Risks To Shareholder Returns Are Elevated At These Prices For B3 S.A. - Brasil, Bolsa, Balcão (BVMF:B3SA3)
Jul 21
Brazilian (BOVESPA) Capital Markets Industry Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies13
- 7D0.04%
- 3M-5.1%
- 1Y-12.2%
- YTD-16.5%
The Capital Markets industry has stayed flat over the last week. Unfortunately though, the industry is down 11% over the past 12 months. As for the next few years, earnings are expected to grow by 13% per annum.
Industry Valuation and Performance
Has the Brazilian Capital Markets Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | R$214.0b | R$41.8b | R$14.5b | 10.7x | 14.8x | 5.1x |
| Sun, 23 Jun 2024 | R$228.2b | R$41.8b | R$14.5b | 9.4x | 15.8x | 5.5x |
| Tue, 21 May 2024 | R$244.2b | R$42.1b | R$14.5b | 12.5x | 16.9x | 5.8x |
| Thu, 18 Apr 2024 | R$235.8b | R$41.1b | R$13.9b | 10.9x | 17x | 5.7x |
| Sat, 16 Mar 2024 | R$260.1b | R$40.6b | R$14.0b | 10.8x | 18.6x | 6.4x |
| Mon, 12 Feb 2024 | R$272.6b | R$40.7b | R$14.1b | 10.2x | 19.4x | 6.7x |
| Wed, 10 Jan 2024 | R$263.1b | R$38.4b | R$13.0b | 8.1x | 20.3x | 6.9x |
| Fri, 08 Dec 2023 | R$241.7b | R$38.4b | R$13.0b | 8x | 18.6x | 6.3x |
| Sun, 05 Nov 2023 | R$225.5b | R$38.0b | R$12.5b | 8.1x | 18.1x | 5.9x |
| Tue, 03 Oct 2023 | R$221.8b | R$38.0b | R$12.5b | 8.4x | 17.8x | 5.8x |
| Thu, 31 Aug 2023 | R$239.1b | R$38.0b | R$12.5b | 7.3x | 19.2x | 6.3x |
| Sat, 29 Jul 2023 | R$251.0b | R$40.7b | R$12.2b | 11x | 20.6x | 6.2x |
| Mon, 26 Jun 2023 | R$240.1b | R$40.7b | R$12.2b | 10.5x | 19.7x | 5.9x |
| Wed, 24 May 2023 | R$208.9b | R$40.7b | R$12.2b | 8.7x | 17.1x | 5.1x |
| Fri, 21 Apr 2023 | R$185.7b | R$40.0b | R$12.1b | 10.2x | 15.3x | 4.6x |
| Sun, 19 Mar 2023 | R$173.7b | R$39.9b | R$12.2b | 13.7x | 14.3x | 4.3x |
| Tue, 14 Feb 2023 | R$185.5b | R$36.6b | R$12.4b | 15.9x | 15x | 5.1x |
| Thu, 12 Jan 2023 | R$212.5b | R$38.4b | R$12.4b | 14.6x | 17.1x | 5.5x |
| Sat, 10 Dec 2022 | R$198.1b | R$38.4b | R$12.4b | 13.4x | 16x | 5.2x |
| Mon, 07 Nov 2022 | R$256.1b | R$35.9b | R$12.3b | 11.7x | 20.8x | 7.1x |
| Wed, 05 Oct 2022 | R$236.9b | R$35.9b | R$12.3b | 12.6x | 19.3x | 6.6x |
| Fri, 02 Sep 2022 | R$213.7b | R$36.3b | R$12.7b | 12x | 16.8x | 5.9x |
| Sun, 31 Jul 2022 | R$193.9b | R$35.3b | R$13.1b | 14.6x | 14.8x | 5.5x |
| Tue, 28 Jun 2022 | R$206.6b | R$35.3b | R$13.1b | 15.3x | 15.7x | 5.9x |
| Thu, 26 May 2022 | R$212.6b | R$35.2b | R$13.1b | 15.7x | 16.2x | 6x |
| Sat, 23 Apr 2022 | R$232.3b | R$28.5b | R$12.1b | 19.9x | 19.2x | 8.2x |
| Mon, 21 Mar 2022 | R$233.0b | R$28.9b | R$12.4b | 22.4x | 18.8x | 8.1x |
| Wed, 16 Feb 2022 | R$242.9b | R$31.6b | R$11.5b | 29.1x | 21.1x | 7.7x |
| Fri, 14 Jan 2022 | R$183.0b | R$30.5b | R$11.6b | 22x | 15.8x | 6x |
| Sun, 12 Dec 2021 | R$221.8b | R$30.5b | R$11.6b | 24.8x | 19.2x | 7.3x |
| Tue, 09 Nov 2021 | R$236.6b | R$28.1b | R$10.2b | 34.7x | 23.3x | 8.4x |
| Thu, 07 Oct 2021 | R$222.8b | R$28.1b | R$10.2b | 31.1x | 21.9x | 7.9x |
| Sat, 04 Sep 2021 | R$267.8b | R$28.4b | R$10.2b | 30.4x | 26.3x | 9.4x |
| Mon, 02 Aug 2021 | R$288.5b | R$28.4b | R$10.2b | 31.7x | 28.4x | 10.2x |
Price to Earnings Ratio
28.4x
Current Industry PE
- Investors are pessimistic on the Brazilian Capital Markets industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 14.8x which is lower than its 3-year average PE of 18.3x.
- The 3-year average PS ratio of 6.4x is higher than the industry's current PS ratio of 5.1x.
Past Earnings Growth
- The earnings for companies in the Capital Markets industry have grown 13% per year over the last three years.
- Revenues for these companies have grown 14% 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 industry?
| BR Market | -1.37% | |
| Financials | -1.09% | |
| Capital Markets | 0.04% | |
| Investment Banking and Brokerage | 12.18% | |
| Asset Management | 4.21% | |
| Diversified Capital Markets | 0.98% | |
| Financial Exchanges and Data | -2.40% | |
Industry PE
- Investors are most optimistic about the Financial Exchanges and Data industry, which is trading close to its 3-year average PE ratio of 17.4x.
- Analysts are expecting annual earnings growth of 11.1%, which is higher than its past year's earnings decline of 5.3% per year.
- Investors are most pessimistic about the Asset Management industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Diversified Capital Markets industry, expecting annual earnings growth of 13% over the next 5 years.
- However this is lower than its past earnings growth rate of 32% per year.
- In contrast, the Financial Exchanges and Data industry is expected to see its earnings grow by 11% per year 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$32.06 | 1.0% +R$1.5b | -5.3% | PE14.5x | |
| GPIV33 GP Investments | R$3.65 | 13.4% +R$62.8m | -1.4% | PE3.8x | |
| TRAD3 TC Traders Club | R$3.89 | 6.9% +R$9.8m | -63.0% | PS3x | |
| BAHI3 Bahema Educação | R$6.53 | 3.5% +R$5.8m | -27.0% | PS0.5x | |
| CARE11 Brazilian Graveyard Death Care Services Fundo Investimento Imobiliario - Fii | R$1.79 | 6.5% +R$3.9m | -7.7% | n/a |