El Puerto de Liverpool SAB de CV

El Puerto de Liverpool maintains a conservative capital structure with a debt-to-equity ratio of 0.28, indicating a relatively low reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.76, suggesting it can cover its short-term obligations with its current assets. However, its net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity (ROE) of 4.07% and a return on assets (ROA) of 2.38%, which are below the industry median for department stores. This suggests that the company is underperforming in terms of asset utilization and shareholder returns. Gross profit of 21.23 billion MXN and operating income of 7.87 billion MXN indicate a healthy gross margin, but the net income of 6.22 billion MXN reflects the pressure of operating expenses and interest costs.

The company's revenue is concentrated in its domestic market, with no disclosed international operations. This geographic concentration exposes the company to regional economic fluctuations and regulatory changes in Mexico. The lack of diversification could limit its ability to mitigate risks associated with local market volatility.

Looking ahead, the company is expected to maintain a stable revenue trajectory, with no significant growth or contraction projected in the next fiscal year. Analysts have assigned a mean price target of 121.58 MXN, with a median of 111.00 MXN, reflecting a generally cautious outlook. The capital expenditure of -4.62 billion MXN indicates a reduction in investment, which may signal a strategic shift or a response to economic conditions.

The risk assessment highlights a medium liquidity risk and a low dilution risk. The company's negative net cash position after debt is a key flag, suggesting potential challenges in maintaining liquidity without external financing. No significant dilution sources are identified in the latest filings, and the number of shares outstanding remains unchanged between basic and diluted shares.

Recent events include the release of the latest financial report, which provides updated figures on revenue, profit, and capital structure. Analysts have issued a range of price targets, with a mean recommendation of 2.94, indicating a mixed outlook between buy and hold. No major regulatory or operational events have been disclosed in the latest filings.

Revenue grew at an 11.0% CAGR from 2022 to 2026, demonstrating consistent top-line expansion over the four-year period.

Analysts project 16.3% upside to a mean price target of 121.58, suggesting potential undervaluation at the current market price.

Long-term debt surged to 55.4 billion MXN in 2026, reversing a multi-year trend of deleveraging and increasing financial risk.

The company faces a high credit risk flag, indicating potential concerns regarding its ability to meet financial obligations.

Cash conversion of 0.43 is below the 1.47 cohort median, suggesting less efficient translation of earnings into cash.

Revenue MXN 45.42B, −0,2% YoY; Operating income −9,9% YoY.

• ▍Revenue MXN 45.42B, −0,2% YoY
• ▍Operating income −9,9% YoY
• ▍Net income −17,2% YoY
• ▍Free cash flow +39,7% YoY
• ▍Net margin 4.2%

Revenue MXN 79.12B, +5,0% YoY; Operating income +1,0% YoY.

• ▍Revenue MXN 79.12B, +5,0% YoY
• ▍Operating income +1,0% YoY
• ▍Net income −21,4% YoY
• ▍Free cash flow −33,4% YoY
• ▍Net margin 9.6%

Revenue MXN 48.06B, +4,4% YoY; Operating income −20,1% YoY.

• ▍Revenue MXN 48.06B, +4,4% YoY
• ▍Operating income −20,1% YoY
• ▍Net income −10,5% YoY
• ▍Free cash flow +9,0% YoY
• ▍Net margin 8.2%

Revenue MXN 56.42B, +8,0% YoY; Operating income −9,7% YoY.

• ▍Revenue MXN 56.42B, +8,0% YoY
• ▍Operating income −9,7% YoY
• ▍Net income −47,0% YoY
• ▍Free cash flow −83,2% YoY
• ▍Net margin 5.8%

Revenue MXN 45.53B; Operating income MXN 4.01B.

• ▍Revenue MXN 45.53B
• ▍Operating income MXN 4.01B
• ▍Net margin 5.1%

Revenue MXN 75.33B; Operating income MXN 13.38B.

• ▍Revenue MXN 75.33B
• ▍Operating income MXN 13.38B
• ▍Net margin 12.8%

Revenue MXN 46.06B; Operating income MXN 6.04B.

• ▍Revenue MXN 46.06B
• ▍Operating income MXN 6.04B
• ▍Net margin 9.6%

Revenue MXN 52.24B; Operating income MXN 7.87B.

• ▍Revenue MXN 52.24B
• ▍Operating income MXN 7.87B
• ▍Net margin 11.9%

Revenue MXN 229.14B, +6,7% YoY; Operating income −7,5% YoY.

• ▍Revenue MXN 229.14B, +6,7% YoY
• ▍Operating income −7,5% YoY
• ▍Net income −25,9% YoY
• ▍Free cash flow −25,5% YoY
• ▍Net margin 7.5%

Revenue MXN 214.85B, +9,6% YoY; Operating income +7,6% YoY.

• ▍Revenue MXN 214.85B, +9,6% YoY
• ▍Operating income +7,6% YoY
• ▍Net income +18,8% YoY
• ▍Free cash flow +24,7% YoY
• ▍Net margin 10.8%

Revenue MXN 195.99B, +11,3% YoY; Operating income +16,0% YoY.

• ▍Revenue MXN 195.99B, +11,3% YoY
• ▍Operating income +16,0% YoY
• ▍Net income +12,1% YoY
• ▍Free cash flow +1,7% YoY
• ▍Net margin 9.9%

Revenue MXN 176.03B, +16,6% YoY; Operating income +36,2% YoY.

• ▍Revenue MXN 176.03B, +16,6% YoY
• ▍Operating income +36,2% YoY
• ▍Net income +35,1% YoY
• ▍Free cash flow +28,0% YoY
• ▍Net margin 9.9%