Jerónimo Martins, SGPS, S.A. (JMT.LS) stock analysis

In our weekly check, Jerónimo Martins, SGPS, S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.

About Jerónimo Martins, SGPS, S.A.

Jerónimo Martins, SGPS, S.A. is a Consumer Defensive company (Food Distribution), listed on LIS as JMT.LS.

What our checks show for JMT.LS

Red flags

• The net margin is only 1.7%: little room if costs rise.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 6.9 years.

Warning signs

• Net debt is 1.8x a year of EBITDA (debt/equity 1.92). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 3.6 times: a weak year could make the payments hard.
• The net margin fell by 0.5 points over 5 years, to 1.7%: the company keeps less of each sale as profit.
• The gross margin fell by 1.5 points, to 20%: costs are rising faster than prices.
• Free cash flow is only 3.1% of revenue.

Strengths

• Operating cash flow is 3.51x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 14.3% a year over the next years.
• A large company: market value $12.94 billion.
• Beta 0.49: the stock usually moves less than the market.
• Return on capital (ROCE) is 15.5%: the business earns well on the money put into it.
• Pay in shares is only 0% of free cash flow.

Similar companies

WOW.AX · AXFO.ST · WN.TO · KR · DNP.WA · TSCO.L

Questions

What grade does Jerónimo Martins, SGPS, S.A. (JMT.LS) have?

In our weekly check, Jerónimo Martins, SGPS, S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of JMT.LS stock?

This week's biggest flags for Jerónimo Martins, SGPS, S.A.: Thin margins, Deep past fall, Slow recovery after falls. In total 8 of 25 checks show a warning or a red flag.

What does Jerónimo Martins, SGPS, S.A. do?

Jerónimo Martins, SGPS, S.A. is a Consumer Defensive company (Food Distribution), listed on LIS as JMT.LS.

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

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