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GGPS

GPS Participações e Empreendimentos BOVESPA:GGPS3 Stock Report

Last Price

R$10.35

Market Cap

R$6.9b

7D

-7.8%

1Y

-39.7%

Updated

03 Jul, 2022

Data

Company Financials +
GGPS3 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance3/6
Financial Health5/6
Dividends3/6

GGPS3 Stock Overview

GPS Participações e Empreendimentos S.A.

GPS Participações e Empreendimentos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for GPS Participações e Empreendimentos
Historical stock prices
Current Share PriceR$10.35
52 Week HighR$20.49
52 Week LowR$10.29
Beta0
1 Month Change-23.90%
3 Month Change-37.46%
1 Year Change-39.72%
3 Year Changen/a
5 Year Changen/a
Change since IPO-19.14%

Recent News & Updates

May 01
Here's Why I Think GPS Participações e Empreendimentos (BVMF:GGPS3) Is An Interesting Stock

Here's Why I Think GPS Participações e Empreendimentos (BVMF:GGPS3) Is An Interesting Stock

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Feb 22
Risks To Shareholder Returns Are Elevated At These Prices For GPS Participações e Empreendimentos S.A. (BVMF:GGPS3)

Risks To Shareholder Returns Are Elevated At These Prices For GPS Participações e Empreendimentos S.A. (BVMF:GGPS3)

When close to half the companies in Brazil have price-to-earnings ratios (or "P/E's") below 9x, you may consider GPS...

Shareholder Returns

GGPS3BR Commercial ServicesBR Market
7D-7.8%-5.3%-0.03%
1Y-39.7%-44.2%-30.1%

Return vs Industry: GGPS3 exceeded the BR Commercial Services industry which returned -44.2% over the past year.

Return vs Market: GGPS3 underperformed the BR Market which returned -30.1% over the past year.

Price Volatility

Is GGPS3's price volatile compared to industry and market?
GGPS3 volatility
GGPS3 Average Weekly Movement5.1%
Commercial Services Industry Average Movement7.1%
Market Average Movement5.8%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: GGPS3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GGPS3's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1962129,000Luis Carlos Romerohttps://gpssa.com.br

GPS Participações e Empreendimentos S.A. provides security, facilities, logistics, utility engineering, industrial services, catering, and infrastructure services in Brazil. It offers security services in the areas of property, firefighting and prevention, personal, monitoring center operations, armed escort, event, integrated security solution, and civil aviation security (APAC). The company’s facilities services include cleaning and conservation, technical and industrial cleaning, cleaning at heights, hospital cleaning and sanitizing, administrative support, specialized services, operational support, caterers and servers, reception desk and gatehouse, building maintenance, firefighters, landscaping and plant maintenance, and indoor waste management.

GPS Participações e Empreendimentos Fundamentals Summary

How do GPS Participações e Empreendimentos's earnings and revenue compare to its market cap?
GGPS3 fundamental statistics
Market CapR$6.91b
Earnings (TTM)R$416.68m
Revenue (TTM)R$7.20b

16.6x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GGPS3 income statement (TTM)
RevenueR$7.20b
Cost of RevenueR$6.03b
Gross ProfitR$1.18b
Other ExpensesR$760.52m
EarningsR$416.68m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.62
Gross Margin16.34%
Net Profit Margin5.78%
Debt/Equity Ratio85.8%

How did GGPS3 perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

33%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GGPS3 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 GGPS3?

Other financial metrics that can be useful for relative valuation.

GGPS3 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/Revenue1x
Enterprise Value/EBITDA9.4x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does GGPS3's PE Ratio compare to its peers?

GGPS3 PE Ratio vs Peers
The above table shows the PE ratio for GGPS3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.7x
AMBP3 Ambipar Participações e Empreendimentos
3.4x-96.8%R$2.6b
BOAS3 Boa Vista Serviços
14.6x21.9%R$2.8b
VLID3 Valid Soluções
15.9xn/aR$741.9m
002034 Wangneng Environment
13.3x22.8%CN¥8.8b
GGPS3 GPS Participações e Empreendimentos
16.6x23.3%R$6.9b

Price-To-Earnings vs Peers: GGPS3 is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does GGPS3's PE Ratio compare vs other companies in the Global Commercial Services Industry?

Price-To-Earnings vs Industry: GGPS3 is expensive based on its Price-To-Earnings Ratio (16.6x) compared to the South American Commercial Services industry average (16.6x)


Price to Earnings Ratio vs Fair Ratio

What is GGPS3'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.

GGPS3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.6x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: GGPS3 is good value based on its Price-To-Earnings Ratio (16.6x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


Share Price vs Fair Value

What is the Fair Price of GGPS3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GGPS3 (R$10.35) is trading above our estimate of fair value (R$3.35)

Significantly Below Fair Value: GGPS3 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: GGPS3 is good value based on its PEG Ratio (0.7x)


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Future Growth

How is GPS Participações e Empreendimentos forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GGPS3's forecast earnings growth (23.3% per year) is above the savings rate (9.2%).

Earnings vs Market: GGPS3's earnings (23.3% per year) are forecast to grow faster than the BR market (6.9% per year).

High Growth Earnings: GGPS3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GGPS3's revenue (21.9% per year) is forecast to grow faster than the BR market (5.6% per year).

High Growth Revenue: GGPS3's revenue (21.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GGPS3's Return on Equity is forecast to be high in 3 years time (23.8%)


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Past Performance

How has GPS Participações e Empreendimentos 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


19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GGPS3 has high quality earnings.

Growing Profit Margin: GGPS3's current net profit margins (5.8%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: GGPS3's earnings have grown by 19.3% per year over the past 5 years.

Accelerating Growth: GGPS3's earnings growth over the past year (30.8%) exceeds its 5-year average (19.3% per year).

Earnings vs Industry: GGPS3 earnings growth over the past year (30.8%) underperformed the Commercial Services industry 57.4%.


Return on Equity

High ROE: GGPS3's Return on Equity (18.2%) is considered low.


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Financial Health

How is GPS Participações e Empreendimentos's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GGPS3's short term assets (R$3.6B) exceed its short term liabilities (R$1.6B).

Long Term Liabilities: GGPS3's short term assets (R$3.6B) exceed its long term liabilities (R$2.9B).


Debt to Equity History and Analysis

Debt Level: GGPS3's net debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: GGPS3's debt to equity ratio has reduced from 101.2% to 85.8% over the past 5 years.

Debt Coverage: GGPS3's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: GGPS3's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet


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Dividend

What is GPS Participações e Empreendimentos's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GGPS3's dividend (3.62%) is higher than the bottom 25% of dividend payers in the BR market (1.77%).

High Dividend: GGPS3's dividend (3.62%) is low compared to the top 25% of dividend payers in the BR market (7.96%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether GGPS3's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if GGPS3's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.3%), GGPS3's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (81.9%), GGPS3's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

1.3yrs

Average board tenure


CEO

Luis Carlos Romero (56 yo)

no data

Tenure

Mr. Luis Carlos Martinez Romero is Chief Executive Officer of GPS Participações e Empreendimentos S.A.


Board Members

Experienced Board: GGPS3's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

GPS Participações e Empreendimentos S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: GPS Participações e Empreendimentos S.A.
  • Ticker: GGPS3
  • Exchange: BOVESPA
  • Founded: 1962
  • Industry: Environmental and Facilities Services
  • Sector: Commercial Services
  • Implied Market Cap: R$6.909b
  • Shares outstanding: 667.49m
  • Website: https://gpssa.com.br

Number of Employees


Location

  • GPS Participações e Empreendimentos S.A.
  • Av. Miguel Frias e Vasconcelos, 1205
  • JaguarE
  • São Paulo
  • São Paulo
  • 05345-000
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/03 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.