DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION (DIA) AI Stock Analysis

• Market Cap: €1.67B
• Dividend Yield: N/A
• Average Volume (3M): 36.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 2.79%
• EPS Growth: -161.54%
• Country: ES
• Employees: 13,706
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Discount Stores
• EPS (TTM): -1.36
• Shares Outstanding: 58,058,900
• 10 Day Avg. Volume: 31,650
• 30 Day Avg. Volume: 36,950
• PEG Ratio: N/A
• Price to Book (P/B): -43.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.87
• 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: €29.00
• Price Target Upside: 0.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: €29.00 ▲(0.35%Upside)

The overall score reflects the company's challenging financial position and valuation concerns, with some positive signs from technical momentum. The financial instability, particularly the negative equity and net losses, are the most significant factors, while technical indicators suggest possible short-term opportunities despite being overbought.

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 makes money primarily through the sale of groceries and related products in its retail stores. The company operates a network of discount supermarkets where the revenue is generated from direct sales to consumers. Additionally, DIA benefits from its own private-label products, which tend to have higher profit margins than branded products. The company also engages in franchising, allowing franchisees to operate stores under the DIA brand, which provides a steady stream of franchise fees and royalties. Strategic partnerships with local suppliers and logistical efficiencies contribute to cost savings and competitive pricing, further enhancing its revenue potential.

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Financial Statement Overview

Summary

The company faces significant financial challenges with ongoing net losses and a highly leveraged balance sheet. While there is some improvement in cash flow generation, the negative equity and operational losses highlight substantial financial instability.

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: Positive
• Last Price: 28.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:DIA, the sentiment is Positive. The current price of 28.9 is above the 20-day moving average (MA) of 27.30, above the 50-day MA of 26.61, and above the 200-day MA of 18.98, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 65.11 is Neutral, neither overbought nor oversold. The STOCH value of 87.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$26.93B	15.26	-4.27%	3.16%	1.02%	1.89%
DIA	54 Neutral	€1.67B	―		―	2.79%	-161.54%
0NYH		€2.68B	12.91	9.21%	5.28%	―	―
0M0Q		€94.25M	―	-12.62%	―	―	―

DISTRIBUIDORA INTERNACIONAL DE ALIMENTACION Corporate Events

DIA Announces Strategic Board Restructuring

Distribuidora Internacional de Alimentación, S.A. (DIA) has announced significant changes in its Board of Directors and committees, following its divestment in Brazil. The company has accepted the resignations of key board members and proposed new appointments to align with its strategic priorities, including the appointment of Alberto Gavazzi as the new Chairman.

DIA Announces General Shareholders’ Meeting for Strategic Decisions

Distribuidora Internacional de Alimentación, S.A. has announced a General Shareholders’ Meeting scheduled for June 20, 2025, to discuss several key issues, including the approval of the 2024 financial year accounts and management reports, re-election of auditors, and appointment of new directors. The meeting will address strategic decisions impacting the company’s governance and financial oversight, which could influence its market positioning and stakeholder confidence.

Grupo Dia Reports Strong Q1 2025 Sales Growth Driven by Spanish Market

Distribuidora Internacional de Alimentacion (Grupo Dia) reported a 3.0% increase in net sales to 1.401 billion euros in Q1 2025, driven by strong performance in Spain with a 7.2% sales growth. The company is on track to meet its Strategic Plan 2025-29 objectives, gaining market share in Spain, while facing challenges in Argentina due to declining consumption, although exchange rate effects mitigated some impacts.