ENXTLS:JMT

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 3.7% below our estimate of its fair value

Earnings are forecast to grow 12.06% per year

Risk Analysis

No risks detected for JMT from our risk checks.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Jerónimo Martins SGPS's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

JMT

0.9%

PT Consumer Retailing

-2.3%

PT Market


1 Year Return

-10.6%

JMT

-0.8%

PT Consumer Retailing

-7.3%

PT Market

Return vs Industry: JMT underperformed the Portuguese Consumer Retailing industry which returned -0.7% over the past year.

Return vs Market: JMT underperformed the Portuguese Market which returned -5.6% over the past year.


Shareholder returns

JMTIndustryMarket
7 Day-1.8%0.9%-2.3%
30 Day-1.4%0.2%-2.6%
90 Day-12.8%2.6%-2.4%
1 Year-9.4%-10.6%2.3%-0.8%-3.8%-7.3%
3 Year-8.9%-16.1%12.3%0.8%2.2%-9.2%
5 Year35.3%14.2%21.9%2.9%23.0%-40.1%

Price Volatility Vs. Market

How volatile is Jerónimo Martins SGPS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

4.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JMT (€13.83) is trading below our estimate of fair value (€14.36)

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 (26.3x) compared to the XE Consumer Retailing industry average (21.1x).

PE vs Market: JMT is poor value based on its PE Ratio (26.3x) compared to the Portuguese market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: JMT is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: JMT is overvalued based on its PB Ratio (4.5x) compared to the XE Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Jerónimo Martins SGPS forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JMT's forecast earnings growth (12.1% per year) is above the savings rate (2.1%).

Earnings vs Market: JMT's earnings (12.1% per year) are forecast to grow slower than the Portuguese market (15.5% per year).

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

Revenue vs Market: JMT's revenue (4.5% per year) is forecast to grow slower than the Portuguese market (5% per year).

High Growth Revenue: JMT's revenue (4.5% 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 low in 3 years time (18.1%).


Next Steps

Past Performance

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

-1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JMT has high quality earnings.

Growing Profit Margin: JMT's current net profit margins (1.7%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: JMT's earnings have declined by 1.6% per year over the past 5 years.

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

Earnings vs Industry: JMT had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (4%).


Return on Equity

High ROE: JMT's Return on Equity (16.3%) is considered low.


Next Steps

Financial Health

How is Jerónimo Martins SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: JMT's short term assets (€2.2B) do not cover its short term liabilities (€4.8B).

Long Term Liabilities: JMT's short term assets (€2.2B) do not cover its long term liabilities (€2.3B).


Debt to Equity History and Analysis

Debt Level: JMT's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: JMT's debt to equity ratio has reduced from 45.3% to 34.1% over the past 5 years.

Debt Coverage: JMT's debt is well covered by operating cash flow (170%).

Interest Coverage: JMT's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


Next Steps

Dividend

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

1.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JMT's dividend (1.5%) isn’t notable compared to the bottom 25% of dividend payers in the Portuguese market (2.45%).

High Dividend: JMT's dividend (1.5%) is low compared to the top 25% of dividend payers in the Portuguese market (7.26%).


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?

6.5yrs

Average management tenure


CEO

Pedro de Castro Soares dos Santos (60 yo)

10.42yrs

Tenure

€924,146

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 ($USD1.08M) is below average for companies of similar size in the Portuguese market ($USD4.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pedro de Castro Soares dos Santos
Chairman of the Board & CEO10.42yrs€924.15k0.044%
€ 3.8m
Ana Luísa Abreu Virgínia
Chief Financial Officer1.42yrsno datano data
Cláudia Falcão
Head of Investor Relationsno datano datano data
Carlos Miguel Ferreira
Chief Legal Officerno datano datano data
Sara Miranda
Chief Communications & Corporate Responsibility Officerno datano datano data
André de Faria
Chief Marketing & Consumer Officer5.25yrsno datano data
Marta Maia
Head of Human Resourcesno datano datano data
Rita Marques
Head of Fiscal Affairsno datano datano data
Catarina Oliveira
Head of Risk Managementno datano datano data
Nuno Abrantes
Head of International Expansion and Strategy & Information Technologyno datano datano data
Conceição Carrapeta
Head of Financial Operationsno datano datano data
Madalena Mena
Head of Operations Quality & Food Safety7.67yrsno datano data

6.5yrs

Average Tenure

Experienced Management: JMT's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pedro de Castro Soares dos Santos
Chairman of the Board & CEO10.42yrs€924.15k0.044%
€ 3.8m
Artur Kirsten
Non-Executive Director5.42yrs€80.00kno data
António Pedro de Carvalho Viana-Baptista
Independent Non-Executive Director10.42yrs€80.00kno data
Elizabeth Bastoni
Independent Non-Executive Director1.42yrs€90.00kno data
Clara-Christina F. Streit
Independent Non-Executive Director5.42yrs€80.00k0.00013%
€ 11.2k
Sérgio Rebelo
Independent Non-Executive Director7.42yrs€120.00kno data
Andrzej Szlezak
Non-Executive Director7.42yrs€83.00kno data
Francisco Manuel Seixas da Costa
Independent Non-Executive Director7.42yrs€80.00kno data
María Ángela Cuéllar
Independent Non-Executive Director1.42yrs€80.00kno data
José dos Santos
Non-Executive Director1.42yrsno datano data

6.1yrs

Average Tenure

59.5yo

Average Age

Experienced Board: JMT's board of directors are considered experienced (6.1 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 company bio, 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: €8.644b
  • Shares outstanding: 628.43m
  • Website: https://www.jeronimomartins.com

Number of Employees


Location

  • Jerónimo Martins, SGPS, S.A.
  • Rua Actor AntOnio Silva, No. 7
  • Lisbon
  • Lisbon
  • 1649-033
  • Portugal

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JMTENXTLS (Euronext Lisbon)YesOrdinary SharesPTEURNov 1989
0EXGLSE (London Stock Exchange)YesOrdinary SharesGBEURNov 1989
JRON.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1989
JEMDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1989
JMTUBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURNov 1989
JMT NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNNov 1989
JEMETLX (Eurotlx)YesOrdinary SharesITEURNov 1989
JRON.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 03:25
End of Day Share Price2020/09/22 00:00
Earnings2020/06/30
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.