BRF SA-ADR (BRFS) Stock Fundamental Analysis
NYSE:BRFS - New York Stock Exchange, Inc. - US10552T1079 - ADR - Currency: USD
Taking everything into account, BRFS scores 6 out of 10 in our fundamental rating. BRFS was compared to 89 industry peers in the Food Products industry. BRFS scores excellent on profitability, but there are some minor concerns on its financial health. BRFS is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, BRFS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
BRFS had positive earnings in the past year.
In the past year BRFS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BRFS reported negative net income in multiple years.
Each year in the past 5 years BRFS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.13%, BRFS is doing good in the industry, outperforming 66.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.30%, BRFS belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
BRFS's Return On Invested Capital of 11.69% is amongst the best of the industry. BRFS outperforms 86.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 21.3% | ||
| ROIC | 11.69% |
ROA(3y)-1.3%
ROA(5y)-0.07%
ROE(3y)-6.8%
ROE(5y)0.14%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
BRFS has a Profit Margin of 5.24%. This is in the better half of the industry: BRFS outperforms 73.03% of its industry peers.
BRFS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.90%, BRFS is in the better half of the industry, outperforming 76.40% of the companies in the same industry.
BRFS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.80%, BRFS is in the better half of the industry, outperforming 61.80% of the companies in the same industry.
In the last couple of years the Gross Margin of BRFS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.9% | ||
| PM (TTM) | 5.24% | ||
| GM | 25.8% |
OM growth 3Y21.97%
OM growth 5Y3.91%
PM growth 3Y82.05%
PM growth 5Y42.54%
GM growth 3Y8.77%
GM growth 5Y1.33%
2. Health
2.1 Basic Checks
BRFS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BRFS has less shares outstanding
The number of shares outstanding for BRFS has been increased compared to 5 years ago.
BRFS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.07 indicates that BRFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRFS has a Altman-Z score (2.07) which is in line with its industry peers.
The Debt to FCF ratio of BRFS is 2.96, which is a good value as it means it would take BRFS, 2.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.96, BRFS is doing good in the industry, outperforming 77.53% of the companies in the same industry.
A Debt/Equity ratio of 1.49 is on the high side and indicates that BRFS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.49, BRFS is doing worse than 80.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 2.07 |
ROIC/WACC0.85
WACC13.68%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BRFS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.48, BRFS is in line with its industry, outperforming 50.56% of the companies in the same industry.
BRFS has a Quick Ratio of 1.02. This is a normal value and indicates that BRFS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BRFS (1.02) is better than 60.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
BRFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 212.32%, which is quite impressive.
BRFS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 37.09% yearly.
BRFS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.48%.
BRFS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.91% yearly.
EPS 1Y (TTM)212.32%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-41.1%
Revenue 1Y (TTM)14.48%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%21.65%
3.2 Future
BRFS is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.92% yearly.
The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue Next Year9.59%
Revenue Next 2Y6.86%
Revenue Next 3Y5.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 10.82, the valuation of BRFS can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BRFS indicates a somewhat cheap valuation: BRFS is cheaper than 79.78% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BRFS to the average of the S&P500 Index (27.75), we can say BRFS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.12 indicates a reasonable valuation of BRFS.
Based on the Price/Forward Earnings ratio, BRFS is valued cheaply inside the industry as 91.01% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BRFS to the average of the S&P500 Index (20.49), we can say BRFS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRFS is valued cheaper than 88.76% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 92.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.19 | ||
| EV/EBITDA | 4.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRFS has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BRFS's earnings are expected to decrease with -5.92% in the coming years.
PEG (NY)1.29
PEG (5Y)0.29
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.20%, BRFS has a reasonable but not impressive dividend return.
BRFS's Dividend Yield is a higher than the industry average which is at 4.38.
BRFS's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
On average, the dividend of BRFS grows each year by 6.52%, which is quite nice.
BRFS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRFS pays out 35.62% of its income as dividend. This is a sustainable payout ratio.
DP35.62%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
NYSE:BRFS (5/2/2025, 11:11:58 AM)
3.895
+0.02 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners30.39%
Inst Owner Change-0.39%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.23B
Analysts75.56
Price Target4.87 (25.03%)
Short Float %0.81%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend0.13
Dividend Growth(5Y)6.52%
DP35.62%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.63%
Min EPS beat(2)-47.78%
Max EPS beat(2)-9.48%
EPS beat(4)2
Avg EPS beat(4)13.86%
Min EPS beat(4)-47.78%
Max EPS beat(4)72.86%
EPS beat(8)4
Avg EPS beat(8)-12.89%
EPS beat(12)4
Avg EPS beat(12)-317.53%
EPS beat(16)5
Avg EPS beat(16)-260.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.45%
Min Revenue beat(2)-3.19%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.84%
Min Revenue beat(4)-4.32%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-1.79%
Revenue beat(12)3
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.13%
PT rev (1m)-0.36%
PT rev (3m)0.68%
EPS NQ rev (1m)-5.57%
EPS NQ rev (3m)24.45%
EPS NY rev (1m)-2.21%
EPS NY rev (3m)19.41%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)6%
Revenue NY rev (1m)1.77%
Revenue NY rev (3m)3.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 | ||
| P/S | 0.57 | ||
| P/FCF | 4.19 | ||
| P/OCF | 3.25 | ||
| P/B | 2.32 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 4.56 |
EPS(TTM)0.36
EY9.24%
EPS(NY)0.38
Fwd EY9.88%
FCF(TTM)0.93
FCFY23.88%
OCF(TTM)1.2
OCFY30.81%
SpS6.84
BVpS1.68
TBVpS0.94
PEG (NY)1.29
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 21.3% | ||
| ROCE | 15.98% | ||
| ROIC | 11.69% | ||
| ROICexc | 16.42% | ||
| ROICexgc | 21.15% | ||
| OM | 10.9% | ||
| PM (TTM) | 5.24% | ||
| GM | 25.8% | ||
| FCFM | 13.61% |
ROA(3y)-1.3%
ROA(5y)-0.07%
ROE(3y)-6.8%
ROE(5y)0.14%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y27.2%
ROICexcg growth 5Y12.59%
ROICexc growth 3Y27.5%
ROICexc growth 5Y12.1%
OM growth 3Y21.97%
OM growth 5Y3.91%
PM growth 3Y82.05%
PM growth 5Y42.54%
GM growth 3Y8.77%
GM growth 5Y1.33%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 68.75% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 3.74 | ||
| Cash Conversion | 105.5% | ||
| Profit Quality | 259.98% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.07 |
F-Score8
WACC13.68%
ROIC/WACC0.85
Cap/Depr(3y)82.09%
Cap/Depr(5y)86.85%
Cap/Sales(3y)4.72%
Cap/Sales(5y)5.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)212.32%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-41.1%
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)14.48%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%21.65%
Revenue Next Year9.59%
Revenue Next 2Y6.86%
Revenue Next 3Y5.15%
Revenue Next 5YN/A
EBIT growth 1Y734.63%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year39.5%
EBIT Next 3Y8.57%
EBIT Next 5YN/A
FCF growth 1Y448.58%
FCF growth 3Y106.49%
FCF growth 5Y47.37%
OCF growth 1Y173.56%
OCF growth 3Y40.04%
OCF growth 5Y33.71%