tiprankstipranks
Trending News
More News >
Sendas Distribuidora Sa (ASAIY)
OTHER OTC:ASAIY
US Market

Sendas Distribuidora (ASAIY) AI Stock Analysis

Compare
36 Followers

Top Page

ASAIY

Sendas Distribuidora

(OTC:ASAIY)

Select Model
Select Model
Select Model
Neutral 68 (OpenAI - 4o)
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)

Sendas Distribuidora Business Overview & Revenue Model

Company DescriptionSendas Distribuidora S.A. (ASAI), commonly known as Assaí Atacadista, is a leading wholesale retailer in Brazil. The company operates in the cash and carry sector, providing a wide range of products including groceries, electronics, household items, and more, primarily to small and medium-sized retailers, as well as individual consumers seeking bulk purchases. Assaí Atacadista is recognized for offering competitive prices and a robust selection of high-quality products, making it a prominent player in the Brazilian wholesale market.
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:Feb 12, 2026
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
75
Positive
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
65
Positive
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
70
Positive
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.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue72.08B66.50B54.52B41.90B36.04B30.23B
Gross Profit12.63B9.43B8.96B7.14B5.91B5.34B
EBITDA5.33B4.63B3.69B3.21B3.71B2.41B
Net Income636.00M710.00M1.22B1.61B1.40B1.05B
Balance Sheet
Total Assets43.92B43.18B40.62B22.85B18.82B35.91B
Cash, Cash Equivalents and Short-Term Investments4.03B5.51B5.84B2.55B3.53B5.03B
Total Debt25.96B24.37B20.95B12.08B10.61B12.57B
Total Liabilities38.92B38.55B36.72B20.09B17.47B26.20B
Stockholders Equity5.00B4.63B3.90B2.77B1.35B7.10B
Cash Flow
Free Cash Flow1.83B2.68B984.00M187.00M1.85B1.75B
Operating Cash Flow3.85B5.96B5.14B3.27B3.50B3.16B
Investing Cash Flow-1.84B-3.06B-3.79B-3.28B-4.79B-4.37B
Financing Cash Flow-2.39B-3.29B1.94B-978.00M-1.18B4.71B

Sendas Distribuidora Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price9.38
Price Trends
50DMA
7.67
Negative
100DMA
8.13
Negative
200DMA
8.42
Negative
Market Momentum
MACD
-0.22
Negative
RSI
45.42
Neutral
STOCH
27.73
Neutral
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 9.38 is above the 20-day moving average (MA) of 6.66, above the 50-day MA of 7.67, and above the 200-day MA of 8.42, indicating a neutral trend. The MACD of -0.22 indicates Negative momentum. The RSI at 45.42 is Neutral, neither overbought nor oversold. The STOCH value of 27.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$2.30B11.9213.73%9.15%0.26%-19.45%
68
Neutral
$1.85B11.4316.09%-3.67%29.75%
67
Neutral
$1.68B17.897.22%2.06%3.11%6.54%
64
Neutral
$2.45B34.8414.12%8.88%54.12%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
52
Neutral
$2.11B-21.13-6.37%1.45%-5.49%
52
Neutral
$934.27M-204.83-0.37%7.22%-108.99%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ASAIY
Sendas Distribuidora
6.79
2.12
45.33%
FLO
Flowers Foods
11.10
-6.88
-38.26%
CHEF
The Chefs' Warehouse
64.55
11.82
22.42%
UNFI
United Natural Foods
35.22
7.19
25.65%
WMK
Weis Markets
68.76
2.62
3.96%
GO
Grocery Outlet Holding
9.75
-6.24
-39.02%

Sendas Distribuidora Corporate Events

Sendas Distribuidora Board Backs Governance Revisions and Real Estate Sale‑Leaseback Deal
Dec 19, 2025

At a board meeting held on December 10, 2025, Sendas Distribuidora S.A.’s directors approved updates to several key governance and compliance documents, including revisions to the company’s Conflicts of Interest Policy, Anticorruption Policy and the internal regulations of its Corporate Governance, Sustainability and Nomination Committee, reinforcing its emphasis on governance, ethics and oversight. The board also authorized a structured real estate transaction with entities of the SuccesPar group involving the sale and concurrent leaseback of three properties and additional built-to-suit and buy-to-lease arrangements for new or refurbished stores, allowing management flexibility to substitute assets as long as the transaction’s economic rationale is preserved, a move that could optimize capital allocation and expand or modernize the company’s store base while maintaining operational use of the underlying properties.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Assaí Faces Legal Setback in Tax Liability Dispute with GPA
Dec 15, 2025

On December 12, 2025, a judge in São Paulo denied Assaí’s request for urgent relief in a precautionary judicial measure concerning tax liabilities attributed to it from GPA, despite ongoing arbitration proceedings. Assaí maintains that it bears no responsibility for these tax liabilities, which are linked to a spin-off completed in 2020, and continues to pursue legal avenues to protect its interests and ensure proper allocation of responsibilities.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Announces Sale of Interest in Financeira Itaú CBD to Itaú Unibanco
Dec 8, 2025

On December 8, 2025, Sendas Distribuidora S.A. announced the execution of definitive agreements with Itaú Unibanco Holding S.A. for the sale of its indirect interest in Financeira Itaú CBD S.A. The transaction, which will occur in two phases, involves the sale of equity interests held by Sendas and its partners, Grupo Casas Bahia S.A. and Companhia Brasileira de Distribuição, in FIC. Upon completion, Itaú will become the sole shareholder of FIC. The deal is valued at approximately BRL 260 million, subject to adjustments, and awaits approval from Brazilian regulatory authorities. The existing commercial partnership between Sendas and FIC will continue for two more years, allowing Sendas to explore new financial product distribution opportunities.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Announces Significant Share Acquisition by Investors
Nov 28, 2025

On November 24, 2025, Sendas Distribuidora S.A. announced that Snapper Rocks Strategy Fundo de Investimento em Ações and WHG Apache Fundo de Investimento em Ações have acquired a significant shareholding interest in the company as part of their investment strategy. The investors clarified that they do not intend to alter the company’s controlling group or management structure and have no shareholder agreements affecting voting rights or securities transactions. This acquisition will be reviewed by the Brazilian antitrust authority, CADE, in compliance with legal requirements.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Files November 2025 SEC Report
Nov 19, 2025

Sendas Distribuidora S.A., a company based in Rio de Janeiro, Brazil, has submitted a report as a foreign private issuer to the United States Securities and Exchange Commission for November 2025. This filing is part of their regulatory compliance under the Securities Exchange Act of 1934, indicating their ongoing commitment to transparency and adherence to international financial reporting standards.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Approves Financials and Capital Increase
Nov 7, 2025

On November 6, 2025, Sendas Distribuidora’s Board of Directors convened to approve several key resolutions, including the quarterly financial statements for the period ending September 30, 2025. The board also authorized a capital increase through the issuance of new shares under the company’s stock option plan, enhancing its financial flexibility. Additionally, amendments to the Corporate Risk Management Policy were approved, reflecting the company’s commitment to robust governance practices. These decisions are expected to strengthen Sendas Distribuidora’s operational capabilities and market position.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Announces Capital Increase Following Stock Option Exercise
Nov 7, 2025

On November 6, 2025, Sendas Distribuidora S.A. announced a capital increase due to the exercise of stock options granted to certain employees under its stock option plans. The capital increase amounts to R$ 607.51, raising the company’s capital stock to R$ 1,455,782,617.97. This increase involved the issuance of 60,751 common shares, with a minimal dilution effect of -0.0045%. This move reflects the company’s commitment to employee incentives and could potentially enhance its operational capabilities and market position.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Reports Revenue Growth Amid Economic Challenges in 3Q25
Nov 7, 2025

In the third quarter of 2025, Sendas Distribuidora faced a challenging economic environment characterized by high interest rates and increased household debt, impacting consumer purchasing power. Despite these challenges, the company reported a 2.7% increase in gross revenue compared to the same period in 2024, driven by strategic store expansions and enhancements in customer experience. The company’s app-based customer engagement strategy significantly boosted store visit frequency and sales, while partnerships with last-mile delivery services like iFood resulted in substantial sales growth. The conversion of hypermarkets into cash & carry stores also contributed to improved profitability, with converted stores showing higher revenue and productivity compared to organic stores. The company remains focused on operational efficiency and financial discipline, aiming for sustainable growth amid evolving consumer behaviors.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Releases Q3 2025 Financial Results
Nov 6, 2025

Sendas Distribuidora S.A. released its interim financial information for the period ending September 30, 2025, showing a slight decrease in total assets from the previous year, with current assets and liabilities also experiencing a reduction. The company’s financial position reflects a stable yet cautious approach in managing its resources amidst market fluctuations, which could have implications for its stakeholders and market positioning.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

Sendas Distribuidora Reports Debt Reduction and Cash Flow Growth in 3Q25
Oct 23, 2025

Sendas Distribuidora S.A. announced a significant reduction in net debt by R$0.5 billion in the third quarter of 2025 compared to the same period in 2024, with further decreases from the previous quarter. This reduction reflects the company’s financial discipline and effective capital allocation, achieving the lowest leverage level since 2021. Over the past 12 months, Assaí generated R$3.1 billion in free cash flow, underscoring its ability to convert earnings into cash and continue its deleveraging trajectory. The company maintains its leverage guidance of approximately 2.6x Net Debt/EBITDA by the end of 2025. The official audited results for 3Q25 will be released on November 6, 2025, with an earnings conference call scheduled for November 7, 2025.

The most recent analyst rating on (ASAIY) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Sendas Distribuidora stock, see the ASAIY Stock Forecast page.

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.Date of analysis: Jan 02, 2025