OTCPK:GPGN.F

Stock Analysis Report

Grupo Gigante S. A. B. de C. V

Executive Summary

Grupo Gigante, S. A. B. de C. V., together with its subsidiaries, operates self-service stores that sell office supplies, electronic goods, and housewares in Mexico, Central America, the Caribbean, Colombia, and Chile.

Risk Analysis

Earnings have declined by -7.98% per year over past 5 years

Interest payments are not well covered by earnings

Profit margins (2%) are lower than last year (3.8%)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has Grupo Gigante S. A. B. de C. V's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GPGN.F

0.2%

US Consumer Retailing

1.1%

US Market


1 Year Return

n/a

GPGN.F

17.5%

US Consumer Retailing

17.8%

US Market

Return vs Industry: Insufficient data to determine how GPGN.F performed against the US Consumer Retailing industry.

Return vs Market: Insufficient data to determine how GPGN.F performed against the US Market.


Shareholder returns

GPGN.FIndustryMarket
7 Day0%0.2%1.1%
30 Day0%-0.4%1.4%
90 Dayn/a2.4%3.9%
1 Yearn/a19.8%17.5%20.3%17.8%
3 Year9.7%9.7%47.9%38.5%44.8%35.4%
5 Year-43.1%-43.1%56.4%39.5%71.3%52.4%

Price Volatility Vs. Market

How volatile is Grupo Gigante S. A. B. de C. V's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grupo Gigante S. A. B. de C. V undervalued compared to its fair value and its price relative to the market?

57.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GPGN.F ($1.7) is trading above our estimate of fair value ($1.14)

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


Price To Earnings Ratio

PE vs Industry: GPGN.F is poor value based on its PE Ratio (57x) compared to the Consumer Retailing industry average (22.9x).

PE vs Market: GPGN.F is poor value based on its PE Ratio (57x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GPGN.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GPGN.F is good value based on its PB Ratio (1.6x) compared to the US Consumer Retailing industry average (2.2x).


Next Steps

Future Growth

How is Grupo Gigante S. A. B. de C. V forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.0%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Grupo Gigante S. A. B. de C. V has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of GPGN.F’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Grupo Gigante S. A. B. de C. V's filings and announcements here.
  • Explore growth companies in the Consumer Retailing industry.

Past Performance

How has Grupo Gigante S. A. B. de C. V performed over the past 5 years?

-8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPGN.F has high quality earnings.

Growing Profit Margin: GPGN.F's current net profit margins (2%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: GPGN.F's earnings have declined by -8% per year over the past 5 years.

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

Earnings vs Industry: GPGN.F had negative earnings growth (-49.9%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-20.1%).


Return on Equity

High ROE: GPGN.F's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grupo Gigante S. A. B. de C. V's financial position?


Financial Position Analysis

Short Term Liabilities: GPGN.F's short term assets (MX$11.6B) exceed its short term liabilities (MX$8.3B).

Long Term Liabilities: GPGN.F's short term assets (MX$11.6B) do not cover its long term liabilities (MX$16.7B).


Debt to Equity History and Analysis

Debt Level: GPGN.F's debt to equity ratio (48.7%) is considered high.

Reducing Debt: GPGN.F's debt to equity ratio has reduced from 70.6% to 48.7% over the past 5 years.

Debt Coverage: GPGN.F's debt is well covered by operating cash flow (29.3%).

Interest Coverage: GPGN.F's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: GPGN.F's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

What is Grupo Gigante S. A. B. de C. V's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: GPGN.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GPGN.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Grupo Gigante S. A. B. de C. V's salary, the management and board of directors tenure and is there insider trading?


CEO

Federico de Quirós Gonzalez (59yo)

1.9yrs

Tenure

0

Mr. Federico Bernaldo de Quirós Gonzalez serves as Chief Executive officer at Grupo Gigante, S. A. B. de C. V. since 8 January 2018. 


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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ángel Losada Moreno (64yo)

    Chairman & Executive President

    • Tenure: 0yrs
  • Sergio Montero Querejeta

    Chief Corporate Officer

    • Tenure: 0yrs
  • Ángel Alverde Losada

    Chief Executive Officer of Office Depot - México

    • Tenure: 0yrs
  • Hiram Poo

    Chief Corporate Audit Officer

    • Tenure: 0yrs
  • Arturo Cabrera Valladares

    Chief Corporate Financial Officer

    • Tenure: 0yrs
  • Jaime Alverde Losada

    Chief Operations Officer

    • Tenure: 0yrs
  • José Manuel Fernández Fernández

    Chief Legal Officer

    • Tenure: 0yrs
  • Jorge Hernández Talamantes

    Investor Relations

    • Tenure: 0yrs
  • Federico de Quirós Gonzalez (59yo)

    Chief Executive Officer

    • Tenure: 1.9yrs
  • Rodrigo Navarro (43yo)

    Director of Administration

    • Tenure: 0yrs

Board Members

  • Ángel Losada Moreno (64yo)

    Chairman & Executive President

    • Tenure: 0yrs
  • Gilberto Pérezalonso Cifuentes (76yo)

    Independent Director

    • Tenure: 0yrs
  • Javier Molinar Horcasitas (59yo)

    Independent Director

    • Tenure: 0yrs
  • Braulio Antonio Arsuaga Losada

    Director

    • Tenure: 0yrs
  • Sergio Montero Querejeta

    Chief Corporate Officer

    • Tenure: 0yrs
  • Gonzalo Barrutieta Losada (53yo)

    Director

    • Tenure: 0yrs
  • Roberto Salvo Horvilleur

    Independent Director

    • Tenure: 0yrs
  • Juan Carlos Mateos Durán de Hue

    Independent Director

    • Tenure: 0yrs
  • Luis Rebollar Corona

    Independent Director

    • Tenure: 0yrs
  • Luis Santana Castillo

    Independent Director

    • Tenure: 0yrs

Company Information

Grupo Gigante, S. A. B. de C. V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grupo Gigante, S. A. B. de C. V.
  • Ticker: GPGN.F
  • Exchange: OTCPK
  • Founded: 1962
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: Mex$36.289b
  • Listing Market Cap: Mex$1.893b
  • Shares outstanding: 994.23m
  • Website: https://www.grupogigante.com.mx

Number of Employees


Location

  • Grupo Gigante, S. A. B. de C. V.
  • Av. Ejército Nacional No. 769
  • 12th Floor
  • Mexico City
  • Distrito Federal
  • 11520
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GIGANTE *BMV (Bolsa Mexicana de Valores)YesVariable Unique Series SharesMXMXNApr 2000
GPGN.FOTCPK (Pink Sheets LLC)ORD CL B NEWUSUSDJun 2003

Biography

Grupo Gigante, S. A. B. de C. V., together with its subsidiaries, operates self-service stores that sell office supplies, electronic goods, and housewares in Mexico, Central America, the Caribbean, Colombi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:46
End of Day Share Price2019/09/25 00:00
Earnings2019/09/30
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.