Carrefour SA
🇫🇷 CA.PA · Paris · FR0000120172
Consumer
EUR 16.20 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
34.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 16.20 ÷ 0.47 = 34.7
TTM period through: 2025-12-31
Forward P/E (estimated): 11.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 11.4
Yield (Fwd)
5.99%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 6.08%
Net Debt/EBITDA (TTM)
4.5x
Latest quarter: 6.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 6.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
207.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 254.6%
Cash Flow Payout (TTM): 22.9%
FCF Coverage (TTM): 2.50x
ROE
8.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
2.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Carrefour is a major global grocery retailer generating robust free cash flow from its essential operations. While recent restructuring charges temporarily distort current valuations and present a theoretical turnaround opportunity, the formally announced 18.4% dividend cut and elevated debt levels (4.54x Net Debt/EBITDA) make this unsuitable for conservative income strategies. The risks outweigh the attractive yield, making it better to wait for a proven structural improvement in earnings before considering.
Sector Context
Carrefour is a major global grocery retailer, operating hypermarkets, supermarkets, and convenience stores across multiple continents. In the consumer staples sector, grocery operators benefit from highly defensive, recurring consumer demand but must navigate razor-thin margins, intense pricing competition, and significant capital expenditure requirements.
Temporary Opportunity Identified
Recent €401M net loss driven by non-recurring restructuring charges, asset impairments in Brazil and Spain, and integration costs, which temporarily inflates TTM valuation multiples.
📊 Strategy Analysis
- • Operates in an essential service sector (groceries) generating robust Free Cash Flow of €3.3B with an exceptionally low Cash Flow Payout ratio of 22.85%.
- • Current TTM P/E of 34.67x is artificially inflated by temporary restructuring and impairment charges, with a forward P/E of 11.88x suggesting earnings normalization.
- • Despite the upcoming cut, the dividend remains well-covered by actual cash flow, indicating the cut is a strategic capital allocation decision rather than a cash crisis.
⚠ What to Watch
- • The formally announced 18.4% upcoming dividend cut (from €1.19 to €0.97) fundamentally conflicts with a conservative dividend growth strategy.
- • Net Debt/EBITDA is elevated at 4.54x, significantly exceeding the strategy's 3.0x threshold and likely prompting the aforementioned dividend reduction.
- • Long-term profitability trajectory is poor, evidenced by a 5-year EPS CAGR of -19.2% and historically thin net margins.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.