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What if Jerónimo Martins bought Carrefour? AlphaValue’s arguments
It’s true that the retail sector isn’t having a great time on the stock market, but Paris-based research firm AlphaValue points out that Carrefour’s share price “has massively underperformed the sector“in Europe. Over ten years, the sector has grown by an average of 91%, while Carrefour shares have lost 16% and those of the best performer, Portugal’s Jerónimo Martins, have gained 221%!
The former has a market capitalization of 10 billion euros and the latter close to 12 billion, but their valuations have nothing in common: the former’s P/E is around 7 times expected earnings in 2025, compared with 16 times for the latter. Very early on, Jerónimo Martins took a gamble on emerging markets by acquiring the Polish leader Biedronka (70% of its sales today), and for the past 17 years, its growth has outstripped that of the French company. According to BloombergCarrefour wants to increase its value and is considering selling it.
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For AlphaValue, the takeover of Carrefour by Jerónimo Martins would be, “from a financial point of view, a no-brainer“…