OTCPK:GRPB.F

Stock Analysis Report

Executive Summary

Grupo Lala, S.A.B. de C.V. produces, markets, distributes, and sells dairy products and derivatives of dairy products in Mexico.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Grupo Lala. de's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

GRPB.F

-0.4%

US Food

1.0%

US Market


1 Year Return

5.9%

GRPB.F

3.4%

US Food

6.7%

US Market

Return vs Industry: GRPB.F exceeded the US Food industry which returned 3.4% over the past year.

Return vs Market: GRPB.F matched the US Market which returned 6.7% over the past year.


Share holder returns

GRPB.FIndustryMarket
7 Day0%-0.4%1.0%
30 Day3.1%-1.6%-1.8%
90 Dayn/a0.8%-1.8%
1 Year5.9%5.9%6.5%3.4%9.1%6.7%
3 Year-41.6%-41.6%-1.4%-10.1%46.1%36.6%
5 Yearn/a47.5%29.9%66.9%48.6%

Price Volatility Vs. Market

How volatile is Grupo Lala. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grupo Lala. de undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: GRPB.F ($1.17) is trading below our estimate of fair value ($2.23)

Significantly Undervalued: GRPB.F is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: GRPB.F is good value based on its PE Ratio (24.1x) compared to the Food industry average (25.4x).

PE vs Market: GRPB.F is poor value based on its PE Ratio (24.1x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GRPB.F is poor value based on its PEG Ratio (1.1x)


Price Based on Value of Assets

PB vs Industry: GRPB.F is overvalued based on its PB Ratio (2.1x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Grupo Lala. de expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GRPB.F's forecast earnings growth (21.5% per year) is above the savings rate (2.7%).

Earnings vs Market: GRPB.F's earnings (21.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: GRPB.F's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GRPB.F's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GRPB.F's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Grupo Lala. de performed over the past 5 years?

-10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GRPB.F's earnings have declined by -10.5% per year over the past 5 years.

Accelerating Growth: GRPB.F's earnings growth over the past year (13%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: GRPB.F earnings growth over the past year (13%) exceeded the Food industry -22.7%.


Return on Equity

High ROE: GRPB.F's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: GRPB.F's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: GRPB.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Grupo Lala. de's financial position?


Financial Position Analysis

Short Term Liabilities: GRPB.F's short term assets (MX$19.9B) do not cover its short term liabilities (MX$20.5B)

Long Term Liabilities: GRPB.F's short term assets (19.9B) do not cover its long term liabilities (32.4B)


Debt to Equity History and Analysis

Debt Level: GRPB.F's debt to equity ratio (113.1%) is considered high

Reducing Debt: GRPB.F had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: GRPB.F's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: GRPB.F's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: GRPB.F's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Grupo Lala. de's current dividend yield, its reliability and sustainability?

2.89%

Expected Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years2.9%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GRPB.F's dividend (2.91%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GRPB.F's dividend (2.91%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: GRPB.F has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GRPB.F has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.1%), GRPB.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRPB.F's dividends in 3 years are forecast to be well covered by earnings (44.6% payout ratio).


Next Steps

Management

What is the CEO of Grupo Lala. de's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Mauricio Arboleda 0

1.1yrs

Tenure

0

Mr. Mauricio Leyva Arboleda has been Chief Executive Officer of Grupo Lala, S.A.B. de C.V. since September 1, 2018. Mr. Arboleda was President of the Middle Americas Zone and CEO of Grupo Modelo Mexico at  ...


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: GRPB.F's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

6.8yrs

Average Tenure

54.5yo

Average Age

Experienced Board: GRPB.F's board of directors are considered experienced (6.8 years average tenure).


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


Management Team

  • Antonio Hernández Astorga

    Chief Operating Officer

    • Tenure: 35.8yrs
  • Alejandro Zenteno Sánchez

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Pablo Córdoba Nájera

    Chief Marketing Officer

    • Tenure: 0yrs
  • Miguel Ángel Bojorges

    Chief Growth Officer Mexico & Business Unit VP Dairy

    • Tenure: 0.2yrs
  • Gustavo Redondo Rodríguez

    Chief Supply Chain Officer

    • Tenure: 0yrs
  • Sergio Maldonado Romero

    Director of Quality & Compliance

    • Tenure: 3.3yrs
  • Alberto A. Arellano Garcia

    Chief Financial Officer

    • Tenure: 3.2yrs
  • Mauricio Arboleda

    Chief Executive Officer

    • Tenure: 1.1yrs
  • David González Peláez

    Head of Investor Relations

    • Tenure: 1.1yrs
  • Andrés Gutiérrez Fernández

    Vice President of Legal & Corporate Affairs

    • Tenure: 0.4yrs

Board Members

  • Rafael Robles Miaja (54yo)

    Independent Director

    • Tenure: 6.8yrs
  • Pablo Roberto González Guajardo (52yo)

    Independent Director

    • Tenure: 6.8yrs
  • Eduardo Tricio Haro (56yo)

    Chairman

    • Tenure: 19.8yrs
  • Juan Pablo del Valle Perochena (47yo)

    Independent Director

    • Tenure: 6.8yrs
  • Juan Carlos Larrinaga Sosa (55yo)

    Director

    • Tenure: 4.3yrs
  • Marcelo Fulgencio Gómez Ganem (65yo)

    Director

    • Tenure: 44.8yrs
  • José Manuel Tricio Cerro (46yo)

    Director

    • Tenure: 22.8yrs
  • Arquímedes Adriano Celis Ordaz (63yo)

    Lead Director

    • Tenure: 0yrs
  • Blanca Avelina Treviño de Vega

    Independent Director

    • Tenure: 4.3yrs

Company Information

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


Key Information

  • Name: Grupo Lala, S.A.B. de C.V.
  • Ticker: GRPB.F
  • Exchange: OTCPK
  • Founded: 1949
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: Mex$52.292b
  • Listing Market Cap: Mex$2.708b
  • Shares outstanding: 2.48b
  • Website: https://www.lala.com.mx

Number of Employees


Location

  • Grupo Lala, S.A.B. de C.V.
  • Avenida Javier Barros Sierra 495
  • 6th Floor
  • Mexico City
  • Mexico State
  • 1219
  • Mexico

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LALA BBMV (Bolsa Mexicana de Valores)YesSeries B Common SharesMXMXNOct 2013
L8LDB (Deutsche Boerse AG)YesSeries B Common SharesDEEUROct 2013
GRPB.FOTCPK (Pink Sheets LLC)YesSeries B Common SharesUSUSDOct 2013

Biography

Grupo Lala, S.A.B. de C.V. produces, markets, distributes, and sells dairy products and derivatives of dairy products in Mexico. The company offers products, such as milk, yogurts, dairy products, cold cut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:17
End of Day Share Price2019/09/20 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.

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