GIGANTE (Grupo Gigante SAB de CV) vs Mexico S&P/BMV IPC Comparison

GIGANTE

Mexico S&P/BMV IPC

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GIGANTE

Mexico S&P/BMV IPC

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GIGANTE

Mexico S&P/BMV IPC

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Mexico S&P/BMV IPC

GIGANTE

WMT

COST

WALMEX

8267

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Grupo Gigante SAB de CV
Glance View

Market Cap

27.8B MXN

Industry

Retail

Grupo Gigante SAB de CV is a multifaceted conglomerate rooted in Mexico, with a diverse portfolio spanning retail, real estate, and business services. The company was originally founded as a grocery store chain in the early 1960s, but has since evolved into one of Mexico’s leading corporate entities, deftly navigating the complex currents of the Latin American economy. Its retail arm, once solely devoted to supermarkets, has expanded to include department stores, office supply outlets, and even specialty electronics shops, catering to a wide array of consumer needs. By leveraging its strong brand identity and extensive distribution networks, Grupo Gigante capitalizes on Mexico’s burgeoning consumer market, creating a constant revenue stream from the bustling retail landscape. However, Grupo Gigante's ambitions extend far beyond the grocery aisles. Complementing its retail foundation is an astute expansion into real estate, where the company harnesses its vast landholdings to develop shopping centers, logistic parks, and mixed-use urban projects. This strategic maneuver not only provides substantial rental income but also enhances the value of their existing retail spaces, fostering a symbiotic relationship between their tenants and real estate ventures. Moreover, the company’s business services division offers supplementary support and solutions that streamline operations for both in-house initiatives and external clients. The integration of these diverse but interconnected sectors demonstrates Grupo Gigante's adeptness in creating a robust economic ecosystem, positioning itself as a formidable player across various industries within the Mexican economy.

View GIGANTE Analysis

GIGANTE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

US		Walmart Inc NYSE:WMT	Add
US		Costco Wholesale Corp NASDAQ:COST	Add
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Add
JP		Aeon Co Ltd TSE:8267	Add
AU		Coles Group Ltd ASX:COL	Add
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Add
TH	S	Siam Makro PCL SET:MAKRO	Add
FR		Carrefour SA PAR:CA	Add
US		PriceSmart Inc NASDAQ:PSMT	Add
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Add

US		Walmart Inc NYSE:WMT	Select
US		Costco Wholesale Corp NASDAQ:COST	Select
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Select
JP		Aeon Co Ltd TSE:8267	Select
AU		Coles Group Ltd ASX:COL	Select
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Select
TH	S	Siam Makro PCL SET:MAKRO	Select
FR		Carrefour SA PAR:CA	Select
US		PriceSmart Inc NASDAQ:PSMT	Select
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Select

US		Walmart Inc NYSE:WMT	Add
US		Costco Wholesale Corp NASDAQ:COST	Add
MX		Wal Mart de Mexico SAB de CV BMV:WALMEX	Add
JP		Aeon Co Ltd TSE:8267	Add
AU		Coles Group Ltd ASX:COL	Add
US		BJ's Wholesale Club Holdings Inc NYSE:BJ	Add
TH	S	Siam Makro PCL SET:MAKRO	Add
FR		Carrefour SA PAR:CA	Add
US		PriceSmart Inc NASDAQ:PSMT	Add
SA		Abdullah Al Othaim Markets CompanySJSC SAU:4001	Add

HR	C	CROBEX INDX:CRBEX	Add
PK	K	Karachi 100 INDX:KSE100	Add
SA	T	Tadawul All Share INDX:TASI	Add
TH	S	SET Index INDX:SET	Add
ID	J	Jakarta Composite Index INDX:JKSE	Add
GR	A	Athens General Composite INDX:ATG	Add
BR	B	BOVESPA INDX:BVSP	Add
AR	S	S&P Merval INDX:MERV	Add
CZ	P	PX Prague Stock Index INDX:PX	Add
RU	M	MOEX Russia INDX:IMOEX	Add

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GIGANTE

vs

Mexico S&P/BMV IPC

Stocks Performance
GIGANTE vs Mexico S&P/BMV IPC

Performance Gap
GIGANTE vs Mexico S&P/BMV IPC

Performance By Year
GIGANTE vs Mexico S&P/BMV IPC

Competitors Performance
Grupo Gigante SAB de CV vs Peers

Grupo Gigante SAB de CV
Glance View

Company

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GIGANTE vs Mexico S&P/BMV IPC

Stocks Performance GIGANTE vs Mexico S&P/BMV IPC

Performance Gap GIGANTE vs Mexico S&P/BMV IPC

Performance By Year GIGANTE vs Mexico S&P/BMV IPC

Competitors Performance Grupo Gigante SAB de CV vs Peers

Grupo Gigante SAB de CV Glance View

Company

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Stocks

GIGANTE

vs

Mexico S&P/BMV IPC

Stocks Performance
GIGANTE vs Mexico S&P/BMV IPC

Performance Gap
GIGANTE vs Mexico S&P/BMV IPC

Performance By Year
GIGANTE vs Mexico S&P/BMV IPC

Competitors Performance
Grupo Gigante SAB de CV vs Peers

Grupo Gigante SAB de CV
Glance View