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ROMI

Indústrias RomiBOVESPA:ROMI3 Stock Report

Market Cap

R$1.3b

7D

-4.6%

1Y

65.0%

Updated

24 Oct, 2021

Data

Company Financials +
ROMI3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends4/6

ROMI3 Overview

Indústrias Romi S.A. manufactures and sells machine tools, plastic processing machines, and rough and machined cast parts in Brazil, Asia, Europe, Latin America, and North America.

Price History & Performance

Summary of all time highs, changes and price drops for Indústrias Romi
Historical stock prices
Current Share PriceR$18.32
52 Week HighR$11.32
52 Week LowR$38.75
Beta1.62
1 Month Change-12.64%
3 Month Change-23.79%
1 Year Change65.05%
3 Year Change188.83%
5 Year Change582.86%
Change since IPO98,622.85%

Recent News & Updates

Jun 09
Here's Why I Think Indústrias Romi (BVMF:ROMI3) Might Deserve Your Attention Today

Here's Why I Think Indústrias Romi (BVMF:ROMI3) Might Deserve Your Attention Today

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 25
Is There Now An Opportunity In Indústrias Romi S.A. (BVMF:ROMI3)?

Is There Now An Opportunity In Indústrias Romi S.A. (BVMF:ROMI3)?

While Indústrias Romi S.A. ( BVMF:ROMI3 ) might not be the most widely known stock at the moment, it saw significant...

May 10
Here's Why Indústrias Romi (BVMF:ROMI3) Can Manage Its Debt Responsibly

Here's Why Indústrias Romi (BVMF:ROMI3) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

ROMI3BR MachineryBR Market
7D-4.6%-7.4%-7.0%
1Y65.0%3.9%-0.8%

Return vs Industry: ROMI3 exceeded the BR Machinery industry which returned 3.9% over the past year.

Return vs Market: ROMI3 exceeded the BR Market which returned -0.8% over the past year.

Price Volatility

Is ROMI3's price volatile compared to industry and market?
ROMI3 volatility
ROMI3 Beta1.62
Industry Beta1.37
Market Beta1

Stable Share Price: ROMI3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ROMI3's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1930n/aLuiz Cassiano Rosolenhttps://www.romi.com

Indústrias Romi S.A. manufactures and sells machine tools, plastic processing machines, and rough and machined cast parts in Brazil, Asia, Europe, Latin America, and North America. It operates through three segments: Romi Machinery, Burkhardt+Weber Machinery, and Cast and Machined Products. Its machine tools include turning centers, vertical turning centers, CNC lathes, vertical CNC lathes, engine lathes, CNC boring machines, machining centers, and heavy and extra-heavy duty CNC lathes.

Indústrias Romi Fundamentals Summary

How do Indústrias Romi's earnings and revenue compare to its market cap?
ROMI3 fundamental statistics
Market CapR$1.34b
Earnings (TTM)R$185.81m
Revenue (TTM)R$1.19b

7.2x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ROMI3 income statement (TTM)
RevenueR$1.19b
Cost of RevenueR$799.49m
Gross ProfitR$385.80m
ExpensesR$199.99m
EarningsR$185.81m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)2.53
Gross Margin32.55%
Net Profit Margin15.68%
Debt/Equity Ratio59.8%

How did ROMI3 perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

7%

Payout Ratio

Valuation

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

1.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ROMI3 (R$18.32) is trading below our estimate of fair value (R$18.65)

Significantly Below Fair Value: ROMI3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ROMI3 is good value based on its PE Ratio (7.2x) compared to the BR Machinery industry average (9x).

PE vs Market: ROMI3 is good value based on its PE Ratio (7.2x) compared to the BR market (11.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ROMI3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ROMI3's PB Ratio (1.6x) is in line with the BR Machinery industry average.


Future Growth

How is Indústrias Romi forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ROMI3's forecast earnings growth is above the savings rate (9.1%).

Earnings vs Market: Insufficient data to determine if ROMI3's earnings are forecast to grow faster than the BR market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ROMI3's revenue (3.4% per year) is forecast to grow slower than the BR market (7.7% per year).

High Growth Revenue: ROMI3's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ROMI3's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Indústrias Romi performed over the past 5 years?

48.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ROMI3 has a large one-off gain of R$66.1M impacting its June 30 2021 financial results.

Growing Profit Margin: ROMI3's current net profit margins (15.7%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: ROMI3's earnings have grown significantly by 48% per year over the past 5 years.

Accelerating Growth: ROMI3's earnings growth over the past year (87.9%) exceeds its 5-year average (48% per year).

Earnings vs Industry: ROMI3 earnings growth over the past year (87.9%) underperformed the Machinery industry 118.5%.


Return on Equity

High ROE: ROMI3's Return on Equity (21.8%) is considered high.


Financial Health

How is Indústrias Romi's financial position?


Financial Position Analysis

Short Term Liabilities: ROMI3's short term assets (R$1.1B) exceed its short term liabilities (R$537.1M).

Long Term Liabilities: ROMI3's short term assets (R$1.1B) exceed its long term liabilities (R$399.6M).


Debt to Equity History and Analysis

Debt Level: ROMI3's debt to equity ratio (59.8%) is considered high.

Reducing Debt: ROMI3's debt to equity ratio has increased from 57.1% to 59.8% over the past 5 years.

Debt Coverage: ROMI3's debt is well covered by operating cash flow (23.7%).

Interest Coverage: ROMI3's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

What is Indústrias Romi current dividend yield, its reliability and sustainability?

8.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ROMI3's dividend (8.9%) is higher than the bottom 25% of dividend payers in the BR market (1.28%).

High Dividend: ROMI3's dividend (8.9%) is in the top 25% of dividend payers in the BR market (5.12%)


Stability and Growth of Payments

Stable Dividend: ROMI3's dividend payments have been volatile in the past 10 years.

Growing Dividend: ROMI3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (7.5%), ROMI3's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Luiz Cassiano Rosolen (47 yo)

6.17yrs

Tenure

Mr. Luiz Cassiano Rando Rosolen has been the Chief Executive Officer and President of Industrias Romi SA since August 26th 2015. Mr. Rosolen has been Member of Board of Executive Officer at Industrias Romi...


Leadership Team

Experienced Management: ROMI3's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ROMI3's board of directors are seasoned and experienced ( 10.8 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Indústrias Romi S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Indústrias Romi S.A.
  • Ticker: ROMI3
  • Exchange: BOVESPA
  • Founded: 1930
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: R$1.343b
  • Shares outstanding: 73.33m
  • Website: https://www.romi.com

Location

  • Indústrias Romi S.A.
  • Rod. SP 304, km 141,5
  • Santa Bárbara d'Oeste
  • São Paulo
  • 13459-057
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/24 22:58
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.