BRF S.A.
Find Ratings ReportsBRF SA's gross profit margin for the third quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. BRF SA has weak liquidity. Currently, the Quick Ratio is 0.77 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 27.52% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q3 FY23 | Q3 FY22 |
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Net Sales ($mil) | 2583.32 | 2438.1 |
EBITDA ($mil) | 235.45 | 239.69 |
EBIT ($mil) | 88.23 | 108.59 |
Net Income ($mil) | -60.35 | -9.02 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2287.42 | 1617.55 |
Total Assets ($mil) | 11864.59 | 10908.17 |
Total Debt ($mil) | 5185.2 | 4993.89 |
Equity ($mil) | 2827.66 | 2217.26 |
Profitability | Q3 FY23 | Q3 FY22 |
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Gross Profit Margin | 23.0 | 23.37 |
EBITDA Margin | 9.11 | 9.83 |
Operating Margin | 3.42 | 4.45 |
Sales Turnover | 0.91 | 0.87 |
Return on Assets | -6.22 | -2.27 |
Return on Equity | -26.13 | -10.54 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.29 | 1.28 |
Debt/Capital | 0.65 | 0.69 |
Interest Expense | 122.55 | 100.03 |
Interest Coverage | 0.72 | 1.09 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 1678.66 | 1078.12 |
Div / share | 0.0 | 0.0 |
EPS | -0.04 | -0.01 |
Book value / share | 1.68 | 2.06 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3225727.0 | 4813298.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. Conducting a second comparison, its price-to-book ratio of 2.03 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 3.20. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, BRF SA proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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BRFS NM | Peers 18.98 | BRFS 6.86 | Peers 15.41 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. BRFS's P/E is negative making this valuation measure meaningless. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. BRFS is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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BRFS 20.24 | Peers 17.75 | BRFS NA | Peers 2.43 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. BRFS is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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BRFS 2.03 | Peers 3.20 | BRFS -235.00 | Peers 16.04 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. BRFS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, BRFS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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BRFS 0.53 | Peers 1.93 | BRFS 13.75 | Peers 6.04 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. BRFS is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. BRFS has a sales growth rate that significantly exceeds its peers. |
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