Jeronimo Martins SGPS S/A

Jeronimo Martins S.G.P.S. is a holding company. Through its subsidiaries, Co. is engaged as a food distribution company with operations in Poland and Portugal. Co. operates in four segments: Portugal Retail, which comprises the business unit of JMR - Gestao de Empresas de Retalho, SGPS, S.A. (Pingo Doce supermarkets); Portugal Cash & Carry, which includes the wholesale business unit Recheio; Poland Retail, which includes the business unit with the brand Biedronka; and Others, which includes marketing services and representations, restaurants in Portugal, health and beauty retail in Poland, and its retail business in Colombia.
  • TickerJMT
  • ISINPTJMT0AE0001
  • ExchangeEuronext Lisbon
  • SectorFood & Drug Retailers
  • CountryPortugal

Analysts

Research Team

The Rear-View Mirror – EME markets: ASE rallied in February

EME Equity Market – February 2019 Market performance – ASE Index up 11.5% mom in February. The ASE index outperformed its rivals in February, rising by 11.5%, following a mom gain of 3.5% in January. Bucharest was the second-best performer, up 10.2% in February, while Prague’s PX recorded a mom gain of 3.2%. The MSCI EME was in correction mode in February, losing 1.6% mom, following January’s double-digit growth of 11.3% mom; while the MOEX and BUX both lost 1.3% mom in February; and the Turkish ISE30 was down 2.1% mom. Last but not least, the worst performer was the WIG20, which recorded a lo...

Research Team

Focus:

HEADLINES: • SOK: Leading the modern trade charge (BUY - initiation of coverage) • Alior Bank: solid 4Q18 with core revenues and costs shining, clean-up of some legacy issues POSITIVE • Jeronimo Martins: 4Q18 small miss, dividend payout of 50% only, smaller Biedronka stores coming NEGATIVE • Eurocash: 4Q18 miss on provisions, decent lfl in cash & carry • CCI: 4Q18 results - 23% miss on EBITDA due to gross margin contraction on all fronts NEUTRAL • Erste Bank: solid guidance on 2019E earnings, but nothing surprising NEUTRAL • Atrium: 4Q18 results - miss vs. our full-year forecast on higher o...

Filipe Rosa

Jerónimo Martins: Solid numbers and reassuring outlook

JMT’s Q4 EBITDA dropped 1% YoY and missed our estimates and BBG consensus by 4% on the back of soaring HQ costs. Adjusting for the latter, which we see as a one-off, EBITDA rose 4% YoY and was 1% ahead of our forecast on small beats from Pingo Doce, Hebe and Ara, while Biedronka and Recheio performed in line. Perhaps even more importantly, in the outlook section JMT said that it expects to be able to preserve its profitability in 2019e, which we see as quite reassuring for Biedronka, and it guided for lower than we expected EBITDA losses for Ara. The board will propose a Eur0.325 DPS, in line ...

Jeronimo – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Research Team

Focus: upgrading CME to BUY, with a new PT of USD 4.50/CZK 102.3/share; MedLife – sharply lower capex guided for FY19E; Polish banks – strategic investors write to the EC complaining about the FX mortgage draft bill

HEADLINES: • CME: Successful deleveraging topped by dividends (upgrade to BUY) • MedLife: sharply lower capex guided for FY19E POSITIVE • Polish banks: strategic investors write to the EC complaining about the FX mortgage draft bill NEUTRAL • Polish gencos: government submits new draft proposal on power prices POSITIVE • Tauron: expects a PLN 378m impairment to net profit in 2018E NEGATIVE • Kernel: acquires the second-largest grain-hopper wagon fleet operator in Ukraine POSITIVE • Nostrum Oil & Gas: Moody's downgrades family rating to B3 NEUTRAL • X5: announces joint venture with PickPoint P...

Research Team

The Rear-View Mirror – EME markets: ASE rallied in February

EME Equity Market – February 2019 Market performance – ASE Index up 11.5% mom in February. The ASE index outperformed its rivals in February, rising by 11.5%, following a mom gain of 3.5% in January. Bucharest was the second-best performer, up 10.2% in February, while Prague’s PX recorded a mom gain of 3.2%. The MSCI EME was in correction mode in February, losing 1.6% mom, following January’s double-digit growth of 11.3% mom; while the MOEX and BUX both lost 1.3% mom in February; and the Turkish ISE30 was down 2.1% mom. Last but not least, the worst performer was the WIG20, which recorded a lo...

Research Team

Focus:

HEADLINES: • SOK: Leading the modern trade charge (BUY - initiation of coverage) • Alior Bank: solid 4Q18 with core revenues and costs shining, clean-up of some legacy issues POSITIVE • Jeronimo Martins: 4Q18 small miss, dividend payout of 50% only, smaller Biedronka stores coming NEGATIVE • Eurocash: 4Q18 miss on provisions, decent lfl in cash & carry • CCI: 4Q18 results - 23% miss on EBITDA due to gross margin contraction on all fronts NEUTRAL • Erste Bank: solid guidance on 2019E earnings, but nothing surprising NEUTRAL • Atrium: 4Q18 results - miss vs. our full-year forecast on higher o...

Filipe Rosa

Jerónimo Martins: Solid numbers and reassuring outlook

JMT’s Q4 EBITDA dropped 1% YoY and missed our estimates and BBG consensus by 4% on the back of soaring HQ costs. Adjusting for the latter, which we see as a one-off, EBITDA rose 4% YoY and was 1% ahead of our forecast on small beats from Pingo Doce, Hebe and Ara, while Biedronka and Recheio performed in line. Perhaps even more importantly, in the outlook section JMT said that it expects to be able to preserve its profitability in 2019e, which we see as quite reassuring for Biedronka, and it guided for lower than we expected EBITDA losses for Ara. The board will propose a Eur0.325 DPS, in line ...

Research Team

Focus: upgrading CME to BUY, with a new PT of USD 4.50/CZK 102.3/share; MedLife – sharply lower capex guided for FY19E; Polish banks – strategic investors write to the EC complaining about the FX mortgage draft bill

HEADLINES: • CME: Successful deleveraging topped by dividends (upgrade to BUY) • MedLife: sharply lower capex guided for FY19E POSITIVE • Polish banks: strategic investors write to the EC complaining about the FX mortgage draft bill NEUTRAL • Polish gencos: government submits new draft proposal on power prices POSITIVE • Tauron: expects a PLN 378m impairment to net profit in 2018E NEGATIVE • Kernel: acquires the second-largest grain-hopper wagon fleet operator in Ukraine POSITIVE • Nostrum Oil & Gas: Moody's downgrades family rating to B3 NEUTRAL • X5: announces joint venture with PickPoint P...

Research Team

The Rear-View Mirror: EME Markets – Only Bucharest’s BET in the red in January

EME Equity Market – January 2019 Market performance – only Bucharest in negative territory in January. In January, the Turkish ISE was the best performer (+17%); while the Russian MOEX was second (+12.8%); and the MSCI EME recorded double-digit growth of 11.3%; followed by Budapest, with the BUX up 6.1%; and Prague’s PX +5.7%, just above the WIG20, which gained 5.6% mom. The Greek ASE also saw a gain (+3.5%), while Bucharest’s BET was the only one in the red, falling by 7.5% mom.

Research Team

WOOD Morning (6 February)

HEADLINES: • MLP Care: robust even in a recession (stays BUY) • MONETA Money Bank: posts strong 4Q18, strong guidance and raises dividends guidance POSITIVE • Rosneft: 4Q18 - earnings suppressed by more write-downs, but FCF & leverage reduction still on track • Raiffeisen Int.: posts mediocre preliminary 4Q18 net profit, with some negative one-offs NEGATIVE • CME: 4Q18 results review - OIBDA up 19% yoy, in line with guidance and our estimates NEUTRAL • OMV: 4Q18 results and EUR 1.75 DPS proposal • OMV Petrom: 4Q18 results and an 8% dividend yield • Lotos: 4Q18 preliminary estimates, bette...

Research Team

WOOD Morning (15 January)

HEADLINES: • MONETA Money Bank: deal still more sweet than sour (stays BUY) • Turkish automotive: uninspiring December exports due to 12% LCV contraction NEGATIVE • Jeronimo Martins: preliminary 4Q18 sales a touch above expectations NEUTRAL • Globalworth: board approves interim DPS of EUR 0.27 (6.75% annualised yield) NEUTRAL • Polish telecoms: Poland applies to EU for extension of 700MHz spectrum distribution deadline to 2022 NEUTRAL • Polish gencos: URE head speaks at Powerpol congress

Research Team

Focus: Turk Telekom – OTAS out, banks in; Polish gencos – new law to freeze 2019 power prices for retail customers and local governments; Polish gencos – 2023E capacity auction; Enea – Ostroleka C construction starts

HEADLINES: • Turk Telekom: OTAS out, banks in POSITIVE • Polish gencos: new law to freeze 2019 power prices for retail customers and local governments NEUTRAL • Polish gencos: 2023E capacity auction • Enea: Ostroleka C construction starts NEUTRAL • Ciech: may face PLN 67.2m in tax and late interest NEGATIVE • Polish banks: Puls Biznesu on prospective M&A trends in Polish banking sector • Echo Investment: management buys shares for c.EUR 86k POSITIVE • Russian telecoms: mobile operators agree on joint 5G development NEUTRAL • Play Communications: resigns from national roaming agreement with ...

Research Team

WOOD Morning (29 November)

HEADLINES: • Purcari Wineries: wine now, or whine later (BUY - initiation of coverage) • Jeronimo Martins: cash machine (stays BUY) • Gedeon Richter: A tale of two portfolios (stays HOLD) • Lukoil: 3Q18 results - strong, as expected • Echo Investment: 3Q18 - a decent quarter; Brewery J pre-sold at 5.0% yield (double the cost) NEUTRAL • Immofinanz: 3Q18 - a weak quarter NEUTRAL • Kernel: 1Q19 results, beat on revaluation of assets NEUTRAL • PGE: intention to buy remaining 30% in the SPV responsible for the nuclear project NEUTRAL • LiveChat Software: key takeaways from 3Q18 conference NEUTR...

Research Team

WOOD Morning (31 October)

HEADLINES: • Warsaw Stock Exchange: 3Q18 EBITDA 5% below consensus on both weaker revenues and higher costs NEGATIVE • Santander Bank Polska: posts solid set of 3Q18 numbers • OMV Petrom: 3Q18 results - strong results beat estimates POSITIVE • Aselsan: 3Q18 results - operating numbers in line, but 31% NI beat POSITIVE • MOL: 3Q18 results - EBITDA in line, strong net income performance POSITIVE • OMV: 3Q18 review - strong results, but bottom line disappoints NEUTRAL • Jeronimo Martins: 3Q18 results in line with expectations NEUTRAL • Podravka: 3Q18 results above our expectations due to one-off...

JERONIMO MARTINS SA sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of JERONIMO MARTINS SA (PT), a company active in the Food Retailers & Wholesalers industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 25, 2019, the closing price was EUR 12.72 and its potential was estimated at EUR 13.36.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

MarketLine Department

Bunzl plc - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments

Summary Marketline's Bunzl plc Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Bunzl plc since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage. Key Highlights Thi...

MarketLine Department

Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report

Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report Summary Deoleo, S.A. - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Deoleo, S.A. (Deoleo) is a bottled olive oil manufacturing company. The company is involved in refining, bottling and marketing of olive oil and seed oils. It produces and sells seed oils, rice, table olives, vinegars and sauces. Deole...

Jeronimo – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

Expert Corporate Governance Service (ECGS)

Proxy Report - 12/04/2018

In item 2, the Board proposes to distribute a dividend of € 0.6132 per share on 2017 results, by 1.3% higher than the dividend paid in the previous year despite a 35.0% decrease in consolidated net income. The dividend distribution amounts to almost 100% of the consolidated net income (€ 385 million), which is significantly higher than the disclosed Company's policy to distribute from 40% to 50% of consolidated net income. We regret that the proposed dividend distribution is not fully covered by free cash flow (€ 249 million in 2017). However, dividends were fully covered by net earnings and c...

Valérie GASTALDY

Analyse court terme - JERONIMO MARTINS SGPS SA : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 10,728 €. La tendance de fond serait remise en cause en cas de franchissement de 13,195 €.

Valérie GASTALDY

Short term view - JERONIMO MARTINS SGPS SA : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €10.728. The background trend would be questioned should prices rise above €13.195.

Valérie GASTALDY

Analyse court terme - JERONIMO MARTINS SGPS SA : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 10,728 €. La tendance de fond serait remise en cause en cas de franchissement de 13,195 €.

Valérie GASTALDY

Short term view - JERONIMO MARTINS SGPS SA : The background trend is clearly bearish.

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €10.728. The background trend would be questioned should prices rise above €13.195.

Valérie GASTALDY

Analyse moyen terme - JERONIMO MARTINS SGPS SA : Le mouvement se poursuit.

La tendance est baissière. Le mouvement se poursuit. Le prochain objectif est à 12,148 €, puis 9,420 €. Le franchissement de 17,317 € remettrait en cause la suite de la baisse.

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