Carrefour (CA) AI Stock Analysis

• Market Cap: €9.81B
• Dividend Yield: 6.83%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.53
• Revenue Growth: 4.39%
• EPS Growth: -59.47%
• Country: FR
• Employees: 324,750
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.32
• Shares Outstanding: 736,314,800
• 10 Day Avg. Volume: 2,404,499
• 30 Day Avg. Volume: 2,785,540
• PEG Ratio: -0.24
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 3.79
• 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: €16.10
• Price Target Upside: 19.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €13.50 ▲(0.30% Upside)

Carrefour's overall stock score is primarily driven by its stable financial performance and attractive dividend yield. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to a neutral market sentiment. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Stable revenue growth indicates Carrefour's ability to maintain its market position and adapt to consumer demands, supporting long-term business sustainability.

Cash Generation

Strong cash generation relative to net income ensures Carrefour can fund operations and investments, enhancing financial flexibility and resilience.

Business Model

The high-volume, low-margin model leverages economies of scale, allowing Carrefour to offer competitive prices and retain market share.

Negative Factors

Net Profitability

Low net profitability may limit Carrefour's ability to reinvest in growth initiatives and improve shareholder returns, posing a challenge to long-term financial health.

Leverage

Moderate leverage could constrain Carrefour's financial flexibility, impacting its ability to invest in growth or weather economic downturns.

Free Cash Flow

Declining free cash flow suggests potential challenges in maintaining cash reserves, which could affect Carrefour's capacity to fund future growth and operations.

Carrefour Business Overview & Revenue Model

Company Description

Carrefour SA operates stores in various formats and channels in France, Spain, Italy, Belgium, Poland, Romania, Brazil, Argentina, and Taiwan. The company operates hypermarkets, supermarkets, convenience stores, cash and carry stores, and hypercash stores; e-commerce sites; and service stations. Its stores offer fresh produce; local products; consumer goods; and non-food products, including electronic and household appliances, textiles, and childcare products. The company is also involved in banking, insurance, property development, and franchise activities; the provision of travel agency services; and the rental of shopping malls. As of December 31. 2021, it operated 253 hypermarkets, 1,043 supermarkets, 4,330 convenience stores, 147 cash and carry outlets, and 26 soft discount stores in France; 457 hypermarkets, 1,926 supermarkets, 3,430 convenience stores, 12 cash and carry outlets, and 81 soft discount stores in rest of Europe; 184 hypermarkets, 151 supermarkets, 558 convenience stores, 259 cash and carry outlets, and one soft discount store in Argentina and Brazil; and 70 hypermarkets, four supermarkets, and 274 convenience stores in Taiwan, as well as 688 stores through local franchisee partners in Middle East, Africa, etc. Carrefour SA was founded in 1959 and is based in Massy, France.

How the Company Makes Money

Carrefour generates revenue primarily through the sale of consumer goods across its various store formats, including hypermarkets, supermarkets, and convenience stores. The company's revenue model is structured around high-volume sales of groceries and non-food items, complemented by private label products that often yield higher margins. Additional revenue streams include e-commerce sales, loyalty programs, and promotional partnerships with brands. Carrefour's strategic partnerships with suppliers and manufacturers also play a significant role in securing favorable pricing and promotional opportunities, enhancing profitability. Furthermore, the company has been investing in digital transformation, expanding its online shopping platform, which has become increasingly important for revenue generation, especially in the wake of changing consumer behaviors.

Carrefour Financial Statement Overview

Summary

Carrefour demonstrates stable revenue growth and operating efficiency but faces challenges in net profitability and leverage. While cash flow generation remains strong, the decline in free cash flow highlights potential areas of concern. Overall, Carrefour maintains a solid financial foundation but should focus on improving profitability and financial stability.

Income Statement

Carrefour shows a stable revenue growth with a 2.78% increase from 2023 to 2024. Gross profit margin stands at 19.44%, which is healthy for a retailer, while the net profit margin is relatively low at 0.83%, indicating pressure on net profitability. EBIT and EBITDA margins are 2.54% and 4.93% respectively, reflecting moderate operating efficiency.

Balance Sheet

The debt-to-equity ratio is 1.47, indicating a moderate level of leverage. Return on equity (ROE) is low at 6.68%, suggesting limited returns for equity investors. The equity ratio of 18.86% implies a balanced asset structure but could be improved for greater financial stability.

Cash Flow

The operating cash flow to net income ratio is 5.81, showing strong cash generation capacity relative to net income. However, free cash flow has declined by 13.25% from 2023 to 2024, suggesting potential challenges in maintaining cash reserves. The free cash flow to net income ratio is 3.36, indicating effective cash conversion despite volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.44B	87.27B	84.91B	83.09B	71.76B	72.15B
Gross Profit	15.64B	16.97B	15.85B	14.34B	13.03B	13.40B
EBITDA	3.80B	4.18B	4.23B	4.69B	3.95B	3.96B
Net Income	297.00M	723.00M	1.66B	1.35B	1.07B	641.00M
Balance Sheet
Total Assets	55.26B	57.36B	56.17B	56.55B	47.67B	47.59B
Cash, Cash Equivalents and Short-Term Investments	5.22B	6.89B	6.68B	5.43B	3.82B	4.53B
Total Debt	22.77B	15.89B	20.09B	19.23B	15.87B	16.68B
Total Liabilities	44.28B	44.88B	42.78B	43.37B	35.84B	36.29B
Stockholders Equity	10.31B	10.82B	11.54B	11.14B	10.25B	9.79B
Cash Flow
Free Cash Flow	2.36B	2.43B	2.80B	2.34B	2.08B	1.90B
Operating Cash Flow	3.66B	4.20B	4.65B	4.22B	3.66B	3.40B
Investing Cash Flow	-2.20B	-2.37B	-739.00M	-2.13B	-1.33B	-1.84B
Financing Cash Flow	-701.00M	-1.08B	-2.72B	-326.00M	-3.06B	-1.13B

Carrefour Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:CA, the sentiment is Positive. The current price of 13.46 is above the 20-day moving average (MA) of 13.24, above the 50-day MA of 13.12, and above the 200-day MA of 12.62, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 76.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:CA.

Carrefour Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CA	66 Neutral	€9.81B	28.60	3.14%	6.83%	4.39%	-59.47%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FNAC	61 Neutral	€840.88M	37.45	1.54%	3.42%	17.97%	-81.24%
CO	40 Underperform	€125.74M	-0.23	-46.40%	―	―	―

Carrefour Corporate Events

Carrefour Enhances Offer for Carrefour Brazil Shares

Carrefour has increased its offer to acquire all outstanding shares of its subsidiary, Grupo Carrefour Brasil, providing minority shareholders with improved options. This move reflects Carrefour’s confidence in the long-term prospects of its Brazilian operations and aims to offer an attractive valuation to shareholders, with the transaction expected to conclude by the end of the second quarter of 2025.