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ASAI - Sell Sendas Distribuidora: Food Deflation And Leverage Don't Justify The Valuation
Sendas Distribuidora S.A. ADS
2024-03-12 13:12:43 ET
Summary
Sendas Distribuidora, a Cash & Carry retailer, faces sustainability risks in a market demanding adaptability and flexibility.
With a -0.52% annual food deflation, Sendas struggles as consumers prioritize debt repayment over increased spending.
With a P/E multiple of 21x, significantly surpassing competitors, Sendas' valuation appears unsustainably high, suggesting a sell recommendation.
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