Grupo Lala. de (BMV:LALA B) - Share price, News & Analysis

LALA B fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	0/6
Financial Health	1/6
Dividends	2/6

LALA B Stock Overview

Grupo Lala, S.A.B. de C.V. produces, transports, and markets flavored milk and beverages in Mexico.

Rewards

Trading at 71.2% below our estimate of its fair value

Earnings are forecast to grow 102.52% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.57% is not well covered by earnings

Grupo Lala. de Competitors

Danone

ENXTPA:BN

€33.8b

Yakult HonshaLtd

TSE:2267

JP¥1.1t

Meiji Holdings

TSE:2269

JP¥928.0b

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Lala. de
Historical stock prices
Current Share Price	Mex$17.21
52 Week High	Mex$18.35
52 Week Low	Mex$14.20
Beta	0.80
1 Month Change	5.45%
3 Month Change	4.49%
1 Year Change	17.31%
3 Year Change	-29.00%
5 Year Change	-47.40%
Change since IPO	-41.84%

Shareholder Returns

	LALA B	MX Food	MX Market
7D	1.4%	-3.1%	2.8%
1Y	17.3%	27.3%	8.1%

Return vs Industry: LALA B underperformed the MX Food industry which returned 31.3% over the past year.

Return vs Market: LALA B exceeded the MX Market which returned 7.1% over the past year.

Price Volatility

Is LALA B's price volatile compared to industry and market?
LALA B volatility
LALA B Average Weekly Movement	4.4%
Food Industry Average Movement	5.7%
Market Average Movement	4.6%
10% most volatile stocks in MX Market	8.3%
10% least volatile stocks in MX Market	2.5%

Stable Share Price: LALA B is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: LALA B's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1949	39,953	Arquímedes Adriano Celis Ordaz	https://www.lala.com.mx

Grupo Lala, S.A.B. de C.V. produces, transports, and markets flavored milk and beverages in Mexico. The company offers drinks, creams, milks, butter and margarine, chesses, smoothies yogurts, drinkable yogurts, deserts, gelatins, hams, sausages, mayonnaise, ice creams, and other products. It serves customers under the Lala, Nutrileche, Nutrideli, Nutrilety, Vigor, Borden, Promised Land, Eskimo, La Perfecta, Faixa Azul, Amelia, Danubio, Mesa, Fong, Serrabella, LecoYomi, Chiquitin, Soy Vita, Aquafrut, Plenia, Chambourcy, Fiorelo, Mileche, Boreal, Frusion, Nordica, Skim Plus, Monarca, Los Volcanes, Yome Lala, Queen, Promise Land, Reino Jong, and Le Chef brand names.

Grupo Lala. de Fundamentals Summary

How do Grupo Lala. de's earnings and revenue compare to its market cap?
LALA B fundamental statistics
Market Cap	Mex$42.59b
Earnings (TTM)	-Mex$1.79b
Revenue (TTM)	Mex$83.84b

0.5x

P/S Ratio

-23.8x

P/E Ratio

Is LALA B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LALA B income statement (TTM)
Revenue	Mex$83.84b
Cost of Revenue	Mex$56.34b
Gross Profit	Mex$27.50b
Other Expenses	Mex$29.29b
Earnings	-Mex$1.79b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.72
Gross Margin	32.80%
Net Profit Margin	-2.13%
Debt/Equity Ratio	169.2%

How did LALA B perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

-85%

Payout Ratio

Does LALA B pay a reliable dividends?

See LALA B dividend history and benchmarks

When do you need to buy LALA B by to receive an upcoming dividend?
Grupo Lala. de dividend dates
Ex Dividend Date	May 23 2022
Dividend Pay Date	May 25 2022
Days until Ex dividend	3 days
Days until Dividend pay date	5 days

Does LALA B pay a reliable dividends?

See LALA B dividend history and benchmarks

Valuation

Is Grupo Lala. de undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: LALA B (MX$17.21) is trading below our estimate of fair value (MX$59.7)

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

Price To Earnings Ratio

PE vs Industry: LALA B is unprofitable, so we can't compare its PE Ratio to the MX Food industry average.

PE vs Market: LALA B is unprofitable, so we can't compare its PE Ratio to the MX market.

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: LALA B is overvalued based on its PB Ratio (2.7x) compared to the MX Food industry average (2.2x).

Future Growth

How is Grupo Lala. de forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

102.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: LALA B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.1%).

Earnings vs Market: LALA B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LALA B's is expected to become profitable in the next 3 years.

Revenue vs Market: LALA B's revenue (5.5% per year) is forecast to grow slower than the MX market (6.2% per year).

High Growth Revenue: LALA B's revenue (5.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if LALA B's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Grupo Lala. de performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-46.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LALA B is currently unprofitable.

Growing Profit Margin: LALA B is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: LALA B is unprofitable, and losses have increased over the past 5 years at a rate of 46.3% per year.

Accelerating Growth: Unable to compare LALA B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LALA B is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (9.8%).

Return on Equity

High ROE: LALA B has a negative Return on Equity (-11.14%), as it is currently unprofitable.

Financial Health

How is Grupo Lala. de's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: LALA B's short term assets (MX$23.0B) do not cover its short term liabilities (MX$23.2B).

Long Term Liabilities: LALA B's short term assets (MX$23.0B) do not cover its long term liabilities (MX$31.0B).

Debt to Equity History and Analysis

Debt Level: LALA B's net debt to equity ratio (137.9%) is considered high.

Reducing Debt: LALA B's debt to equity ratio has increased from 4.3% to 169.2% over the past 5 years.

Debt Coverage: LALA B's debt is well covered by operating cash flow (30.4%).

Interest Coverage: LALA B's interest payments on its debt are not well covered by EBIT (2.1x coverage).

Balance Sheet

Dividend

What is Grupo Lala. de current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.57%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: LALA B's dividend (3.57%) is higher than the bottom 25% of dividend payers in the MX market (2.06%).

High Dividend: LALA B's dividend (3.57%) is low compared to the top 25% of dividend payers in the MX market (5.97%).

Stability and Growth of Payments

Stable Dividend: LALA B has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LALA B has only been paying a dividend for 8 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: LALA B is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.2%), LALA B's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.7yrs

Average management tenure

CEO

Arquímedes Adriano Celis Ordaz (65 yo)

2.42yrs

Tenure

Eng. Arquimedes Adriano Celis Ordaz serves as an Interim Chief Executive Officer of Grupo Lala, S.A.B. de C.V. since December 31, 2019. He served as the Chief Executive Officer of Grupo Lala, S.A.B. de C.V...

Leadership Team

Experienced Management: LALA B's management team is considered experienced (4.7 years average tenure).

Board Members

Experienced Board: LALA B's board of directors are considered experienced (9.3 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31