2024-03-30 08:43:22 ET
Summary
- European grocery retailers like Ahold Delhaize and Carrefour have underperformed US peers such as Kroger in the past year.
- The underperformance has resulted in higher free cash flow yields at Ahold Delhaize and Carrefour.
- The United States accounted for 61.5% of Ahold Delhaize 2023 sales and 69.5% of 2023 underlying operating income.
- Ahold Delhaize saw its underlying operating margin drop 0.2% in 2023 to 4.1% as growth shifted to the lower-margin European segment.
- Sustaining a robust operating margin is crucial for Ahold Delhaize to bridge the valuation gap with US peers.
Introduction
I previously covered Ahold Delhaize ( OTCQX:ADRNY ) back in late 2021 where I argued that sustaining the robust operating margin would be key to bridging the valuation gap with US peers, with covered call selling an excellent way to position in the shares....
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For further details see:
Ahold Delhaize: A High Single Digit Free Cash Flow Yield From A Defensive Stock (Rating Upgrade)