OTCPK:ONZB.F

Stock Analysis Report

Organización Soriana S. A. B. de C. V

Executive Summary

Organización Soriana, S. A. B. de C. V., together with its subsidiaries, operates various formats of supermarket stores in Mexico.

Rewards

Trading at 72.6% below its fair value

Earnings are forecast to grow 16.17% per year

Risk Analysis

No risks detected for ONZB.F from our risk checks.


Snowflake Analysis

Very undervalued with adequate balance sheet.


Similar Companies

Share Price & News

How has Organización Soriana 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: ONZB.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

ONZB.F

0.6%

US Consumer Retailing

-1.1%

US Market


1 Year Return

n/a

ONZB.F

17.5%

US Consumer Retailing

17.9%

US Market

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

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


Shareholder returns

ONZB.FIndustryMarket
7 Day0%0.6%-1.1%
30 Day0%2.5%1.4%
90 Day-1.6%0.4%6.9%
1 Yearn/a19.8%17.5%20.3%17.9%
3 Yearn/a47.5%37.9%47.8%38.3%
5 Year-65.7%-65.7%48.4%33.0%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONZB.F ($1.18) is trading below our estimate of fair value ($4.29)

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


Price To Earnings Ratio

PE vs Industry: ONZB.F is good value based on its PE Ratio (13.2x) compared to the Consumer Retailing industry average (22.9x).

PE vs Market: ONZB.F is good value based on its PE Ratio (13.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ONZB.F is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: ONZB.F is good value based on its PB Ratio (0.7x) compared to the US Consumer Retailing industry average (2.4x).


Next Steps

Future Growth

How is Organización Soriana S. A. B. de C. V forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONZB.F's forecast earnings growth (16.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ONZB.F's earnings (16.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: ONZB.F's revenue (4.9% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ONZB.F's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONZB.F's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

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

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONZB.F has high quality earnings.

Growing Profit Margin: ONZB.F's current net profit margins (2.3%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: ONZB.F's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: ONZB.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: ONZB.F had negative earnings growth (-15.6%) over the past year, making it difficult to compare to the Consumer Retailing industry average (-24.1%).


Return on Equity

High ROE: ONZB.F's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Organización Soriana S. A. B. de C. V's financial position?


Financial Position Analysis

Short Term Liabilities: ONZB.F's short term assets (MX$48.6B) exceed its short term liabilities (MX$44.0B).

Long Term Liabilities: ONZB.F's short term assets (MX$48.6B) exceed its long term liabilities (MX$40.7B).


Debt to Equity History and Analysis

Debt Level: ONZB.F's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: ONZB.F's debt to equity ratio has increased from 5.9% to 39.9% over the past 5 years.

Debt Coverage: ONZB.F's debt is not well covered by operating cash flow (15.9%).

Interest Coverage: ONZB.F's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: ONZB.F's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

0.36%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0.4%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate ONZB.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 ONZB.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: ONZB.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 ONZB.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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


CEO

Ricardo Martin Bringas (59yo)

0

Mr. Ricardo Martín Bringas serves as the Chief Executive Officer of Organizacion Soriana SAB de CV. Mr. Martín Bringas serves as General Manager of Organización Soriana, S.A.B. deC.V. He has held executive ...


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.


Top Shareholders

Company Information

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


Key Information

  • Name: Organización Soriana, S. A. B. de C. V.
  • Ticker: ONZB.F
  • Exchange: OTCPK
  • Founded: 1968
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: Mex$46.152b
  • Listing Market Cap: Mex$2.349b
  • Shares outstanding: 1.80b
  • Website: https://www.soriana.com

Number of Employees


Location

  • Organización Soriana, S. A. B. de C. V.
  • Alejandro de Rodas. 3102-A
  • Col. Cumbres 8° Sector
  • Monterrey
  • Nuevo Leon
  • 64610
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONZB.FOTCPK (Pink Sheets LLC)YesSeries B Common SharesUSUSDNov 1994
SORIANA BBMV (Bolsa Mexicana de Valores)YesSeries B Common SharesMXMXNNov 1994
OSOBDB (Deutsche Boerse AG)YesSeries B Common SharesDEEURNov 1994

Biography

Organización Soriana, S. A. B. de C. V., together with its subsidiaries, operates various formats of supermarket stores in Mexico. The company’s supermarket stores offer various food, clothing, general merchandise, health products, and basic household services, as well as grocery products and perishable goods under the retail, medium wholesale, and wholesale schemes. As of December 31, 2017, it operated 824 stores, which included 270 Hyper, 142 Markets, 129 Super, 103 Express, 35 City Club, 69 Mega Comercial Mexicana, 40 Comercial Mexicana, 33 Bodega Comercial Mexicana, and 3 Alprecio formats. The company also operates 116 convenience stores under the Super City name by own stores and franchises; and Soriana.com, an online store. In addition, it leases commercial premises adjacent to each store as part of the commercial area; and conducts commercial developments. The company was founded in 1968 and is headquartered in Monterrey, Mexico. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/29 23:55
End of Day Share Price2019/07/02 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.