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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

Taking everything into account, NTCO scores 3 out of 10 in our fundamental rating. NTCO was compared to 35 industry peers in the Personal Care Products industry. NTCO may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, NTCO is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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3

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.
Of the past 5 years NTCO 4 years had a positive operating cash flow.
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

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.
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 has a Return On Invested Capital of 3.82%. This is comparable 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 15.96%.
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 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

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.
In the last couple of years the Operating Margin of NTCO has declined.
NTCO has a Gross Margin of 64.70%. This is in the better half 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.
Compared to 1 year ago, NTCO has about the same amount of shares outstanding.
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

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 Altman-Z score of 1.27. This is in the lower half of the industry: NTCO underperforms 60.53% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that 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

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.
Looking at the Current ratio, with a value of 1.36, NTCO is doing worse than 60.53% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that NTCO should not have too much problems paying its short term obligations.
NTCO has a Quick ratio (1.01) which is in line with its industry peers.
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%.
NTCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.60%.
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

The Earnings Per Share is expected to grow by 36.32% on average over the next years. This is a very strong growth
Based on estimates for the next years, NTCO will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
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.
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 0 2 -2 -4

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for NTCO. In the last year negative earnings were reported.
NTCO is valuated quite expensively with a Price/Forward Earnings ratio of 26.06.
Based on the Price/Forward Earnings ratio, NTCO is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, NTCO is valued a bit more expensive.
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

NTCO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTCO is cheaper than 86.84% of the companies in the same industry.
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

With a yearly dividend of 0.83%, NTCO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.73, NTCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.83, NTCO pays less dividend than the S&P500 average, which is at 2.47.
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.
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%
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 Change0%
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%