SENDAS DISTRIBUIDORA SA (ASAI)
US81689T1043 - ADR
We assign a fundamental rating of 4 out of 10 to ASAI. ASAI was compared to 43 industry peers in the Consumer Staples Distribution & Retail industry. While ASAI is still in line with the averages on profitability rating, there are concerns on its financial health. ASAI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ASAI was profitable.
In the past year ASAI had a positive cash flow from operations.
ASAI had positive earnings in each of the past 5 years.
In the past 5 years ASAI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.45%, ASAI perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
ASAI has a Return On Equity of 12.73%. This is in the better half of the industry: ASAI outperforms 64.29% of its industry peers.
The Return On Invested Capital of ASAI (12.72%) is better than 85.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASAI is above the industry average of 8.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 12.73% | ||
| ROIC | 12.72% |
ROA(3y)3.9%
ROA(5y)4.41%
ROE(3y)34.95%
ROE(5y)43.75%
ROIC(3y)12.81%
ROIC(5y)13.33%
1.3 Margins
ASAI has a Profit Margin (0.88%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ASAI has declined.
Looking at the Operating Margin, with a value of 5.03%, ASAI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of ASAI has declined.
The Gross Margin of ASAI (16.48%) is worse than 76.19% of its industry peers.
ASAI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.03% | ||
| PM (TTM) | 0.88% | ||
| GM | 16.48% |
OM growth 3Y-9.55%
OM growth 5Y-7.56%
PM growth 3Y-34.95%
PM growth 5Y-25.57%
GM growth 3Y-0.28%
GM growth 5Y-2.14%
2. Health
2.1 Basic Checks
ASAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ASAI has about the same amout of shares outstanding than it did 1 year ago.
ASAI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ASAI is higher compared to a year ago.
2.2 Solvency
ASAI has an Altman-Z score of 2.12. This is not the best score and indicates that ASAI is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.12, ASAI is doing worse than 69.05% of the companies in the same industry.
ASAI has a debt to FCF ratio of 10.95. This is a negative value and a sign of low solvency as ASAI would need 10.95 years to pay back of all of its debts.
ASAI has a worse Debt to FCF ratio (10.95) than 61.90% of its industry peers.
A Debt/Equity ratio of 4.15 is on the high side and indicates that ASAI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.15, ASAI is doing worse than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | 10.95 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.49
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.86 indicates that ASAI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.86, ASAI is doing worse than 73.81% of the companies in the same industry.
ASAI has a Quick Ratio of 0.86. This is a bad value and indicates that ASAI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ASAI (0.43) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for ASAI have decreased strongly by -21.32% in the last year.
ASAI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.43% yearly.
The Revenue has grown by 12.56% in the past year. This is quite good.
The Revenue has been growing by 23.64% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-21.32%
EPS 3Y-20.41%
EPS 5Y-33.43%
EPS Q2Q%-11.96%
Revenue 1Y (TTM)12.56%
Revenue growth 3Y22.65%
Revenue growth 5Y23.64%
Sales Q2Q%9.18%
3.2 Future
Based on estimates for the next years, ASAI will show a very strong growth in Earnings Per Share. The EPS will grow by 32.08% on average per year.
ASAI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.76% yearly.
EPS Next Y0.84%
EPS Next 2Y20.79%
EPS Next 3Y27.18%
EPS Next 5Y32.08%
Revenue Next Year11.66%
Revenue Next 2Y10.45%
Revenue Next 3Y9.84%
Revenue Next 5Y12.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.49 indicates a correct valuation of ASAI.
Compared to the rest of the industry, the Price/Earnings ratio of ASAI indicates a somewhat cheap valuation: ASAI is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.64. ASAI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.32, which indicates a very decent valuation of ASAI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASAI indicates a rather cheap valuation: ASAI is cheaper than 88.10% of the companies listed in the same industry.
ASAI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
78.57% of the companies in the same industry are more expensive than ASAI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ASAI is valued cheaper than 97.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ASAI's earnings are expected to grow with 27.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.06
PEG (5Y)N/A
EPS Next 2Y20.79%
EPS Next 3Y27.18%
5. Dividend
5.1 Amount
ASAI has a yearly dividend return of 0.55%, which is pretty low.
In the last 3 months the price of ASAI has falen by -37.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.53, ASAI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, ASAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
ASAI has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y20.79%
EPS Next 3Y27.18%
SENDAS DISTRIBUIDORA SA
NYSE:ASAI (11/29/2024, 5:04:01 PM)
After market: 5.47 +0.21 (+3.99%)5.26
-1.02 (-16.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.49 | ||
| Fwd PE | 8.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 12.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.03% | ||
| PM (TTM) | 0.88% | ||
| GM | 16.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-21.32%
EPS 3Y-20.41%
EPS 5Y
EPS Q2Q%
EPS Next Y0.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.56%
Revenue growth 3Y22.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y