CRRFY - Carrefour: Diminishing Markets And Declining Stock

2024-02-19 21:41:03 ET

Summary

• Carrefour's recent financial growth seems promising, but its stock has lost significant value over the last ten years.
• The company has struggled to adapt to digital trends and changing consumer demands, leading to costly failures in international markets.
• While Carrefour aims for an omnichannel business model and increased online sales, its heavy reliance on mature markets and lack of major growth drivers make it a questionable investment choice.

When you first look at Carrefour SA ( OTCPK:CRRFY ), it might seem like an attractive investment. The company has been growing its financials since FY2021, showing consistent increases in its top and bottom lines. It has a strong market position in France, Brazil and Spain. Furthermore, with an increase in levered free cash flow, share buybacks, and a FWD price-to-earnings ratio of 9.32, Carrefour seems to be undervalued compared to its supermarket and retail industry peers. However, the stock has seen little movement over the last five years and has lost 54.38% in value over the last ten years....

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