Marcopolo (BOVESPA:POMO3) - Share price, News & Analysis

POMO3 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	4/6
Financial Health	4/6
Dividends	0/6

POMO3 Stock Overview

Marcopolo S.A. manufactures and sells buses, automobiles, wagons, parts, and agricultural and industrial machinery in Brazil, Africa, Australia, China, Peru, and Mexico.

Rewards

PE ratio (5.3x) is below the BR market (8.6x)

Revenue is forecast to grow 9.4% per year

Earnings grew by 529.1% over the past year

Risk Analysis

Large one-off items impacting financial results

Marcopolo Competitors

Mercedes-Benz Group

XTRA:MBG

€67.7b

Tata Motors

BSE:500570

₹1.5t

Hino Motors

TSE:7205

JP¥401.2b

Ebusco Holding

ENXTAM:EBUS

€1.4b

Price History & Performance

Summary of all time highs, changes and price drops for Marcopolo
Historical stock prices
Current Share Price	R$2.28
52 Week High	R$3.40
52 Week Low	R$2.12
Beta	1.12
1 Month Change	-3.39%
3 Month Change	-7.69%
1 Year Change	-11.97%
3 Year Change	-21.65%
5 Year Change	5.07%
Change since IPO	60,377.45%

Shareholder Returns

	POMO3	BR Machinery	BR Market
7D	0%	-0.08%	1.0%
1Y	-12.0%	-18.2%	-19.4%

Return vs Industry: POMO3 exceeded the BR Machinery industry which returned -18.3% over the past year.

Return vs Market: POMO3 exceeded the BR Market which returned -20.2% over the past year.

Price Volatility

Is POMO3's price volatile compared to industry and market?
POMO3 volatility
POMO3 Average Weekly Movement	3.8%
Machinery Industry Average Movement	5.6%
Market Average Movement	6.4%
10% most volatile stocks in BR Market	10.0%
10% least volatile stocks in BR Market	3.0%

Stable Share Price: POMO3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: POMO3's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1949	9,682	James Bellini	https://www.marcopolo.com.br

Marcopolo S.A. manufactures and sells buses, automobiles, wagons, parts, and agricultural and industrial machinery in Brazil, Africa, Australia, China, Peru, and Mexico. The company operates in Industrial and Financial segments. It offers intercity vehicles, urban vehicles, and micro and minibuses; manufactures car bodies for buses and minibuses, as well as their parts, components, and accessories.

Marcopolo Fundamentals Summary

How do Marcopolo's earnings and revenue compare to its market cap?
POMO3 fundamental statistics
Market Cap	R$2.40b
Earnings (TTM)	R$479.38m
Revenue (TTM)	R$3.62b

5.3x

P/E Ratio

0.7x

P/S Ratio

Is POMO3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
POMO3 income statement (TTM)
Revenue	R$3.62b
Cost of Revenue	R$3.26b
Gross Profit	R$368.07m
Other Expenses	-R$111.31m
Earnings	R$479.38m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 01, 2022

Earnings per share (EPS)	0.51
Gross Margin	10.16%
Net Profit Margin	13.23%
Debt/Equity Ratio	79.7%

How did POMO3 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Marcopolo undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

5.31x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: POMO3 (R$2.28) is trading above our estimate of fair value (R$1.72)

Significantly Below Fair Value: POMO3 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: POMO3 is good value based on its PE Ratio (5.3x) compared to the BR Machinery industry average (5.4x).

PE vs Market: POMO3 is good value based on its PE Ratio (5.3x) compared to the BR market (8.6x).

Price to Earnings Growth Ratio

PEG Ratio: POMO3 is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: POMO3 is good value based on its PB Ratio (0.9x) compared to the BR Machinery industry average (1.2x).

Future Growth

How is Marcopolo forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

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

4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: POMO3's forecast earnings growth (4.9% per year) is below the savings rate (9.1%).

Earnings vs Market: POMO3's earnings (4.9% per year) are forecast to grow slower than the BR market (6% per year).

High Growth Earnings: POMO3's earnings are forecast to grow, but not significantly.

Revenue vs Market: POMO3's revenue (9.4% per year) is forecast to grow faster than the BR market (6.2% per year).

High Growth Revenue: POMO3's revenue (9.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: POMO3's Return on Equity is forecast to be low in 3 years time (10.4%).

Past Performance

How has Marcopolo performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: POMO3 has a large one-off gain of R$443.6M impacting its March 31 2022 financial results.

Growing Profit Margin: POMO3's current net profit margins (13.2%) are higher than last year (2.2%).

Past Earnings Growth Analysis

Earnings Trend: POMO3's earnings have grown significantly by 22.4% per year over the past 5 years.

Accelerating Growth: POMO3's earnings growth over the past year (529.1%) exceeds its 5-year average (22.4% per year).

Earnings vs Industry: POMO3 earnings growth over the past year (529.1%) exceeded the Machinery industry 38.3%.

Return on Equity

High ROE: POMO3's Return on Equity (15.9%) is considered low.

Financial Health

How is Marcopolo's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: POMO3's short term assets (R$3.5B) exceed its short term liabilities (R$2.0B).

Long Term Liabilities: POMO3's short term assets (R$3.5B) exceed its long term liabilities (R$1.8B).

Debt to Equity History and Analysis

Debt Level: POMO3's net debt to equity ratio (38.1%) is considered satisfactory.

Reducing Debt: POMO3's debt to equity ratio has reduced from 116.9% to 79.7% over the past 5 years.

Debt Coverage: POMO3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if POMO3's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is Marcopolo current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

0.74%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: POMO3's dividend (0.74%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.37%).

High Dividend: POMO3's dividend (0.74%) is low compared to the top 25% of dividend payers in the BR market (6.65%).

Stability and Growth of Payments

Stable Dividend: POMO3's dividend payments have been volatile in the past 10 years.

Growing Dividend: POMO3's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: POMO3 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

CEO

James Bellini

no data

Tenure

Mr. James Eduardo Bellini serves as Chief Executive Officer and President of Board of Directors at Marcopolo S.A. Mr. Bellini served as Commercial Director of International Operations at Marcopolo S.A.

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31