DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION (DIA) AI Stock Analysis

• Market Cap: €1.44B
• Dividend Yield: N/A
• Average Volume (3M): 27.64K
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.22
• Revenue Growth: 5.97%
• EPS Growth: N/A
• Country: ES
• Employees: 13,706
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.65
• Shares Outstanding: 58,058,900
• 10 Day Avg. Volume: 23,358
• 30 Day Avg. Volume: 27,639
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: €25.00
• Price Target Upside: 1.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: €25.00 ▲(1.01% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including ongoing net losses and a highly leveraged balance sheet. Technical indicators suggest weak momentum, although there is potential for a reversal. The valuation is moderate, but the lack of a dividend yield limits its appeal to certain investors. Improvements in cash flow generation offer some hope for future stability.

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Business Overview & Revenue Model

Company Description

Distribuidora Internacional de Alimentación, S.A. engages in the retail sale of food products in Spain, Portugal, Brazil, and Argentina. Its stores offer food and household, and personal hygiene products. The company operated a network of 6,169 owned stores and 2,682 franchised stores under the names of DIA Market, DIA Maxi, La Plaza de DIA, Clarel, Minipreço, and DIA&go. The company was incorporated in 1966 and is headquartered in Madrid, Spain.

How the Company Makes Money

DIA generates revenue primarily through the wholesale distribution of food products to retail and food service clients. The company's revenue model is built on volume sales, where it earns margins on the products it distributes. Key revenue streams include sales of groceries, fresh produce, dairy, and frozen goods. Additionally, DIA may engage in strategic partnerships with suppliers and manufacturers, allowing it to negotiate favorable pricing and exclusive distribution rights, which further enhance its earning potential. Seasonal promotions and bulk purchasing agreements also contribute to revenue growth, along with value-added services such as logistics and inventory management for its clients.

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Financial Statement Overview

Summary

Distribuidora Internacional de Alimentacion faces significant financial challenges, highlighted by ongoing net losses and a highly leveraged balance sheet. However, improvements in cash flow generation provide a glimmer of hope for stabilizing operations. The company needs to address its balance sheet risks and improve profitability to enhance its financial health and stability.

Income Statement

Distribuidora Internacional de Alimentacion has shown a slight increase in total revenue from the previous year, but remains below its peak revenue levels. The gross profit margin is moderately healthy at approximately 24.3% for 2024. However, the company continues to operate at a net loss with a negative net profit margin, and EBIT margins remain negative, indicating ongoing operational challenges.

Balance Sheet

The company's financial structure is concerning, with negative stockholders' equity indicating more liabilities than assets. The debt-to-equity ratio cannot be calculated due to negative equity, suggesting potential financial instability. Additionally, the company has a negative equity ratio, reflecting high leverage and potential risk in its balance sheet.

Cash Flow

Despite the challenges, the company has managed to generate positive operating cash flow, with a significant improvement in free cash flow over the last year. The operating cash flow to net income ratio is strong due to negative net income, but the company's ability to generate cash is a positive sign amidst its financial difficulties.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88B	5.72B	5.94B	5.91B	6.89B
Gross Profit	1.43B	1.28B	1.53B	1.55B	1.83B
EBITDA	444.70M	415.54M	328.66M	218.94M	206.18M
Net Income	-78.74M	-30.24M	-123.85M	-257.33M	-363.79M
Balance Sheet
Total Assets	2.31B	2.63B	3.12B	3.07B	3.04B
Cash, Cash Equivalents and Short-Term Investments	333.47M	141.44M	217.25M	363.00M	348.10M
Total Debt	983.69M	962.17M	1.29B	1.30B	2.21B
Total Liabilities	2.34B	2.70B	3.11B	2.98B	3.73B
Stockholders Equity	-37.68M	-68.13M	7.56M	93.57M	-697.20M
Cash Flow
Free Cash Flow	389.06M	180.87M	176.67M	172.28M	313.82M
Operating Cash Flow	502.28M	361.20M	468.11M	354.38M	390.50M
Investing Cash Flow	-108.82M	58.74M	-258.58M	-171.52M	-23.71M
Financing Cash Flow	-216.87M	-444.56M	-317.91M	-157.43M	-163.75M

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:DIA, the sentiment is Negative. The current price of 24.75 is below the 20-day moving average (MA) of 25.28, below the 50-day MA of 26.60, and above the 200-day MA of 22.54, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 10.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:DIA.

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBRO	80 Outperform	2.77B	14.13	8.92%	3.78%	-0.42%	-3.34%
DIA	52 Neutral	€1.44B	27.46		―	5.97%	―
OLE	42 Neutral	90.75M	-3.26	-13.49%	―	-1.52%	-116.80%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%