Sendas Distribuidora S.A. (ASAI3.SA) stock analysis

In our weekly check, Sendas Distribuidora S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6.

About Sendas Distribuidora S.A.

Sendas Distribuidora S.A. is a Consumer Defensive company (Grocery Stores) based in Brazil, listed on SAO as ASAI3.SA.

What our checks show for ASAI3.SA

Red flags

• Net debt is 3.3x a year of EBITDA (debt/equity 4.25). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 1.4 times: a weak year could make the payments hard.
• The net margin fell by 2.6 points over 5 years, to 1.2%: the company keeps less of each sale as profit.
• The net margin is only 1.2%: little room if costs rise.
• The price swings a lot: 90.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 76% from a peak. Would you have held through that?

Warning signs

• The gross margin fell by 0.7 points, to 16.4%: costs are rising faster than prices.
• Earnings per share fell 7.3% a year over the last 3 years.
• Net profit fell 7.5% a year over the last 3 years.
• Free cash flow is only 3.9% of revenue.
• A small company (market value $1.94 billion): usually riskier and followed by fewer analysts.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 4x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 24.5% a year over the next years.
• The dividend takes 13% of profit: there is a cushion.
• Beta 0.25: the stock usually moves less than the market.
• Actively traded: about 17.3 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-05

Similar companies

KESKOB.HE · EMP-A.TO · CA.PA · SBRY.L · ACI · MRU.TO

Questions

What grade does Sendas Distribuidora S.A. (ASAI3.SA) have?

In our weekly check, Sendas Distribuidora S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ASAI3.SA stock?

This week's biggest flags for Sendas Distribuidora S.A.: High debt, Weak interest cover, Margins falling. In total 12 of 25 checks show a warning or a red flag.

What does Sendas Distribuidora S.A. do?

Sendas Distribuidora S.A. is a Consumer Defensive company (Grocery Stores) based in Brazil, listed on SAO as ASAI3.SA.

When does Sendas Distribuidora S.A. report earnings next?

The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis