Buffett Brain · Research note
MGROS.IS· Consumer Staples
Migros Ticaret A.S.
Migros Ticaret's 5-year ROIC of 28.7% is top-quintile in Consumer Defensive, but thin margins and EPS decline raise concerns.
Buffett fit
Partial fit
Owner
55
Durability
64
Management
83
Price
82
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Staples stocks in our database.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Migros Ticaret would involve navigating a competitive grocery market with slim margins.
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The 10-year durability of Migros hinges on its ability to maintain its top-quintile while addressing the declining EPS and low margins.
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Management has maintained a stable share count over the past five years, indicating discipline in .
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With a of 18.4 and an yield of 12.5%, the valuation appears reasonable.
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Read the full Migros Ticaret A.S. analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 15-year of 28.7% is top-quintile in Consumer Defensive sector.
- 2Stable share count over the past five years indicates disciplined capital management.
- 3/Net income ratio of 2.29 suggests strong cash conversion.
- 4Debt/Equity ratio of 0.40 indicates conservative .
Concerns
5- 1Net margin of 1.57% is significantly below sector top-quintile cutoff of 13.4%.
- 2EPS CAGR of -10.89% over five years indicates declining profitability.
- 3Current ratio of 0.79 suggests potential liquidity concerns.
- 4 of 2.81% is below sector top-quintile cutoff of 17.4%.
Price history
$441+1,151.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Migros Ticaret operates in the retail sale of food, beverages, and consumer goods in Turkey, including online food retailing and various service businesses. It generated $412.76 billion in revenue with a net income of $6.47 billion, resulting in a slim net margin of 1.57%. Despite the low margins, the business has a strong of 28.7%, indicating efficient use of capital.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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