Ambipar Participações e Empreendimentos (BOVESPA:AMBP3) - Share price, News & Analysis

AMBP3 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	4/6
Financial Health	2/6
Dividends	1/6

AMBP3 Stock Overview

Ambipar Participações e Empreendimentos S.A.

Rewards

Price-To-Earnings ratio (3.4x) is below the BR market (8.1x)

Revenue is forecast to grow 15.73% per year

Earnings grew by 1048.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 96.8% per year for the next 3 years

Debt is not well covered by operating cash flow

High level of non-cash earnings

Ambipar Participações e Empreendimentos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ambipar Participações e Empreendimentos
Historical stock prices
Current Share Price	R$23.04
52 Week High	R$71.10
52 Week Low	R$21.80
Beta	0
1 Month Change	-25.89%
3 Month Change	-38.18%
1 Year Change	-41.86%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-21.37%

Shareholder Returns

	AMBP3	BR Commercial Services	BR Market
7D	-1.5%	-1.5%	-0.8%
1Y	-41.9%	-38.3%	-29.7%

Return vs Industry: AMBP3 underperformed the BR Commercial Services industry which returned -38.4% over the past year.

Return vs Market: AMBP3 underperformed the BR Market which returned -31.2% over the past year.

Price Volatility

Is AMBP3's price volatile compared to industry and market?
AMBP3 volatility
AMBP3 Average Weekly Movement	7.4%
Commercial Services Industry Average Movement	7.4%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: AMBP3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AMBP3's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	n/a	n/a	https://ambipar.com

Ambipar Participações e Empreendimentos S.A. holds equity interests in companies involved in provision of services, including specialized labor services, environmental services, transport road freight, emergency service, waste management automotive, electronics and post-consumer waste management, management of organic and industrial waste, and products for environmental protection. The company was founded 2010 and is headquartered in São Paulo, Brazil.

Ambipar Participações e Empreendimentos Fundamentals Summary

How do Ambipar Participações e Empreendimentos's earnings and revenue compare to its market cap?
AMBP3 fundamental statistics
Market Cap	R$2.60b
Earnings (TTM)	R$767.44m
Revenue (TTM)	R$2.52b

3.4x

P/E Ratio

1.0x

P/S Ratio

Is AMBP3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMBP3 income statement (TTM)
Revenue	R$2.52b
Cost of Revenue	R$1.40b
Gross Profit	R$1.13b
Other Expenses	R$360.06m
Earnings	R$767.44m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.80
Gross Margin	44.68%
Net Profit Margin	30.41%
Debt/Equity Ratio	306.6%

How did AMBP3 perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

4%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is AMBP3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AMBP3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AMBP3. This is calculated by dividing AMBP3's market cap by their current preferred multiple.
What is AMBP3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$2.60b

AMBP3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	4.2x
PEG Ratio	-0.04x

Price to Earnings Ratio vs Peers

How does AMBP3's PE Ratio compare to its peers?

AMBP3 PE Ratio vs Peers

The above table shows the PE ratio for AMBP3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	25x

Forward PE

Price-To-Earnings vs Peers: AMBP3 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the peer average (25x).

Price to Earnings Ratio vs Industry

How does AMBP3's PE Ratio compare vs other companies in the Global Commercial Services Industry?

Price-To-Earnings vs Industry: AMBP3 is good value based on its Price-To-Earnings Ratio (3.4x) compared to the South American Commercial Services industry average (17.4x)

Price to Earnings Ratio vs Fair Ratio

What is AMBP3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AMBP3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.4x
Fair PE Ratio	1.2x

Price-To-Earnings vs Fair Ratio: AMBP3 is expensive based on its Price-To-Earnings Ratio (3.4x) compared to the estimated Fair Price-To-Earnings Ratio (1.2x).

Share Price vs Fair Value

What is the Fair Price of AMBP3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AMBP3 (R$23.04) is trading above our estimate of fair value (R$3.1)

Significantly Below Fair Value: AMBP3 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: AMBP3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Ambipar Participações e Empreendimentos forecast to perform in the next 1 to 3 years based on estimates from 2 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

-96.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBP3's earnings are forecast to decline over the next 3 years (-96.8% per year).

Earnings vs Market: AMBP3's earnings are forecast to decline over the next 3 years (-96.8% per year).

High Growth Earnings: AMBP3's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AMBP3's revenue (15.7% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: AMBP3's revenue (15.7% 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 AMBP3's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Ambipar Participações e Empreendimentos 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

76.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AMBP3 has a high level of non-cash earnings.

Growing Profit Margin: AMBP3's current net profit margins (30.4%) are higher than last year (8.1%).

Past Earnings Growth Analysis

Earnings Trend: AMBP3's earnings have grown significantly by 76.5% per year over the past 5 years.

Accelerating Growth: AMBP3's earnings growth over the past year (1048.6%) exceeds its 5-year average (76.5% per year).

Earnings vs Industry: AMBP3 earnings growth over the past year (1048.6%) exceeded the Commercial Services industry 57.4%.

Return on Equity

High ROE: Whilst AMBP3's Return on Equity (65.82%) is outstanding, this metric is skewed due to their high level of debt.

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Financial Health

How is Ambipar Participações e Empreendimentos's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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

Financial Position Analysis

Short Term Liabilities: AMBP3's short term assets (R$2.3B) exceed its short term liabilities (R$1.0B).

Long Term Liabilities: AMBP3's short term assets (R$2.3B) do not cover its long term liabilities (R$3.7B).

Debt to Equity History and Analysis

Debt Level: AMBP3's net debt to equity ratio (182.9%) is considered high.

Reducing Debt: AMBP3's debt to equity ratio has increased from 77.4% to 306.6% over the past 5 years.

Debt Coverage: AMBP3's debt is not well covered by operating cash flow (6.1%).

Interest Coverage: AMBP3's interest payments on its debt are well covered by EBIT (9.9x coverage).

Balance Sheet

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Dividend

What is Ambipar Participações e Empreendimentos's 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

1.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: AMBP3's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: AMBP3's dividend (1.32%) is low compared to the top 25% of dividend payers in the BR market (7.74%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether AMBP3's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if AMBP3's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4.5%), AMBP3's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: AMBP3 is paying a dividend but the company has no free cash flows.

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Management

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

CEO

Ambipar Participações e Empreendimentos has no CEO, or we have no data on them.

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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31