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%)
Overall NTCO gets a fundamental rating of 3 out of 10. We evaluated NTCO against 36 industry peers in the Personal Care Products industry. NTCO has a bad profitability rating. Also its financial health evaluation is rather negative. NTCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NTCO had negative earnings in the past year.
NTCO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NTCO reported negative net income in multiple years.
Of the past 5 years NTCO 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NTCO (-5.60%) is comparable to the rest of the industry.
NTCO's Return On Equity of -13.80% is in line compared to the rest of the industry. NTCO outperforms 47.37% of its industry peers.
NTCO's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. NTCO outperforms 50.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTCO is significantly below the industry average of 12.46%.
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
Looking at the Operating Margin, with a value of 5.42%, NTCO is in line with its industry, outperforming 57.89% of the companies in the same industry.
NTCO's Operating Margin has declined in the last couple of years.
The Gross Margin of NTCO (64.70%) is better than 63.16% of its industry peers.
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
NTCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NTCO remains at a similar level compared to 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.
NTCO has a worse Altman-Z score (1.27) than 60.53% of its industry peers.
NTCO has a Debt/Equity ratio of 0.71. This is a neutral value indicating 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.
NTCO's Current ratio of 1.36 is on the low side compared to the rest of the industry. NTCO is outperformed by 60.53% of its industry peers.
A Quick Ratio of 1.01 indicates that NTCO should not have too much problems paying its short term obligations.
The Quick ratio of NTCO (1.01) is comparable to the rest of the industry.
| 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.
Looking at the last year, NTCO shows a decrease in Revenue. The Revenue has decreased by -9.60% in the last year.
The Revenue has been growing by 29.83% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, NTCO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.32% on average per year.
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.
NTCO is valuated quite expensively with a Price/Forward Earnings ratio of 26.06.
60.53% of the companies in the same industry are more expensive than NTCO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NTCO to the average of the S&P500 Index (36.10), we can say NTCO is valued slightly cheaper.
| 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 cheaply inside the industry as 86.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
NTCO's 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.
NTCO's Dividend Yield is a higher than the industry average which is at 7.12.
Compared to an average S&P500 Dividend Yield of 2.32, 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.
The dividend of NTCO is growing, but earnings are growing more, so the dividend growth is 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%.