AHODF - Ahold Delhaize: Undervalued As A Defensive Pick Buy Rating
2024-07-04 01:24:59 ET
Summary
- Ahold Delhaize is #5 largest grocery business in the USA, but may be flying under the radar of US-based investors as a European holding.
- Increasing scale of the online grocery and private labels are expected to improve margins long-term.
- A spinoff of Bol.com, the largest e-commerce platform in Benelux, valued at over $6b, can unlock significant value for shareholders.
- The company's recent share price underperformance suggests it may be undervalued, providing a buying opportunity.
Ahold Delhaize (ADRNY) (AHODF) is a European supermarket business with Dutch and Belgian roots, but is also a significant player in the USA. The company might fly a bit under the radar for US-based investors, but it is actually the fifth largest grocery business in the USA by revenue. The company is approaching almost $100b in total revenue, and it is a silent compounder that is paying a 4% dividend and consistently buying back its own shares.
Compared to Walmart, Kroger, and Costco, shares of Ahold Delhaize look considerably undervalued. It is a solid supermarket business that makes 70% of profits from the USA, which could provide stability and dividend income in a defensive portfolio. Supermarkets provide essential products and are stable in recessionary times; taking priority for consumer with stretched budgets....
Ahold Delhaize: Undervalued As A Defensive Pick, Buy Rating