| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4.75 | -66 |
| Intrinsic value (DCF) | 8.15 | -41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 11.67 | -16 |
Carrefour SA is a global leader in the grocery retail sector, operating a diverse portfolio of hypermarkets, supermarkets, convenience stores, and cash-and-carry outlets across Europe, Latin America, and Asia. Headquartered in Massy, France, Carrefour serves millions of customers through its extensive network of over 12,000 stores and e-commerce platforms. The company offers a wide range of products, including fresh produce, consumer goods, electronics, and textiles, while also engaging in banking, insurance, and property development. Carrefour's multi-format strategy allows it to cater to various consumer needs, from large-scale hypermarkets to neighborhood convenience stores. With a strong presence in France, Spain, Brazil, and Argentina, Carrefour is a key player in the consumer defensive sector, known for its competitive pricing, private-label brands, and commitment to sustainability. The company's franchising model further extends its reach into emerging markets, reinforcing its position as one of the world's largest retail chains.
Carrefour presents a stable investment opportunity in the defensive grocery sector, supported by its diversified geographic footprint and strong brand recognition. The company's revenue of €87.27 billion and net income of €723 million in the latest fiscal year highlight its operational scale. However, thin margins and high debt (€15.89 billion) pose risks, particularly in competitive markets like France and Brazil. Carrefour's dividend yield (~3.5%) and low beta (0.592) may appeal to income-focused and risk-averse investors, but growth prospects are tempered by intense competition from discounters and e-commerce players. The company's €4.2 billion operating cash flow provides liquidity for debt management and store modernization, though capex demands remain significant.
Carrefour competes in the highly fragmented global grocery market by leveraging its multi-format strategy, private-label offerings (e.g., Carrefour Bio), and hybrid retail model combining physical stores with online platforms. Its competitive advantages include strong procurement scale (especially in Europe and Latin America), a diversified revenue base across 30+ countries, and leadership in hypermarkets—a format it pioneered. However, the company faces margin pressure from hard discounters like Lidl and Aldi in Europe, while e-commerce giants (Amazon) and regional players (Grupo Pão de Açúcar in Brazil) challenge its digital and pricing strategies. Carrefour's 2018 partnership with Tencent in China and alliances with Uber Eats for delivery demonstrate adaptability, but its slower digital growth compared to pure-play rivals remains a weakness. The company's focus on 'Carrefour 2026' transformation—emphasizing cost cuts, private labels, and organic growth—aims to counter these threats, though execution risks persist in inflationary environments.