NATURA &CO HOLDING-ADR (NTCO) Fundamental Analysis & Valuation

NYSE:NTCO • US63884N1081

6.57 USD
0 (0%)
At close: Feb 9, 2024
6.57 USD
0 (0%)
After Hours: 2/9/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This NTCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

NTCO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. Both the profitability and financial health of NTCO have multiple concerns. NTCO has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

2

1. NTCO Profitability Analysis

1.1 Basic Checks

  • In the past year NTCO has reported negative net income.
  • NTCO had a positive operating cash flow in the past year.
NTCO Yearly Net Income VS EBIT VS OCF VS FCFNTCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B -2B

1.2 Ratios

  • The Return On Assets of NTCO (-5.60%) is comparable to the rest of the industry.
  • NTCO has a Return On Equity (-13.80%) which is in line with its industry peers.
  • Looking at the Return On Invested Capital, with a value of 3.82%, NTCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for NTCO is significantly below the industry average of 11.56%.
  • The last Return On Invested Capital (3.82%) for NTCO is above the 3 year average (3.19%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -5.6%
ROE -13.8%
ROIC 3.82%
ROA(3y)-1.52%
ROA(5y)-0.05%
ROE(3y)-3.84%
ROE(5y)2.88%
ROIC(3y)3.19%
ROIC(5y)6.2%
NTCO Yearly ROA, ROE, ROICNTCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 10 -10 20 30 40

1.3 Margins

  • NTCO's Operating Margin of 5.42% is in line compared to the rest of the industry. NTCO outperforms 57.89% of its industry peers.
  • NTCO's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 64.70%, NTCO is doing good in the industry, outperforming 63.16% of the companies in the same industry.
  • NTCO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 5.42%
PM (TTM) N/A
GM 64.7%
OM growth 3Y-36.04%
OM growth 5Y-27.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-1.96%
NTCO Yearly Profit, Operating, Gross MarginsNTCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. NTCO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTCO is destroying value.
  • The number of shares outstanding for NTCO remains at a similar level compared to 1 year ago.
  • Compared to 1 year ago, NTCO has a worse debt to assets ratio.
NTCO Yearly Shares OutstandingNTCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M
NTCO Yearly Total Debt VS Total AssetsNTCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 20B 40B 60B

2.2 Solvency

  • Based on the Altman-Z score of 1.27, we must say that NTCO is in the distress zone and has some risk of bankruptcy.
  • NTCO's Altman-Z score of 1.27 is on the low side compared to the rest of the industry. NTCO is outperformed by 60.53% of its industry peers.
  • NTCO has a Debt/Equity ratio of 0.71. This is a neutral value indicating NTCO is somewhat dependend on debt financing.
  • NTCO has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: NTCO underperforms 60.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF N/A
Altman-Z 1.27
ROIC/WACC0.32
WACC11.97%
NTCO Yearly LT Debt VS Equity VS FCFNTCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 10B 20B

2.3 Liquidity

  • A Current Ratio of 1.36 indicates that NTCO should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.36, NTCO is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.01 indicates that NTCO should not have too much problems paying its short term obligations.
  • NTCO has a Quick ratio (1.01) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.36
Quick Ratio 1.01
NTCO Yearly Current Assets VS Current LiabilitesNTCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. NTCO Growth Analysis

3.1 Past

  • NTCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -521.82%.
  • NTCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.60%.
  • Measured over the past years, NTCO shows a very strong growth in Revenue. The Revenue has been growing by 29.83% on average per year.
EPS 1Y (TTM)-521.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.36%
Revenue 1Y (TTM)-9.6%
Revenue growth 3Y36.02%
Revenue growth 5Y29.83%
Sales Q2Q%-10.67%

3.2 Future

  • The Earnings Per Share is expected to grow by 36.32% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, NTCO will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
EPS Next Y69.18%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
EPS Next 5YN/A
Revenue Next Year-9.61%
Revenue Next 2Y-6.29%
Revenue Next 3Y-2.82%
Revenue Next 5Y1.96%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
NTCO Yearly Revenue VS EstimatesNTCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B 40B
NTCO Yearly EPS VS EstimatesNTCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 -4

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4

4. NTCO Valuation Analysis

4.1 Price/Earnings Ratio

  • NTCO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • With a Price/Forward Earnings ratio of 26.06, NTCO can be considered very expensive at the moment.
  • NTCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NTCO is cheaper than 60.53% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, NTCO is valued at the same level.
Industry RankSector Rank
PE N/A
Fwd PE 26.06
NTCO Price Earnings VS Forward Price EarningsNTCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20

4.2 Price Multiples

  • 86.84% of the companies in the same industry are more expensive than NTCO, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 7.65
NTCO Per share dataNTCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

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.
  • A more expensive valuation may be justified as NTCO's earnings are expected to grow with 36.32% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.75%
EPS Next 3Y36.32%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. NTCO Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.83%, NTCO is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.61, NTCO pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, NTCO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.83%

5.2 History

  • The dividend of NTCO has a limited annual growth rate of 0.67%.
  • NTCO is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)0.67%
Div Incr Years0
Div Non Decr Years0
NTCO Yearly Dividends per shareNTCO Yearly Dividends per shareYearly Dividends per share 2019 2022 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • The earnings of NTCO are negative and hence is the payout ratio. NTCO will probably not be able to sustain this dividend level.
  • NTCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-6.37%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
NTCO Yearly Income VS Free CF VS DividendNTCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 1B -1B -2B

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NTCO Fundamentals: All Metrics, Ratios and Statistics

NATURA &CO HOLDING-ADR

NYSE:NTCO (2/9/2024, 8:04:00 PM)

After market: 6.57 0 (0%)

6.57

0 (0%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)11-14
Earnings (Next)03-11
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.54B
Revenue(TTM)34.49B
Net Income(TTM)-2.83B
Analysts78.95
Price Target7.75 (17.96%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.83%
Yearly Dividend0.13
Dividend Growth(5Y)0.67%
DP-6.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-130.75%
Min EPS beat(2)-161.03%
Max EPS beat(2)-100.48%
EPS beat(4)0
Avg EPS beat(4)-271.7%
Min EPS beat(4)-485.4%
Max EPS beat(4)-100.48%
EPS beat(8)2
Avg EPS beat(8)-154.76%
EPS beat(12)4
Avg EPS beat(12)-97.31%
EPS beat(16)4
Avg EPS beat(16)-159.4%
Revenue beat(2)0
Avg Revenue beat(2)-11.68%
Min Revenue beat(2)-13.83%
Max Revenue beat(2)-9.53%
Revenue beat(4)0
Avg Revenue beat(4)-9.44%
Min Revenue beat(4)-13.83%
Max Revenue beat(4)-5.32%
Revenue beat(8)0
Avg Revenue beat(8)-6.69%
Revenue beat(12)4
Avg Revenue beat(12)4.81%
Revenue beat(16)5
Avg Revenue beat(16)3.52%
PT rev (1m)1.08%
PT rev (3m)9.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)-578.02%
EPS NY rev (3m)-241.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-1.52%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 26.06
P/S 0.65
P/FCF N/A
P/OCF 136.32
P/B 1.1
P/tB N/A
EV/EBITDA 7.65
EPS(TTM)-0.82
EYN/A
EPS(NY)0.25
Fwd EY3.84%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)0.05
OCFY0.73%
SpS10.05
BVpS5.98
TBVpS-0.53
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -5.6%
ROE -13.8%
ROCE 4.83%
ROIC 3.82%
ROICexc 4.19%
ROICexgc 11.5%
OM 5.42%
PM (TTM) N/A
GM 64.7%
FCFM N/A
ROA(3y)-1.52%
ROA(5y)-0.05%
ROE(3y)-3.84%
ROE(5y)2.88%
ROIC(3y)3.19%
ROIC(5y)6.2%
ROICexc(3y)3.77%
ROICexc(5y)8.56%
ROICexgc(3y)12.35%
ROICexgc(5y)23.52%
ROCE(3y)4.03%
ROCE(5y)7.84%
ROICexgc growth 3Y-45.03%
ROICexgc growth 5YN/A
ROICexc growth 3Y-46.7%
ROICexc growth 5Y-37.7%
OM growth 3Y-36.04%
OM growth 5Y-27.12%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.98%
GM growth 5Y-1.96%
F-Score4
Asset Turnover0.68
Health
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF N/A
Debt/EBITDA 3.33
Cap/Depr 43.73%
Cap/Sales 3.18%
Interest Coverage 2.98
Cash Conversion 3.78%
Profit Quality N/A
Current Ratio 1.36
Quick Ratio 1.01
Altman-Z 1.27
F-Score4
WACC11.97%
ROIC/WACC0.32
Cap/Depr(3y)40.11%
Cap/Depr(5y)51.01%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-521.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5.36%
EPS Next Y69.18%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.6%
Revenue growth 3Y36.02%
Revenue growth 5Y29.83%
Sales Q2Q%-10.67%
Revenue Next Year-9.61%
Revenue Next 2Y-6.29%
Revenue Next 3Y-2.82%
Revenue Next 5Y1.96%
EBIT growth 1Y-4.83%
EBIT growth 3Y-13%
EBIT growth 5Y-5.38%
EBIT Next Year682.89%
EBIT Next 3Y116.23%
EBIT Next 5Y88.66%
FCF growth 1Y-488.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-86.71%
OCF growth 3Y-19.77%
OCF growth 5Y-7.48%

NATURA &CO HOLDING-ADR / NTCO FAQ

What is the fundamental rating for NTCO stock?

ChartMill assigns a fundamental rating of 3 / 10 to NTCO.


What is the valuation status of NATURA &CO HOLDING-ADR (NTCO) stock?

ChartMill assigns a valuation rating of 3 / 10 to NATURA &CO HOLDING-ADR (NTCO). This can be considered as Overvalued.


Can you provide the profitability details for NATURA &CO HOLDING-ADR?

NATURA &CO HOLDING-ADR (NTCO) has a profitability rating of 3 / 10.


How financially healthy is NATURA &CO HOLDING-ADR?

The financial health rating of NATURA &CO HOLDING-ADR (NTCO) is 2 / 10.


Can you provide the dividend sustainability for NTCO stock?

The dividend rating of NATURA &CO HOLDING-ADR (NTCO) is 2 / 10 and the dividend payout ratio is -6.37%.