CO FP
Casino, Guichard-Perrachon SA
Consumer
06/17/2016
Presented
| Date | 06/13/2016 |
| Price | €48.78 |
| Market Cap | $6.05B |
| Ent Value | $21.62B |
| P/E Ratio | N/A |
| Book Value | €40.70 |
| Div Yield | 0% |
| Shares O/S | 111.37M |
| Ave Daily Vol | 504,238 |
| Short Int | N/A |
Current
| Price | €2.64 |
| Market Cap | $1.18B |
| Casino, Guichard-Perrachon engages in the operation of food retail outlets. It operates through the following segments: Casino France, Monoprix, Franprix-Leader Price, Latin America, Asia, and Other Businesses. The Casino France segment comprises all the French retail and real estate businesses including related activities such as internet sales, catering, and financial services. The Monoprix segment specializes in town center food retailing. It also manages cosmetics and personal care retail stores and concept stores. The Franprix-Leader Price segment manages convenience stores that offer family products. The Latin America segment operates retail stores in South America. The Asia segment operates hypermarkets and supermarkets in Asia. The Other Businesses segment provides financial services and involves in the commercial real estate activities. The company was founded by Geoffroy Guichard on August 3, 1898 and is headquartered in Saint-Ãtienne, France. |
Publicly traded companies mentioned herein: Almancenes Exito SA (EXITO CB), Casino Guichard Perrachon SA (CO FP), Cia Brasileira de Distribuicao (PCAR4 BZ), Fonciere Euris (EURS FP), Rallye SA (RAL FP)
Highlights
Casino Guichard Perrachon (CO FP; “Casino”) owns a number of food retail businesses in France, Latin America and Asia, with the French market driving the majority of its sales. The presenter is short the stock because he sees an overly complex ownership structure and layers upon layers of debt obfuscating deteriorating results. Casino has laid out a recovery plan to reverse declines seen in the French market and in the presenter’s opinion it is unlikely to succeed due to the aggressive level of margin expansion required. With the Street broadly bullish on the outlook for the company its stock has rallied back to the high 40s (unless otherwise indicated, all figures are euros) following a December 2015 Muddy Waters report highlighting a number of concerns about the true earnings power of the company and its leverage. Based on his model there appears to be downside risk to 35 on a sum-of-the-parts basis, and 20 if an earnings multiple is used to value the stock.
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