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Sendas Distribuidora Sa (ASAIY)
:ASAIY
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Sendas Distribuidora
(OTC:ASAIY)
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Select Model
Rating:68Neutral
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
Revenue Growth
The significant revenue growth indicates strong market demand and effective business strategies, reinforcing the company's competitive position in the wholesale sector.
Debt Reduction
Reducing net debt enhances financial stability and flexibility, allowing the company to invest in growth opportunities and manage economic fluctuations more effectively.
Store Expansion
Expanding the store network increases market reach and customer base, supporting long-term revenue growth and strengthening the company's presence in the Brazilian market.
Negative Factors
High Leverage
High leverage can pose risks to financial health, limiting the company's ability to invest in growth and increasing vulnerability to interest rate fluctuations.
Interest Rate Pressure
Rising interest rates can increase borrowing costs, affecting profitability and potentially leading to reduced investment in expansion and innovation.
Same-Store Sales Performance
Sluggish same-store sales growth indicates potential challenges in maintaining customer loyalty and market share, which could impact future revenue stability.
Sendas Distribuidora (ASAIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.21B
Dividend YieldN/A
Average Volume (3M)2.16K
Price to Earnings (P/E)13.7
Beta (1Y)0.48
Revenue Growth-5.52%
EPS Growth20.33%
CountryUS
Employees77,370
SectorConsumer Defensive
Sector Strength42
IndustryRetailers - Staples
Share Statistics
EPS (TTM)0.15
Shares Outstanding270,687,230
10 Day Avg. Volume6,494
30 Day Avg. Volume2,164
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.08
Enterprise Value/Revenue0.09
Enterprise Value/Gross Profit0.54
Enterprise Value/Ebitda1.28
Forecast
1Y Price Target
$7.50Price Target Upside-7.86% Downside
Rating ConsensusHold
Number of Analyst Covering0
Sendas Distribuidora Business Overview & Revenue Model
Company DescriptionSendas Distribuidora SA is involved in the consumer goods business. It offers household products, clothes, foods, toiletries and other products.
How the Company Makes MoneySendas 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and EBITDA margin improvements, effective cash flow and debt management, and progress in store conversions and ESG initiatives. However, challenges such as same-store sales growth lagging behind inflation, persistent consumer trade-down, and high interest rates were also noted. Despite these challenges, the company demonstrates resilience and strategic foresight.Q2-2025 Updates
Positive Updates
Record Revenue Achievement
Revenue reached BRL 21 billion in the second quarter, despite challenging market conditions.
EBITDA Margin Increase
EBITDA margin pre-IFRS improved to 5.7%, a 30 basis point increase from the previous year.
Strong Free Cash Flow Generation
Free cash flow before interest payments amounted to BRL 2.7 billion, a significant achievement aided by operational efficiency and reduced investments.
Successful Debt Management
Net debt was reduced by BRL 200 million year-over-year, with a substantial decrease in gross debt due to effective reprofiling and prepayments.
Store Conversion Success
Converted stores are showing promising results, with some achieving over 90% of the sales productivity of organic stores.
ESG Initiatives
Over 1,000 employees are migrants or refugees, and over 530,000 meals were provided through social initiatives, surpassing goals.
Negative Updates
Same-Store Sales Challenges
Same-store sales growth was below the level of food inflation, influenced by persistent trade-down trends and high interest rates.
Continued Trade-Down Movement
Trade-down by consumers persisted, particularly affecting lower-income families, possibly due to factors like sports betting.
High Interest Rate Impact
Financial results were impacted by one of the highest interest rates in the world, despite strategic debt management.
Operational Expense Pressures
New store expansions and innovations led to some pressures on operational expenses.
Company Guidance
In the second quarter of 2025, Assaí Atacadista reported a revenue of BRL 21 billion, with a same-store sales growth below the food inflation rate, which stood at around 7% to 7.5%. The company experienced a trade down movement of approximately 3.5% to 4% due to high interest rates and other economic pressures. Despite these challenges, Assaí achieved an EBITDA margin pre-IFRS of 5.7%, representing a 30 basis point increase compared to the previous year. The company's free cash flow before interest payments was BRL 2.7 billion, with a conversion rate of 90% of EBITDA into cash. Assaí focused on deleveraging, reducing net debt by BRL 200 million, and closing the quarter with a leverage ratio of 3.17. Additionally, the company highlighted its efforts to expand product categories, including private labels, and its strategy to increase market penetration across different social classes and demographics.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.75
Positive
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.65
Positive
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.70
Positive
| 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
Negative
8.14
Price Trends
9.12
Negative
9.31
Negative
7.78
Positive
Market Momentum
-0.24
Positive
32.25
Neutral
0.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASAIY, the sentiment is Negative. The current price of 8.14 is below the 20-day moving average (MA) of 9.05, below the 50-day MA of 9.12, and above the 200-day MA of 7.78, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 32.25 is Neutral, neither overbought nor oversold. The STOCH value of 0.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASAIY.
Sendas Distribuidora Risk Analysis
Sendas Distribuidora disclosed 61 risk factors in its most recent earnings report. Sendas Distribuidora reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sendas Distribuidora Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.21B | 13.70 | 16.93% | ― | -5.52% | 20.33% | |
66 Neutral | $1.72B | 17.30 | 7.86% | 1.98% | 2.49% | 15.99% | |
63 Neutral | $2.70B | 12.36 | 15.61% | 7.64% | -0.61% | 70.09% | |
63 Neutral | $2.23B | 34.43 | 13.64% | ― | 7.90% | 68.05% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.51B | ― | -7.39% | ― | 2.60% | -3.23% | |
54 Neutral | $1.58B | 201.77 | 0.68% | ― | 8.47% | -85.17% |
* Consumer Defensive Sector Average
ASAIY
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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.