ENXTLS:JMT

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


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


Market Performance


7 Day Return

-0.6%

JMT

0.4%

PT Consumer Retailing

1.4%

PT Market


1 Year Return

31.5%

JMT

9.5%

PT Consumer Retailing

4.0%

PT Market

Return vs Industry: JMT exceeded the Portuguese Consumer Retailing industry which returned 9.5% over the past year.

Return vs Market: JMT exceeded the Portuguese Market which returned 4% over the past year.


Share holder returns

JMTIndustryMarket
7 Day-0.6%0.4%1.4%
30 Day-5.1%-3.2%-0.6%
90 Day0.7%0.8%-1.0%
1 Year34.6%31.5%13.9%9.5%8.4%4.0%
3 Year4.3%-6.1%3.8%-6.2%25.3%-11.1%
5 Year116.3%81.7%28.4%8.8%16.5%-54.4%

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 based on future cash flows and its price relative to the stock market?

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: JMT (€14.98) is trading below our estimate of fair value (€16.16)

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


Price Based on Earnings

PE vs Industry: JMT is poor value based on its PE Ratio (24.5x) compared to the Consumer Retailing industry average (19.9x).

PE vs Market: JMT is poor value based on its PE Ratio (24.5x) compared to the Portuguese market (15.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: JMT is overvalued based on its PB Ratio (5.4x) compared to the XE Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Jerónimo Martins SGPS expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: JMT's forecast earnings growth (8.3% per year) is above the savings rate (1.8%).

Earnings vs Market: JMT's earnings (8.3% per year) are forecast to grow faster than the Portuguese market (7.9% per year).

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

Revenue vs Market: JMT's revenue (5.5% per year) is forecast to grow faster than the Portuguese market (3.2% per year).

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


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: JMT's Return on Equity is forecast to be high in 3 years time (21.3%)


Next Steps

Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JMT's earnings have grown by 4.8% 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 (-2%) over the past year, making it difficult to compare to the Consumer Retailing industry average (0.4%).


Return on Equity

High ROE: JMT's Return on Equity (21%) is considered high.


Return on Assets

ROA vs Industry: JMT has a higher Return on Assets than the Consumer Retailing industry average last year.


Return on Capital Employed

ROCE Improving: JMT's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Jerónimo Martins SGPS's financial position?


Financial Position Analysis

Short Term Liabilities: JMT's short term assets (€1.8B) do not cover its short term liabilities (€4.5B)

Long Term Liabilities: JMT's short term assets (1.8B) do not cover its long term liabilities (2.5B)


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 56.9% to 34.1% over the past 5 years.

Debt Coverage: JMT's debt is well covered by operating cash flow (176.4%).

Interest Coverage: JMT's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet

Inventory Level: JMT has a high level of physical assets or inventory.

Debt Coverage by Assets: JMT's debt is covered by short term assets (assets are 2.716560x debt).


Next Steps

Dividend

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

2.68%

Expected Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%3.0%markettop25%6.7%industryaverage3.7%forecastin3Years2.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: JMT's dividend (2.17%) isn’t notable compared to the bottom 25% of dividend payers in the Portuguese market (3.04%).

High Dividend: JMT's dividend (2.17%) is low compared to the top 25% of dividend payers in the Portuguese market (6.74%).

Stable Dividend: JMT's dividend payments have been volatile in the past 10 years.

Growing Dividend: JMT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.1%), JMT's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JMT's dividends in 3 years are forecast to be covered by earnings (61.7% payout ratio).


Next Steps

Management

What is the CEO of Jerónimo Martins SGPS's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Pedro de Castro Soares dos Santos (59yo)

9.5yrs

Tenure

€1,903,500

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 ($USD2.10M) is about average for companies of similar size in the Portuguese market ($USD3.57M).

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


Management Age and Tenure

4.9yrs

Average Tenure

Experienced Management: JMT's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

5.2yrs

Average Tenure

59yo

Average Age

Experienced Board: JMT's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Pedro de Castro Soares dos Santos (59yo)

    Chairman of the Board & CEO

    • Tenure: 9.5yrs
    • Compensation: €1.90m
  • Cláudia Falcão

    Head of Investor Relations

    • Tenure: 0yrs
  • Rita Marques

    Head of Fiscal Affairs

    • Tenure: 0yrs
  • Catarina Oliveira

    Head of Risk Management

    • Tenure: 0yrs
  • Carlos Miguel Ferreira

    Chief Legal Officer

    • Tenure: 0yrs
  • Sara Miranda

    Chief Communications & Corporate Responsibility Officer

    • Tenure: 0yrs
  • Marta Maia

    Chief People Officer

    • Tenure: 0yrs
  • Nuno Abrantes

    Head of International Expansion and Strategy & Information Technology

    • Tenure: 0yrs
  • Francisco Javier Van Engelen Sousa

    Chief Financial Officer

    • Tenure: 4.9yrs
  • André de Faria

    Chief Marketing & Consumer Officer

    • Tenure: 4.3yrs

Board Members

  • Artur Kirsten (58yo)

    Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: €80.00k
  • Pedro de Castro Soares dos Santos (59yo)

    Chairman of the Board & CEO

    • Tenure: 9.5yrs
    • Compensation: €1.90m
  • António Pedro de Carvalho Viana-Baptista (62yo)

    Independent Non-Executive Director

    • Tenure: 9.5yrs
    • Compensation: €80.00k
  • Elizabeth Bastoni (54yo)

    Director

    • Tenure: 0.5yrs
  • Clara-Christina F. Streit (51yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: €100.00k
  • Sérgio Rebelo (60yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: €240.00k
  • Andrzej Szlezak (65yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: €133.00k
  • Francisco Manuel Seixas da Costa (71yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: €80.00k
  • María Ángela Cuéllar (56yo)

    Director

    • Tenure: 0.5yrs
  • José dos Santos

    Non-Executive Director

    • Tenure: 0.5yrs

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: €9.414b
  • Shares outstanding: 628.43m
  • Website: https://www.jeronimomartins.com

Number of Employees


Location

  • Jerónimo Martins, SGPS, S.A.
  • Rua Actor António 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
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 Analysis2019/10/14 20:53
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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