Grupo Carso Sees Profitability Deteriorate With Less Government Infrastructure Work
Source: SeekingAlpha
2025-05-22 05:40:55 ET
Summary
- Grupo Carso's 1Q25 results show deterioration in retail and construction, stagnation in industrial and cement, and improvement only in energy and gas transport.
- Sanborns retail and construction segments are underperforming, with falling margins and lost revenue channels, while energy pipelines are the only clear outperformers.
- Valuation is now less attractive, trading at over 18x FY24 earnings, which is high given weak growth, poor reporting, and a conglomerate discount.
- Given these factors, I maintain a Hold rating, as the risk/reward profile is not compelling at current valuation levels.
Grupo Carso ( OTCPK:GPOVF ) ( OTCPK:GPOVY ) released last month its 1Q25 results .
As commented in previous articles on the name, the level of reporting presented by GCarso for each segment is really scarce, considering the size of the conglomerate. However, by listening to the earnings call (half of which was in Spanish and not translated), we can learn more about the performance of important segments....
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Grupo Carso Sees Profitability Deteriorate With Less Government Infrastructure Work
Grupo Carso S.A. de C.V.
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