JRONF - Jerónimo Martins Now Has An Attractive Upside At Around Euro19/Share

2024-03-15 04:08:57 ET

Summary

• Jeronimo Martins, a Portuguese grocer, has underperformed since October but remains an investable business.
• The company recorded a 20.6% YoY sales increase and a 17% increase in EBITDA, despite an economic slowdown and price-sensitive customers.
• Jeronimo Martins has compelling upside potential with a double-digit RoR and a lower valuation compared to other grocers.

Dear readers/followers,

I own a small stake in the Portuguese Grocer Jerónimo Martins ( JRONY ) ( JRONF ). I've been updating on this particular company a few times over the past year, but the company has nonetheless underperformed since my latest article which I published all the way back in October, seeing slight negative RoR during a time when the market is up double digits. Not the best performance.

Bothersome? A bit. Worrying or downright terrifying? Absolutely not. All of my investments are made with certain timeframes and safety parameters in mind, and out of the companies I invest in, none of them are as fundamentally safe as two categories - grocers and utilities. ...

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