The global macro picture is shifting. U.S. equities saw modest gains overall, with the IWM leading the charge, up 1.32%. The DIA also saw a positive move, gaining 0.12% to reach $495.28. Meanwhile, the SPY edged up slightly by 0.07% and the QQQ increased 0.21% to $601.92. This comes as markets attempt a rebound, potentially powered by recent CPI data.
In South America, Brazilian retail giant Sendas Distribuidora (ASAIY) has made headway on its deleveraging plan, achieving a net debt/EBITDA ratio of 2.56x. This was accomplished despite high nominal interest rates, highlighting the company's robust cash generation. While revenue growth faced pressure from deflation in core commodities, resilient volume and customer traffic suggest these headwinds are temporary.
ASAIY's EV/EBITDA multiple has improved from distressed levels, but still sits below its historical average, potentially offering investors a re-rating opportunity as broader macro conditions normalize. The company's focus on deleveraging and maintaining strong operational performance appears to be resonating with investors, even amidst global economic uncertainty.
Macro regimes don't change overnight—but when they do, it matters.