Migros Ticaret (IBSE:MGROS) - Share price, News & Analysis

MGROS fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

MGROS Stock Overview

Migros Ticaret A.S., together with its subsidiaries, engages in the retail sale of food and beverages, and consumer and durable goods.

Rewards

Trading at 16.5% below our estimate of its fair value

Earnings are forecast to grow 46.05% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Migros Ticaret Competitors

D-Market Elektronik Hizmetler ve Ticaret

NasdaqGS:HEPS

US$423.8m

Price History & Performance

Summary of all time highs, changes and price drops for Migros Ticaret
Historical stock prices
Current Share Price	₺41.60
52 Week High	₺51.95
52 Week Low	₺30.94
Beta	0.70
1 Month Change	-7.02%
3 Month Change	13.29%
1 Year Change	17.12%
3 Year Change	234.67%
5 Year Change	56.04%
Change since IPO	873,849.58%

Shareholder Returns

	MGROS	TR Consumer Retailing	TR Market
7D	-2.9%	-3.0%	0.8%
1Y	17.1%	24.5%	36.1%

Return vs Industry: MGROS underperformed the TR Consumer Retailing industry which returned 20.4% over the past year.

Return vs Market: MGROS underperformed the TR Market which returned 27.1% over the past year.

Price Volatility

Is MGROS's price volatile compared to industry and market?
MGROS volatility
MGROS Average Weekly Movement	4.7%
Consumer Retailing Industry Average Movement	4.7%
Market Average Movement	5.8%
10% most volatile stocks in TR Market	8.4%
10% least volatile stocks in TR Market	4.1%

Stable Share Price: MGROS is less volatile than 75% of TR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MGROS's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1954	40,060	Ömer Tort	https://www.migroskurumsal.com

Migros Ticaret A.S., together with its subsidiaries, engages in the retail sale of food and beverages, and consumer and durable goods. The company operates Migros Sanal Market, an online food retailing website, as well as Tazedirekt.com, an online shopping website. As of March 04, 2022, it had a total of 2,567 stores with 2,455 Migros and 112 Macrocenter in 81 provinces in Turkey covering an area 2,739,475 square meters.

Migros Ticaret Fundamentals Summary

How do Migros Ticaret's earnings and revenue compare to its market cap?
MGROS fundamental statistics
Market Cap	₺7.53b
Earnings (TTM)	₺231.58m
Revenue (TTM)	₺40.85b

32.5x

P/E Ratio

0.2x

P/S Ratio

Is MGROS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGROS income statement (TTM)
Revenue	₺40.85b
Cost of Revenue	₺30.98b
Gross Profit	₺9.87b
Other Expenses	₺9.64b
Earnings	₺231.58m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.28
Gross Margin	24.16%
Net Profit Margin	0.57%
Debt/Equity Ratio	538.7%

How did MGROS perform over the long term?

See historical performance and comparison

Valuation

Is Migros Ticaret undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

16.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MGROS (TRY41.6) is trading below our estimate of fair value (TRY49.8)

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

Price To Earnings Ratio

PE vs Industry: MGROS is poor value based on its Price-To-Earnings Ratio (32.5x) compared to the TR Consumer Retailing industry average (12.4x).

PE vs Market: MGROS is poor value based on its Price-To-Earnings Ratio (32.5x) compared to the TR market (9.7x).

Price to Earnings Growth Ratio

PEG Ratio: MGROS is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: MGROS is overvalued based on its Price-To-Book Ratio (11.8x) compared to the TR Consumer Retailing industry average (6.5x).

Future Growth

How is Migros Ticaret forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

46.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGROS's forecast earnings growth (46% per year) is above the savings rate (9%).

Earnings vs Market: MGROS's earnings (46% per year) are forecast to grow faster than the TR market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MGROS's revenue (15.7% per year) is forecast to grow faster than the TR market (12.9% per year).

High Growth Revenue: MGROS's revenue (15.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MGROS's Return on Equity is forecast to be very high in 3 years time (65.7%).

Past Performance

How has Migros Ticaret performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MGROS has a large one-off loss of TRY51.3M impacting its March 31 2022 financial results.

Growing Profit Margin: MGROS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MGROS has become profitable over the past 5 years, growing earnings by 0.8% per year.

Accelerating Growth: MGROS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGROS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (6.6%).

Return on Equity

High ROE: Whilst MGROS's Return on Equity (35.1%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Migros Ticaret's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MGROS's short term assets (TRY11.0B) do not cover its short term liabilities (TRY15.0B).

Long Term Liabilities: MGROS's short term assets (TRY11.0B) exceed its long term liabilities (TRY4.9B).

Debt to Equity History and Analysis

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

Reducing Debt: MGROS's debt to equity ratio has increased from 313.4% to 538.7% over the past 5 years.

Debt Coverage: MGROS's debt is well covered by operating cash flow (105%).

Interest Coverage: MGROS's interest payments on its debt are not well covered by EBIT (1x coverage).

Balance Sheet

Dividend

What is Migros Ticaret current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.03%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGROS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MGROS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MGROS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGROS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: MGROS is not paying a notable dividend for the TR market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MGROS has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Ömer Tort (48 yo)

no data

Tenure

Mr. Ömer Özgür Tort serves as the Chief Executive Officer and Managing Director of Migros Ticaret A.S. Mr. Tort has been a General Manager of Migros Ticaret A.S. since August 2008. Mr. Tort served as an In...

Leadership Team

Experienced Management: MGROS's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: MGROS's board of directors are considered experienced (4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31