Annuncio • Mar 23
Grazziotin S.A., Annual General Meeting, Apr 28, 2026 Grazziotin S.A., Annual General Meeting, Apr 28, 2026. Location: valentin grazziotin street, 77, sao cristovao district, city of passo fundo, state of rio grande do sul, Brazil Reported Earnings • Mar 18
Full year 2025 earnings released Full year 2025 results: Revenue: R$744.8m (up 2.2% from FY 2024). Net income: R$83.9m (down 20% from FY 2024). Profit margin: 11% (down from 14% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Dec 22
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to R$27.85, the stock trades at a trailing P/E ratio of 5.6x. Average trailing P/E is 9x in the Multiline Retail industry in South America. Total returns to shareholders of 55% over the past three years. New Risk • Dec 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.3% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (6.2% average weekly change). Reported Earnings • Nov 19
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: R$164.9m (down 2.8% from 3Q 2024). Net income: R$8.26m (down 66% from 3Q 2024). Profit margin: 5.0% (down from 14% in 3Q 2024). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Aug 17
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: R$224.8m (up 5.0% from 2Q 2024). Net income: R$40.1m (up 55% from 2Q 2024). Profit margin: 18% (up from 12% in 2Q 2024). The increase in margin was primarily driven by higher revenue. New Risk • Jul 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$553.3m (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.7% per year over the past 5 years. Minor Risk Market cap is less than US$100m (R$553.3m market cap, or US$99.4m). Reported Earnings • May 16
First quarter 2025 earnings released First quarter 2025 results: Revenue: R$135.4m (up 5.7% from 1Q 2024). Net income: R$4.42m (down 20% from 1Q 2024). Profit margin: 3.3% (down from 4.3% in 1Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 29% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Annuncio • Apr 01
Grazziotin S.A., Annual General Meeting, Apr 29, 2025 Grazziotin S.A., Annual General Meeting, Apr 29, 2025. Location: rua valentin grazziotin 77, bairro sao cristovao, city of passo fundo, state of rio grande do sul, passo fundo Brazil Reported Earnings • Mar 17
Full year 2024 earnings released Full year 2024 results: Revenue: R$728.6m (up 7.6% from FY 2023). Net income: R$104.6m (up 9.4% from FY 2023). Profit margin: 14% (in line with FY 2023). Buy Or Sell Opportunity • Jan 20
Now 21% undervalued Over the last 90 days, the stock has risen 6.4% to R$26.53. The fair value is estimated to be R$33.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 33%. Buy Or Sell Opportunity • Dec 30
Now 21% undervalued Over the last 90 days, the stock has risen 3.3% to R$25.83. The fair value is estimated to be R$32.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.1% over the last 3 years. Earnings per share has declined by 33%. New Risk • Nov 21
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.0% per year over the past 5 years. Minor Risks Dividend is not well covered by earnings (92% payout ratio). Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Market cap is less than US$100m (R$537.0m market cap, or US$92.1m). New Risk • Nov 12
New major risk - Revenue and earnings growth Earnings have declined by 4.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.0% per year over the past 5 years. Minor Risk Market cap is less than US$100m (R$503.7m market cap, or US$87.2m). Reported Earnings • Aug 11
Second quarter 2024 earnings released: EPS: R$1.24 (vs R$2.05 in 2Q 2023) Second quarter 2024 results: EPS: R$1.24 (down from R$2.05 in 2Q 2023). Revenue: R$214.0m (up 3.0% from 2Q 2023). Net income: R$25.8m (down 35% from 2Q 2023). Profit margin: 12% (down from 19% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 11
Now 22% overvalued Over the last 90 days, the stock has fallen 8.9% to R$25.87. The fair value is estimated to be R$21.24, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 16%. Buy Or Sell Opportunity • Jul 01
Now 20% overvalued Over the last 90 days, the stock has fallen 7.5% to R$25.61. The fair value is estimated to be R$21.32, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 16%. Buy Or Sell Opportunity • Jun 20
Now 22% overvalued Over the last 90 days, the stock has fallen 6.6% to R$26.15. The fair value is estimated to be R$21.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 16%. Buy Or Sell Opportunity • May 12
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.3% to R$25.85. The fair value is estimated to be R$21.30, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 9.2% over the last 3 years. Earnings per share has declined by 16%. New Risk • May 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$511.0m (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (3.8% increase in shares outstanding). Market cap is less than US$100m (R$511.0m market cap, or US$99.4m). New Risk • Nov 17
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (15% net profit margin). Shareholders have been diluted in the past year (3.8% increase in shares outstanding). Reported Earnings • Aug 13
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: R$207.8m (down 4.6% from 2Q 2022). Net income: R$39.6m (down 20% from 2Q 2022). Profit margin: 19% (down from 23% in 2Q 2022). Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: R$6.16 (vs R$8.91 in FY 2021) Full year 2022 results: EPS: R$6.16 (down from R$8.91 in FY 2021). Revenue: R$682.4m (up 11% from FY 2021). Net income: R$119.1m (down 32% from FY 2021). Profit margin: 18% (down from 28% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 7% per year. Reported Earnings • Nov 16
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: R$142.3m (down 4.4% from 3Q 2021). Net income: R$22.1m (down 71% from 3Q 2021). Profit margin: 16% (down from 51% in 3Q 2021). Over the last 3 years on average, earnings per share has increased by 26% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 5 new directors. No experienced directors. 4 highly experienced directors. No independent directors (6 non-independent directors). Director Paulo Farina is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Buying Opportunity • Aug 11
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be R$38.32, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 34%. Buying Opportunity • Jun 17
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 26%. The fair value is estimated to be R$36.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 34%. Board Change • Apr 26
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 5 new directors. No experienced directors. 7 highly experienced directors. No independent directors (6 non-independent directors). Director Paulo Farina is the most experienced director on the board, commencing their role in 2014. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 18
Third quarter 2021 earnings released: EPS R$3.89 (vs R$0.94 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: R$144.8m (up 38% from 3Q 2020). Net income: R$76.2m (up 307% from 3Q 2020). Profit margin: 53% (up from 18% in 3Q 2020). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 34% per year but the company’s share price has only increased by 25% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to R$39.91, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 35x in the Multiline Retail industry in South America. Total returns to shareholders of 113% over the past three years. Reported Earnings • Aug 18
Second quarter 2021 earnings released: EPS R$3.26 (vs R$0.69 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: R$195.4m (up 87% from 2Q 2020). Net income: R$63.7m (up 366% from 2Q 2020). Profit margin: 33% (up from 13% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 28% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 11
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: R$450.0m (down 5.8% from FY 2019). Net income: R$71.0m (down 45% from FY 2019). Profit margin: 16% (down from 27% in FY 2019). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 23
Investor sentiment deteriorated over the past week After last week's 16% share price decline to R$26.71, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 110x in the Multiline Retail industry in South America. Total returns to shareholders of 16% over the past three years. Is New 90 Day High Low • Mar 04
New 90-day low: R$31.31 The company is down 3.0% from its price of R$32.27 on 03 December 2020. The Brazilian market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Multiline Retail industry, which is up 1.0% over the same period. Is New 90 Day High Low • Jan 09
New 90-day high: R$38.90 The company is up 33% from its price of R$29.33 on 09 October 2020. The Brazilian market is up 20% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Multiline Retail industry, which is down 6.0% over the same period. Is New 90 Day High Low • Dec 24
New 90-day high: R$36.70 The company is up 38% from its price of R$26.65 on 25 September 2020. The Brazilian market is up 19% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Multiline Retail industry, which is up 6.0% over the same period. Is New 90 Day High Low • Dec 10
New 90-day high: R$32.96 The company is up 24% from its price of R$26.49 on 10 September 2020. The Brazilian market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Multiline Retail industry, which is flat over the same period. Reported Earnings • Nov 18
Third quarter 2020 earnings released: EPS R$0.95 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: R$104.7m (down 7.5% from 3Q 2019). Net income: R$18.7m (up 51% from 3Q 2019). Profit margin: 18% (up from 11% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Nov 12
New 90-day high: R$30.12 The company is up 13% from its price of R$26.56 on 14 August 2020. The Brazilian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Multiline Retail industry, which is up 9.0% over the same period. Is New 90 Day High Low • Oct 23
New 90-day high: R$29.48 The company is up 11% from its price of R$26.53 on 24 July 2020. The Brazilian market is down 3.0% over the last 90 days, indicating the company outperformed over that time. However, its price trend is similar to the Multiline Retail industry, which is also up 11% over the same period. Is New 90 Day High Low • Oct 06
New 90-day high: R$28.05 The company is up 3.0% from its price of R$27.19 on 08 July 2020. The Brazilian market is down 4.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Multiline Retail industry, which is up 6.0% over the same period. Is New 90 Day High Low • Sep 19
New 90-day low: R$25.51 The company is down 2.0% from its price of R$26.00 on 19 June 2020. The Brazilian market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Multiline Retail industry, which is up 10.0% over the same period.