| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3190.97 | 1390907 |
| Intrinsic value (DCF) | 0.27 | 18 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Casino, Guichard-Perrachon S.A. (CO.PA) is a leading French food retailer with a diversified presence in hypermarkets, supermarkets, convenience stores, and e-commerce. Founded in 1898 and headquartered in Saint-Étienne, France, the company operates approximately 10,800 stores across multiple formats, including discount and cash-and-carry outlets. Casino also engages in ancillary businesses such as banking, digital marketing, real estate, and energy services, enhancing its revenue streams beyond traditional retail. Despite its strong domestic footprint, the company faces intense competition in the European grocery sector, compounded by financial challenges, including negative net income and operating cash flow. Casino’s private label offerings and multi-format strategy provide some differentiation, but its high debt levels and restructuring efforts remain key concerns for investors. As part of the Consumer Defensive sector, Casino’s performance is closely tied to macroeconomic conditions in France and its international markets.
Casino, Guichard-Perrachon presents a high-risk investment case due to its financial instability, including a net loss of €295 million in the latest fiscal year and negative operating cash flow of €1.06 billion. The company’s high debt burden (€3.65 billion) and lack of dividend payments further diminish its attractiveness. However, its extensive store network and diversified business segments, including e-commerce and private labels, offer potential for operational turnaround if restructuring efforts succeed. Investors should closely monitor debt management and competitive positioning against larger rivals like Carrefour and E.Leclerc. The stock’s beta of 1.28 indicates higher volatility than the market, making it suitable only for risk-tolerant investors.
Casino operates in a highly competitive European grocery market dominated by low-margin, high-volume players. Its competitive advantage lies in its multi-format strategy, combining hypermarkets, supermarkets, and convenience stores, alongside a growing e-commerce presence. However, the company struggles with scale compared to global giants like Carrefour and Aldi, which benefit from superior purchasing power and international diversification. Casino’s private label products provide some differentiation, but price competition from discounters such as Lidl erodes profitability. The company’s ancillary businesses (banking, real estate) offer non-retail revenue but divert focus from core retail operations. Financially, Casino’s high leverage limits its ability to invest in modernization or price wars, putting it at a disadvantage against better-capitalized peers. Geographic concentration in France further exposes it to local economic downturns, unlike more diversified competitors.