JRONY - Almacenes Exito: Colombian Grocer At 5x EV/EBITDA Sharp Discount To Book Value
2024-04-07 21:25:38 ET
Summary
- Exito has become a busted special situation following a recently concluded tender offer.
- The recent drop has pushed shares down to 5x EV/EBITDA and a large discount to book value.
- I believe the firm's new owners will be far better stewards of the business and that the company is dramatically underearning today.
- Single-digit normalized P/E, potential for a huge dividend yield, and small float all imply dramatic upside when sentiment improves.
Almacenes Éxito ( EXTO ) (Exito means success in Spanish) is a large supermarket chain in Colombia, and it also has stores in Uruguay. In addition to operating more than 600 stores, Exito has a substantial real estate business; it often owns the land under its stores and will develop and retain ownership in malls and shopping centers that use its stores as an anchor tenant....
Almacenes Exito: Colombian Grocer At 5x EV/EBITDA, Sharp Discount To Book Value