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JMT

Jerónimo Martins SGPSENXTLS:JMT Stock Report

Market Cap

€12.5b

7D

2.3%

1Y

38.1%

Updated

08 Dec, 2021

Data

Company Financials +
JMT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health4/6
Dividends0/6

JMT Stock Overview

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia.

Rewards

Trading at 16.3% below our estimate of its fair value

Earnings are forecast to grow 9.9% per year

Risk Analysis

No risks detected for JMT from our risk checks.

Jerónimo Martins SGPS Competitors

Sonae SGPS

ENXTLS:SON

€1.8b

Industria de Diseño Textil

BME:ITX

€89.7b

Kering

ENXTPA:KER

€89.0b

Koninklijke Ahold Delhaize

ENXTAM:AD

€30.4b

Price History & Performance

Summary of all time highs, changes and price drops for Jerónimo Martins SGPS
Historical stock prices
Current Share Price€19.85
52 Week High€21.61
52 Week Low€12.50
Beta0.44
1 Month Change-0.90%
3 Month Change11.14%
1 Year Change38.09%
3 Year Change92.07%
5 Year Change33.00%
Change since IPO4,278.67%

Recent News & Updates

Dec 06
Is Jerónimo Martins SGPS (ELI:JMT) Using Too Much Debt?

Is Jerónimo Martins SGPS (ELI:JMT) Using Too Much Debt?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Oct 14
Are Investors Undervaluing Jerónimo Martins, SGPS, S.A. (ELI:JMT) By 23%?

Are Investors Undervaluing Jerónimo Martins, SGPS, S.A. (ELI:JMT) By 23%?

How far off is Jerónimo Martins, SGPS, S.A. ( ELI:JMT ) from its intrinsic value? Using the most recent financial data...

Sep 27
Returns On Capital At Jerónimo Martins SGPS (ELI:JMT) Paint A Concerning Picture

Returns On Capital At Jerónimo Martins SGPS (ELI:JMT) Paint A Concerning Picture

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Sep 07
Jerónimo Martins SGPS (ELI:JMT) Has A Pretty Healthy Balance Sheet

Jerónimo Martins SGPS (ELI:JMT) Has A Pretty Healthy Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

JMTPT Consumer RetailingPT Market
7D2.3%-0.9%0.1%
1Y38.1%10.7%13.4%

Return vs Industry: JMT exceeded the Portuguese Consumer Retailing industry which returned 13.3% over the past year.

Return vs Market: JMT exceeded the Portuguese Market which returned 14.7% over the past year.

Price Volatility

Is JMT's price volatile compared to industry and market?
JMT volatility
JMT Average Weekly Movement4.2%
Consumer Retailing Industry Average Movement4.1%
Market Average Movement4.1%
10% most volatile stocks in PT Market6.2%
10% least volatile stocks in PT Market2.7%

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

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

About the Company

FoundedEmployeesCEOWebsite
1792108,753Pedro de Castro Soares dos Santoshttps://www.jeronimomartins.com

Jerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; Colombia Retail; and Others, Eliminations and Adjustments segments. It operates 3,115 food stores under the Biedronka name; and a chain of 22 health and beauty stores under the Hebe banner in Poland, as well as 663 food stores under the Ara name in Colombia.

Jerónimo Martins SGPS Fundamentals Summary

How do Jerónimo Martins SGPS's earnings and revenue compare to its market cap?
JMT fundamental statistics
Market Cap€12.47b
Earnings (TTM)€416.78m
Revenue (TTM)€20.30b

29.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
JMT income statement (TTM)
Revenue€20.30b
Cost of Revenue€15.90b
Gross Profit€4.40b
Expenses€3.98b
Earnings€416.78m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.66
Gross Margin21.67%
Net Profit Margin2.05%
Debt/Equity Ratio20.6%

How did JMT perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Jerónimo Martins SGPS undervalued compared to its fair value and its price relative to the market?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JMT (€19.85) is trading below our estimate of fair value (€23.71)

Significantly Below Fair Value: JMT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JMT is poor value based on its PE Ratio (29.9x) compared to the European Consumer Retailing industry average (18.6x).

PE vs Market: JMT is poor value based on its PE Ratio (29.9x) compared to the Portuguese market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: JMT is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: JMT is overvalued based on its PB Ratio (5.8x) compared to the XE Consumer Retailing industry average (2.2x).


Future Growth

How is Jerónimo Martins SGPS forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JMT's forecast earnings growth (9.9% per year) is above the savings rate (1.4%).

Earnings vs Market: JMT's earnings (9.9% per year) are forecast to grow slower than the Portuguese market (11.9% per year).

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

Revenue vs Market: JMT's revenue (4.8% per year) is forecast to grow slower than the Portuguese market (6% per year).

High Growth Revenue: JMT's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JMT's Return on Equity is forecast to be high in 3 years time (21.5%)


Past Performance

How has Jerónimo Martins SGPS performed over the past 5 years?

-10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JMT has high quality earnings.

Growing Profit Margin: JMT's current net profit margins (2.1%) are higher than last year (1.8%).


Past Earnings Growth Analysis

Earnings Trend: JMT's earnings have declined by 10.2% per year over the past 5 years.

Accelerating Growth: JMT's earnings growth over the past year (21.7%) exceeds its 5-year average (-10.2% per year).

Earnings vs Industry: JMT earnings growth over the past year (21.7%) underperformed the Consumer Retailing industry 36.8%.


Return on Equity

High ROE: JMT's Return on Equity (18.3%) is considered low.


Financial Health

How is Jerónimo Martins SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: JMT's short term assets (€2.6B) do not cover its short term liabilities (€4.7B).

Long Term Liabilities: JMT's short term assets (€2.6B) exceed its long term liabilities (€2.4B).


Debt to Equity History and Analysis

Debt Level: JMT has more cash than its total debt.

Reducing Debt: JMT's debt to equity ratio has increased from 17% to 20.6% over the past 5 years.

Debt Coverage: JMT's debt is well covered by operating cash flow (334.7%).

Interest Coverage: JMT's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Dividend

What is Jerónimo Martins SGPS current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JMT's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the Portuguese market (2.45%).

High Dividend: JMT's dividend (1.45%) is low compared to the top 25% of dividend payers in the Portuguese market (5.68%).


Stability and Growth of Payments

Stable Dividend: JMT is not paying a notable dividend for the Portuguese market, therefore no need to check if payments are stable.

Growing Dividend: JMT is not paying a notable dividend for the Portuguese market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: JMT is not paying a notable dividend for the Portuguese market.


Future Payout to Shareholders

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


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Pedro de Castro Soares dos Santos (61 yo)

11.67yrs

Tenure

€1,211,875

Compensation

Mr. Pedro Manuel de Castro Soares dos Santos serves as Manager of Friedman – Sociedade de Investimentos Mobiliários e Imobiliários, Lda, Hermes – Sociedade de Investimentos Mobiliários e Imobiliários,Lda....


CEO Compensation Analysis

Compensation vs Market: Pedro's total compensation ($USD1.37M) is below average for companies of similar size in the Portuguese market ($USD3.39M).

Compensation vs Earnings: Pedro's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: JMT's management team is seasoned and experienced (8.9 years average tenure).


Board Members

Experienced Board: JMT's board of directors are considered experienced (7.7 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

Jerónimo Martins, SGPS, S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Jerónimo Martins, SGPS, S.A.
  • Ticker: JMT
  • Exchange: ENXTLS
  • Founded: 1792
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: €12.474b
  • Shares outstanding: 628.43m
  • Website: https://www.jeronimomartins.com

Number of Employees


Location

  • Jerónimo Martins, SGPS, S.A.
  • Rua Actor AntOnio Silva n. o 7
  • Lisbon
  • Lisbon
  • 1649-033
  • Portugal

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/08 21:56
End of Day Share Price2021/12/08 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.