It
is obvious that the aim of any individual is to carry out the daily tasks in
the most time effective manners. Due to the changing life styles of people, the
individuals often look for ways to save time in the most cost effective manner.
Affordability and timesaving is offered under one roof by the hypermarkets.
Hyper markets are huge retailers that offer one stop shopping to its customers.
By bulk purchases both the parties benefit; the hypermarkets benefit through
high sales and the consumers’ benefit through the trade discounts, hence
causing satisfaction among both parties.
This is perhaps the primary reason why the hypermarkets are so popular
among masses. The hypermarkets obviously need high level of finance due to the
very nature of the business. Hence most of the hypermarkets are public limited
companies which offer their stocks to the general public in order to meet their
capital requirements. Upon the mention of this hypermarket industry, brand
names such as Wal-Mart Stores, Inc, Carrefour S.A, Tesco plc , Groupe Auchan S.A,
Aeon Company, Ltd, Centers Distributors E. Leclerc, Casino
Gulchard-Perrachon S.A and Loblaw Companies Ltd cannot be ignored due to the
goodwill they have established for themselves in the market over time.
Since
a lot of reputable brand names exist in the hypermarket industry, it is obvious
that the market structure would be considered more competitive if the global
market is considered. The consumers
consider hypermarkets as a source of convenience; however, the extent to which
investors praise this industry depends upon the financial data of various
companies involved in this industry. It is obvious that the investor will only
invest his/her funds in the common stock of any company as long as it offers a
reasonably higher return in the form of dividends and a chance to the investor
to make capital gains by reselling the stocks of the company. Only after the
understanding of such facts can the investor decide whether to go for a
particular industry or not.
Furthermore,
analyzing the financials involves looking into the stock performance and
dividend payments of various companies. According to the analysis of
bidnesetc.com, the analysis of various companies is listed here. Beginning with
Wal-Mart Stores, the stock performance has shown an
improvement by increasing from $74.84 to $79.14 over the course of a year by
showing an improvement of approximately 6%. This clearly indicates that there
has been an increase in the demand for Wal-Mart Stores’s
stock. Additionally, the company has also increased its per share dividend from
$0.47 to $0.48 which reflects a dividend yield of approximately 0.61% for the
current year. Moreover, Carrefour’s stock performance has improved over the year; the
stock price was EUR 22.82 but has now reached to EUR26.68 indicating an
increase in the demand for the company’s stock. Additionally, the company is
offering a dividend per share of EUR 0.62 reflecting a dividend yield of 2.3%
which is clearly higher than that being offered by Wal-Mart. On a similar note,
Tesco’s stock performance has shown a downward trend; the stock price was
GBp365.45in last May but fell to GBp 269.30. However, the company has increased
its dividends from GBp4.63 to GBp10.13 over the year which shows that the
company is offering its stockholders a higher return than before. Furthermore,
Aeon Company’s stock has shown a downward trend which reflects a fall in demand
for the company’s stock; the stock price started off at JPY 1302 in last May
but has recently reached a level of JPY1210. Lastly the stock performance of Casino Gulchard-Perrachon
S.A’s stock performance has showed a positive trend; the stock price started
off at EUR 85.09 but reached to a level of EUR 89.84 recently which shows a
good margin of improvement over the year.
Hence
on the basis of the above analysis, one can conclude that the demand for the
hypermarkets industry has increased overtime. The stocks for most of the
company have shown an upward trend and hence the investor is advised to invest
in this industry. As far as the individual companies are concerned, the
investor is advised to go for Casino Gulchard-Perrachon S.A’s stock because it offers the highest
margin for capital gain and shows the most promising growth potential.
For more information regarding your investment decision, please visit
bidnessetc.com.
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