OTCPK:CRER.F

Stock Analysis Report

Executive Summary

Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, and Taiwan.

Rewards

Trading at 28.5% below its fair value

Earnings are forecast to grow 46.14% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Dividend of 3.24% is not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Carrefour's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.1%

CRER.F

1.5%

US Consumer Retailing

7.2%

US Market


1 Year Return

-16.4%

CRER.F

10.1%

US Consumer Retailing

-10.4%

US Market

Return vs Industry: CRER.F underperformed the US Consumer Retailing industry which returned 10.1% over the past year.

Return vs Market: CRER.F underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

CRER.FIndustryMarket
7 Day0.1%1.5%7.2%
30 Day-10.6%1.6%-12.6%
90 Day-7.6%-8.9%-19.4%
1 Year-16.4%-16.4%12.1%10.1%-8.5%-10.4%
3 Year-34.1%-34.1%39.0%30.2%15.8%8.3%
5 Year-53.9%-53.9%36.9%22.9%35.8%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRER.F ($15.46) is trading below our estimate of fair value ($21.61)

Significantly Below Fair Value: CRER.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CRER.F is poor value based on its PE Ratio (351.5x) compared to the Consumer Retailing industry average (15.7x).

PE vs Market: CRER.F is poor value based on its PE Ratio (351.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CRER.F is poor value based on its PEG Ratio (7.6x)


Price to Book Ratio

PB vs Industry: CRER.F is overvalued based on its PB Ratio (1.1x) compared to the US Consumer Retailing industry average (1.1x).


Next Steps

Future Growth

How is Carrefour forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

46.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRER.F's forecast earnings growth (46.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CRER.F's earnings (46.1% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: CRER.F's revenue (1.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CRER.F's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CRER.F's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Carrefour performed over the past 5 years?

-54.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRER.F has a large one-off loss of €1.0B impacting its December 31 2019 financial results.

Growing Profit Margin: CRER.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CRER.F's earnings have declined by -54.6% per year over the past 5 years.

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

Earnings vs Industry: CRER.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (-0.6%).


Return on Equity

High ROE: CRER.F's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is Carrefour's financial position?


Financial Position Analysis

Short Term Liabilities: CRER.F's short term assets (€18.9B) do not cover its short term liabilities (€23.1B).

Long Term Liabilities: CRER.F's short term assets (€18.9B) exceed its long term liabilities (€16.1B).


Debt to Equity History and Analysis

Debt Level: CRER.F's debt to equity ratio (109.9%) is considered high.

Reducing Debt: CRER.F's debt to equity ratio has reduced from 135.7% to 109.9% over the past 5 years.

Debt Coverage: CRER.F's debt is well covered by operating cash flow (25.3%).

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


Balance Sheet

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

Debt Coverage by Assets: CRER.F's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is Carrefour's current dividend yield, its reliability and sustainability?

3.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CRER.F's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: CRER.F's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

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

Growing Dividend: CRER.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1137.8%), CRER.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRER.F's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Alexandre Bompard (47yo)

2.67s

Tenure

€7,305,055

Compensation

Mr. Alexandre Bompard has been the Chairman and Chief Executive Officer at Carrefour SA July 18, 2017. Mr. Bompard has been Chief Executive Officer of the Fnac Darty group since July 20, 2016. Mr. Bompard  ...


CEO Compensation Analysis

Compensation vs Market: Alexandre's total compensation ($USD8.06M) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexandre Bompard
Chairman & CEO2.67yrs€7.31m0.013% 1.6m
Matthieu Malige
Chief Financial Officer2.42yrsno datano data
Dominique Benneteau-Wood
Executive Director of Communication for the Group & France1.58yrsno datano data
Jérôme Nanty
Executive Director of Human Resources and Assets for the Group & France2.42yrsno datano data
Juan Cubillo
Head of Food Marketingno datano datano data
Christophe Rabatel
Chief Executive Officer of Poland division1.58yrsno datano data
Laurent Vallée
General Secretary2.58yrsno datano data
Pierre-Jean Jerome Sivignon
Advisor to The CEO2.42yrs€775.56kno data
Rami Baitieh
Executive Director of Spainno datano datano data

2.4yrs

Average Tenure

53yo

Average Age

Experienced Management: CRER.F's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexandre Bompard
Chairman & CEO2.67yrs€7.31m0.013% 1.6m
Charles Edelstenne
Independent Director11.67yrs€53.57k0.00015% 18.8k
Nicolas Bazire
Non-Independent Director11.67yrs€75.24k0.00013% 16.3k
Philippe J. Houzé
Lead Director2.67yrs€115.00k0.00040% 50.0k
Abilio dos Santos Diniz
Director3.83yrs€53.57k0.00013% 16.3k
Jean-Laurent Bonnafe
Director11.67yrs€42.14k0.00013% 16.3k
Robert Halley
Honorary Chairman11.83yrs€82.50kno data
Patricia Lemoine
Director4.67yrs€53.57k0.00014% 17.5k
Mathilde Lemoine
Independent Director8.83yrs€55.00k0.00037% 46.3k
Stéphane Israël
Independent Director1.67yrs€13.10k0.00019% 23.8k

6.8yrs

Average Tenure

66yo

Average Age

Experienced Board: CRER.F's board of directors are considered experienced (6.8 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

Carrefour SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Carrefour SA
  • Ticker: CRER.F
  • Exchange: OTCPK
  • Founded: 1959
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: €11.337b
  • Listing Market Cap: €12.508b
  • Shares outstanding: 797.81m
  • Website: https://www.carrefour.com

Number of Employees


Location

  • Carrefour SA
  • 26, Quai Michelet
  • Levallois-Perret
  • Ile-de-France
  • 92695
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRER.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
CA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 1992
CAENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
CARDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0NPHLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
CRRBIT (Borsa Italiana)YesCommon SharesITEURJan 1992
CARXTRA (XETRA Trading Platform)YesCommon SharesDEEURJan 1992
CAPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJan 1992
CARRWBAG (Wiener Boerse AG)YesCommon SharesATEURJan 1992
CASWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1992
CRRF.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1/5 SHSUSUSDApr 2003
CAR1DB (Deutsche Boerse AG)SPON ADR EACH REPR 1/5 SHSDEEURApr 2003

Biography

Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, and Taiwan. The company operates hypermarkets, convenience stores, supermarkets, cash and carry stores, and hypercash stores; e-commerce sites and m-commerce channels; and service stations. Its stores offer fresh produce; local products; consumer goods; and non-food products, including small household goods, textiles, and home appliances, such as photo equipment, DVDs, and sound and multimedia equipment. The company is also involved in banking, insurance, property development, and franchise activities; the provision of travel agency services; and the rental of shopping malls. Carrefour SA was founded in 1959 and is based in Levallois-Perret, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:40
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.