EQUITY REPORT Jernimo Martins

Market Profile
Share Price (08/12/2015)
52-Week Price Range ()
Outstanding Shares
Market Cap. (mn)
Free Float (%)

12,54
7.48 - 13.86
690,290,000
8,032.93
26,9

Source: Yahoo Finance

Share Price
Business

Jeronimo martins

The advantage the group has to its competitors is that Jernimo

Martins supplies food for all its customers, at competitive prices and
in a fast and convenient way, which makes them operate with the
maximum efficiency and linear cost structures. This reflects the
group's approach of value food retail, in which the focus on the value
and on a mass market strategy defines the groups presence in the
market. The result of Jernimo Martins formats is materialized is its
position of leadership in the market, particularly in Poland, where the
group continues to grow, despite all the adverse economic
conditions.

Source: Yahoo Finance

Stock Performance
140,00
90,00

Jernimo Martins

PSI-20

12/15

09/15

06/15

03/15

12/14

09/14

06/14

40,00
03/14

The strategy of the group for its future is: Promote the sustainable
development of its activity; manage carefully the risk in what
concerns preservation of the value and the strengthening of the
balance sheet stability; maximize the scale effect and the synergies,
and foster innovation and pioneering spirit as development factors to
reach competitive advantages.

13,00
11,00
9,00
7,00
5,00

12/13

Jernimo Martins is a Portuguese Corporate Group, currently

operating in food distribution and consumer products manufacturing.
The group is present in Portugal, Poland and Colombia, owning more
than 2800 stores. Jernimo Martins is listed on Euronext Lisbon,
under the code JMT, and is part of the PSI-20 index. The group has
entered the Colombian market in 2013, making Colombia its third
strongest market. In 2014 the revenues reached 12.7 billion euros
(67% of it in the Polish market), and the value of the EBITD was 733
million euros (75% of it achieved in the Polish Market). The group has
86 563 contributors, and ended the year with 5.2 billion euros of
Capital, in the NYSE Euronext Lisbon.

Sonae

Source: Yahoo Finance

Revenues vs Portuguese GDP %

20,00%
15,00%
10,00%
5,00%
0,00%
2010 2012 2014 2015 2017 2019

Value per share: 11,08

-5,00%
-10,00%
%GDP Growth

%Revenues Growth

Source: Investing.com and Tradingeconomics.com

Corporate Finance Department | fepfinanceclub@gmail.com| www.fep.up.pt/skillsacademy/fepfinanceclub/

EQUITY REPORT Jernimo Martins

Balance Sheet (Million )

Total Assets
Fixed and Intangible Assets
Non-operating assets
Inventories
Receivables
Cash and equivalents
Equity
Total Liabilities
Accruals and provisions
IBD
Account payables
Others

2014
5.172,42
3.579,52
271,93
572,00
318,31
430,66
1.638,69
3.533,73
261,08
714,80
2.358,13
199,72

F2015
5.629,45
3.865,88
271,93
595,85
335,16
560,63
1.936,80
3.692,66
260,68
714,80
2.517,46
199,72

F2016
6.173,14
4.059,17
271,93
639,57
359,76
842,71
2.276,63
3.896,51
279,81
714,80
2.702,18
199,72

F2017
6.743,15
4.262,13
271,93
682,94
384,16
1.141,99
2.644,41
4.098,75
298,79
714,80
2.885,44
199,72

F2018
7.322,86
4.475,24
271,93
725,13
407,88
1.442,68
3.027,44
4.295,43
317,24
714,80
3.063,66
199,72

F2019
7.917,66
4.699,00
271,93
765,23
430,44
1.751,06
3.435,27
4.482,39
334,79
714,80
3.233,09
199,72

wacc
Beta
Equity Market Premium
Risk Free Rate
D/V
kd
ke

8,92%
0,89
6,50%
3,45%
10,25%
7,45%
9,26%

Table 1- WACC
Source: team estimates

Dividend Yield
3,38

Industry

8,48 27,19

2,72

1,56

PER

EV/EBITDA

1,90

1,19

Source: Company Data and

Gurufocus.com

Margins
1.200,00

10,0%

1.000,00

8,0%

800,00

6,0%

600,00
4,0%

400,00

EBITDA

F2019

0,0%

F2018

0,00

F2017

2,0%

F2016

200,00

2014

10,92%
8,25
8,41
8,58
8,76
8,95

F2015

9,92%
9,24
9,45
9,67
9,91
10,16

2013

7,92%
12,16
12,55
12,97
13,44
13,94

5,32

7,65 11,04

Jeronimo martins

2012

6,92%
14,43
15,00
15,63
16,33
17,11

WACC
8,92%
10,50
10,78
11,08
11,41
11,76

11,53 25,17

Sonae SGPS

Coluna1

in millions

Growth Rate

1,50%
1,75%
2,00%
2,25%
2,50%

2014
F2015
F2016
F2017
F2018
F2019
12.680,22 13.592,77 14.590,18 15.579,68 16.541,98 17.456,75
(1.965,87) (2.152,48) (2.261,57) (2.405,26) (2.576,58) (2.711,48)
725,82
816,50
925,27
997,70 1.036,58 1.101,48
5,72%
6,01%
6,34%
6,40%
6,27%
6,31%
(276,75) (304,26) (328,60) (324,73) (298,35) (313,27)
449,08
512,24
596,67
672,97
738,23
788,22
3,54%
3,77%
4,09%
4,32%
4,46%
4,52%
(20,27)
(16,21)
(12,97)
(10,38)
(8,30)
(6,64)
428,81
800,29
912,29
987,33 1.028,27 1.094,84
(103,73) (204,07) (232,64) (251,77) (262,21) (279,18)
325,08
596,21
679,66
735,56
766,06
815,66

PBV

Multiples
Income Statement (Million )
Revenues
Operational Costs
EBITDA
Margin
Depreciation
EBIT
Margin
Financial Operations
EBT
Taxes
Net Profit

EBITDA Margin

Source: Company Data and team

estimates

Eduardo Magalhes

Joo Santos

Pedro Reis

Corporate Finance Department | fepfinanceclub@gmail.com| www.fep.up.pt/skillsacademy/fepfinanceclub/