Added to YB: 2023-04-23
Pitch date: 2023-04-23
CBD [bullish]
Companhia Brasileira De Distribuicao
Author Info
Clark Square Capital is a former equity analyst and now a full-time investor managing their own capital. Sign up for their newsletter
Company Info
Companhia Brasileira De Distribuicao operates supermarkets, specialized stores in Brazil. The company sells food products beverages, fruits, vegetables, meat, bread, cold cuts, and dairy products.
Market Cap
BRL 1.4B
Pitch Price
N/A
Price Target
6.00
Dividend
N/A
EV/EBITDA
5.77
P/E
-0.70
EV/Sales
0.50
Sector
Consumer Staples Distribution and Retail
Category
special_situation
Companhia Brasileira De Distribuição ($CBD)
PCAR3.SA: Brazilian grocery holdco; upcoming Grupo Exito spin (<Q2 2023) unlocks SOTP. At $3.03 ADR, holders get $3.61 in Exito shares, so GPA stub trades negative despite +$0.60 net cash from Cnova/asset sales and 700-store grocery biz at zero. Exito at 5x EBIT vs peers. Target >$6/share (2x+); asymmetric, 25%+ Exito downside cushion. De-lever to zero net debt by FY24, 8-9% EBITDA margin target.
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