| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4.79 | -65 |
| Intrinsic value (DCF) | 8.19 | -41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 11.67 | -16 |
Carrefour SA (CAR.DE) is a global leader in the grocery retail sector, operating a diversified network of hypermarkets, supermarkets, convenience stores, and e-commerce platforms across Europe, Latin America, and Asia. Headquartered in Massy, France, Carrefour serves millions of customers with a wide range of products, including fresh produce, consumer goods, electronics, and textiles. The company also engages in banking, insurance, and property development, enhancing its revenue streams beyond traditional retail. With a strong presence in France, Spain, Italy, Brazil, and Taiwan, Carrefour leverages its multi-format strategy to cater to diverse consumer needs. As of 2021, the company operated over 12,000 stores globally, supported by franchise partnerships in emerging markets. Carrefour's commitment to digital transformation and sustainability positions it as a forward-thinking player in the competitive grocery industry. Its extensive footprint and diversified business model make it a key player in the Consumer Defensive sector, appealing to investors seeking stability and growth in retail.
Carrefour presents a mixed investment profile. On the positive side, its diversified geographic presence and multi-format retail strategy provide resilience against regional economic fluctuations. The company's strong cash position (€6.56 billion) and operating cash flow (€4.2 billion) support its dividend yield (~3.5%) and debt management. However, its net income margin (~0.8%) is thin, reflecting intense competition and pricing pressures in the grocery sector. The beta of 0.592 suggests lower volatility compared to the market, appealing to conservative investors. Risks include high total debt (€15.89 billion) and exposure to inflationary pressures in key markets like Brazil and Argentina. Carrefour's e-commerce growth and cost-saving initiatives could drive future profitability, but execution risks remain.
Carrefour competes in the highly fragmented and low-margin grocery retail industry. Its competitive advantage lies in its scale, diversified store formats, and strong private-label offerings, which help mitigate pricing pressures. The company's focus on digital transformation (e.g., partnerships with Uber Eats and Google) enhances its omnichannel capabilities, though it lags behind pure-play e-commerce giants. In Europe, Carrefour faces stiff competition from discounters like Lidl and Aldi, which exert downward pressure on prices. In Latin America, Grupo Pão de Açúcar and Walmart are key rivals. Carrefour's franchise model in the Middle East and Africa provides asset-light growth but limits control. The company's sustainability initiatives (e.g., plastic reduction, carbon neutrality goals) differentiate it ethically but require significant investment. While Carrefour's brand recognition and supplier relationships are strengths, its profitability trails more efficient competitors like Tesco and Ahold Delhaize.