Investors with an interest in Retail - Supermarkets stocks have likely encountered both Carrefour SA (CRRFY) and Wal-Mart de Mexico SAB de CV (WMMVY). But which of these two stocks offers value investors a better bang for their buck right now?
Carrefour faces mounting headwinds from weak sales growth, margin pressure and macro risks. Q3 results were dismal, with effectively flat growth in reported currency. With dividend sustainability in doubt and too many uncertainties clouding the investment case, CRRFY looks unattractive.
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Carrefour SA (CRRFY) and Walmart (WMT). But which of these two companies is the best option for those looking for undervalued stocks?
Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF)has bulked up its presence in France after snapping up a large portfolio of Carrefour supermarkets for €123 million, marking its biggest continental move to date and completing the redeployment of cash raised earlier this year. The company said it had acquired 20 supermarkets from Carrefour through a direct sale-and-leaseback agreement.
Carrefour (CRERF) is leveraging cost-cutting and private-label expansion to drive market share while doing a good job of sustaining profits. The acquisition of Cora & Match strengthens its French presence, with expected annual synergies of €130 million and more profits once lapping integration costs. The relatively new convenience store initiative has been effective in supporting LFL growth in France and the rest of Europe.
Carrefour is transforming into a higher-margin, omnichannel platform, leveraging private-label growth, and cost savings to boost profitability. The market undervalues Carrefour, ignoring its retail media potential, private-label expansion, and successful cost-saving programs, despite trading at a deep discount and offering a 9% yield. Risks include fierce price competition in Europe and FX volatility in Latin America, but operational improvements and new revenue streams support a positive outlook.
Carrefour has seen persistently weak growth in France and Europe, which account for 75% of all sales. Performance in Latin America has been more robust, but currency losses have muted reported results in Euros. Even so, Carrefour manages to deliver stronger sales in Q1 2025, driven largely by recent M&A. A low payout ratio should allow Carrefour to pursue external growth in the future.
Investors looking for stocks in the Retail - Supermarkets sector might want to consider either Carrefour SA (CRRFY) or Walmart (WMT). But which of these two companies is the best option for those looking for undervalued stocks?
Here is how Carrefour SA (CRRFY) and Itochu Corp. (ITOCY) have performed compared to their sector so far this year.
The grocer sold a 7% shareholding in Carmila for $194.5 million as part of a strategic review of its portfolio.
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Carrefour SA (CRRFY) and Walmart (WMT). But which of these two stocks is more attractive to value investors?
Investors interested in stocks from the Retail - Supermarkets sector have probably already heard of Carrefour SA (CRRFY) and Walmart (WMT). But which of these two stocks presents investors with the better value opportunity right now?