BMV:LALA B

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Executive Summary

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


Snowflake Analysis

Good value unattractive dividend payer.


Similar Companies

Share Price & News

How has Grupo Lala. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.3%

LALA B

-1.3%

MX Food

1.3%

MX Market


1 Year Return

-50.8%

LALA B

-3.4%

MX Food

-8.3%

MX Market

Return vs Industry: LALA B underperformed the MX Food industry which returned -3.2% over the past year.

Return vs Market: LALA B underperformed the MX Market which returned -9.2% over the past year.


Shareholder returns

LALA BIndustryMarket
7 Day-6.3%-1.3%1.3%
30 Day-5.0%6.7%0.7%
90 Day13.8%23.1%13.3%
1 Year-49.0%-50.8%-1.4%-3.4%-6.0%-8.3%
3 Year-63.2%-66.4%-14.0%-18.6%-10.7%-17.2%
5 Year-61.8%-66.1%-6.9%-13.2%-0.08%-12.4%

Price Volatility Vs. Market

How volatile is Grupo Lala. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LALA B (MX$11.7) is trading below our estimate of fair value (MX$20.33)

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 good value based on its PE Ratio (18.9x) compared to the Food industry average (23.7x).

PE vs Market: LALA B is poor value based on its PE Ratio (18.9x) compared to the MX market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: LALA B is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: LALA B is good value based on its PB Ratio (1.3x) compared to the MX Food industry average (2x).


Next Steps

Future Growth

How is Grupo Lala. de forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LALA B's forecast earnings growth (14.7% per year) is above the savings rate (7.1%).

Earnings vs Market: LALA B's earnings (14.7% per year) are forecast to grow slower than the MX market (19.8% per year).

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

Revenue vs Market: LALA B's revenue (5.7% per year) is forecast to grow slower than the MX market (6.5% per year).

High Growth Revenue: LALA B's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LALA B's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

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

-16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LALA B has high quality earnings.

Growing Profit Margin: LALA B's current net profit margins (2%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: LALA B's earnings have declined by -16.7% per year over the past 5 years.

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

Earnings vs Industry: LALA B had negative earnings growth (-22.2%) over the past year, making it difficult to compare to the Food industry average (-17.9%).


Return on Equity

High ROE: LALA B's Return on Equity (6.9%) is considered low.


Next Steps

Financial Health

How is Grupo Lala. de's financial position?


Financial Position Analysis

Short Term Liabilities: LALA B's short term assets (MX$23.2B) do not cover its short term liabilities (MX$24.3B).

Long Term Liabilities: LALA B's short term assets (MX$23.2B) do not cover its long term liabilities (MX$33.8B).


Debt to Equity History and Analysis

Debt Level: LALA B's debt to equity ratio (139.2%) is considered high.

Reducing Debt: LALA B's debt to equity ratio has increased from 0% to 139.2% over the past 5 years.

Debt Coverage: LALA B's debt is not well covered by operating cash flow (20%).

Interest Coverage: LALA B's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

5.26%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: LALA B's dividend (5.26%) is higher than the bottom 25% of dividend payers in the MX market (2.35%).

High Dividend: LALA B's dividend (5.26%) is low compared to the top 25% of dividend payers in the MX market (7.23%).


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 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (99.5%), LALA B's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LALA B's dividends in 3 years are forecast to be covered by earnings (55.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Arquímedes Adriano Celis Ordaz (64yo)

0.58

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

NamePositionTenureCompensationOwnership
Arquímedes Adriano Celis Ordaz
Independent Interim CEO & Lead Director0.58yrno datano data
Alberto A. Arellano Garcia
Chief Financial Officer3.92yrsno datano data
Antonio Hernández Astorga
Chief Operating Officer36.5yrsno datano data
David González Peláez
Head of Investor Relations1.83yrsno datano data
Sergio Maldonado Romero
Director of Quality & Compliance4yrsno datano data
Andrés Gutiérrez Fernández
Vice President of Legal & Corporate Affairs1.17yrsno datano data
Pablo Córdoba Nájera
Chief Marketing Officerno datano datano data
Alejandro Zenteno Sánchez
Chief Human Resources Officerno datano datano data
Miguel Ángel Bojorges
Chief Growth Officer Mexico & Business Unit VP Dairy0.92yrno datano data
Gustavo Redondo Rodríguez
Chief Supply Chain Officerno datano datano data

1.8yrs

Average Tenure

Experienced Management: LALA B's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Arquímedes Adriano Celis Ordaz
Independent Interim CEO & Lead Director0.58yrno datano data
Rafael Robles Miaja
Independent Director7.5yrsno datano data
Pablo Roberto González Guajardo
Independent Director7.5yrsno datano data
Eduardo Tricio Haro
Chairman20.5yrsno datano data
Juan Pablo del Valle Perochena
Independent Director7.5yrsno datano data
Juan Carlos Larrinaga Sosa
Director5yrsno datano data
Marcelo Fulgencio Gómez Ganem
Director45.5yrsno datano data
José Manuel Tricio Cerro
Director23.5yrsno datano data
Blanca Avelina Treviño de Vega
Independent Director5yrsno datano data

7.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: LALA B's board of directors are considered experienced (7.5 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

Grupo Lala, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Lala, S.A.B. de C.V.
  • Ticker: LALA B
  • Exchange: BMV
  • Founded: 1949
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: Mex$29.018b
  • Shares outstanding: 2.48b
  • Website: https://www.lala.com.mx

Number of Employees


Location

  • Grupo Lala, S.A.B. de C.V.
  • Avenida Javier Barros Sierra 495
  • 6th Floor
  • Mexico City
  • Distrito Federal
  • 1219
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LALA BBMV (Bolsa Mexicana de Valores)YesSeries B Common SharesMXMXNOct 2013
L8LDB (Deutsche Boerse AG)YesSeries B Common SharesDEEUROct 2013
GRPB.FOTCPK (Pink Sheets LLC)YesSeries B Common SharesUSUSDOct 2013

Biography

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. The company was founded in 1949 and is based in Mexico City, Mexico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 18:05
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.