Sendas Distribuidora SA (ASAI, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $3.78 billion, with a current price of $13.99 per share. Over the past week, ASAI has experienced a 3.02% gain, and looking at the past three months, the stock has seen a 7.47% increase. This positive trend is underscored by the GF Value, which currently estimates the stock's intrinsic value at $25.75. Given that the past GF Value was not applicable ($0), the current GF Valuation indicates that ASAI is significantly undervalued, suggesting potential for further price appreciation.
Understanding Sendas Distribuidora SA
Sendas Distribuidora SA operates within the defensive retail industry, focusing on the consumer goods sector. The company's business model revolves around cash and carry operations, offering a wide range of products including groceries, perishables, beverages, and cleaning supplies. ASAI caters to a diverse clientele, from food retailers and end-users to conventional retailers and individuals. With a presence across 23 Brazilian states, the company has established a robust geographical footprint in the market. 
Profitability Insights
ASAI's financial health is reflected in its Profitability Rank of 7/10, indicating a strong position relative to its peers. The company's Operating Margin is 4.78%, which is better than 66.03% of companies in the industry. Its Return on Equity (ROE) stands at an impressive 20.55%, surpassing 77.63% of its competitors. Additionally, ASAI's Return on Assets (ROA) and Return on Invested Capital (ROIC) are 2.07% and 12.94%, respectively, further demonstrating its ability to generate profits from its assets and investments. Over the past decade, the company has maintained profitability for six years, showcasing its financial resilience.
Growth Trajectory
ASAI's growth prospects are equally promising, with a Growth Rank of 9/10. The company's 3-Year Revenue Growth Rate per Share is an impressive 24.40%, outperforming 92.04% of its industry peers. Over a 5-year period, the Revenue Growth Rate per Share remains strong at 23.40%. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 15.80%, indicating sustained growth potential. Earnings growth also appears robust, with a 3-Year EPS without NRI Growth Rate of 7.10% and a 5-Year EPS without NRI Growth Rate of 17.90%.
Notable Shareholders
ASAI's shareholder base includes some noteworthy investors. Ruane Cunniff (Trades, Portfolio) holds 145,705 shares, representing a 0.05% stake in the company. Charles Brandes (Trades, Portfolio) also has a significant position, with 71,908 shares, equating to a 0.03% share percentage. The involvement of such reputable investors can be seen as a vote of confidence in ASAI's business model and future prospects.
Competitive Landscape
When compared to its competitors, ASAI stands out in terms of market capitalization and growth. Sanko Gosei Ltd (TSE:7888, Financial) has a market cap of $112.487 million, Tera Probe Inc (TSE:6627, Financial) is valued at $372.444 million, and Takebishi Corp (TSE:7510, Financial) at $195.041 million. These figures highlight ASAI's larger scale and potentially greater market influence within the retail - defensive industry.
Conclusive Analysis
In summary, Sendas Distribuidora SA's recent stock performance and valuation suggest a company on the rise. The stock's significant undervaluation, as indicated by the GF Value, coupled with strong profitability metrics and growth rates, paints a picture of a company with solid fundamentals and promising future prospects. ASAI's competitive edge is further reinforced when considering its market cap in relation to its peers. The confidence shown by notable investors like Ruane Cunniff (Trades, Portfolio) and Charles Brandes (Trades, Portfolio) may also serve as a positive signal to the market. As value investors continue to seek out undervalued stocks with strong growth potential, ASAI's current trajectory could very well continue its upward momentum.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
