BRF SA-ADR (BRFS) Stock Fundamental Analysis
NYSE:BRFS - New York Stock Exchange, Inc. - US10552T1079 - ADR - Currency: USD
Overall BRFS gets a fundamental rating of 6 out of 10. We evaluated BRFS against 91 industry peers in the Food Products industry. BRFS has an excellent profitability rating, but there are some minor concerns on its financial health. BRFS may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make BRFS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year BRFS was profitable.
BRFS had a positive operating cash flow in the past year.
In multiple years BRFS reported negative net income over the last 5 years.
Each year in the past 5 years BRFS had a positive operating cash flow.
1.2 Ratios
BRFS has a better Return On Assets (6.09%) than 78.26% of its industry peers.
With an excellent Return On Equity value of 23.89%, BRFS belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.98%, BRFS belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 23.89% | ||
| ROIC | 12.98% |
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
The Profit Margin of BRFS (6.03%) is better than 75.00% of its industry peers.
In the last couple of years the Profit Margin of BRFS has grown nicely.
The Operating Margin of BRFS (11.55%) is better than 76.09% of its industry peers.
In the last couple of years the Operating Margin of BRFS has grown nicely.
BRFS has a Gross Margin of 26.24%. This is in the better half of the industry: BRFS outperforms 61.96% of its industry peers.
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 | 11.55% | ||
| PM (TTM) | 6.03% | ||
| GM | 26.24% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BRFS has been reduced compared to 1 year ago.
BRFS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRFS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.16 indicates that BRFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRFS's Altman-Z score of 2.16 is in line compared to the rest of the industry. BRFS outperforms 50.00% of its industry peers.
The Debt to FCF ratio of BRFS is 2.45, which is a good value as it means it would take BRFS, 2.45 years of fcf income to pay off all of its debts.
BRFS has a better Debt to FCF ratio (2.45) than 82.61% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that BRFS has dependencies on debt financing.
BRFS has a worse Debt to Equity ratio (1.32) than 78.26% of its industry peers.
Although BRFS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.41
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BRFS should not have too much problems paying its short term obligations.
BRFS has a Current ratio (1.46) which is comparable to the rest of the industry.
A Quick Ratio of 1.02 indicates that BRFS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.02, BRFS is doing good in the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| 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 598.30%, 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 18.02%.
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)598.3%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%133.33%
Revenue 1Y (TTM)18.02%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%15.96%
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.
Based on estimates for the next years, BRFS will show a small growth in Revenue. The Revenue will grow by 5.87% on average per year.
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue Next Year9.44%
Revenue Next 2Y6.88%
Revenue Next 3Y5.87%
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 9.29, the valuation of BRFS can be described as very reasonable.
84.78% of the companies in the same industry are more expensive than BRFS, based on the Price/Earnings ratio.
BRFS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
BRFS is valuated reasonably with a Price/Forward Earnings ratio of 11.30.
BRFS's Price/Forward Earnings ratio is rather cheap when compared to the industry. BRFS is cheaper than 83.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BRFS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 89.13% of the companies listed in the same industry.
BRFS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BRFS is cheaper than 96.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.54 | ||
| EV/EBITDA | 4.14 |
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)1.11
PEG (5Y)0.25
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, BRFS has a reasonable but not impressive dividend return.
BRFS's Dividend Yield is a higher than the industry average which is at 4.71.
BRFS's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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
29.86% of the earnings are spent on dividend by BRFS. This is a low number and sustainable payout ratio.
DP29.86%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
3.9
-0.13 (-3.23%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners30.62%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap6.24B
Analysts76.92
Price Target4.91 (25.9%)
Short Float %1.74%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend0.13
Dividend Growth(5Y)6.52%
DP29.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.97%
Min EPS beat(2)-47.78%
Max EPS beat(2)23.85%
EPS beat(4)2
Avg EPS beat(4)1.61%
Min EPS beat(4)-47.78%
Max EPS beat(4)39.84%
EPS beat(8)5
Avg EPS beat(8)13.68%
EPS beat(12)5
Avg EPS beat(12)-271.62%
EPS beat(16)6
Avg EPS beat(16)-254.17%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)2.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.75%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.13%
Revenue beat(12)3
Avg Revenue beat(12)-2.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.25%
PT rev (1m)3.39%
PT rev (3m)0.8%
EPS NQ rev (1m)-7.22%
EPS NQ rev (3m)3.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-5.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.29 | ||
| Fwd PE | 11.3 | ||
| P/S | 0.55 | ||
| P/FCF | 3.54 | ||
| P/OCF | 2.79 | ||
| P/B | 2.16 | ||
| P/tB | 3.63 | ||
| EV/EBITDA | 4.14 |
EPS(TTM)0.42
EY10.77%
EPS(NY)0.35
Fwd EY8.85%
FCF(TTM)1.1
FCFY28.23%
OCF(TTM)1.4
OCFY35.9%
SpS7.13
BVpS1.8
TBVpS1.07
PEG (NY)1.11
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 23.89% | ||
| ROCE | 17.76% | ||
| ROIC | 12.98% | ||
| ROICexc | 18.93% | ||
| ROICexgc | 24.55% | ||
| OM | 11.55% | ||
| PM (TTM) | 6.03% | ||
| GM | 26.24% | ||
| FCFM | 15.44% |
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-Score9
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 75.71% | ||
| Cap/Sales | 4.19% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 114.89% | ||
| Profit Quality | 255.87% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 2.16 |
F-Score9
WACC9.23%
ROIC/WACC1.41
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)598.3%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%133.33%
EPS Next Y8.4%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
EPS Next 5YN/A
Revenue 1Y (TTM)18.02%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%15.96%
Revenue Next Year9.44%
Revenue Next 2Y6.88%
Revenue Next 3Y5.87%
Revenue Next 5YN/A
EBIT growth 1Y220.65%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year39%
EBIT Next 3Y8.99%
EBIT Next 5YN/A
FCF growth 1Y791.36%
FCF growth 3Y106.49%
FCF growth 5Y47.37%
OCF growth 1Y205.12%
OCF growth 3Y40.04%
OCF growth 5Y33.71%