Priner Serviços Industriais (BOVESPA:PRNR3) - Share price, News & Analysis

PRNR3 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	5/6
Dividends	2/6

PRNR3 Stock Overview

Priner Serviços Industriais S.A. provides industrial services and rental services in the petrochemical, pulp and paper, steel, offshore, naval, mining and infrastructure sectors in Brazil.

Rewards

Trading at 23% below our estimate of its fair value

Became profitable this year

Risk Analysis

Volatile share price over the past 3 months

Does not have a meaningful market cap (R$212M)

Priner Serviços Industriais Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Priner Serviços Industriais
Historical stock prices
Current Share Price	R$5.55
52 Week High	R$10.78
52 Week Low	R$5.04
Beta	1.21
1 Month Change	-20.60%
3 Month Change	-7.96%
1 Year Change	-46.06%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-58.58%

Recent News & Updates

Jun 25

There Are Reasons To Feel Uneasy About Priner Serviços Industriais' (BVMF:PRNR3) Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Shareholder Returns

	PRNR3	BR Commercial Services	BR Market
7D	10.1%	-1.5%	-0.8%
1Y	-46.1%	-38.3%	-29.7%

Return vs Industry: PRNR3 underperformed the BR Commercial Services industry which returned -38.4% over the past year.

Return vs Market: PRNR3 underperformed the BR Market which returned -31.2% over the past year.

Price Volatility

Is PRNR3's price volatile compared to industry and market?
PRNR3 volatility
PRNR3 Average Weekly Movement	7.9%
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: PRNR3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PRNR3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

Founded	Employees	CEO	Website
1982	3,958	Tulio Cintra	https://www.priner.com.br

Priner Serviços Industriais S.A. provides industrial services and rental services in the petrochemical, pulp and paper, steel, offshore, naval, mining and infrastructure sectors in Brazil. The company provides access solution, including scaffolding systems, aluminum flooring, modular aluminum scaffolding systems, rope access, and suspended work platforms; and pressurized habitat solution with safety requirements, such as offshore oil production rigs, refineries and petrochemical plants, and terminals. It also offers thermal insulation solutions for conventional and portable thermal insulation systems, firewalls and acoustic systems, offering maximum productivity and quality; and industrial paintwork, such as anticorrosive protection for the preservation of patrimonial lines, equipment, and metallic structures.

Priner Serviços Industriais Fundamentals Summary

How do Priner Serviços Industriais's earnings and revenue compare to its market cap?
PRNR3 fundamental statistics
Market Cap	R$211.50m
Earnings (TTM)	R$20.40m
Revenue (TTM)	R$483.99m

10.4x

P/E Ratio

0.4x

P/S Ratio

Is PRNR3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PRNR3 income statement (TTM)
Revenue	R$483.99m
Cost of Revenue	R$398.40m
Gross Profit	R$85.59m
Other Expenses	R$65.19m
Earnings	R$20.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.54
Gross Margin	17.68%
Net Profit Margin	4.21%
Debt/Equity Ratio	25.1%

How did PRNR3 perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PRNR3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 PRNR3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PRNR3. This is calculated by dividing PRNR3's market cap by their current preferred multiple.
What is PRNR3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$211.50m

PRNR3 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	0.5x
Enterprise Value/EBITDA	4.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does PRNR3's PE Ratio compare to its peers?

PRNR3 PE Ratio vs Peers

The above table shows the PE ratio for PRNR3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.3x

Forward PE

Price-To-Earnings vs Peers: PRNR3 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the peer average (28.3x).

Price to Earnings Ratio vs Industry

How does PRNR3's PE Ratio compare vs other companies in the Global Commercial Services Industry?

Price-To-Earnings vs Industry: PRNR3 is good value based on its Price-To-Earnings Ratio (10.4x) compared to the South American Commercial Services industry average (17.4x)

Price to Earnings Ratio vs Fair Ratio

What is PRNR3'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.

PRNR3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PRNR3's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of PRNR3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRNR3 (R$5.55) is trading below our estimate of fair value (R$7.21)

Significantly Below Fair Value: PRNR3 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PRNR3's PEG Ratio to determine if it is good value.

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Future Growth

How is Priner Serviços Industriais forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

17.3%

Forecasted Commercial Services industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Priner Serviços Industriais has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Priner Serviços Industriais is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Priner Serviços Industriais 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

23.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PRNR3 has high quality earnings.

Growing Profit Margin: PRNR3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: PRNR3's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: PRNR3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PRNR3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (57.4%).

Return on Equity

High ROE: PRNR3's Return on Equity (8.8%) is considered low.

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Financial Health

How is Priner Serviços Industriais'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: PRNR3's short term assets (R$212.8M) exceed its short term liabilities (R$127.0M).

Long Term Liabilities: PRNR3's short term assets (R$212.8M) exceed its long term liabilities (R$48.6M).

Debt to Equity History and Analysis

Debt Level: PRNR3 has more cash than its total debt.

Reducing Debt: PRNR3's debt to equity ratio has increased from 22.6% to 25.1% over the past 5 years.

Debt Coverage: PRNR3's debt is well covered by operating cash flow (68.9%).

Interest Coverage: PRNR3's interest payments on its debt are well covered by EBIT (14x coverage).

Balance Sheet

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Dividend

What is Priner Serviços Industriais'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

1.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PRNR3's dividend (1.69%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: PRNR3's dividend (1.69%) 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 PRNR3's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if PRNR3's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (17.9%), PRNR3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38.3%), PRNR3's dividend payments are well covered by cash flows.

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Management

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

CEO

Tulio Cintra

10.42yrs

Tenure

Mr. Tulio Cintra is Chief Executive Officer of Priner Serviços Industriais S.A. from 2012.

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