BRF SA (BRFS) Stock Fundamental Analysis
USA - NYSE:BRFS - US10552T1079 - ADR
3.38 USD
-0.44 (-11.52%)
3.49 USD
+0.11 (+3.25%)
BRFS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. BRFS has an excellent profitability rating, but there are some minor concerns on its financial health. BRFS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. BRFS also has an excellent dividend rating. These ratings could make BRFS a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year BRFS was profitable.
In the past year BRFS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BRFS reported negative net income in multiple years.
In the past 5 years BRFS always reported a positive cash flow from operatings.
1.2 Ratios
BRFS's Return On Assets of 5.58% is fine compared to the rest of the industry. BRFS outperforms 76.40% of its industry peers.
Looking at the Return On Equity, with a value of 21.28%, BRFS belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
The Return On Invested Capital of BRFS (12.38%) is better than 88.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 21.28% | ||
| ROIC | 12.38% |
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
Looking at the Profit Margin, with a value of 5.61%, BRFS is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
In the last couple of years the Profit Margin of BRFS has grown nicely.
Looking at the Operating Margin, with a value of 11.29%, BRFS is in the better half of the industry, outperforming 76.40% of the companies in the same industry.
BRFS's Operating Margin has improved in the last couple of years.
BRFS's Gross Margin of 26.31% is fine compared to the rest of the industry. BRFS outperforms 62.92% of its industry peers.
BRFS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 5.61% | ||
| GM | 26.31% |
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.
BRFS has more shares outstanding than it did 5 years ago.
BRFS has a better debt/assets ratio than last year.
2.2 Solvency
BRFS has an Altman-Z score of 2.09. 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.
BRFS has a Altman-Z score of 2.09. This is comparable to the rest of the industry: BRFS outperforms 48.31% of its industry peers.
BRFS has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as BRFS would need 2.59 years to pay back of all of its debts.
BRFS has a better Debt to FCF ratio (2.59) than 82.02% of its industry peers.
A Debt/Equity ratio of 1.30 is on the high side and indicates that BRFS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.30, BRFS is not doing good in the industry: 77.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.34
WACC9.21%
2.3 Liquidity
BRFS has a Current Ratio of 1.52. 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 (1.52) which is in line with its industry peers.
A Quick Ratio of 1.05 indicates that BRFS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.05, BRFS is doing good in the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
BRFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.91%, which is quite impressive.
Measured over the past years, BRFS shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.09% on average per year.
The Revenue has grown by 13.10% in the past year. This is quite good.
Measured over the past years, BRFS shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)59.91%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-22.3%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%2.91%
3.2 Future
BRFS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.99% yearly.
Based on estimates for the next years, BRFS will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.
EPS Next Y17.53%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
EPS Next 5YN/A
Revenue Next Year6.34%
Revenue Next 2Y5.94%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
BRFS is valuated reasonably with a Price/Earnings ratio of 8.05.
Based on the Price/Earnings ratio, BRFS is valued cheaper than 89.89% of the companies in the same industry.
BRFS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.91.
With a Price/Forward Earnings ratio of 9.82, the valuation of BRFS can be described as very reasonable.
91.01% of the companies in the same industry are more expensive than BRFS, based on the Price/Forward Earnings ratio.
BRFS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
95.51% of the companies in the same industry are more expensive than BRFS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 94.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 3.51 |
4.3 Compensation for Growth
BRFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
BRFS has a very decent profitability rating, which may justify a higher PE ratio.
BRFS's earnings are expected to decrease with -5.99% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.46
PEG (5Y)0.22
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
5. Dividend
5.1 Amount
BRFS has a Yearly Dividend Yield of 17.17%, which is a nice return.
Compared to an average industry Dividend Yield of 5.09, BRFS pays a better dividend. On top of this BRFS pays more dividend than 98.88% of the companies listed in the same industry.
BRFS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.17% |
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
31.92% of the earnings are spent on dividend by BRFS. This is a low number and sustainable payout ratio.
DP31.92%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
3.38
-0.44 (-11.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners25.73%
Inst Owner Change-0.28%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.41B
Revenue(TTM)63.95B
Net Income(TTM)3.59B
Analysts78.46
Price Target4.94 (46.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.17% |
Yearly Dividend0.13
Dividend Growth(5Y)6.52%
DP31.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.71%
Min EPS beat(2)-12.43%
Max EPS beat(2)23.85%
EPS beat(4)1
Avg EPS beat(4)-11.46%
Min EPS beat(4)-47.78%
Max EPS beat(4)23.85%
EPS beat(8)5
Avg EPS beat(8)30.62%
EPS beat(12)5
Avg EPS beat(12)-163.19%
EPS beat(16)6
Avg EPS beat(16)-245.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-2.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-1.19%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.67%
PT rev (1m)1.31%
PT rev (3m)0.59%
EPS NQ rev (1m)27.63%
EPS NQ rev (3m)40.46%
EPS NY rev (1m)13.64%
EPS NY rev (3m)8.33%
Revenue NQ rev (1m)-2.38%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.45 | ||
| P/FCF | 3.02 | ||
| P/OCF | 2.26 | ||
| P/B | 1.72 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 3.51 |
EPS(TTM)0.42
EY12.43%
EPS(NY)0.34
Fwd EY10.18%
FCF(TTM)1.12
FCFY33.14%
OCF(TTM)1.49
OCFY44.18%
SpS7.48
BVpS1.97
TBVpS1.22
PEG (NY)0.46
PEG (5Y)0.22
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 21.28% | ||
| ROCE | 16.93% | ||
| ROIC | 12.38% | ||
| ROICexc | 19.16% | ||
| ROICexgc | 25% | ||
| OM | 11.29% | ||
| PM (TTM) | 5.61% | ||
| GM | 26.31% | ||
| FCFM | 14.99% |
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
ROICexgc growth 3Y27.2%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 4.99% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 118.84% | ||
| Profit Quality | 267.28% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.09 |
F-Score9
WACC9.21%
ROIC/WACC1.34
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)59.91%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-22.3%
EPS Next Y17.53%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
EPS Next 5YN/A
Revenue 1Y (TTM)13.1%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%2.91%
Revenue Next Year6.34%
Revenue Next 2Y5.94%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y64.5%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year38.73%
EBIT Next 3Y9.09%
EBIT Next 5YN/A
FCF growth 1Y754.47%
FCF growth 3Y106.49%
FCF growth 5Y47.37%
OCF growth 1Y224.01%
OCF growth 3Y40.04%
OCF growth 5Y33.71%
BRF SA / BRFS FAQ
Can you provide the ChartMill fundamental rating for BRF SA?
ChartMill assigns a fundamental rating of 6 / 10 to BRFS.
What is the valuation status of BRF SA (BRFS) stock?
ChartMill assigns a valuation rating of 8 / 10 to BRF SA (BRFS). This can be considered as Undervalued.
What is the profitability of BRFS stock?
BRF SA (BRFS) has a profitability rating of 7 / 10.
What is the financial health of BRF SA (BRFS) stock?
The financial health rating of BRF SA (BRFS) is 5 / 10.
Is the dividend of BRF SA sustainable?
The dividend rating of BRF SA (BRFS) is 7 / 10 and the dividend payout ratio is 31.92%.