ENXTPA:CAFO

Stock Analysis Report

Centrale d'Achat Française pour l'Outre-Mer Société Anonyme

Executive Summary

Centrale d'Achat Française pour l'Outre-Mer Société Anonyme operates as a retailer of home equipment.

Rewards

PE ratio (8.7x) is below the French market (18.7x)

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (3.9%)

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Centrale d'Achat Française pour l'Outre-Mer Société Anonyme's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CAFO

-0.6%

FR Specialty Retail

0.4%

FR Market


1 Year Return

-24.9%

CAFO

-34.2%

FR Specialty Retail

16.7%

FR Market

Return vs Industry: CAFO exceeded the French Specialty Retail industry which returned -34.7% over the past year.

Return vs Market: CAFO underperformed the French Market which returned 17% over the past year.


Shareholder returns

CAFOIndustryMarket
7 Day0%-0.6%0.4%
30 Day-10.3%-5.5%-0.5%
90 Day-12.0%-13.4%3.6%
1 Year-23.3%-24.9%-33.7%-34.2%20.8%16.7%
3 Year-36.2%-37.5%-28.3%-30.2%43.2%29.7%
5 Year-49.1%-50.2%2.3%-1.6%54.8%32.9%

Price Volatility Vs. Market

How volatile is Centrale d'Achat Française pour l'Outre-Mer Société Anonyme's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Centrale d'Achat Française pour l'Outre-Mer Société Anonyme undervalued compared to its fair value and its price relative to the market?

8.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAFO (€4.62) is trading above our estimate of fair value (€1.35)

Significantly Below Fair Value: CAFO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAFO is good value based on its PE Ratio (8.7x) compared to the Specialty Retail industry average (11.3x).

PE vs Market: CAFO is good value based on its PE Ratio (8.7x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAFO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAFO is good value based on its PB Ratio (0.4x) compared to the FR Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Centrale d'Achat Française pour l'Outre-Mer Société Anonyme forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.6%

Forecasted Retail industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Centrale d'Achat Française pour l'Outre-Mer Société Anonyme has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Centrale d'Achat Française pour l'Outre-Mer Société Anonyme is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Centrale d'Achat Française pour l'Outre-Mer Société Anonyme competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Retail industry.

Past Performance

How has Centrale d'Achat Française pour l'Outre-Mer Société Anonyme performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAFO has a large one-off loss of €2.6M impacting its September 30 2019 financial results.

Growing Profit Margin: CAFO's current net profit margins (1.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CAFO has become profitable over the past 5 years, growing earnings by 25.2% per year.

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

Earnings vs Industry: CAFO had negative earnings growth (-57.1%) over the past year, making it difficult to compare to the Specialty Retail industry average (-10%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centrale d'Achat Française pour l'Outre-Mer Société Anonyme's financial position?


Financial Position Analysis

Short Term Liabilities: CAFO's short term assets (€222.5M) exceed its short term liabilities (€178.7M).

Long Term Liabilities: CAFO's short term assets (€222.5M) exceed its long term liabilities (€61.6M).


Debt to Equity History and Analysis

Debt Level: CAFO's debt to equity ratio (61.8%) is considered high.

Reducing Debt: CAFO's debt to equity ratio has increased from 46.5% to 61.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CAFO's debt is covered by short term assets (assets are 3.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CAFO is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: CAFO is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Centrale d'Achat Française pour l'Outre-Mer Société Anonyme's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%4.4%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CAFO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CAFO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CAFO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAFO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CAFO is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CAFO's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

7.3yrs

Average board tenure


CEO

Herve Giaoui (66yo)

15.4yrs

Tenure

€213,049

Compensation

Mr. Hervé Giaoui serves as the Chief Executive Officer of Centrale d'Achat Française pour l'Outre-Mer Société Anonyme (alternate name Centrale d'Achat Française pour l'Outre Mer SA) since September 27, 200 ...


CEO Compensation Analysis

Compensation vs Market: Herve's total compensation ($USD0.00) is below average for companies of similar size in the French market ($USD304.82K).

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


Board Members

NamePositionTenureCompensationOwnership
Herve Giaoui
Chairman of the Board of Directors & CEO15.4yrs€213.05k24.76% 10.7m
Guy-Alain Germon
Deputy CEO & Director11.9yrs€25.00k8.29% 3.6m
Viviane Chaine-Ribeiro
Director0.08yrsno datano data
Boris Tronc
Representative Director7.3yrs€25.00kno data
Evelyne Sztark-Wormser
Director2.9yrsno datano data
Viviane Golvet
Employee Representative Director0yrsno datano data

7.3yrs

Average Tenure

Experienced Board: CAFO's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 10.2%.


Top Shareholders

Company Information

Centrale d'Achat Française pour l'Outre-Mer Société Anonyme's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centrale d'Achat Française pour l'Outre-Mer Société Anonyme
  • Ticker: CAFO
  • Exchange: ENXTPA
  • Founded: 1985
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: €43.169m
  • Shares outstanding: 9.38m
  • Website: https://www.cafom.com

Number of Employees


Location

  • Centrale d'Achat Française pour l'Outre-Mer Société Anonyme
  • 3, Avenue Hoche
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAFOENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 2005
0HRBLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 2005
CAFOPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 2005

Biography

Centrale d'Achat Française pour l'Outre-Mer Société Anonyme operates as a retailer of home equipment. It provides furniture, home appliances, audiovisual and computer equipment, musical instruments, tableware products, decorative items, etc. As of September 30, 2018, it operated a network of 23 stores for the distribution of household goods in the French overseas territories. The company also distributes household goods and products for interior decoration through a network of 42 company-owned stores located in mainland France, Germany, Spain, Switzerland, and Monaco, as well as 41 franchised stores in France, the French Overseas, Thailand, Sweden, Finland, Guatemala, China, the Philippines, Algeria, Greece, Iceland, Malta, Montenegro, Madagascar, Italy, and Hong Kong. It also distributes its products through vente-unique.com and Directlowcost.com Websites. The company was founded in 1985 and is based in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:02
End of Day Share Price2020/02/18 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.