Walmart Mexico provides high-growth exposure at discount
The guest made the case for Walmart Mexico as a way to buy the formidable Walmart business model at a 15x earnings multiple compared to the US parent's 40x.
The argument
Mexico's retail market is far less mature, with modern retail making up less than half of the market, leaving decades of runway for store expansion. Walmart Mexico dominates the region with a 50% market share in modern grocery retail and continues to grow same-store sales at mid-to-high single digits.
The thesis, stress-tested
✓ What validates it
- ✓Continued store count expansion in supercenters and Bodega formats
- ✓Sustained mid-to-high single-digit same-store sales growth
▸ Risks discussed
- ▸Emerging market political and regulatory risks in Mexico
Hear it yourself
"so that folks can can find it. Sure. The company call it's called Basso of Sustains. It's a French company. The ticker is d s y and then f p for the for the French market. And Basso is a cat software company, industrial cat software. Think about it. It's designed software that engineers use to build complicated industrial products, planes, cars, trains, your iPhone, things like that. And the sole is the global market leader here, and it is really strong and complicated products. Planes, Boeing and Airbus both built their planes and they saw software."
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