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NATURA &CO HOLDING-ADR (NTCO) Stock Fundamental Analysis

NYSE:NTCO - New York Stock Exchange, Inc. - US63884N1081 - ADR - Currency: USD

6.57  0 (0%)

After market: 6.57 0 (0%)

Fundamental Rating

3

NTCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. NTCO has a bad profitability rating. Also its financial health evaluation is rather negative. NTCO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year NTCO has reported negative net income.
In the past year NTCO had a positive cash flow from operations.
In multiple years NTCO reported negative net income over the last 5 years.
NTCO had a positive operating cash flow in 4 of the past 5 years.
NTCO Yearly Net Income VS EBIT VS OCF VS FCFNTCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B -2B

1.2 Ratios

The Return On Assets of NTCO (-5.60%) is comparable to the rest of the industry.
NTCO has a Return On Equity (-13.80%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.82%, NTCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
NTCO had an Average Return On Invested Capital over the past 3 years of 3.19%. This is significantly below the industry average of 13.75%.
The 3 year average ROIC (3.19%) for NTCO is below the current ROIC(3.82%), indicating increased profibility in the last year.
Industry RankSector 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%
NTCO Yearly ROA, ROE, ROICNTCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40

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.
NTCO's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
NTCO Yearly Profit, Operating, Gross MarginsNTCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTCO 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.
NTCO Yearly Shares OutstandingNTCO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
NTCO Yearly Total Debt VS Total AssetsNTCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of 1.27, we must say that NTCO is in the distress zone and has some risk of bankruptcy.
NTCO's Altman-Z score of 1.27 is on the low side compared to the rest of the industry. NTCO is outperformed by 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.
NTCO has a worse Debt to Equity ratio (0.71) than 60.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF N/A
Altman-Z 1.27
ROIC/WACC0.32
WACC11.97%
NTCO Yearly LT Debt VS Equity VS FCFNTCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 10B 20B

2.3 Liquidity

A Current Ratio of 1.36 indicates that NTCO should not have too much problems paying its short term obligations.
The Current ratio of NTCO (1.36) is worse than 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 RankSector Rank
Current Ratio 1.36
Quick Ratio 1.01
NTCO Yearly Current Assets VS Current LiabilitesNTCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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4

3. Growth

3.1 Past

NTCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -521.82%.
Looking at the last year, NTCO shows a decrease in Revenue. The Revenue has decreased by -9.60% in the last year.
NTCO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.83% yearly.
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.
The Revenue is expected to grow by 1.96% on average over the next years.
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.
NTCO Yearly Revenue VS EstimatesNTCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B
NTCO Yearly EPS VS EstimatesNTCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4

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4

4. Valuation

4.1 Price/Earnings Ratio

NTCO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 26.06 indicates a quite expensive valuation of NTCO.
NTCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NTCO is cheaper than 60.53% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. NTCO is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 26.06
NTCO Price Earnings VS Forward Price EarningsNTCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

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 RankSector Rank
P/FCF N/A
EV/EBITDA 7.65
NTCO Per share dataNTCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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%

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2

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 5.02.
Compared to an average S&P500 Dividend Yield of 2.33, NTCO's dividend is way lower than the S&P500 average.
Industry RankSector 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
NTCO Yearly Dividends per shareNTCO Yearly Dividends per shareYearly Dividends per share 2019 2022 0.1 0.2 0.3 0.4 0.5

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%
NTCO Yearly Income VS Free CF VS DividendNTCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B -2B

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NATURA &CO HOLDING-ADR

NYSE:NTCO (2/9/2024, 8:04:00 PM)

After market: 6.57 0 (0%)

6.57

0 (0%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)11-14 2023-11-14/bmo
Earnings (Next)03-11 2024-03-11/amc
Inst Owners0%
Inst Owner Change-3.42%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.54B
Analysts78.95
Price Target7.75 (17.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-45.03%
ROICexcg 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 RankSector 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%