NATURA &CO HOLDING-ADR (NTCO) Stock Fundamental Analysis
USA - NYSE:NTCO - US63884N1081 - ADR
6.57 USD
0 (0%)
6.57 USD
0 (0%)
Taking everything into account, NTCO scores 3 out of 10 in our fundamental rating. NTCO was compared to 34 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.
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 has a Return On Assets of -5.60%. This is comparable to the rest of the industry: NTCO outperforms 42.11% of its industry peers.
NTCO has a Return On Equity (-13.80%) which 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 12.51%.
The last Return On Invested Capital (3.82%) for NTCO is above the 3 year average (3.19%), which is a sign of increasing profitability.
| 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 comparable to the rest of the industry.
NTCO's Operating Margin has declined in the last couple of years.
NTCO's Gross Margin of 64.70% is fine compared to the rest of the industry. NTCO outperforms 63.16% of its industry peers.
In the last couple of years the Gross Margin of NTCO has declined.
| 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.
NTCO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, NTCO has a worse debt to assets ratio.
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.
With a Altman-Z score value of 1.27, NTCO is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.71 indicates that NTCO is somewhat dependend on debt financing.
The Debt to Equity ratio of NTCO (0.71) is worse than 60.53% of its industry peers.
| 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.
With a Current ratio value of 1.36, NTCO is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
A Quick Ratio of 1.01 indicates that NTCO should not have too much problems paying its short term obligations.
NTCO's Quick ratio of 1.01 is in line compared 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.
The Revenue has decreased by -9.60% in the past year.
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
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
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for NTCO. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 26.06, the valuation of NTCO can be described as expensive.
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 (34.46), we can say NTCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTCO indicates a rather cheap valuation: NTCO is cheaper than 86.84% of the companies listed in the same industry.
| 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
With a yearly dividend of 0.83%, NTCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.52, NTCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, 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
The earnings of NTCO are negative and hence is the payout ratio. NTCO will probably not be able to sustain this dividend level.
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%.