BOVESPA:TASA4

Stock Analysis Report

Executive Summary

Taurus Armas S.A., together with its subsidiaries, manufactures and sells small firearms.

Rewards

Trading at 21.9% below its fair value

Revenue is forecast to grow 16.03% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Taurus Armas's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TASA4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.9%

TASA4

-13.2%

BR Aerospace & Defense

-2.9%

BR Market


1 Year Return

5.3%

TASA4

-29.1%

BR Aerospace & Defense

-22.0%

BR Market

Return vs Industry: TASA4 exceeded the BR Aerospace & Defense industry which returned -24.8% over the past year.

Return vs Market: TASA4 exceeded the BR Market which returned -22.5% over the past year.


Shareholder returns

TASA4IndustryMarket
7 Day15.9%-13.2%-2.9%
30 Day-18.0%-32.6%-30.3%
90 Day-36.9%-38.1%-36.2%
1 Year5.3%5.3%-27.9%-29.1%-19.0%-22.0%
3 Year123.5%123.5%-14.5%-18.7%20.4%6.9%
5 Year30.3%30.3%4.6%-4.7%42.7%18.0%

Price Volatility Vs. Market

How volatile is Taurus Armas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TASA4 (R$4) is trading below our estimate of fair value (R$5.12)

Significantly Below Fair Value: TASA4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TASA4 is poor value based on its PE Ratio (59.5x) compared to the Aerospace & Defense industry average (15.4x).

PE vs Market: TASA4 is poor value based on its PE Ratio (59.5x) compared to the BR market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TASA4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TASA4 has negative assets, so we can't compare its PB Ratio to the XX Aerospace & Defense industry average.


Next Steps

Future Growth

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

16.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TASA4's forecast earnings growth is above the savings rate (7%).

Earnings vs Market: Insufficient data to determine if TASA4'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: TASA4's revenue (16% per year) is forecast to grow faster than the BR market (8.4% per year).

High Growth Revenue: TASA4's revenue (16% 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 TASA4's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Taurus Armas performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TASA4 has a large one-off loss of R$37.1M impacting its September 30 2019 financial results.

Growing Profit Margin: TASA4 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TASA4 has become profitable over the past 5 years, growing earnings by 19.5% per year.

Accelerating Growth: TASA4 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TASA4 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (10.5%).


Return on Equity

High ROE: TASA4's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Taurus Armas's financial position?


Financial Position Analysis

Short Term Liabilities: TASA4 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: TASA4 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: TASA4 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: TASA4's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: TASA4 has a high level of physical assets or inventory.

Debt Coverage by Assets: TASA4 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TASA4 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TASA4 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Taurus Armas's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TASA4's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TASA4's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TASA4's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TASA4's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TASA4 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TASA4's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Marco Salvany

no data

Tenure

Marco Aurélio Salvany serves as the Chief Executive Officer and Director at Forjas Taurus S.A. 


Board Members

NamePositionTenureCompensationOwnership
Marco Salvany
CEO & Directorno datano datano data
Thiago Piovesan
CFO, Administrative & Financial Directorno datano datano data
Salésio Nuhs
Vice-President of Sales & Marketing and Directorno datano datano data
Joao Juenemann
Independent Director5.83yrsno datano data
Ruy Filho
Independent Directorno datano datano data
Fernando José Estima
Director5.83yrsno datano data
Jorio Silva
Chairman5.83yrsno datano data
Haroldo Zago
President of Fiscal Councilno datano datano data
Fábio Mazzaro
Vice Chairman5.25yrsno datano data
Luiz Moraes
Independent Director5.25yrsno datano data

5.8yrs

Average Tenure

Experienced Board: TASA4's board of directors are considered experienced (5.8 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 been diluted in the past year, with total shares outstanding growing by 37.4%.


Top Shareholders

Company Information

Taurus Armas S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Taurus Armas S.A.
  • Ticker: TASA4
  • Exchange: BOVESPA
  • Founded: 1939
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: R$332.957m
  • Shares outstanding: 88.46m
  • Website: https://www.taurus.com.br

Number of Employees


Location

  • Taurus Armas S.A.
  • Avenida São Borja, n° 2181
  • Prédio A
  • São Leopoldo
  • Rio Grande do Sul
  • 93035-411
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TASA4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLMar 1993
TASA3BOVESPA (Bolsa de Valores de Sao Paulo)Ordinary SharesBRBRLJun 1994
TASA4BOVESPA (Bolsa de Valores de Sao Paulo)PRF NPVBRBRLNov 2019

Biography

Taurus Armas S.A., together with its subsidiaries, manufactures and sells small firearms. The company operates through Firearms and Accessories; and Metal Injection Molding segments. It offers a range of weapons and accessories, including holsters, vests, revolvers, pistols, machine guns, rifles, carbines, and shotguns. The company also provides goggles for bikers; motorcycle cases; and high density polyethylene plastic containers for storage of solid, industrial, and hospital waste. In addition, it offers forged parts for the use in automotive, electronics, oil, gas, and aerospace industries. The company offers its products under the TAURUS, ROSSI, and HERITAGE brand names. It serves state, federal, civil, and military police in Brazil, as well as Brazilian armed forces; and civil markets and government agencies. The company also exports its products to 70 countries. The company was founded in 1939 and is headquartered in São Leopoldo, Brazil. Taurus Armas S.A. is a subsidiary of CBC Participações S.A. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 18:03
End of Day Share Price2020/04/02 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.