Risks To Shareholder Returns Are Elevated At These Prices For B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3)
Jul 21
Brazilian (BOVESPA) Financials Sector Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies40
- 7D-1.1%
- 3M-1.0%
- 1Y2.1%
- YTD-7.2%
Over the last 7 days, the Financials industry has dropped 1.1%, driven by declines in B3 - Brasil Bolsa Balcão and Banco do Brasil of 2.4% and 0.8%, respectively. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 13% annually.
Sector Valuation and Performance
Has the Brazilian Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | R$1.2t | R$509.3b | R$143.1b | 7.7x | 8.5x | 2.4x |
| Sun, 23 Jun 2024 | R$1.2t | R$509.3b | R$143.1b | 8x | 8.4x | 2.4x |
| Tue, 21 May 2024 | R$1.3t | R$512.7b | R$143.2b | 8.3x | 8.8x | 2.5x |
| Thu, 18 Apr 2024 | R$1.2t | R$500.4b | R$138.3b | 8.4x | 8.9x | 2.5x |
| Sat, 16 Mar 2024 | R$1.3t | R$503.0b | R$138.8b | 9.4x | 9.4x | 2.6x |
| Mon, 12 Feb 2024 | R$1.3t | R$491.7b | R$143.6b | 10.1x | 9.1x | 2.6x |
| Wed, 10 Jan 2024 | R$1.3t | R$508.3b | R$139.8b | 10x | 9.5x | 2.6x |
| Fri, 08 Dec 2023 | R$1.3t | R$508.3b | R$139.8b | 9.8x | 9x | 2.5x |
| Sun, 05 Nov 2023 | R$1.2t | R$505.2b | R$138.3b | 8.6x | 8.4x | 2.3x |
| Tue, 03 Oct 2023 | R$1.1t | R$504.7b | R$139.0b | 8.4x | 8.1x | 2.2x |
| Thu, 31 Aug 2023 | R$1.2t | R$504.9b | R$139.1b | 8.7x | 8.5x | 2.3x |
| Sat, 29 Jul 2023 | R$1.2t | R$506.0b | R$137.2b | 9.3x | 8.9x | 2.4x |
| Mon, 26 Jun 2023 | R$1.2t | R$506.8b | R$139.7b | 9.1x | 8.7x | 2.4x |
| Wed, 24 May 2023 | R$1.1t | R$506.8b | R$140.5b | 8.7x | 8x | 2.2x |
| Fri, 21 Apr 2023 | R$1.1t | R$518.4b | R$136.9b | 8.4x | 7.7x | 2x |
| Sun, 19 Mar 2023 | R$968.0b | R$504.6b | R$136.2b | 8.6x | 7.1x | 1.9x |
| Tue, 14 Feb 2023 | R$1.0t | R$493.8b | R$133.7b | 9.1x | 7.8x | 2.1x |
| Thu, 12 Jan 2023 | R$1.1t | R$495.6b | R$140.1b | 9.5x | 7.8x | 2.2x |
| Sat, 10 Dec 2022 | R$1.0t | R$496.0b | R$140.2b | 9.4x | 7.2x | 2x |
| Mon, 07 Nov 2022 | R$1.2t | R$485.8b | R$132.5b | 11.1x | 9.1x | 2.5x |
| Wed, 05 Oct 2022 | R$1.2t | R$487.7b | R$133.7b | 11.2x | 8.9x | 2.5x |
| Fri, 02 Sep 2022 | R$1.1t | R$487.5b | R$134.1b | 11.8x | 8.3x | 2.3x |
| Sun, 31 Jul 2022 | R$1.0t | R$480.7b | R$128.6b | 8.3x | 8x | 2.1x |
| Tue, 28 Jun 2022 | R$1.0t | R$480.7b | R$128.6b | 8.3x | 8x | 2.1x |
| Thu, 26 May 2022 | R$1.1t | R$481.2b | R$128.5b | 9.1x | 8.7x | 2.3x |
| Sat, 23 Apr 2022 | R$1.1t | R$465.3b | R$123.4b | 9.3x | 9.2x | 2.4x |
| Mon, 21 Mar 2022 | R$1.1t | R$463.4b | R$121.7b | 9.5x | 9.4x | 2.5x |
| Wed, 16 Feb 2022 | R$1.2t | R$464.9b | R$117.5b | 9.4x | 9.9x | 2.5x |
| Fri, 14 Jan 2022 | R$1.0t | R$468.1b | R$121.0b | 8.8x | 8.5x | 2.2x |
| Sun, 12 Dec 2021 | R$1.1t | R$468.1b | R$121.0b | 8.6x | 9x | 2.3x |
| Tue, 09 Nov 2021 | R$1.1t | R$453.3b | R$114.2b | 9x | 9.8x | 2.5x |
| Thu, 07 Oct 2021 | R$1.2t | R$453.3b | R$114.0b | 9.6x | 10.1x | 2.5x |
| Sat, 04 Sep 2021 | R$1.3t | R$455.0b | R$114.2b | 10.1x | 11.3x | 2.8x |
| Mon, 02 Aug 2021 | R$1.4t | R$455.0b | R$114.2b | 11.2x | 12.1x | 3x |
Price to Earnings Ratio
12.1x
Current Industry PE
- Investors are relatively neutral on the Brazilian Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 8.7x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Financials industry have grown 7.8% per year over the last three years.
- Revenues for these companies have grown 3.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Brazilian Financials sector?
| BR Market | -1.37% | |
| Financials | -1.09% | |
| Capital Markets | 0.04% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | 0% | |
| Diversified Financial | -0.10% | |
| Insurance | -0.47% | |
| Banks | -1.51% | |
Industry PE
- Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 18.3x.
- Analysts are expecting annual earnings growth of 12.6%, which is higher than its past year's earnings growth of 4.1% per year.
- Investors are most pessimistic about the Diversified Financial industry, which is trading close to its 3-year average of 5.7x.
Forecasted Growth
- Analysts are most optimistic on the Banks industry, expecting annual earnings growth of 14% over the next 5 years.
- This is better than its past earnings growth rate of 8.7% per year.
- In contrast, the Diversified Financial industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| BPAC11 Banco BTG Pactual | R$32.58 | 2.6% +R$4.0b | -3.7% | PE14.7x | |
| BBSE3 BB Seguridade Participações | R$34.60 | 1.5% +R$984.0m | 10.6% | PE8.4x | |
| GPIV33 GP Investments | R$3.65 | 13.4% +R$62.8m | -1.4% | PE3.8x | |
| CIEL3 Cielo | R$5.76 | 0.2% +R$27.0m | 24.9% | PE7.2x | |
| TRAD3 TC Traders Club | R$3.82 | 4.9% +R$7.1m | -63.6% | PS2.9x |
