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Sendas Distribuidora Sa (ASAIY)
:ASAIY
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Sendas Distribuidora
(OTC:ASAIY)
68Neutral
Positive Factors
Earnings Potential
A combination of lower rates and initial deleveraging has the capability of nearly doubling EPS.
Financial Performance
Gross profit rose 10.7%, helped by better supplier terms and by new services rolled out to 50% of stores.
Negative Factors
Debt and Liabilities
ASAI has received notification of potential liability for as much as R$12.9bn in tax and labor contingencies.
Sendas Distribuidora (ASAIY) vs. S&P 500 (SPY)
Market Cap
$1.79B
Dividend Yield0.91%
Average Volume (3M)6.00K
Price to Earnings (P/E)12.5
Beta (1Y)0.38
Revenue Growth10.41%
EPS Growth-22.99%
CountryUS
Employees77,370
SectorConsumer Defensive
Sector Strength75
IndustryRetailers - Staples
Share Statistics
EPS (TTM)0.51
Shares Outstanding270,449,040
10 Day Avg. Volume0
30 Day Avg. Volume6,000
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)0.70
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.50Price Target Upside9.81% Upside
Rating ConsensusHold
Number of Analyst Covering1
Sendas Distribuidora Business Overview & Revenue Model
Company DescriptionSendas Distribuidora S.A. (ASAI), commonly known as Assaí Atacadista, is a leading wholesale retailer in Brazil. The company operates in the cash and carry sector, providing a wide range of products including groceries, electronics, household items, and more, primarily to small and medium-sized retailers, as well as individual consumers seeking bulk purchases. Assaí Atacadista is recognized for offering competitive prices and a robust selection of high-quality products, making it a prominent player in the Brazilian wholesale market.
How the Company Makes MoneySendas Distribuidora (ASAI) generates revenue primarily through its cash and carry wholesale stores, known as Assaí Atacadista. The company makes money by purchasing goods in large quantities directly from manufacturers and suppliers, allowing it to benefit from economies of scale and negotiate favorable pricing. These goods are then sold to customers at competitive prices, with a focus on both individual consumers and business customers who buy in bulk. The company's revenue streams are largely driven by sales within its extensive network of stores across Brazil. Additionally, Assaí Atacadista may leverage partnerships with suppliers and manufacturers to offer exclusive products or promotions, further enhancing its revenue potential. The company's strategic location of stores and focus on cost efficiency also contribute to its profitability.
Sendas Distribuidora Financial Statement Overview
Summary
Sendas Distribuidora demonstrates robust revenue growth and effective cost management. However, the high leverage indicated by a debt-to-equity ratio of 5.20 poses a risk, despite strong cash flows. Improvement in net profitability and debt management are crucial for enhanced financial stability.Income Statement
Sendas Distribuidora demonstrates solid revenue growth with a 8.39% increase in TTM revenue compared to the previous year. The gross profit margin increased to 17.52%, indicating efficient cost management. However, the net profit margin decreased to 0.88%, reflecting challenges in controlling operational costs or higher interest expenses.75
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high at 5.20, highlighting significant leverage. However, there is a gradual improvement in equity, and the return on equity is 12.74%, indicating effective use of shareholder funds despite the leverage.65
Positive
Cash Flow
Operating cash flow remains strong with a ratio of 6.05 compared to net income, reflecting robust cash generation. Free cash flow decreased by 31.63% on a TTM basis, suggesting increased capital expenditures or reduced cash from operations.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 72.08B | 66.50B | 54.52B | 41.90B | 36.04B | 30.23B | Gross Profit |
| 12.63B | 9.43B | 8.96B | 7.14B | 5.91B | 5.34B | EBIT |
| 3.66B | 3.19B | 2.85B | 2.58B | 2.07B | 1.73B | EBITDA |
| 5.33B | 4.63B | 3.69B | 3.21B | 3.71B | 2.41B | Net Income Common Stockholders |
| 636.00M | 710.00M | 1.22B | 1.61B | 1.40B | 1.05B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.46B | 5.51B | 5.84B | 2.55B | 3.53B | 5.03B | Total Assets |
| 46.60B | 43.18B | 40.62B | 22.85B | 18.82B | 35.91B | Total Debt |
| 24.37B | 24.37B | 20.95B | 12.08B | 10.61B | 12.57B | Net Debt |
| 18.91B | 18.91B | 15.11B | 9.53B | 7.08B | 7.55B | Total Liabilities |
| 41.97B | 38.55B | 36.72B | 20.09B | 17.47B | 26.20B | Stockholders Equity |
| 4.63B | 4.63B | 3.90B | 2.77B | 1.35B | 7.10B |
| Cash Flow | Free Cash Flow | ||||
| 1.83B | 2.68B | 984.00M | 187.00M | 1.85B | 1.75B | Operating Cash Flow |
| 3.85B | 5.96B | 5.14B | 3.27B | 3.50B | 3.16B | Investing Cash Flow |
| -1.84B | -3.06B | -3.79B | -3.28B | -4.79B | -4.37B | Financing Cash Flow |
| -2.39B | -3.29B | 1.94B | -978.00M | -1.18B | 4.71B |
Sendas Distribuidora Technical Analysis
Positive
6.83
Price Trends
6.13
Positive
5.69
Positive
6.99
Positive
Market Momentum
0.25
Negative
62.20
Neutral
52.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAIY, the sentiment is Positive. The current price of 6.83 is above the 20-day moving average (MA) of 6.48, above the 50-day MA of 6.13, and below the 200-day MA of 6.99, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASAIY.
Sendas Distribuidora Risk Analysis
Sendas Distribuidora disclosed 61 risk factors in its most recent earnings report. Sendas Distribuidora reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sendas Distribuidora Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $12.53B | 12.15 | 35.20% | 2.32% | 0.97% | -24.43% | |
73 Outperform | $48.98B | 18.44 | 26.64% | 1.85% | -1.94% | 24.13% | |
73 Outperform | $703.80B | 36.50 | 22.23% | 0.97% | 5.07% | 25.86% | |
71 Outperform | $419.63B | 55.21 | 32.89% | 0.49% | 6.13% | 12.14% | |
68 Neutral | $1.79B | 12.47 | 15.25% | 0.91% | 10.41% | -22.99% | |
63 Neutral | $20.94B | 14.39 | -10.05% | 3.13% | 1.25% | 3.11% | |
54 Neutral | $47.22B | 11.70 | 29.12% | 4.27% | -0.79% | -0.90% |
* Consumer Defensive Sector Average
Performance Comparison
ASAIY
Sendas Distribuidora
6.99
-6.79
-49.27%
COST
Costco
954.40
246.97
34.91%
KR
Kroger Company
68.14
11.56
20.43%
TGT
Target
104.43
-66.54
-38.92%
WMT
Walmart
88.83
30.33
51.85%
ACI
Albertsons Companies
22.39
1.84
8.95%
Sendas Distribuidora Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 8.76% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment due to significant achievements in store expansion, revenue growth, EBITDA improvement, and effective debt management. However, challenges such as weaker same-store sales and regional sales performance, as well as issues with B2B payment terms, present areas for improvement.Highlights
Store Openings and Expansion
Assaí Atacadista opened 15 new stores in 2024, reaching over 1 million square meters of sales area with a total of 302 stores in operation across the country.
Revenue Growth
The company recorded BRL 22.1 million in gross sales for Q4, with an annual total of BRL 80 million, marking an increase of BRL 8 billion compared to 2023.
EBITDA Improvement
The EBITDA margin improved by 30 bps compared to Q4 2023, reaching 8.1% post-IFRS and 6% pre-IFRS, showing a return to pre-conversion project levels.
Net Debt Reduction
Assaí reduced its net debt-to-EBITDA ratio to 3.04, below the guidance of 3.2, indicating effective debt management and cash generation.
Sustainability Initiatives
The company reduced Scope 1 and 2 emissions by 10% and implemented a food donation program that diverted over 1,900 tons of waste from landfills.
Lowlights
Below Expectations in Same-Store Sales
Same-store sales were below expectations, partially due to shifts in packaging sizes and consumer purchasing power pressures.
Challenges in the Northeast Region
Sales in the Northeast were weaker than expected, contributing to a challenging December performance.
Impact of B2B Payment Terms
The lack of alignment with market payment term trends for B2B customers led to a loss in volume sales.
Company Guidance
In the fourth quarter of 2024, Assaí Atacadista reported a gross sales volume of BRL 22.1 million, marking an increase of BRL 1.8 billion from the previous year, and bringing the total annual gross sales to BRL 80 million. The company achieved an EBITDA margin of 8.1% post-IFRS adjustments, reflecting a year-over-year increase of 30 basis points. Despite challenges like fluctuating currency rates and interest rates, Assaí's net income after tax saw an impressive growth of nearly 83%. The company successfully opened 15 new stores in 2024, reaching over 1 million square meters of sales area across 302 stores nationwide. Assaí's strategic focus on reducing leverage resulted in a net debt-to-EBITDA ratio of 3.04, surpassing the guidance of 3.2. The company anticipates further reducing this ratio to 2.6 by the end of 2025, with plans to open 10 new stores in 2025 while maintaining a CapEx of BRL 1.0 to 1.2 billion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.