NATURA &CO HOLDING-ADR (NTCO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:NTCO - US63884N1081 - ADR
6.57 USD
0 (0%)
6.57 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to NTCO. NTCO was compared to 36 industry peers in the Personal Care Products industry. NTCO may be in some trouble as it scores bad on both profitability and health. NTCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NTCO had negative earnings in the past year.
In the past year NTCO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: NTCO reported negative net income in multiple years.
NTCO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NTCO's Return On Assets of -5.60% is in line compared to the rest of the industry. NTCO outperforms 42.11% of its industry peers.
The Return On Equity of NTCO (-13.80%) is comparable to the rest of the industry.
NTCO has a Return On Invested Capital (3.82%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTCO is significantly below the industry average of 11.83%.
The 3 year average ROIC (3.19%) for NTCO is below the current ROIC(3.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -13.8% | ||
| ROIC | 3.82% |
ROA(3y)-1.52%
ROA(5y)-0.05%
ROE(3y)-3.84%
ROE(5y)2.88%
ROIC(3y)3.19%
ROIC(5y)6.2%
1.3 Margins
NTCO has a Operating Margin (5.42%) which is in line with its industry peers.
In the last couple of years the Operating Margin of NTCO has declined.
With a decent Gross Margin value of 64.70%, NTCO is doing good in the industry, outperforming 63.16% of the companies in the same industry.
NTCO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 64.7% |
OM growth 3Y-36.04%
OM growth 5Y-27.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-1.96%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTCO is destroying value.
NTCO has about the same amout of shares outstanding than it did 1 year ago.
The debt/assets ratio for NTCO is higher compared to a year ago.
2.2 Solvency
NTCO has an Altman-Z score of 1.27. This is a bad value and indicates that NTCO is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, NTCO is doing worse than 60.53% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that NTCO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, NTCO is doing worse than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.32
WACC11.97%
2.3 Liquidity
NTCO has a Current Ratio of 1.36. This is a normal value and indicates that NTCO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NTCO (1.36) is worse than 60.53% of its industry peers.
NTCO has a Quick Ratio of 1.01. This is a normal value and indicates that NTCO is financially healthy and should not expect problems in meeting its short term obligations.
NTCO has a Quick ratio of 1.01. This is comparable to the rest of the industry: NTCO outperforms 47.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for NTCO have decreased strongly by -521.82% in the last year.
NTCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.60%.
Measured over the past years, NTCO shows a very strong growth in Revenue. The Revenue has been growing by 29.83% on average per year.
EPS 1Y (TTM)-521.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.36%
Revenue 1Y (TTM)-9.6%
Revenue growth 3Y36.02%
Revenue growth 5Y29.83%
Sales Q2Q%-10.67%
3.2 Future
NTCO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.32% yearly.
NTCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
EPS Next Y69.18%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
EPS Next 5YN/A
Revenue Next Year-9.61%
Revenue Next 2Y-6.29%
Revenue Next 3Y-2.82%
Revenue Next 5Y1.96%
3.3 Evolution
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
NTCO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 26.06, the valuation of NTCO can be described as expensive.
Based on the Price/Forward Earnings ratio, NTCO is valued a bit cheaper than 60.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, NTCO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.06 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTCO is valued cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NTCO's earnings are expected to grow with 36.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.75%
EPS Next 3Y36.32%
5. Dividend
5.1 Amount
NTCO has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 7.10, NTCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, NTCO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of NTCO has a limited annual growth rate of 0.67%.
NTCO is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)0.67%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NTCO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
NTCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-6.37%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
6.57
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.54B
Revenue(TTM)34.49B
Net Income(TTM)-2.83B
Analysts78.95
Price Target7.75 (17.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend0.13
Dividend Growth(5Y)0.67%
DP-6.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-130.75%
Min EPS beat(2)-161.03%
Max EPS beat(2)-100.48%
EPS beat(4)0
Avg EPS beat(4)-271.7%
Min EPS beat(4)-485.4%
Max EPS beat(4)-100.48%
EPS beat(8)2
Avg EPS beat(8)-154.76%
EPS beat(12)4
Avg EPS beat(12)-97.31%
EPS beat(16)4
Avg EPS beat(16)-159.4%
Revenue beat(2)0
Avg Revenue beat(2)-11.68%
Min Revenue beat(2)-13.83%
Max Revenue beat(2)-9.53%
Revenue beat(4)0
Avg Revenue beat(4)-9.44%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)-5.32%
Revenue beat(8)0
Avg Revenue beat(8)-6.69%
Revenue beat(12)4
Avg Revenue beat(12)4.81%
Revenue beat(16)5
Avg Revenue beat(16)3.52%
PT rev (1m)1.08%
PT rev (3m)9.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-578.02%
EPS NY rev (3m)-241.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.06 | ||
| P/S | 0.65 | ||
| P/FCF | N/A | ||
| P/OCF | 136.32 | ||
| P/B | 1.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.65 |
EPS(TTM)-0.82
EYN/A
EPS(NY)0.25
Fwd EY3.84%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.05
OCFY0.73%
SpS10.05
BVpS5.98
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -13.8% | ||
| ROCE | 4.83% | ||
| ROIC | 3.82% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 11.5% | ||
| OM | 5.42% | ||
| PM (TTM) | N/A | ||
| GM | 64.7% | ||
| FCFM | N/A |
ROA(3y)-1.52%
ROA(5y)-0.05%
ROE(3y)-3.84%
ROE(5y)2.88%
ROIC(3y)3.19%
ROIC(5y)6.2%
ROICexc(3y)3.77%
ROICexc(5y)8.56%
ROICexgc(3y)12.35%
ROICexgc(5y)23.52%
ROCE(3y)4.03%
ROCE(5y)7.84%
ROICexgc growth 3Y-45.03%
ROICexgc growth 5YN/A
ROICexc growth 3Y-46.7%
ROICexc growth 5Y-37.7%
OM growth 3Y-36.04%
OM growth 5Y-27.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-1.96%
F-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 43.73% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 2.98 | ||
| Cash Conversion | 3.78% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.27 |
F-Score4
WACC11.97%
ROIC/WACC0.32
Cap/Depr(3y)40.11%
Cap/Depr(5y)51.01%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-521.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.36%
EPS Next Y69.18%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.6%
Revenue growth 3Y36.02%
Revenue growth 5Y29.83%
Sales Q2Q%-10.67%
Revenue Next Year-9.61%
Revenue Next 2Y-6.29%
Revenue Next 3Y-2.82%
Revenue Next 5Y1.96%
EBIT growth 1Y-4.83%
EBIT growth 3Y-13%
EBIT growth 5Y-5.38%
EBIT Next Year682.89%
EBIT Next 3Y116.23%
EBIT Next 5Y88.66%
FCF growth 1Y-488.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.71%
OCF growth 3Y-19.77%
OCF growth 5Y-7.48%
NATURA &CO HOLDING-ADR / NTCO FAQ
What is the fundamental rating for NTCO stock?
ChartMill assigns a fundamental rating of 3 / 10 to NTCO.
Can you provide the valuation status for NATURA &CO HOLDING-ADR?
ChartMill assigns a valuation rating of 3 / 10 to NATURA &CO HOLDING-ADR (NTCO). This can be considered as Overvalued.
What is the profitability of NTCO stock?
NATURA &CO HOLDING-ADR (NTCO) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for NTCO stock?
The Earnings per Share (EPS) of NATURA &CO HOLDING-ADR (NTCO) is expected to grow by 69.18% in the next year.
Is the dividend of NATURA &CO HOLDING-ADR sustainable?
The dividend rating of NATURA &CO HOLDING-ADR (NTCO) is 2 / 10 and the dividend payout ratio is -6.37%.