Carrefour (ENXTPA:CA) Valuation in Focus as Saadé Family Becomes Largest Shareholder and Board Sees Changes

Carrefour (ENXTPA:CA) has drawn attention after the Saadé family became its largest shareholder with roughly a 4% stake. The Board also accepted the resignations of two Peninsula representatives, marking a change in the company's governance.

See our latest analysis for Carrefour.

The recent change in Carrefour’s major shareholders has come amid a period of subtle recovery, with the share price up 5.62% over the past 90 days and a 4.04% gain in the last month. For those looking at the bigger picture, total shareholder return over the past year sits at 0.34%, and the five-year figure is a solid 20%. Momentum appears to be building, supported by the company’s addition to the Euronext 150 Index as well as fresh strategic interest on the board.

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With new strategic shareholders stepping in and recent gains in the share price, the big question for investors now is whether Carrefour is trading below its true value or if the market is already factoring in its next phase of growth.

Most Popular Narrative: 3.3% Undervalued

Carrefour’s widely followed narrative suggests the shares are trading around 3% below fair value, with the current market price of €13.53 just trailing the fair value estimate of €13.98. This invites a closer look at the financial assumptions analysts are relying on to support their outlook.

Carrefour's digital transformation and focus on e-commerce, with an 18% growth to €6 billion in GMV, coupled with private label expansion, could drive higher margins due to the typically better profitability of online channels and private label products.

Read the complete narrative.

What’s behind this valuation? The market’s attention is on Carrefour’s potential e-commerce margin gains and a margin jump that is not typically seen in traditional retail. Can these future projections put Carrefour ahead of legacy rivals? Uncover the exact analyst assumptions powering this price call by reading the full breakdown.

Result: Fair Value of €13.98 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued weak consumer demand in France or sharp currency swings in South America could undermine the optimistic outlook that analysts have set for Carrefour.

Find out about the key risks to this Carrefour narrative.

Build Your Own Carrefour Narrative

If you see the numbers differently or value your own perspective, take a moment to dive into the details and shape your own view in just minutes with Do it your way

A great starting point for your Carrefour research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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