Azevedo & Travassos (BOVESPA:AZEV3) - Share price, News & Analysis

AZEV3 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

AZEV3 Stock Overview

Azevedo & Travassos S.A. operates as an engineering company in Brazil.

Rewards

PE ratio (0.9x) is below the BR market (9.8x)

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Large one-off items impacting financial results

Does not have a meaningful market cap (R$179M)

Price History & Performance

Summary of all time highs, changes and price drops for Azevedo & Travassos
Historical stock prices
Current Share Price	R$3.74
52 Week High	R$10.01
52 Week Low	R$3.10
Beta	-0.61
1 Month Change	-6.03%
3 Month Change	-6.27%
1 Year Change	-45.80%
3 Year Change	-76.84%
5 Year Change	-69.84%
Change since IPO	373,900.00%

Shareholder Returns

	AZEV3	BR Construction	BR Market
7D	-5.3%	1.0%	-3.8%
1Y	-45.8%	-31.7%	-16.4%

Return vs Industry: AZEV3 underperformed the BR Construction industry which returned -34.2% over the past year.

Return vs Market: AZEV3 underperformed the BR Market which returned -15.8% over the past year.

Price Volatility

Is AZEV3's price volatile compared to industry and market?
AZEV3 volatility
AZEV3 Average Weekly Movement	6.0%
Construction Industry Average Movement	3.9%
Market Average Movement	6.0%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: AZEV3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AZEV3's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1922	n/a	Renato de Almeida Pimentel Mendes	https://www.azevedotravassos.com.br

Azevedo & Travassos S.A. operates as an engineering company in Brazil. The company constructs highways, railways, subways, tunnels, avenues, dams, and airports; concrete structures, such as bridges and viaducts; and buildings for various proposes, such as residential, commercial, and industrial and health care, as well as for public or private sectors. It also constructs and assembles gas pipelines, oil pipelines, slurry pipelines and water intakes, and urban steel and polyethylene gas pipeline networks; recovers and maintains oil and gas pipelines; and constructs compression, pressure reduction, and rate measurement stations, as well as engages in the drilling, completion, and workover of oil, gas, mining, and water wells using onshore drilling and well-servicing rigs.

Azevedo & Travassos Fundamentals Summary

How do Azevedo & Travassos's earnings and revenue compare to its market cap?
AZEV3 fundamental statistics
Market Cap	R$178.96m
Earnings (TTM)	R$190.14m
Revenue (TTM)	R$76.86m

0.9x

P/E Ratio

2.2x

P/S Ratio

Is AZEV3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AZEV3 income statement (TTM)
Revenue	R$76.86m
Cost of Revenue	R$53.13m
Gross Profit	R$23.74m
Other Expenses	-R$166.40m
Earnings	R$190.14m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	3.49
Gross Margin	30.88%
Net Profit Margin	247.37%
Debt/Equity Ratio	17.8%

How did AZEV3 perform over the long term?

See historical performance and comparison

Valuation

Is Azevedo & Travassos undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

0.88x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AZEV3's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AZEV3's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: AZEV3 is good value based on its PE Ratio (0.9x) compared to the South American Construction industry average (6.7x).

PE vs Market: AZEV3 is good value based on its PE Ratio (0.9x) compared to the BR market (9.8x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZEV3's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: AZEV3 is overvalued based on its PB Ratio (1.6x) compared to the XS Construction industry average (0.5x).

Future Growth

How is Azevedo & Travassos forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

17.2%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Azevedo & Travassos has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Azevedo & Travassos performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

48.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AZEV3 has a large one-off gain of R$294.6M impacting its December 31 2021 financial results.

Growing Profit Margin: AZEV3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: AZEV3 has become profitable over the past 5 years, growing earnings by 48% per year.

Accelerating Growth: AZEV3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AZEV3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (38.8%).

Return on Equity

High ROE: AZEV3's Return on Equity (177.7%) is considered outstanding.

Financial Health

How is Azevedo & Travassos's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AZEV3's short term assets (R$117.5M) exceed its short term liabilities (R$97.8M).

Long Term Liabilities: AZEV3's short term assets (R$117.5M) do not cover its long term liabilities (R$214.4M).

Debt to Equity History and Analysis

Debt Level: AZEV3 has more cash than its total debt.

Reducing Debt: AZEV3's debt to equity ratio has reduced from 568.6% to 17.8% over the past 5 years.

Debt Coverage: AZEV3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AZEV3's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Azevedo & Travassos's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AZEV3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AZEV3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZEV3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZEV3's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: AZEV3 is not paying a notable dividend for the BR market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AZEV3 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average board tenure

CEO

Renato de Almeida Pimentel Mendes

no data

Tenure

Mr. Renato de Almeida Pimentel Mendes serves as Chief Executive Officer, Member of Executive Officers Board and Director at Azevedo & Travassos S.A. and served as its Vice-President of the Board of Directo...

Board Members

Experienced Board: AZEV3's board of directors are considered experienced (7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 175%.

Data	Last Updated (UTC time)
Company Analysis	2022/04/27 00:00
End of Day Share Price	2022/04/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31