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Jeronimo Martins SGPS SA (JRONY)
OTHER OTC:JRONY
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Jeronimo Martins SGPS SA
(OTC:JRONY)
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Rating:75Outperform
Price Target:
$56.00
▲(15.77% Upside)
Jeronimo Martins SGPS SA shows strong financial performance with significant revenue growth and cash flow generation, supported by strategic expansion and operational efficiency. However, high leverage and a challenging operating environment pose risks. The stock's technical indicators suggest bearish momentum, and its valuation appears high, though the dividend yield offers some appeal.
Jeronimo Martins SGPS SA (JRONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.18B
Dividend Yield2.73%
Average Volume (3M)384.00
Price to Earnings (P/E)22.6
Beta (1Y)0.17
Revenue Growth7.44%
EPS Growth-5.12%
CountryUS
Employees119,427
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.72
Shares Outstanding314,646,500
10 Day Avg. Volume535
30 Day Avg. Volume384
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue0.59
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$56.00Price Target Upside15.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Jeronimo Martins SGPS SA Business Overview & Revenue Model
Company DescriptionJeronimo Martins SGPS SA is a leading international retail and distribution company based in Portugal, primarily operating in the grocery and food sectors. The company manages various retail chains, including Pingo Doce, a popular supermarket chain in Portugal, and Biedronka, a significant player in the Polish market. Jeronimo Martins focuses on offering a wide range of products, including fresh food, groceries, and household goods, catering to the diverse needs of its customers across multiple markets.
How the Company Makes MoneyJeronimo Martins generates revenue through its extensive network of retail stores, primarily through the sale of food and non-food items to consumers. The company has a strong presence in Poland and Portugal, with its Biedronka and Pingo Doce chains being the main contributors to its revenue. Key revenue streams include direct sales from retail operations, private label products, and partnerships with local suppliers. The company also benefits from economies of scale due to its large purchasing power, allowing it to negotiate favorable terms with suppliers. Additionally, Jeronimo Martins invests in digital transformation and e-commerce, expanding its reach and enhancing customer convenience, which further contributes to its revenue growth.
Jeronimo Martins SGPS SA Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a robust performance with strong sales and EBITDA growth, despite facing challenges such as margin pressure from rising wages and intense competition. The company has shown resilience through strategic expansion and operational efficiency, although external factors like weather and muted consumption continue to pose challenges.Q2-2025 Updates
Positive Updates
Strong Sales Growth
Consolidated sales grew by 6.7% (6% at constant exchange rates) reaching EUR 17.4 billion, with a like-for-like increase of 1.6%.
EBITDA Improvement
EBITDA grew by 10.3% (9% at constant exchange rates) to EUR 1.1 billion, with the EBITDA margin increasing by 21 basis points to 6.6%.
Expansion and Investment
The group opened 196 stores and remodeled 71 locations. Notably, the launch of the Biedronka operation in Slovakia and the integration of 58 Colsubsidio stores in Colombia.
Operational Efficiency
Stricter cost management and productivity improvements more than offset margin pressure despite rising wages.
Positive Market Share Growth
Biedronka maintained price leadership in Poland, contributing to a market share increase of 0.2 percentage points.
Cash Position
The group maintained a cash position of EUR 213 million after the payment of EUR 371 million in dividends.
Negative Updates
Margin Pressure
The group faced significant margin pressure due to low basket inflation combined with a 9% increase in salaries.
Challenging Operating Environment
Muted food consumption and intense market competition created a challenging operating context.
Weather Impact on Sales
Adverse weather conditions in Poland affected sales in certain categories, impacting overall performance.
Cash Flow Outflow
Cash flow for the period was an outflow of EUR 157 million, primarily due to seasonality and supplier payments.
Deflation Challenges in Hebe
Hebe experienced substantial deflation in the basket, significantly pressuring EBITDA margin.
Company Guidance
In the first half of 2025, Jeronimo Martins faced a challenging operating environment characterized by muted food consumption, low basket inflation, and rising wages. Despite these pressures, the company managed to grow its top line by 6.7% (6% at constant exchange rates) to reach EUR 17.4 billion, supported by a like-for-like increase of 1.6% and contributions from store expansions. All banners delivered solid sales, with consolidated EBITDA rising by 10.3% (9% at constant exchange rates) to EUR 1.1 billion, resulting in an EBITDA margin improvement of 21 basis points to 6.6% compared to the same period in 2024. The group maintained a cash position of EUR 213 million at the end of June, even after paying EUR 371 million in dividends. The first half also saw significant progress in capital expenditure, with 196 new stores opened and 71 locations remodeled. The company highlighted the successful expansion of the Biedronka operation in Slovakia and the integration of 58 stores formerly operated by Colsubsidio under the Ara banner. Looking ahead, Jeronimo Martins remains focused on price competitiveness and margin protection amid a highly uncertain market landscape, with a minor revision in Biedronka's remodeling plan reducing the target to 200 stores and CapEx now anticipated to be slightly above EUR 1 billion.Jeronimo Martins SGPS SA Financial Statement Overview
Summary
Jeronimo Martins SGPS SA demonstrates solid revenue growth and operational efficiency with strong gross profit and EBITDA margins. However, profitability and cash generation need improvement, as indicated by the low net profit margin and declining free cash flow. The balance sheet is stable with manageable debt, but there's room for better equity utilization and profitability.Income Statement
The company shows robust revenue growth, with a TTM revenue of 33.78 billion, up from 33.46 billion in the previous year, reflecting a steady growth trend. The gross profit margin is strong at 35.85% TTM, indicating efficient cost management. However, the net profit margin is relatively low at 1.86% TTM, suggesting room for improved profitability. EBITDA margin stands at a healthy 26.03% TTM, showcasing operational efficiency.78
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 1.64 TTM, indicating a balanced leverage with manageable risk. The equity ratio is 20.46% TTM, showing a reasonable proportion of equity financing. Return on Equity (ROE) is modest at 19.91% TTM, suggesting a decent return on shareholder investments, but there is potential for improvement.72
Positive
Cash Flow
The cash flow statement reveals a decline in free cash flow to 454 million TTM from 649 million, indicating a need to enhance cash generation. The operating cash flow to net income ratio is favorable at 2.38 TTM, demonstrating strong cash conversion efficiency. However, the free cash flow to net income ratio is relatively low at 0.72, suggesting limited cash available after capital expenditures.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 34.56B | 33.46B | 30.61B | 25.39B | 20.89B | 19.29B |
| Gross Profit | 7.10B | 6.85B | 6.25B | 5.33B | 4.50B | 4.23B |
| EBITDA | 2.27B | 2.16B | 2.15B | 1.76B | 1.54B | 1.34B |
| Net Income | 615.00M | 599.00M | 756.00M | 590.00M | 463.00M | 312.00M |
Balance Sheet | ||||||
| Total Assets | 15.30B | 15.30B | 14.30B | 11.85B | 10.37B | 9.43B |
| Cash, Cash Equivalents and Short-Term Investments | 1.45B | 1.88B | 2.07B | 1.80B | 1.53B | 1.04B |
| Total Debt | 5.23B | 4.92B | 4.15B | 3.15B | 2.85B | 2.80B |
| Total Liabilities | 12.17B | 12.04B | 11.23B | 9.26B | 7.84B | 7.17B |
| Stockholders Equity | 2.90B | 3.01B | 2.81B | 2.33B | 2.28B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 954.00M | 649.00M | 837.00M | 1.21B | 1.17B | 935.17M |
| Operating Cash Flow | 1.98B | 1.65B | 2.02B | 2.10B | 1.76B | 1.45B |
| Investing Cash Flow | -1.03B | -896.00M | -1.18B | -825.00M | -617.00M | -488.29M |
| Financing Cash Flow | -817.00M | -866.00M | -691.00M | -950.00M | -676.00M | -807.39M |
Jeronimo Martins SGPS SA Technical Analysis
Negative
48.37
Price Trends
49.36
Negative
49.81
Negative
45.80
Positive
Market Momentum
-0.56
Positive
43.20
Neutral
29.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRONY, the sentiment is Negative. The current price of 48.37 is below the 20-day moving average (MA) of 49.59, below the 50-day MA of 49.36, and above the 200-day MA of 45.80, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 43.20 is Neutral, neither overbought nor oversold. The STOCH value of 29.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JRONY.
Jeronimo Martins SGPS SA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $15.18B | 22.58 | 21.44% | 2.73% | 7.44% | -5.12% | |
74 Outperform | $39.82B | 22.31 | 99.89% | 2.54% | 3.21% | -4.03% | |
74 Outperform | $16.03B | 47.16 | 7.61% | ― | 8.61% | -22.16% | |
69 Neutral | $17.00B | 32.57 | 11.95% | ― | 5.32% | 11.65% | |
63 Neutral | $2.25B | 34.22 | 12.47% | ― | 7.90% | 68.05% | |
61 Neutral | $2.43B | -20.75 | -7.61% | ― | 2.60% | -3.23% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
JRONY
Jeronimo Martins SGPS SA
48.37
11.82
32.34%
SYY
Sysco
82.15
8.75
11.92%
CHEF
The Chefs' Warehouse
55.44
15.24
37.91%
UNFI
United Natural Foods
40.53
20.77
105.11%
PFGC
Performance Food Group
102.57
23.92
30.41%
USFD
US Foods Holding
76.18
14.92
24.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.