Sendas Distribuidora (NYSE:ASAI) - Share price, News & Analysis

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

ASAI Stock Overview

Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil.

Rewards

PE ratio (13.2x) is below the US market (15.5x)

Earnings are forecast to grow 22.71% per year

Earnings grew by 2.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Sendas Distribuidora Competitors

Loblaw Companies

TSX:L

CA$38.1b

Atacadão

BOVESPA:CRFB3

R$38.3b

Metro

XTRA:B4B

€3.1b

Grupo Mateus

BOVESPA:GMAT3

R$10.4b

Price History & Performance

Summary of all time highs, changes and price drops for Sendas Distribuidora
Historical stock prices
Current Share Price	R$15.16
52 Week High	R$18.55
52 Week Low	R$9.73
Beta	0
1 Month Change	-12.92%
3 Month Change	29.24%
1 Year Change	-5.37%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	16.62%

Shareholder Returns

	ASAI	US Consumer Retailing	US Market
7D	6.2%	-0.8%	-2.5%
1Y	-5.4%	11.1%	-10.4%

Return vs Industry: ASAI underperformed the US Consumer Retailing industry which returned 11.1% over the past year.

Return vs Market: ASAI exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is ASAI's price volatile compared to industry and market?
ASAI volatility
ASAI Average Weekly Movement	6.6%
Consumer Retailing Industry Average Movement	6.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: ASAI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ASAI's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1974	60,000	Belmiro de Gomes	https://www.assai.com.br

Sendas Distribuidora S.A. engages in the retail and wholesale sale of food products, bazaar items, and other products in Brazil. As of March 31, 2022, the company operated 216 stores under the Assaí banner, as well as 13 distribution centers. It serves restaurants, pizzerias, snack bars, schools, small businesses, religious institutions, hospitals, hotels, grocery stores, neighborhood supermarkets, and individuals.

Sendas Distribuidora Fundamentals Summary

How do Sendas Distribuidora's earnings and revenue compare to its market cap?
ASAI fundamental statistics
Market Cap	R$20.85b
Earnings (TTM)	R$1.58b
Revenue (TTM)	R$43.89b

13.2x

P/E Ratio

0.5x

P/S Ratio

Is ASAI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASAI income statement (TTM)
Revenue	R$43.89b
Cost of Revenue	R$36.43b
Gross Profit	R$7.46b
Other Expenses	R$5.88b
Earnings	R$1.58b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 27, 2022

Earnings per share (EPS)	1.18
Gross Margin	17.00%
Net Profit Margin	3.61%
Debt/Equity Ratio	374.6%

How did ASAI perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Sendas Distribuidora undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

13.17x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: ASAI ($15.16) is trading above our estimate of fair value ($5.27)

Significantly Below Fair Value: ASAI is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: ASAI is good value based on its PE Ratio (13.2x) compared to the US Consumer Retailing industry average (19.2x).

PE vs Market: ASAI is good value based on its PE Ratio (13.2x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: ASAI is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: ASAI is overvalued based on its PB Ratio (7x) compared to the US Consumer Retailing industry average (2.1x).

Future Growth

How is Sendas Distribuidora forecast to perform in the next 1 to 3 years based on estimates from 11 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

22.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASAI's forecast earnings growth (22.7% per year) is above the savings rate (1.9%).

Earnings vs Market: ASAI's earnings (22.7% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: ASAI's revenue (16.9% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: ASAI's revenue (16.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ASAI's Return on Equity is forecast to be very high in 3 years time (40.8%).

Past Performance

How has Sendas Distribuidora 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

21.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASAI has a high level of non-cash earnings.

Growing Profit Margin: ASAI's current net profit margins (3.6%) are lower than last year (4.1%).

Past Earnings Growth Analysis

Earnings Trend: ASAI's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: ASAI's earnings growth over the past year (2.6%) is below its 5-year average (21.2% per year).

Earnings vs Industry: ASAI earnings growth over the past year (2.6%) exceeded the Consumer Retailing industry 1.5%.

Return on Equity

High ROE: Whilst ASAI's Return on Equity (53.08%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Sendas Distribuidora's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: ASAI's short term assets (R$12.3B) exceed its short term liabilities (R$11.4B).

Long Term Liabilities: ASAI's short term assets (R$12.3B) do not cover its long term liabilities (R$18.1B).

Debt to Equity History and Analysis

Debt Level: ASAI's net debt to equity ratio (227.5%) is considered high.

Reducing Debt: ASAI's debt to equity ratio has increased from 14.2% to 374.6% over the past 5 years.

Debt Coverage: ASAI's debt is well covered by operating cash flow (38.9%).

Interest Coverage: ASAI's interest payments on its debt are not well covered by EBIT (2.9x coverage).

Balance Sheet

Dividend

What is Sendas Distribuidora 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

0.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASAI's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: ASAI's dividend (0.81%) is low compared to the top 25% of dividend payers in the US market (4.05%).

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: ASAI is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: ASAI is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Retailing industry.

Management

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

6.0yrs

Average management tenure

CEO

Belmiro de Gomes (50 yo)

11.25yrs

Tenure

Mr. Belmiro de Figueiredo Gomes has been Chief Executive Officer at Sendas Distribuidora S.A. since February 2011 and serves as its Member of Executive Board. Previously, he served as commercial director...

Leadership Team

Experienced Management: ASAI's management team is seasoned and experienced (6 years average tenure).

Board Members

Experienced Board: ASAI's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.

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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31