BRF SA-ADR (BRFS) Stock Fundamental Analysis
NYSE:BRFS - New York Stock Exchange, Inc. - US10552T1079 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to BRFS. BRFS was compared to 90 industry peers in the Food Products industry. While BRFS belongs to the best of the industry regarding profitability, 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! These ratings could make BRFS a good candidate for value investing.
1. Profitability
1.1 Basic Checks
BRFS had positive earnings in the past year.
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 Return On Assets of 5.13%. This is in the better half of the industry: BRFS outperforms 71.11% of its industry peers.
BRFS has a better Return On Equity (21.30%) than 91.11% of its industry peers.
BRFS has a Return On Invested Capital of 11.69%. This is amongst the best in the industry. BRFS outperforms 88.89% 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
Looking at the Profit Margin, with a value of 5.24%, BRFS is in the better half of the industry, outperforming 74.44% of the companies in the same industry.
BRFS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 10.90%, BRFS is doing good in the industry, outperforming 77.78% of the companies in the same industry.
BRFS's Operating Margin has improved in the last couple of years.
BRFS's Gross Margin of 25.80% is fine compared to the rest of the industry. BRFS outperforms 63.33% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRFS is destroying value.
BRFS has less shares outstanding than it did 1 year ago.
BRFS has more shares outstanding than it did 5 years ago.
BRFS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that BRFS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.03, BRFS perfoms like the industry average, outperforming 48.89% of the companies in the same industry.
BRFS has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as BRFS would need 2.96 years to pay back of all of its debts.
BRFS has a Debt to FCF ratio of 2.96. This is amongst the best in the industry. BRFS outperforms 85.56% of its industry peers.
BRFS has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
BRFS's Debt to Equity ratio of 1.49 is on the low side compared to the rest of the industry. BRFS is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.86
WACC13.52%
2.3 Liquidity
A Current Ratio of 1.48 indicates that BRFS should not have too much problems paying its short term obligations.
BRFS's Current ratio of 1.48 is in line compared to the rest of the industry. BRFS outperforms 53.33% of its industry peers.
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.
Looking at the Quick ratio, with a value of 1.02, BRFS is in line with its industry, outperforming 60.00% of the companies in the same industry.
| 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 598.30%, 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
Looking at the last year, BRFS shows a quite strong growth in Revenue. The Revenue has grown by 14.48% in the last year.
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)14.48%
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.
The Revenue is expected to grow by 5.87% 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 Year9.44%
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
BRFS is valuated reasonably with a Price/Earnings ratio of 8.36.
Compared to the rest of the industry, the Price/Earnings ratio of BRFS indicates a rather cheap valuation: BRFS is cheaper than 88.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of BRFS to the average of the S&P500 Index (26.17), we can say BRFS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.15, the valuation of BRFS can be described as reasonable.
Based on the Price/Forward Earnings ratio, BRFS is valued cheaper than 87.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. BRFS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 10.15 |
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 90.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BRFS is valued cheaper than 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 4.26 |
4.3 Compensation for Growth
BRFS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BRFS may justify a higher PE ratio.
BRFS's earnings are expected to decrease with -5.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.99
PEG (5Y)0.23
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
5. Dividend
5.1 Amount
BRFS has a Yearly Dividend Yield of 3.41%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.64, BRFS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BRFS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of BRFS is nicely growing with an annual growth rate of 6.52%!
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
35.62% of the earnings are spent on dividend by BRFS. This is a low number and sustainable payout ratio.
DP35.62%
EPS Next 2Y-0.94%
EPS Next 3Y-5.92%
3.51
-0.09 (-2.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners30.39%
Inst Owner Change-2.64%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.62B
Analysts75.56
Price Target4.68 (33.33%)
Short Float %0.73%
Short Ratio1.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
Yearly Dividend0.12
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)-3.95%
PT rev (3m)-7.74%
EPS NQ rev (1m)19.78%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-5.16%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 10.15 | ||
| P/S | 0.52 | ||
| P/FCF | 3.8 | ||
| P/OCF | 2.95 | ||
| P/B | 2.11 | ||
| P/tB | 3.77 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)0.42
EY11.97%
EPS(NY)0.35
Fwd EY9.85%
FCF(TTM)0.92
FCFY26.31%
OCF(TTM)1.19
OCFY33.94%
SpS6.78
BVpS1.67
TBVpS0.93
PEG (NY)0.99
PEG (5Y)0.23
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 | 2.03 |
F-Score8
WACC13.52%
ROIC/WACC0.86
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)14.48%
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 1Y734.63%
EBIT growth 3Y32.08%
EBIT growth 5Y17.33%
EBIT Next Year39%
EBIT Next 3Y8.99%
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%