Grupo Lala. de
Market Cap
Mex$29.0b
Last Updated
2020/07/03 18:05 UTC
Data Sources
Company Financials +
Executive Summary
Grupo Lala, S.A.B. de C.V. produces, transports, and markets flavored milk and beverages in Mexico.
Rewards
Risk Analysis
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 B | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.3% | -1.3% | 1.3% |
| 30 Day | -5.0% | 6.7% | 0.7% |
| 90 Day | 13.8% | 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
2 weeks ago | Simply Wall St
Consider This Before Buying Grupo Lala, S.A.B. de C.V. (BMV:LALAB) For The 4.9% Dividend1 month ago | Simply Wall St
Is There An Opportunity With Grupo Lala, S.A.B. de C.V.'s (BMV:LALAB) 27% Undervaluation?1 month ago | Simply Wall St
Imagine Owning Grupo Lala. de (BMV:LALAB) While The Price Tanked 68%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Interim CEO & Lead Director | 0.58yr | no data | no data | |
| Chief Financial Officer | 3.92yrs | no data | no data | |
| Chief Operating Officer | 36.5yrs | no data | no data | |
| Head of Investor Relations | 1.83yrs | no data | no data | |
| Director of Quality & Compliance | 4yrs | no data | no data | |
| Vice President of Legal & Corporate Affairs | 1.17yrs | no data | no data | |
| Chief Marketing Officer | no data | no data | no data | |
| Chief Human Resources Officer | no data | no data | no data | |
| Chief Growth Officer Mexico & Business Unit VP Dairy | 0.92yr | no data | no data | |
| Chief Supply Chain Officer | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Interim CEO & Lead Director | 0.58yr | no data | no data | |
| Independent Director | 7.5yrs | no data | no data | |
| Independent Director | 7.5yrs | no data | no data | |
| Chairman | 20.5yrs | no data | no data | |
| Independent Director | 7.5yrs | no data | no data | |
| Director | 5yrs | no data | no data | |
| Director | 45.5yrs | no data | no data | |
| Director | 23.5yrs | no data | no data | |
| Independent Director | 5yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LALA B | BMV (Bolsa Mexicana de Valores) | Yes | Series B Common Shares | MX | MXN | Oct 2013 |
| L8L | DB (Deutsche Boerse AG) | Yes | Series B Common Shares | DE | EUR | Oct 2013 |
| GRPB.F | OTCPK (Pink Sheets LLC) | Yes | Series B Common Shares | US | USD | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/03 18:05 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.