French stock alert

FRA

Afternoon Alert: Carrefour decreases 0.2%, leads Food & drug retailers sector lower 25 July 2017 14:03 CEST

NEWS BITES - EUROPE

Carrefour (FR:CA) has decreased 0.2% to trade at EUR20.70 vs. the Food & drug retailers sector which weakened 1.6 points (or 0.06%) to 2,491.6. Representing a weighting of about 70.3% of the sector, the stock accounted for the loss. The shares have underperformed 90% of the market in the past week. Trading volume was 1.2 times average so far today.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 0.31 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price sank 4.4% in the last week and tumbled 6.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Return on Assets 1.9% [3.0%]

+ Return on Equity 7.8% [11.8%]

Other Bearish Signals include:

+ Net profit margin has averaged 1.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Note

Carrefour today is at a discount of 14.0% to the 12-month high of EUR24.07 on 19 Oct, 2016. It is at a premium of 6.4% to the 12-month low of EUR19.46 on 19 Apr, 2017.

Bullish Signals:

Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued.

The Brand Value represents an impressive 31.5% of the estimated Enterprise Value of EUR24.1 billion (US$28.1 billion).

Profit growth and EBITDA growth have shown signs of recovery in recent years.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Capital Employed 6% [1.3%]

Carrefour (FR:CA; EPA:CA; PA:CA; FP:CA)

ISIN: FR0000120172

PermID: 4295866751

Source: www.BuySellSignals.com