Jeronimo Martins SGPS SA (JRONY) AI Stock Analysis

• Market Cap: $15.62B
• Dividend Yield: 2.65%
• Average Volume (3M): 89.00
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.27
• Revenue Growth: 9.29%
• EPS Growth: 3.24%
• Country: US
• Employees: 119,427
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.82
• Shares Outstanding: 314,646,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 89
• PEG Ratio: 0.16
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 8.90
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.59
• Revenue Forecast (FY): $41.83B

• Rating: 76 Outperform
• Price Target: $58.00 ▲(21.14% Upside)

Jeronimo Martins SGPS SA's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The company's robust revenue growth and cash flow generation, along with successful expansion efforts, are key strengths. However, high leverage and competitive market conditions pose risks. The technical indicators suggest a positive trend, but caution is advised due to potential overvaluation and near-overbought RSI levels.

Jeronimo Martins SGPS SA Business Overview & Revenue Model

Company Description

Jerónimo 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 Money

Jeronimo Martins generates revenue through its extensive network of retail stores, primarily through the sale of food and non-food items to consumers. The company has a strong presence in Poland and Portugal, with its Biedronka and Pingo Doce chains being the main contributors to its revenue. Key revenue streams include direct sales from retail operations, private label products, and partnerships with local suppliers. The company also benefits from economies of scale due to its large purchasing power, allowing it to negotiate favorable terms with suppliers. Additionally, Jeronimo Martins invests in digital transformation and e-commerce, expanding its reach and enhancing customer convenience, which further contributes to its revenue growth.

Jeronimo Martins SGPS SA Financial Statement Overview

Summary

Jeronimo Martins SGPS SA demonstrates strong revenue growth and cash flow generation, with stable gross margins. However, the company faces challenges with its high leverage and relatively low net profit margins. Continued focus on cost management and debt reduction could enhance financial stability and profitability.

Income Statement

Jeronimo Martins SGPS SA shows consistent revenue growth with a TTM revenue growth rate of 2.33%. The gross profit margin remains stable around 20.5%, indicating efficient cost management. However, the net profit margin is relatively low at 1.78%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting operational efficiency but also highlighting potential areas for cost optimization.

Balance Sheet

The company has a high debt-to-equity ratio of 1.80, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is strong at 20.64%, demonstrating effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet shows a solid asset base supporting equity.

Cash Flow

Free cash flow has grown significantly by 110.13% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.25, indicating adequate cash flow relative to net income. The free cash flow to net income ratio of 0.48 suggests a healthy conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.56B	33.46B	30.61B	25.39B	20.89B	19.29B
Gross Profit	7.10B	6.85B	6.25B	5.33B	4.50B	4.23B
EBITDA	2.27B	2.16B	2.15B	1.76B	1.54B	1.34B
Net Income	615.00M	599.00M	756.00M	590.00M	463.00M	312.00M
Balance Sheet
Total Assets	15.30B	15.30B	14.30B	11.85B	10.37B	9.43B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.88B	2.07B	1.80B	1.53B	1.04B
Total Debt	5.23B	4.92B	4.15B	3.15B	2.85B	2.80B
Total Liabilities	12.17B	12.04B	11.23B	9.26B	7.84B	7.17B
Stockholders Equity	2.90B	3.01B	2.81B	2.33B	2.28B	2.01B
Cash Flow
Free Cash Flow	954.00M	649.00M	837.00M	1.21B	1.17B	935.17M
Operating Cash Flow	1.98B	1.65B	2.02B	2.10B	1.76B	1.45B
Investing Cash Flow	-1.03B	-896.00M	-1.18B	-825.00M	-617.00M	-488.29M
Financing Cash Flow	-817.00M	-866.00M	-691.00M	-950.00M	-676.00M	-807.39M

Jeronimo Martins SGPS SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 47.88
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JRONY, the sentiment is Neutral. The current price of 47.88 is below the 20-day moving average (MA) of 50.17, below the 50-day MA of 49.09, and above the 200-day MA of 47.76, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JRONY.

Jeronimo Martins SGPS SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JRONY	76 Outperform	$15.62B	21.82	20.14%	2.65%	9.29%	3.24%
SYY	71 Outperform	$36.70B	20.53	84.89%	2.81%	2.92%	-4.06%
USFD	65 Neutral	$15.85B	29.59	12.29%	―	4.80%	3.49%
CHEF	64 Neutral	$2.38B	33.86	14.12%	―	8.88%	54.12%
PFGC	63 Neutral	$15.16B	46.46	7.42%	―	10.55%	-23.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	52 Neutral	$2.12B	―	-7.39%	―	2.60%	-3.23%

Jeronimo Martins SGPS SA Corporate Events

Jerónimo Martins Reports Strong Sales and Profit Growth

Jerónimo Martins, SGPS, S.A. is a multinational retail group based in Portugal, primarily operating in the food distribution sector with a significant presence in Poland, Portugal, and Colombia. The company is known for its focus on price leadership and efficiency in its operations.

Jeronimo Martins Reports Strong Growth Amid Challenges

The recent earnings call for Jeronimo Martins, Sgps painted a picture of solid financial health, marked by strong revenue and EBITDA growth, successful expansion efforts, and a robust cash position. However, the company is navigating challenges posed by geopolitical uncertainties, competitive market conditions, and cautious consumer behavior, which have influenced pricing strategies and sales in certain segments.

Jerónimo Martins Reports Strong H1 2025 Performance

Jerónimo Martins, SGPS, S.A. is a multinational company based in Portugal, primarily operating in the food retail and distribution sector with a significant presence in Poland, Portugal, and Colombia.

Jeronimo Martins Reports Resilient Growth Amid Challenges

The recent earnings call for Jeronimo Martins, Sgps, painted a picture of resilience and strategic growth amidst a challenging operating environment. The company reported solid sales growth and an improvement in EBITDA, maintaining its market leadership in several regions. However, concerns were raised about rising labor costs and cash flow outflow. Despite these hurdles, Jeronimo Martins managed to improve its margins and sustain a strong cash position.