Discounted Cash Flow Calculation for SNSE:FALABELLA using Dividend Discount Model Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future dividends to their present value. This
approach is used for finance firms where free cash flow is difficult to estimate
(e.g. Banks/ Insurance firms).
If the firm does not pay the majority of its earnings out as a dividend this
method will often arrive at a value significantly lower than the share price.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
S.A.C.I. Falabella's earnings available for a low price, and how does
this compare to other companies in the same industry?
S.A.C.I. Falabella's earnings are expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).
S.A.C.I. Falabella's revenue is expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
S.A.C.I. Falabella's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
S.A.C.I. Falabella's finances.
The net worth of a company is the difference between its assets and liabilities.
S.A.C.I. Falabella is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
S.A.C.I. Falabella's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
S.A.C.I. Falabella's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 2.1x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Gaston Bottazzini has been Chief Executive Officer S.A.C.I. Falabella since June 1, 2018 and had served as its Corporate Chief Executive Officer of Falabella Financiero since October 2008 and served its Chief Executive Officer of Financial Retail and Head of Financial Retail. Mr. Bottazzini had served as Vice Chairman and Director of Banco Falabella Perú S.A until May 31, 2018. Before joining Falabella Financiero he was a partner at McKinsey & Company, where he worked from 1996 to 2008, mainly serving financial services clients in Latin America, USA and Spain. He has earned Master of Business Administration from Harvard Business School and Bachelor of Science from University of California, Davis.
Insufficient data for Gaston to compare compensation growth.
Insufficient data for Gaston to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure of the
management team in years:
The tenure for the S.A.C.I. Falabella management team is about average.
Corporate Chief Executive Officer
Alejandro González Dale
Corporate Chief Financial Officer
Helder Mao de Ferro
Chief Information Officer
Head of Investor Relations
Gonzalo Smith Ferrer
Corporate Legal Affairs & Governance Manager
María Francisca Prieto Arroyo
Corporate Chief People Officer
Enrique Gundermann Wylie
Corporate Home Improvement Chief Executive Officer
Jordi Gaju Nicolau
Corporate Chief Strategy Officer
Johann Ramberg Arnillas
Corporate Supermarkets Chief Executive Officer
Ricardo Hepp De Los Ríos
Former Chief Executive Officer of Rentas Falabella
Board of Directors Tenure
Average tenure of the
board of directors in years:
The average tenure for the S.A.C.I. Falabella board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Carlo Solari Donaggio
Juan Carlos Cortes Solari
Hernán Büchi Buc
Sergio Cardone Solari
María Cecilia Karlezi Solari
Carlos Alberto Heller Solari
José Luis Del Río Goudie
Paola Cuneo Queirolo
Juan Pablo Del Río Goudie
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
S.A.C.I. Falabella engages in online and offline retail business in Chile, Argentina, Peru, Colombia, Uruguay, Mexico, and Brazil. The company operates through Department Stores, Home Improvement, Supermarkets, Promotora CMR, Real Estate, and Other Business and Intersegment Eliminations segments. It operates various department stores that sell a range of products, including clothing, accessories, home products, electronics, beauty products, and others under the Falabella brand. It also operates home improvement stores, which sell building and home improvement products, such as building materials; hardware; and tools; accessories for kitchen, bathroom, garden, and decoration; and other things under the Sodimac brand. In addition, the company operates hypermarkets and supermarkets under the Tottus brand that offer food and other non-food products; and constructs, administers, operates, manages, leases, and subleases stores and malls. Further, it provides credit to individuals through the CMR credit cards; and banking and insurance brokerage services, as well as manufactures textiles. The company operates 111 department stores; 251 home improvement stores; and 132 supermarkets. S.A.C.I. Falabella was founded in 1889 and is based in Santiago, Chile.
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