NATURA &CO HOLDING-ADR (NTCO) Stock Fundamental Analysis
USA - NYSE:NTCO - US63884N1081 - ADR
6.57 USD
0 (0%)
6.57 USD
0 (0%)
Taking everything into account, NTCO scores 3 out of 10 in our fundamental rating. NTCO was compared to 34 industry peers in the Personal Care Products industry. NTCO may be in some trouble as it scores bad on both profitability and health. NTCO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
NTCO had negative earnings in the past year.
NTCO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: NTCO reported negative net income in multiple years.
Of the past 5 years NTCO 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.60%, NTCO is in line with its industry, outperforming 42.11% of the companies in the same industry.
The Return On Equity of NTCO (-13.80%) is comparable to the rest of the industry.
NTCO's Return On Invested Capital of 3.82% is in line compared to the rest of the industry. NTCO outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTCO is significantly below the industry average of 12.80%.
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 Rank | Sector 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%
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.
In the last couple of years the Operating Margin of NTCO has declined.
NTCO has a Gross Margin of 64.70%. This is in the better half of the industry: NTCO outperforms 63.16% of its industry peers.
NTCO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
NTCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NTCO remains at a similar level compared to 1 year ago.
NTCO has a worse debt/assets ratio than last year.
2.2 Solvency
NTCO has an Altman-Z score of 1.27. This is a bad value and indicates that NTCO is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.27, NTCO is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
NTCO has a Debt/Equity ratio of 0.71. This is a neutral value indicating NTCO is somewhat dependend on debt financing.
NTCO's Debt to Equity ratio of 0.71 is on the low side compared to the rest of the industry. NTCO is outperformed by 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.27 |
ROIC/WACC0.32
WACC11.97%
2.3 Liquidity
NTCO has a Current Ratio of 1.36. This is a normal value and indicates that NTCO is financially healthy and should not expect problems in meeting 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.
NTCO has a Quick Ratio of 1.01. This is a normal value and indicates that NTCO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NTCO (1.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
NTCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -521.82%.
The Revenue has decreased by -9.60% in the past year.
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
The Revenue is expected to grow by 1.96% on average over the next years.
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
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
The Price/Earnings Ratio is negative for NTCO. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 26.06, which means the current valuation is very expensive for NTCO.
Based on the Price/Forward Earnings ratio, NTCO is valued a bit cheaper than the industry average as 60.53% of the companies are valued more expensively.
NTCO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.06 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.65 |
4.3 Compensation for Growth
NTCO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NTCO's earnings are expected to grow with 36.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y51.75%
EPS Next 3Y36.32%
5. Dividend
5.1 Amount
NTCO has a yearly dividend return of 0.83%, which is pretty low.
Compared to an average industry Dividend Yield of 5.99, NTCO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.83, NTCO pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector 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
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.
The dividend of NTCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-6.37%
EPS Next 2Y51.75%
EPS Next 3Y36.32%
6.57
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.54B
Revenue(TTM)34.49B
Net Income(TTM)-2834092000
Analysts78.95
Price Target7.75 (17.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.
Can you provide the valuation status for NATURA &CO HOLDING-ADR?
ChartMill assigns a valuation rating of 3 / 10 to NATURA &CO HOLDING-ADR (NTCO). This can be considered as Overvalued.
What is the profitability of NTCO stock?
NATURA &CO HOLDING-ADR (NTCO) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for NTCO stock?
The Earnings per Share (EPS) of NATURA &CO HOLDING-ADR (NTCO) is expected to grow by 69.18% in the next year.
Is the dividend of NATURA &CO HOLDING-ADR sustainable?
The dividend rating of NATURA &CO HOLDING-ADR (NTCO) is 2 / 10 and the dividend payout ratio is -6.37%.