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?
Carrefour SA is a potential bargain, trading at a below-market valuation with meaningful growth opportunities in 2025 and 2026. The company operates over 14,000 retail locations globally, including hypermarkets, grocery, and convenience stores, and is expanding its "cash and carry" segment in Latin America. Carrefour SA has a surprisingly high dividend yield of almost 8% and a recent track record of returning cash to shareholders in a variety of ways.
Carrefour is an attractive investment opportunity, particularly within the French and European markets. My rating is based on Carrefour's strong market position and potential for growth. Despite previous recommendations, Carrefour remains undervalued and overlooked by many investors, and as of the 4Q24/FY results, it remains this way. I believe Carrefour represents one of the most interesting potentials on the market today when it comes to consumer defensive companies, and for that reason, I am at a 'BUY.'
French supermarket group Carrefour announced on Tuesday the acquisition of French convenience retailer Magne, which owns 101 stores in the south-east of France.
Carrefour shares fell sharply on Thursday after the French retailer sounded a note of caution on consumer demand and said it expects only "slight" growth in free cash flow and earnings before interest and tax in 2025.
Carrefour is undervalued with a P/E of 7-8x, offering a conservative upside and a 6% yield, making it a compelling buy. Despite risks like higher costs and a fragmented market, Carrefour's European consolidation and omnichannel efforts are underestimated by the market. Carrefour's 2024 targets and 2026E plan show growth in EBITDA, recurring income, and free cash flow, with significant share buybacks enhancing value.
Carrefour's shares have dropped 17% in the past year, presenting a buying opportunity with a free cash flow yield of 32%. The company has a strong balance sheet, with manageable debt levels and an investment-grade credit rating from S&P and Fitch. Future growth plans include expanding private brands, e-commerce, and cost reductions, though execution remains a key risk.
Europe's largest food retailer Carrefour said on Tuesday it regretted that a pledge to keep South American meat off its shelves in France was perceived as "putting in doubt its partnership with Brazilian agriculture".