BRF SA-ADR (BRFS) Stock Fundamental Analysis
NYSE:BRFS - New York Stock Exchange, Inc. - US10552T1079 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to BRFS. BRFS was compared to 91 industry peers in the Food Products industry. BRFS scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on BRFS. This makes BRFS very considerable for value investing!
1. Profitability
1.1 Basic Checks
BRFS had positive earnings in the past year.
BRFS had a positive operating cash flow in the past year.
In multiple years BRFS reported negative net income over the last 5 years.
In the past 5 years BRFS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.09%, BRFS is in the better half of the industry, outperforming 78.02% of the companies in the same industry.
BRFS has a Return On Equity of 23.89%. This is amongst the best in the industry. BRFS outperforms 94.51% of its industry peers.
With an excellent Return On Invested Capital value of 12.98%, BRFS belongs to the best of the industry, outperforming 90.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 23.89% | ||
| ROIC | 12.98% |
ROA(3y)-1.3%
ROA(5y)-0.07%
ROE(3y)-6.8%
ROE(5y)0.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BRFS has a Profit Margin of 6.03%. This is in the better half of the industry: BRFS outperforms 74.73% of its industry peers.
In the last couple of years the Profit Margin of BRFS has grown nicely.
The Operating Margin of BRFS (11.55%) is better than 76.92% of its industry peers.
In the last couple of years the Operating Margin of BRFS has grown nicely.
With a decent Gross Margin value of 26.24%, BRFS is doing good in the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Gross Margin of BRFS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.55% | ||
| PM (TTM) | 6.03% | ||
| GM | 26.24% |
OM growth 3Y21.97%
OM growth 5Y3.91%
PM growth 3Y82.05%
PM growth 5Y42.54%
GM growth 3Y8.77%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
BRFS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BRFS has been reduced compared to 1 year ago.
The number of shares outstanding for BRFS has been increased compared to 5 years ago.
Compared to 1 year ago, BRFS has an improved debt to assets ratio.
2.2 Solvency
BRFS has an Altman-Z score of 2.18. This is not the best score and indicates that BRFS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, BRFS is in line with its industry, outperforming 50.55% of the companies in the same industry.
The Debt to FCF ratio of BRFS is 2.45, which is a good value as it means it would take BRFS, 2.45 years of fcf income to pay off all of its debts.
BRFS has a better Debt to FCF ratio (2.45) than 83.52% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that BRFS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.32, BRFS is doing worse than 78.02% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for BRFS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.41
WACC9.23%
2.3 Liquidity
BRFS has a Current Ratio of 1.46. This is a normal value and indicates that BRFS is financially healthy and should not expect problems in meeting its short term obligations.
BRFS has a Current ratio (1.46) which is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that BRFS should not have too much problems paying its short term obligations.
The Quick ratio of BRFS (1.02) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 598.30% over the past year.
The Earnings Per Share has been growing by 37.09% on average over the past years. This is a very strong growth
Looking at the last year, BRFS shows a quite strong growth in Revenue. The Revenue has grown by 18.02% in the last year.
The Revenue has been growing by 12.91% on average over the past years. This is quite good.
EPS 1Y (TTM)598.3%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%133.33%
Revenue 1Y (TTM)18.02%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%15.96%
3.2 Future
Based on estimates for the next years, BRFS will show a decrease in Earnings Per Share. The EPS will decrease by -5.92% on average per year.
Based on estimates for the next years, BRFS will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue Next Year9.44%
Revenue Next 2Y6.88%
Revenue Next 3Y5.87%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.29 indicates a reasonable valuation of BRFS.
Compared to the rest of the industry, the Price/Earnings ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 83.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. BRFS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.39 indicates a reasonable valuation of BRFS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 81.32% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BRFS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
BRFS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BRFS is cheaper than 89.01% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BRFS is valued cheaper than 96.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.57 | ||
| EV/EBITDA | 4.27 |
4.3 Compensation for Growth
BRFS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BRFS may justify a higher PE ratio.
BRFS's earnings are expected to decrease with -5.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)1.11
PEG (5Y)0.25
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.68%, BRFS has a reasonable but not impressive dividend return.
BRFS's Dividend Yield is a higher than the industry average which is at 4.66.
Compared to an average S&P500 Dividend Yield of 2.37, BRFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
The dividend of BRFS is nicely growing with an annual growth rate of 6.52%!
BRFS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRFS pays out 29.86% of its income as dividend. This is a sustainable payout ratio.
DP29.86%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
3.9
-0.13 (-3.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners30.62%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.24B
Analysts76.92
Price Target4.91 (25.9%)
Short Float %1.74%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
Yearly Dividend0.13
Dividend Growth(5Y)6.52%
DP29.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.97%
Min EPS beat(2)-47.78%
Max EPS beat(2)23.85%
EPS beat(4)2
Avg EPS beat(4)1.61%
Min EPS beat(4)-47.78%
Max EPS beat(4)39.84%
EPS beat(8)5
Avg EPS beat(8)13.68%
EPS beat(12)5
Avg EPS beat(12)-271.62%
EPS beat(16)6
Avg EPS beat(16)-254.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.13%
Revenue beat(12)3
Avg Revenue beat(12)-2.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.25%
PT rev (1m)4.95%
PT rev (3m)0.8%
EPS NQ rev (1m)-7.22%
EPS NQ rev (3m)-10.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 11.39 | ||
| P/S | 0.55 | ||
| P/FCF | 3.57 | ||
| P/OCF | 2.81 | ||
| P/B | 2.18 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 4.27 |
EPS(TTM)0.42
EY10.77%
EPS(NY)0.34
Fwd EY8.78%
FCF(TTM)1.09
FCFY28.01%
OCF(TTM)1.39
OCFY35.61%
SpS7.07
BVpS1.79
TBVpS1.06
PEG (NY)1.11
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 23.89% | ||
| ROCE | 17.76% | ||
| ROIC | 12.98% | ||
| ROICexc | 18.93% | ||
| ROICexgc | 24.55% | ||
| OM | 11.55% | ||
| PM (TTM) | 6.03% | ||
| GM | 26.24% | ||
| FCFM | 15.44% |
ROA(3y)-1.3%
ROA(5y)-0.07%
ROE(3y)-6.8%
ROE(5y)0.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.2%
ROICexcg growth 5Y12.59%
ROICexc growth 3Y27.5%
ROICexc growth 5Y12.1%
OM growth 3Y21.97%
OM growth 5Y3.91%
PM growth 3Y82.05%
PM growth 5Y42.54%
GM growth 3Y8.77%
GM growth 5Y1.33%
F-Score9
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 75.71% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 114.89% | ||
| Profit Quality | 255.87% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.18 |
F-Score9
WACC9.23%
ROIC/WACC1.41
Cap/Depr(3y)82.09%
Cap/Depr(5y)86.85%
Cap/Sales(3y)4.72%
Cap/Sales(5y)5.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)598.3%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%133.33%
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)18.02%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%15.96%
Revenue Next Year9.44%
Revenue Next 2Y6.88%
Revenue Next 3Y5.87%
Revenue Next 5YN/A
EBIT growth 1Y220.65%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year39%
EBIT Next 3Y8.99%
EBIT Next 5YN/A
FCF growth 1Y791.36%
FCF growth 3Y106.49%
FCF growth 5Y47.37%
OCF growth 1Y205.12%
OCF growth 3Y40.04%
OCF growth 5Y33.71%