Metcash FVE Increased to AUD 1.80 Following Review of Market Share and Margin Forecasts
We increase our fair value estimate on no-moat-rated Metcash to AUD 1.80 from AUD 1.10 per share, due to a much-improved outlook on IGA's market share. We now expect IGA to arrest the decline in share at 12.7% long term, from 14.0% in fiscal 2016, versus our previous expectation of a gradual deterioration to a market share of only 8.4% by fiscal 2026. Our long-term estimate of Metcash's EBIT margins in food and groceries is unchanged at 1.8%.Aldi is taking market share from the established supe...
Metcash is a wholesaler and distributor, supplying and supporting independent retailers across the food, grocery, liquor and hardware industries. Co.'s reportable segments are as follows: Food and Grocery, which comprises the distribution of dry grocery, perishable and general merchandise supplies to retail outlets; Liquor, which comprises the distribution of liquor products to retail outlets and hotels; as well as Hardware, which comprises the distribution of hardware supplies to retail outlets and trade customers.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
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