Here's Why Fertilizantes Heringer (BVMF:FHER3) Has A Meaningful Debt Burden
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Has the Brazilian Materials Sector valuation changed over the past few years?
|Thu, 02 Dec 2021||R$679.3b||R$729.5b||R$184.1b||4.1x|
|Sat, 30 Oct 2021||R$696.5b||R$694.3b||R$178.4b||5.3x|
|Mon, 27 Sep 2021||R$752.3b||R$674.5b||R$163.8b||5.5x|
|Wed, 25 Aug 2021||R$886.0b||R$673.9b||R$158.7b||7x|
|Thu, 01 Jul 2021||R$978.5b||R$667.1b||R$159.4b||6.7x|
|Sun, 04 Apr 2021||R$749.5b||R$455.8b||R$84.6b||8.5x|
|Wed, 06 Jan 2021||R$616.8b||R$372.9b||R$33.7b||11.6x|
|Sat, 10 Oct 2020||R$429.2b||R$319.7b||R$15.8b||8.6x|
|Fri, 03 Jul 2020||R$384.0b||R$292.5b||R$3.6b||11.7x|
|Mon, 06 Apr 2020||R$289.3b||R$292.1b||R$978.7m||8.1x|
|Thu, 09 Jan 2020||R$443.9b||R$324.7b||-R$4,086,824,718.00||20.4x|
|Wed, 02 Oct 2019||R$407.9b||R$373.6b||R$19.2b||9.5x|
|Sat, 06 Jul 2019||R$439.8b||R$378.0b||R$26.8b||11.8x|
|Tue, 09 Apr 2019||R$468.2b||R$371.4b||R$23.5b||10.4x|
|Mon, 31 Dec 2018||R$432.0b||R$364.6b||R$39.5b||10.2x|
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 4.1x which is lower than its 3-year average PE of 10.4x. Given that earnings are expected to decline by 23%, the lower than average PE seems justified.
Past Earnings Growth: The earnings for companies in the Materials industry have grown 100% per year over the last three years, and revenues for these companies have grown 28% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the Brazilian Materials sector?
|Paper and Forestry Products||2.64%|
|Metals and Mining||-0.43%|
Industry PE: Investors are most optimistic about the Packaging industry even though it's trading below its 3-year average PE ratio of 22.1x. However analysts are expecting annual earnings decline of 0 so the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Basic Materials industry, which is trading below its 3-year average of 5.8x.
Forecasted Growth: Despite it being negative, analysts are least pessimistic on the Paper and Forestry Products industry since they expect its earnings to decline by only 10% per year over the next 5 years, which isn't as bad as the other industries. However, this is a reversal from its past annual earnings growth rate of 231% per year. Meanwhile, the Chemicals industry is expected to see its earnings decline by 48% per year over the next few years.
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