(CARM) Carmila - Ratings and Ratios

Carmila SA, a prominent player in the European retail real estate sector, stands as the third-largest listed owner of commercial property. Established by Carrefour and institutional investors, Carmilas primary objective is to enhance the value of shopping centers adjacent to Carrefour hypermarkets across France, Spain, and Italy. As of December 31, 2023, their portfolio, valued at €5.9 billion, encompasses 201 shopping centers, each holding a leading position in their respective regions. Listed on Euronext-Paris Compartment A under the ticker CARM, Carmila benefits from the SIIC tax regime, offering a favorable investment structure. Since June 20, 2022, Carmila has been a member of the SBF 120 index, underscoring its market presence.

Carmilas strategic focus lies in urban retail assets, leveraging its partnership with Carrefour to capitalize on local market knowledge and operational expertise. Their approach to creating vibrant retail hubs often involves integrating retail with services and leisure, enhancing the shopping experience and asset value. With a significant presence in Southern Europe, Carmila is well-positioned to navigate the evolving retail landscape, emphasizing convenience, accessibility, and community engagement.

Looking ahead, Carmilas stock is expected to face a dynamic environment. Technically, the stock is trading above its 20-day and 50-day moving averages (SMA20: 17.59, SMA50: 17.50) but below the 200-day moving average (SMA200: 17.01), indicating short-term strength amidst a broader downtrend. The Average True Range (ATR: 0.41) suggests manageable volatility, with potential support at the SMA50 and resistance at the SMA200, possibly leading to range-bound trading between 17.50 and 18.75.

Fundamentally, Carmilas attractive valuation metrics, such as a price-to-earnings ratio (P/E: 8.13) lower than its forward P/E (10.14), may attract investors anticipating future growth. The price-to-book ratio (P/B: 0.74) indicates undervaluation relative to book value, while the price-to-sales ratio (P/S: 4.82) aligns with retail sector norms. However, the return on equity (RoE: 2.56%) is modest, reflecting operational challenges. Risks include macroeconomic uncertainty impacting retail spending, while opportunities may arise from strategic asset repositioning and expansion in core markets.