Carrefour strengthens position in Brazil with the acquisition of Grupo BIG for R$7B

  • Grupo Carrefour Brasil (OTCPK:CRRFY) enters agreement for the acquisition of Grupo BIG Brasil SA, Brazil's third-biggest food retailer.
  • This acquisition strengthens Carrefour Brazil's presence in this high growth potential market.
  • The transaction values Grupo BIG at an enterprise value of R$7B ($1.2bn).
  • The acquisition offers significant synergy potential from year one, rising gradually to represent a net additional contribution to EBITDA of R$1.7B on an annual basis three years after the closing of the transaction.
  • Combined, the two groups have gross sales of about R$100B ($17.4bn), operate 876 stores.
  • Transaction expected to complete in 2022.

    Investors in Carrefour can expect a huge dividend payment. Based on the recent analysts' consensus the stock now has one of the highest dividend returns of the French market. For this year the analysts expect a dividend of 54 cents per share. Carrefour 's dividend yield thus equals 3.52 percent. The average dividend yield of the food & drug retailers is an attractive 2.2 percent.

    Historical dividend returns Carrefour

    For this year the company, located in Massy revenue will be around 72.43 billion euros. This is according to the average of the analysts' estimates. This is slightly more than 2020's revenue of 72.15 billion euros.

    Historical revenues and results Carrefour plus estimates 2020

    aandelenanalyses

    The analysts expect for 2021 a net profit of 1.11 billion euros. For this year the consensus of Carrefour 's result per share is a profit of 1.37 euros. The PE-ratio therefore is 11.2.

    Most recent target prices around 18 euros

    The most recent recommendations for the food & drug retailer are from JP Morgan, HSBC and Goldman Sachs .

    Carrefour 's market capitalization is based on the number of outstanding shares around 12.24 billion euros. The Carrefour stock was the past 12 months quite unstable. Since last March the stock is 8 percent higher. This year the stock price moved between 12 and 18 euro.

    Historical stock prices Carrefour

    stock carrefour

    At 14.37 the stock trades 0.75 percent higher at 15.35 euros.

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