BRF SA-ADR (BRFS)
US10552T1079 - ADR
Taking everything into account, BRFS scores 3 out of 10 in our fundamental rating. BRFS was compared to 93 industry peers in the Food Products industry. Both the profitability and financial health of BRFS have multiple concerns. BRFS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
BRFS had negative 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.
BRFS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BRFS (-3.54%) is worse than 64.13% of its industry peers.
The Return On Equity of BRFS (-13.59%) is worse than 66.30% of its industry peers.
BRFS's Return On Invested Capital of 1.73% is in line compared to the rest of the industry. BRFS outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -13.59% | ||
| ROIC | 1.73% |
ROA(3y)-2.75%
ROA(5y)-0.95%
ROE(3y)-12.24%
ROE(5y)-3.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 1.54%, BRFS perfoms like the industry average, outperforming 46.74% of the companies in the same industry.
In the last couple of years the Operating Margin of BRFS has declined.
BRFS has a Gross Margin of 16.48%. This is comparable to the rest of the industry: BRFS outperforms 41.30% 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 | 1.54% | ||
| PM (TTM) | N/A | ||
| GM | 16.48% |
OM growth 3Y-40.6%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.78%
GM growth 5Y0.43%
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.
BRFS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, BRFS has more shares outstanding
The debt/assets ratio for BRFS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.60, we must say that BRFS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.60, BRFS is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
The Debt to FCF ratio of BRFS is 15.64, which is on the high side as it means it would take BRFS, 15.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.64, BRFS is in line with its industry, outperforming 54.35% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that BRFS has dependencies on debt financing.
The Debt to Equity ratio of BRFS (1.37) is worse than 81.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 15.64 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.15
WACC11.39%
2.3 Liquidity
BRFS has a Current Ratio of 1.34. 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 (1.34) which is comparable to the rest of the industry.
BRFS has a Quick Ratio of 1.34. This is a bad value and indicates that BRFS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BRFS (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.74% over the past year.
The Revenue has decreased by -0.35% in the past year.
Measured over the past years, BRFS shows a quite strong growth in Revenue. The Revenue has been growing by 12.17% on average per year.
EPS 1Y (TTM)43.74%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q185.88%
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y10.75%
Revenue growth 5Y12.17%
Revenue growth Q2Q-2.32%
3.2 Future
The Earnings Per Share is expected to grow by 41.42% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.67% on average over the next years.
EPS Next Y126.45%
EPS Next 2Y55.81%
EPS Next 3Y41.42%
EPS Next 5YN/A
Revenue Next Year2.53%
Revenue Next 2Y4.06%
Revenue Next 3Y3.67%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
BRFS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 36.89 indicates a quite expensive valuation of BRFS.
BRFS's Price/Forward Earnings ratio is in line with the industry average.
BRFS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.89 |
4.2 Price Multiples
BRFS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BRFS is cheaper than 70.65% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRFS indicates a somewhat cheap valuation: BRFS is cheaper than 72.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.65 | ||
| EV/EBITDA | 10.38 |
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.
BRFS's earnings are expected to grow with 41.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y55.81%
EPS Next 3Y41.42%
5. Dividend
5.1 Amount
BRFS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRF SA-ADR
NYSE:BRFS (5/3/2024, 7:04:01 PM)
After market: 3.25 -0.08 (-2.4%)3.33
+0.03 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.56B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 36.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.54% | ||
| ROE | -13.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.54% | ||
| PM (TTM) | N/A | ||
| GM | 16.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)43.74%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y126.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.35%
Revenue growth 3Y10.75%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y