Sendas Distribuidora (ASAIY) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: 0.78%
• Average Volume (3M): 1.01K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.41
• Revenue Growth: 10.41%
• EPS Growth: -22.99%
• Country: US
• Employees: 77,370
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Retailers - Staples
• EPS (TTM): 0.08
• Shares Outstanding: 270,449,040
• 10 Day Avg. Volume: 1,458
• 30 Day Avg. Volume: 1,011
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.50
• Price Target Upside: -16.39% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Sendas Distribuidora's strong financial performance and positive earnings call outlook are key strengths, offset by technical indicators suggesting bearish momentum and high leverage. Valuation is fair, but the lack of dividend yield could deter some investors. The company's ability to manage debt and sustain growth amid macroeconomic challenges will be crucial for future performance.

Positive Factors

Earnings Potential

A combination of lower rates and initial deleveraging has the capability of nearly doubling EPS.

Financial Performance

Gross profit rose 10.7%, helped by better supplier terms and by new services rolled out to 50% of stores.

Negative Factors

Debt and Liabilities

ASAI has received notification of potential liability for as much as R$12.9bn in tax and labor contingencies.

Sendas Distribuidora Business Overview & Revenue Model

Company Description

Sendas Distribuidora SA is involved in the consumer goods business. It offers household products, clothes, foods, toiletries and other products.

How the Company Makes Money

Sendas Distribuidora (ASAI) generates revenue primarily through its cash and carry wholesale stores, known as Assaí Atacadista. The company makes money by purchasing goods in large quantities directly from manufacturers and suppliers, allowing it to benefit from economies of scale and negotiate favorable pricing. These goods are then sold to customers at competitive prices, with a focus on both individual consumers and business customers who buy in bulk. The company's revenue streams are largely driven by sales within its extensive network of stores across Brazil. Additionally, Assaí Atacadista may leverage partnerships with suppliers and manufacturers to offer exclusive products or promotions, further enhancing its revenue potential. The company's strategic location of stores and focus on cost efficiency also contribute to its profitability.

Sendas Distribuidora Financial Statement Overview

Summary

Sendas Distribuidora demonstrates robust revenue growth and effective cost management. However, the high leverage indicated by a debt-to-equity ratio of 5.20 poses a risk, despite strong cash flows. Improvement in net profitability and debt management are crucial for enhanced financial stability.

Income Statement

Sendas Distribuidora demonstrates solid revenue growth with a 8.39% increase in TTM revenue compared to the previous year. The gross profit margin increased to 17.52%, indicating efficient cost management. However, the net profit margin decreased to 0.88%, reflecting challenges in controlling operational costs or higher interest expenses.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 5.20, highlighting significant leverage. However, there is a gradual improvement in equity, and the return on equity is 12.74%, indicating effective use of shareholder funds despite the leverage.

Cash Flow

Operating cash flow remains strong with a ratio of 6.05 compared to net income, reflecting robust cash generation. Free cash flow decreased by 31.63% on a TTM basis, suggesting increased capital expenditures or reduced cash from operations.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	72.08B	66.50B	54.52B	41.90B	36.04B	30.23B
Gross Profit	12.63B	9.43B	8.96B	7.14B	5.91B	5.34B
EBITDA	5.33B	4.63B	3.69B	3.21B	3.71B	2.41B
Net Income	636.00M	710.00M	1.22B	1.61B	1.40B	1.05B
Balance Sheet
Total Assets	43.92B	43.18B	40.62B	22.85B	18.82B	35.91B
Cash, Cash Equivalents and Short-Term Investments	4.03B	5.51B	5.84B	2.55B	3.53B	5.03B
Total Debt	25.96B	24.37B	20.95B	12.08B	10.61B	12.57B
Total Liabilities	38.92B	38.55B	36.72B	20.09B	17.47B	26.20B
Stockholders Equity	5.00B	4.63B	3.90B	2.77B	1.35B	7.10B
Cash Flow
Free Cash Flow	1.83B	2.68B	984.00M	187.00M	1.85B	1.75B
Operating Cash Flow	3.85B	5.96B	5.14B	3.27B	3.50B	3.16B
Investing Cash Flow	-1.84B	-3.06B	-3.79B	-3.28B	-4.79B	-4.37B
Financing Cash Flow	-2.39B	-3.29B	1.94B	-978.00M	-1.18B	4.71B

Sendas Distribuidora Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.97
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAIY, the sentiment is Neutral. The current price of 8.97 is below the 20-day moving average (MA) of 9.78, below the 50-day MA of 9.37, and above the 200-day MA of 6.87, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 6.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASAIY.

Sendas Distribuidora Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TR	77 Outperform	$3.01B	28.64	10.39%	1.03%	-5.52%	-5.01%
CENT	71 Outperform	$2.32B	21.69	8.07%	―	-4.60%	-26.61%
STRA	69 Neutral	$1.94B	17.18	6.86%	2.99%	5.72%	11.02%
WMK	69 Neutral	$2.01B	18.72	7.54%	1.82%	1.76%	6.01%
ASAIY	68 Neutral	$2.42B	16.67	15.48%	0.78%	10.41%	-22.99%
Sector *	66 Neutral	£10.29B	8.16	3.35%	3.32%	-1.42%	18.13%
UNFI	58 Neutral	$1.44B	―	-4.11%	―	6.62%	53.12%