 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

Jerónimo Martins, SGPS, S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Jerónimo Martins, SGPS, S.A.
  • Ticker: JEM
  • Exchange: DB
  • Founded: 1792
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €10.055b
  • Shares outstanding: 628.43m
  • Website: https://www.jeronimomartins.com

Number of Employees


Location

  • Jerónimo Martins, SGPS, S.A.
  • Rua Actor António Silva, No. 7
  • Lisbon
  • Lisbon
  • 1649-033
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JMTENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURNov 1989
0EXGLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1989
JRON.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1989
JEMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1989
JMTUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1989
JMT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1989
JEMETLX (Eurotlx)YesOrdinary SharesITEURNov 1989
JRON.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; and Others, Eliminations and Adjustments segments. It operates 2,900 food stores under the Biedronka name; and a chain of 30 pharmacies and 200 drugstores under the Hebe banner in Poland, as well as 532 food stores under the Ara name in Colombia. The company also operates 432 supermarkets under the Pingo Doce banner, including 12 Pingo Doce & Go supermarkets; and 38 cash and carry stores and 4 platforms under the Recheio name in Portugal. In addition, it operates restaurants under the Refeições no Sítio do Costume name; Bem-Estar stores; and petrol stations, as well as offers New Code branded adults' and children's clothing, and Spot branded shoes and accessories. Further, the company operates 22 kiosks and coffee shops under the Jeronymo name; and 24 chocolates and confectionary retail stores under Hussel name. Additionally, the company engages in human resources top management, real estate management and administration, training, and saline brackish waters aquaculture; retail management, consultancy, and logistics activities; the purchase and sale of real estate; growing of crops and farming of animals; retail sale of pharmaceutical, orthopedic, and health and beauty products; manufacture of milk and dairy products; and provision of economic and accounting, business portfolio management, investment management, and financial services. It is also involved in the trading and distribution of consumer goods; retail and wholesale of non-food products; other business support service activities; and provision of services in the area of wholesale and retail distribution. The company was founded in 1792 and is headquartered in Lisbon, Portugal. Jerónimo Martins, SGPS, S.A. is a subsidiary of Sociedade Francisco Manuel dos Santos, SGPS, S.E. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 22:37
End of Day Share Price2020/03/30 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.