We don't expect a material change to our EUR 55 fair value estimate for no-moat Casino after reviewing the firm’s fourth-quarter earnings results. We see shares as slightly undervalued, but they still trade in 3-star territory. Given Casino’s relatively high debt load and the macroeconomic challenges that the firm faces in Latin American markets (nearly 50% of revenue), we wouldn’t recommend buying Casino shares until they offer a larger margin of safety.
As expected, results in international markets were mixed, as Exito in Colombia was solid, while Brazil (especially electronics) was challenged by the difficult economic environment and higher costs (consolidated EBITDA margin declined 15 basis points to 5.1%). We expect continued pressure
As expected, results in international markets were mixed, as Exito in Colombia was solid, while Brazil (especially electronics) was challenged by the difficult economic environment and higher costs (consolidated EBITDA margin declined 15 basis points to 5.1%). We expect continued pressure