Stock Analysis: Colruyt Group

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Colruyt NV, (CUYTY) Formerly Etablissementen Franz Colruyt NV, is a Belgian-based family-owned food retailer with nearly 30,000 employees and more than 530 stores (460 stores in Belgium and 76 in France) that traces its origins back to 1928.

Aside from its flagship Colruyt supermarkets in Belgium and Luxembourg (60% of sales), it generates 16% of sales under separate banners from neighbourhood stores, biosupermarkets, covered markets, and family and seasonal stores.

Its food service and wholesale businesses account for a further 18% of sales. Colruyt also owns DATS 24 filling stations, and a green energy business, generating electricity from wind turbines, solar panels, and biomass.

The company changed its name to Colruyt Group N.V. in October 2023 and is headquartered in Halle, Belgium.

Three key data points gauge Colruyt or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.


CUYTY Price

Over the past year, Colruyts share price fell 27.3% from $14.90 to $10.82 as of Friday’s market close.

If Colruyt shares trade in the range of $5.00 to $15.00 this next year, its recent $10.82 share price might rise to $12.00 by next year. Of course, Colruyt’s price could drop about the same $1.18 estimated amount or more.

My annual upside estimate of $1.18 however, is just about the average of one-year price gains over previous years


CUYTY Dividend

Colruyt has paid variable annual dividends since October 2009. Colruyt’s most recent dividend of $0.28 was declared on December 5th for shareholders of record on December 20th and the payout was made on January 8th.

A forward-looking $0.28 annual dividend yields 2.55% at Monday’s $10.82 share price.


CUYTY Returns

To put it all together, add the Colruyt estimated annual dividend of $0.28 to the estimated price upside of $1.18 to find a $1.46 estimated gross gain for the coming year.

At Monday’s $10.82 price, a little under $1000 would buy 92 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.11 per share.

Subtracting that likely $0.11 brokerage cost from the $1.46 gross gain reveals a net gain of $1.35 X 92 shares = $124.20 for a 12.4% estimated net gain on the year.

You might choose to pounce on Colruyt Group NV It is a 96-year-old dividend-paying Belgium-based diversified food and energy retailer. Furthermore, the estimated $25.50 annual dividend income from $1k invested is 2.35 times greater than Colruyt’s recent $10.82 share price.

The exact track of Colruyts ongoing future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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