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

NYSE:NTCO - New York Stock Exchange, Inc. - US63884N1081 - ADR - Currency: USD

6.57  0 (0%)

After market: 6.57 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to NTCO. NTCO was compared to 35 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

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3

1. Profitability

1.1 Basic Checks

In the past year NTCO has reported negative net income.
In the past year NTCO had a positive cash flow from operations.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B 2B -2B

1.2 Ratios

With a Return On Assets value of -5.60%, NTCO perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
NTCO has a Return On Equity (-13.80%) which is comparable to the rest of the industry.
NTCO has a Return On Invested Capital (3.82%) which is in line with its industry peers.
NTCO had an Average Return On Invested Capital over the past 3 years of 3.19%. This is significantly below the industry average of 13.76%.
The 3 year average ROIC (3.19%) for NTCO is below the current ROIC(3.82%), indicating increased profibility in the last year.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 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.
In the last couple of years the Operating Margin of NTCO has declined.
NTCO has a better Gross Margin (64.70%) than 63.16% of its industry peers.
In the last couple of years the Gross Margin of NTCO has declined.
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 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40 60

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTCO 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.
NTCO Yearly Shares OutstandingNTCO Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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 has a worse Altman-Z score (1.27) than 60.53% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that 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 2015 2016 2017 2018 2019 2020 2021 2022 0 10B 20B

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.
NTCO has a worse Current ratio (1.36) than 60.53% of its industry peers.
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.
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 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

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4

3. Growth

3.1 Past

The earnings per share for NTCO have decreased strongly by -521.82% in the last year.
NTCO shows a decrease in Revenue. In the last year, the revenue decreased by -9.60%.
NTCO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.83% yearly.
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

Based on estimates for the next years, NTCO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.32% on average per year.
NTCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.96% yearly.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 -4

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4

4. Valuation

4.1 Price/Earnings Ratio

NTCO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 26.06, which means the current valuation is very expensive for NTCO.
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.
NTCO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
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 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTCO indicates a rather cheap valuation: NTCO is cheaper than 86.84% of the companies listed in the same industry.
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

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%

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2

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 5.56, NTCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 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 2015 2016 2017 2018 2019 2020 2021 2022 0 1B -1B -2B

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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 2023-11-14/bmo
Earnings (Next)03-11 2024-03-11/amc
Inst Owners0%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.54B
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
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%
ROICexcg growth 3Y-45.03%
ROICexcg 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%