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Jeronimo Martins SGPS SA (JRONY)
OTHER OTC:JRONY
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Jeronimo Martins SGPS SA
(OTC:JRONY)
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Select Model
Rating:72Outperform
Price Target:
$52.00
▲(6.43% Upside)
Action:ReiteratedDate:12/18/25
Jeronimo Martins SGPS SA's overall stock score reflects its strong financial performance and solid earnings call results, which are slightly offset by technical indicators showing bearish trends. The company's moderate valuation and reasonable dividend yield add to its appeal, despite challenges from geopolitical uncertainties and competitive pressures.
Positive Factors
Revenue Growth
Strong revenue growth indicates effective market strategies and expansion, particularly in Poland, enhancing long-term market position.
Cash Generation
Robust cash generation supports strategic investments and financial flexibility, ensuring sustainable growth and stability.
Market Share Gains
Gaining market share in Poland strengthens competitive positioning and supports revenue growth, crucial for long-term success.
Negative Factors
Rising Debt Levels
Increased leverage could strain financial resources, affecting future investment capacity and risk profile if not managed effectively.
Competitive Pressures
Intense competition and geopolitical factors may pressure margins and require strategic adjustments, impacting long-term profitability.
Consumer Demand Challenges
Cautious consumer behavior could limit sales growth and necessitate increased promotional activities, affecting profitability.
Jeronimo Martins SGPS SA (JRONY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.24B
Dividend Yield2.78%
Average Volume (3M)433.00
Price to Earnings (P/E)23.1
Beta (1Y)0.20
Revenue Growth9.29%
EPS Growth3.47%
CountryUS
Employees119,427
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.82
Shares Outstanding314,646,500
10 Day Avg. Volume0
30 Day Avg. Volume433
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)3.84
Price to Sales (P/S)0.35
P/FCF Ratio17.80
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda7.47
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3
Revenue Forecast (FY)$44.95B
Jeronimo Martins SGPS SA Business Overview & Revenue Model
Company DescriptionJerónimo Martins, SGPS, S.A. operates in the food distribution and specialized retail sectors in Portugal, Poland, and Colombia. The company operates through Portugal Retail; Portugal Cash & Carry; Poland Retail; Colombia Retail; and Others, Eliminations and Adjustments segments. It operates 3,250 food stores under the Biedronka name; and a chain of 290 health and beauty stores under the Hebe banner in Poland, as well as 819 food stores under the Ara name in Colombia. The company also operates 460 supermarkets under the Pingo Doce banner; and 38 stores and 4 platforms under the Recheio name in Portugal. In addition, it operates restaurants under the Pingo Doce name; Bem-Estar stores; and petrol stations and clothing under Code brand. Further, the company operates 20 kiosks and coffee shops under the Jeronymo name; and 21 chocolates and confectionary retail stores under Hussel name. Additionally, the company engages in human resources top management, real estate management and administration, training, and saline brackish waters aquaculture; wholesale of fruit and vegetables; retail management, consultancy, and logistics activities; the purchase and sale of real estate; growing of crops and farming of animals; retail sale of health and beauty products; manufacture of milk and dairy products; and provision of economic and accounting, business portfolio management, financial, and sea passenger water transport services. It is also involved in the trading and distribution of consumer goods; retail and wholesale of non-food products; other business support service activities; and provision of services in the area of wholesale and retail distribution. The company was founded in 1792 and is headquartered in Lisbon, Portugal. Jerónimo Martins, SGPS, S.A. is a subsidiary of Sociedade Francisco Manuel dos Santos, SGPS, S.E.
How the Company Makes MoneyJeronimo Martins generates revenue primarily through the sale of food and non-food products in its retail stores. The company's key revenue streams include sales from its supermarket chains, which account for a significant portion of its earnings, particularly from its Biedronka brand in Poland, known for its competitive pricing and extensive product offerings. Additionally, the company earns revenue through its wholesale operations, supplying goods to smaller retailers and businesses. Strategic partnerships with suppliers and manufacturers enhance its product offerings and pricing power, while the company also focuses on cost efficiencies and supply chain optimization to improve profit margins. Seasonal promotions and loyalty programs further drive customer engagement and sales volume, contributing to its overall financial performance.
Jeronimo Martins SGPS SA Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a solid financial performance with strong revenue and EBITDA growth, successful expansion, and a robust cash position. However, the company continues to face challenges from geopolitical uncertainties, competitive market conditions, and cautious consumer behavior, which have impacted pricing strategies and sales in certain segments.Q3-2025 Updates
Positive Updates
Robust Revenue Growth
Group sales grew by 7.1% or 6.6% at constant exchange rates to EUR 26.5 billion, with a notable like-for-like growth of 2.4% and significant contributions from expansion.
Strong EBITDA Performance
EBITDA reached EUR 1.8 billion, marking a 10.9% increase over the same period last year, or 9.9% growth at constant exchange rates, with an EBITDA margin increase of 23 basis points to 6.8%.
Expansion and Investment Success
The company executed its ambitious CapEx program, opening 274 new stores and renovating 170 locations, with a total CapEx of EUR 816 million.
Market Share Gains in Poland
Biedronka added EUR 1 billion of sales at constant exchange rates, gaining 0.2 percentage points in market share up to August.
Solid Cash Position
The balance sheet ended with a net cash position, excluding capitalized leases, of EUR 467 million.
Negative Updates
Challenging Market Conditions
The ongoing global geopolitical uncertainty and a highly competitive market environment are impacting consumer sentiment and price competition.
Low Basket Inflation Impact
The Polish market's low basket inflation combined with high cost inflation has intensified competition, impacting pricing strategies.
Pressure on Consumer Demand
In both Poland and Portugal, consumer behavior remains cautious and promotion-oriented, affecting like-for-like growth dynamics.
Weather-Related Sales Impact
Adverse weather conditions in Q3 affected certain high-margin categories, impacting overall sales performance.
Company Guidance
During the Jerónimo Martins Group's first nine months results conference call for fiscal year 2025, Chief Financial Officer Ana Luisa Virginia highlighted several key metrics underpinning the group's performance amidst ongoing geopolitical uncertainty. The group's top line grew by 7.1% (6.6% at constant exchange rates) to EUR 26.5 billion, with robust contributions from all banners, notably Biedronka in Poland, which added EUR 1 billion in sales at constant exchange rates. Consolidated EBITDA increased by 10.9% to EUR 1.8 billion, achieving a margin improvement of 23 basis points to 6.8%, driven by effective cost management and productivity measures. The group executed a CapEx program of EUR 816 million, opening 274 new stores and renovating 170 locations. The balance sheet remained strong, closing with a net cash position of EUR 467 million. Additionally, cash flow, excluding dividends, was EUR 128 million, reflecting improved funds from operations and enhanced working capital flows. Despite challenges, such as low basket inflation and competitive pressures, the group maintained its price leadership and market share, particularly in Poland, where it gained 0.2 percentage points of market share up to August.Jeronimo Martins SGPS SA Financial Statement Overview
Summary
Jeronimo Martins SGPS SA exhibits strong financial health with robust revenue growth, stable profitability, and effective cash flow management. Despite increased leverage, the company maintains a strong return on equity, indicating efficient use of resources. Overall, the financial performance is solid, with growth and profitability trends supporting a positive outlook.Income Statement
Jeronimo Martins SGPS SA has demonstrated strong revenue growth with a 6.4% increase in TTM, supported by consistent gross profit margins around 20.5%. The net profit margin is stable at 1.78%, indicating efficient cost management. EBIT and EBITDA margins are healthy, reflecting solid operational performance. Overall, the income statement shows robust growth and profitability.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio has increased to 1.80, indicating higher leverage, which could pose a risk if not managed properly. However, the return on equity remains strong at 20.64%, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. Overall, the balance sheet reflects a stable financial position with some leverage concerns.75
Positive
Cash Flow
Free cash flow has grown significantly by 37.88% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of profits into cash. The free cash flow to net income ratio is nearly 0.48, reflecting good cash flow management. Overall, the cash flow statement highlights strong cash generation and management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.23B | 33.46B | 30.61B | 25.39B | 20.89B | 19.29B |
| Gross Profit | 7.25B | 6.85B | 6.25B | 5.33B | 4.50B | 4.23B |
| EBITDA | 2.33B | 2.16B | 2.15B | 1.76B | 1.54B | 1.34B |
| Net Income | 642.00M | 599.00M | 756.00M | 590.00M | 463.00M | 312.00M |
Balance Sheet | ||||||
| Total Assets | 15.57B | 15.30B | 14.30B | 11.85B | 10.37B | 9.43B |
| Cash, Cash Equivalents and Short-Term Investments | 1.70B | 1.88B | 2.07B | 1.80B | 1.53B | 1.04B |
| Total Debt | 5.26B | 4.92B | 4.15B | 3.15B | 2.85B | 2.80B |
| Total Liabilities | 12.22B | 12.04B | 11.23B | 9.26B | 7.84B | 7.17B |
| Stockholders Equity | 3.11B | 3.01B | 2.81B | 2.33B | 2.28B | 2.01B |
Cash Flow | ||||||
| Free Cash Flow | 1.25B | 649.00M | 933.00M | 1.21B | 1.17B | 935.17M |
| Operating Cash Flow | 2.25B | 1.65B | 2.02B | 2.10B | 1.76B | 1.45B |
| Investing Cash Flow | -1.01B | -896.00M | -1.18B | -825.00M | -617.00M | -488.29M |
| Financing Cash Flow | -933.00M | -866.00M | -691.00M | -950.00M | -676.00M | -807.39M |
Jeronimo Martins SGPS SA Technical Analysis
Positive
48.86
Price Trends
48.81
Positive
48.69
Positive
49.26
Positive
Market Momentum
1.00
Negative
61.15
Neutral
88.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRONY, the sentiment is Positive. The current price of 48.86 is below the 20-day moving average (MA) of 50.00, above the 50-day MA of 48.81, and below the 200-day MA of 49.26, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 61.15 is Neutral, neither overbought nor oversold. The STOCH value of 88.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JRONY.
Jeronimo Martins SGPS SA Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $16.24B | 23.09 | 20.96% | 2.78% | 9.29% | 3.47% | |
70 Outperform | $21.04B | 32.45 | 15.30% | ― | 4.80% | 3.49% | |
69 Neutral | $2.68B | 39.20 | 12.67% | ― | 8.88% | 54.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $43.33B | 24.52 | 83.64% | 2.84% | 2.92% | -4.06% | |
57 Neutral | $15.05B | 43.51 | 7.75% | ― | 10.55% | -23.38% | |
52 Neutral | $2.35B | -23.17 | -6.37% | ― | 1.45% | -5.49% |
* Consumer Defensive Sector Average
JRONY
Jeronimo Martins SGPS SA
51.58
8.53
19.82%
SYY
Sysco
90.48
16.85
22.89%
CHEF
The Chefs' Warehouse
65.82
3.77
6.08%
UNFI
United Natural Foods
38.62
9.54
32.81%
PFGC
Performance Food Group
95.83
12.83
15.46%
USFD
US Foods Holding
95.41
25.30
36.09%
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.