BRF SA (BRFS) Stock Fundamental Analysis
USA - NYSE:BRFS - US10552T1079 - ADR
3.38 USD
-0.44 (-11.52%)
3.49 USD
+0.11 (+3.25%)
BRFS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. While BRFS has a great profitability rating, there are some minor concerns on its financial health. BRFS may be a bit undervalued, certainly considering the very reasonable score on growth Finally BRFS also has an excellent dividend rating. With these ratings, BRFS could be worth investigating further for value and dividend 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.
BRFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRFS's Return On Assets of 5.58% is fine compared to the rest of the industry. BRFS outperforms 76.40% of its industry peers.
With an excellent Return On Equity value of 21.28%, BRFS belongs to the best of the industry, outperforming 92.13% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.38%, BRFS belongs to the best of the industry, outperforming 88.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 21.28% | ||
| ROIC | 12.38% |
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
Looking at the Profit Margin, with a value of 5.61%, BRFS is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
In the last couple of years the Profit Margin of BRFS has grown nicely.
The Operating Margin of BRFS (11.29%) is better than 76.40% of its industry peers.
In the last couple of years the Operating Margin of BRFS has grown nicely.
BRFS's Gross Margin of 26.31% is fine compared to the rest of the industry. BRFS outperforms 62.92% of its industry peers.
BRFS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 5.61% | ||
| GM | 26.31% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BRFS is creating some 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.
The debt/assets ratio for BRFS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.09 indicates that BRFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.09, BRFS is in line with its industry, outperforming 48.31% of the companies in the same industry.
The Debt to FCF ratio of BRFS is 2.59, which is a good value as it means it would take BRFS, 2.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, BRFS belongs to the top of the industry, outperforming 82.02% of the companies in the same industry.
A Debt/Equity ratio of 1.30 is on the high side and indicates that BRFS has dependencies on debt financing.
BRFS's Debt to Equity ratio of 1.30 is on the low side compared to the rest of the industry. BRFS is outperformed by 77.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.34
WACC9.21%
2.3 Liquidity
BRFS has a Current Ratio of 1.52. This is a normal value and indicates that BRFS is financially healthy and should not expect problems in meeting its short term obligations.
BRFS has a Current ratio of 1.52. This is comparable to the rest of the industry: BRFS outperforms 51.69% of its industry peers.
BRFS has a Quick Ratio of 1.05. This is a normal value and indicates that BRFS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.05, BRFS is in the better half of the industry, outperforming 64.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
BRFS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 59.91%, which is quite impressive.
The Earnings Per Share has been growing by 37.09% on average over the past years. This is a very strong growth
BRFS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.10%.
Measured over the past years, BRFS shows a quite strong growth in Revenue. The Revenue has been growing by 12.91% on average per year.
EPS 1Y (TTM)59.91%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-22.3%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%2.91%
3.2 Future
The Earnings Per Share is expected to decrease by -5.99% on average over the next years.
Based on estimates for the next years, BRFS will show a small growth in Revenue. The Revenue will grow by 5.38% on average per year.
EPS Next Y17.53%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
EPS Next 5YN/A
Revenue Next Year6.34%
Revenue Next 2Y5.94%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 8.05, the valuation of BRFS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 89.89% of the companies listed in the same industry.
BRFS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
Based on the Price/Forward Earnings ratio of 9.82, the valuation of BRFS can be described as reasonable.
91.01% of the companies in the same industry are more expensive than BRFS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.55. BRFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 9.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BRFS is valued cheaply inside the industry as 95.51% of the companies are valued more expensively.
BRFS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BRFS is cheaper than 94.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.02 | ||
| EV/EBITDA | 3.51 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 -5.99% in the coming years.
PEG (NY)0.46
PEG (5Y)0.22
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
5. Dividend
5.1 Amount
BRFS has a Yearly Dividend Yield of 17.17%, which is a nice return.
Compared to an average industry Dividend Yield of 5.23, BRFS pays a better dividend. On top of this BRFS pays more dividend than 98.88% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, BRFS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.17% |
5.2 History
On average, the dividend of BRFS grows each year by 6.52%, which is quite nice.
BRFS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.52%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BRFS pays out 31.92% of its income as dividend. This is a sustainable payout ratio.
DP31.92%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
3.38
-0.44 (-11.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners25.73%
Inst Owner Change-1.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.41B
Revenue(TTM)63.95B
Net Income(TTM)3.59B
Analysts78.46
Price Target4.94 (46.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 17.17% |
Yearly Dividend0.13
Dividend Growth(5Y)6.52%
DP31.92%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.71%
Min EPS beat(2)-12.43%
Max EPS beat(2)23.85%
EPS beat(4)1
Avg EPS beat(4)-11.46%
Min EPS beat(4)-47.78%
Max EPS beat(4)23.85%
EPS beat(8)5
Avg EPS beat(8)30.62%
EPS beat(12)5
Avg EPS beat(12)-163.19%
EPS beat(16)6
Avg EPS beat(16)-245.27%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.99%
Max Revenue beat(2)-2.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-3.99%
Max Revenue beat(4)2.29%
Revenue beat(8)3
Avg Revenue beat(8)-1.19%
Revenue beat(12)3
Avg Revenue beat(12)-1.91%
Revenue beat(16)4
Avg Revenue beat(16)-1.67%
PT rev (1m)1.31%
PT rev (3m)0.59%
EPS NQ rev (1m)27.63%
EPS NQ rev (3m)40.46%
EPS NY rev (1m)13.64%
EPS NY rev (3m)8.33%
Revenue NQ rev (1m)-2.38%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-1.19%
Revenue NY rev (3m)-2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 9.82 | ||
| P/S | 0.45 | ||
| P/FCF | 3.02 | ||
| P/OCF | 2.26 | ||
| P/B | 1.72 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 3.51 |
EPS(TTM)0.42
EY12.43%
EPS(NY)0.34
Fwd EY10.18%
FCF(TTM)1.12
FCFY33.14%
OCF(TTM)1.49
OCFY44.18%
SpS7.48
BVpS1.97
TBVpS1.22
PEG (NY)0.46
PEG (5Y)0.22
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.58% | ||
| ROE | 21.28% | ||
| ROCE | 16.93% | ||
| ROIC | 12.38% | ||
| ROICexc | 19.16% | ||
| ROICexgc | 25% | ||
| OM | 11.29% | ||
| PM (TTM) | 5.61% | ||
| GM | 26.31% | ||
| FCFM | 14.99% |
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
ROICexgc growth 3Y27.2%
ROICexgc 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 Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 90.36% | ||
| Cap/Sales | 4.99% | ||
| Interest Coverage | 4.32 | ||
| Cash Conversion | 118.84% | ||
| Profit Quality | 267.28% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.09 |
F-Score9
WACC9.21%
ROIC/WACC1.34
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)59.91%
EPS 3Y46.31%
EPS 5Y37.09%
EPS Q2Q%-22.3%
EPS Next Y17.53%
EPS Next 2Y-3.05%
EPS Next 3Y-5.99%
EPS Next 5YN/A
Revenue 1Y (TTM)13.1%
Revenue growth 3Y8.28%
Revenue growth 5Y12.91%
Sales Q2Q%2.91%
Revenue Next Year6.34%
Revenue Next 2Y5.94%
Revenue Next 3Y5.38%
Revenue Next 5YN/A
EBIT growth 1Y64.5%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year38.73%
EBIT Next 3Y9.09%
EBIT Next 5YN/A
FCF growth 1Y754.47%
FCF growth 3Y106.49%
FCF growth 5Y47.37%
OCF growth 1Y224.01%
OCF growth 3Y40.04%
OCF growth 5Y33.71%
BRF SA / BRFS FAQ
Can you provide the ChartMill fundamental rating for BRF SA?
ChartMill assigns a fundamental rating of 6 / 10 to BRFS.
What is the valuation status of BRF SA (BRFS) stock?
ChartMill assigns a valuation rating of 8 / 10 to BRF SA (BRFS). This can be considered as Undervalued.
What is the profitability of BRFS stock?
BRF SA (BRFS) has a profitability rating of 7 / 10.
What is the financial health of BRF SA (BRFS) stock?
The financial health rating of BRF SA (BRFS) is 5 / 10.
Is the dividend of BRF SA sustainable?
The dividend rating of BRF SA (BRFS) is 7 / 10 and the dividend payout ratio is 31.92%.