SADIF Analytics Assigns Positive Long-Term Outlook Rating to Metro AG
Released on: October 9, 2008, 8:53 am
Press Release Author: Andrew Kerr
Industry: Financial
Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks(tm) stock-rating system to Metro AG and produced a research report, rating the company's attractiveness to long-term investors.
Press Release Body: Mira, Portugal - October 9, 2008 - SADIF Investment Analytics SA, today announced the release of a new equity research report covering Metro AG (MEO=DE). The report utilizes SADIF's powerful StockMarks(tm) stock rating system and is required reading for any current or potential Metro AG investor.
Report Summary: German retailer Metro AG differs from other large European retailers such as Carrefour and Tesco because the core of the company's revenue is generated from wholesale operations to businesses rather than retail sales to individuals. Metro faces a tough economic climate in Germany and the retailer has already responded to this by streamlining its consumer stores, Real and making plans to dispose of its Adler fashion stores. However, the company's wholesale business, Metro Cash & Carry, has also suffered from the economic downturn in Germany where sales declined during the first half of 2008. International sales accounted for more than 60% of total revenue and 82.8% of the company's Metro Cash & Carry sales during the six month period. While the company reported strong results in July, with EPS from continuing operations before special items rising by 12.1%, Metro's share price has tumbled 15% since the results were announced and by almost 45% since the start of the year. In order to determine whether the drop in the share price is justified, we should look closely at the company's underlying long-term fundamentals. We can assess Metro's long-term outlook through the use of the StockMarks framework. Metro currently has an overall long-term investment attractiveness rating (Total StockMark or SMT) of 65, placing the company above the German market average and ranking it third when compared to ten of its closest peers, selected on the basis of similarity of business and market positioning factors such as size.
The complete report breaks down the Total StockMark into its three components - Business, Management and Price, performing a thorough analysis of Metro AG for long-term investors.
A summary of the StockMarks(tm) ratings for Metro AG is available here: http://sadifanalytics.com/stockmarks/company.php?ticker=MEO&cod_country=39
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites or directly from SADIF-Investment Analytics SA at http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_article=153&cod_country=110
About SADIF-Investment Analytics SA SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. Our StockMarks(tm) system is based on proven investment principles and is designed to drive long-term shareholder returns.
Web Site: http://www.sadifanalytics.com
Contact Details: Company: SADIF-Investment Analytics SA Address: AIBAP, Rua do Matadouro, 3070-436 Mira, Portugal Phone Number: (+351) 231849038 Website: www.sadifanalytics.com