Grupo Comercial Chedraui (CHDRAUIB.MX) fair value

ACCE thesis

Grupo Comercial Chedraui runs a Mexican supermarket and mass-merchandise chain under the Chedraui, Super Chedraui and City Market banners, with its operations concentrated in Mexico and a smaller footprint in the United States. The company's edge is local scale in Mexican food retail, where a broad store base and a value-oriented format compete directly with much larger rivals for the same household grocery spend. Its near-term driver is continued store expansion and same-store sales momentum in Mexico, though the data we have does not yet confirm the pace. At 13.6 times trailing earnings and 11.2 times forward earnings, the market is pricing in an expected earnings rise of roughly 21% over the next year, which is the first number to check against consensus and the company's own guidance. Revenue growth, margins and returns on equity are not available in our dataset, so the valuation case cannot be tested on profitability yet, and the name is not in any index we track, which limits liquidity visibility. Worth a deeper look mainly to pull segment margins, US exposure and Mexican same-store sales before forming a view.