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ARZZ

Arezzo Indústria e Comércio BOVESPA:ARZZ3 Stock Report

Last Price

R$79.51

Market Cap

R$8.7b

7D

-3.9%

1Y

-7.3%

Updated

24 May, 2022

Data

Company Financials +
ARZZ3 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends2/6

ARZZ3 Stock Overview

Arezzo Indústria e Comércio S.A., together with its subsidiaries, engages in the manufacture, development, molding, and sale of women’s footwear, handbags, clothing, and accessories.

Arezzo Indústria e Comércio Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Arezzo Indústria e Comércio
Historical stock prices
Current Share PriceR$79.51
52 Week HighR$101.84
52 Week LowR$63.39
Beta1.16
1 Month Change-13.02%
3 Month Change-3.50%
1 Year Change-7.29%
3 Year Change65.10%
5 Year Change140.50%
Change since IPO274.16%

Recent News & Updates

May 17
What Is Arezzo Indústria e Comércio S.A.'s (BVMF:ARZZ3) Share Price Doing?

What Is Arezzo Indústria e Comércio S.A.'s (BVMF:ARZZ3) Share Price Doing?

Arezzo Indústria e Comércio S.A. ( BVMF:ARZZ3 ), is not the largest company out there, but it saw a decent share price...

Shareholder Returns

ARZZ3BR LuxuryBR Market
7D-3.9%-1.9%1.7%
1Y-7.3%-29.6%-19.1%

Return vs Industry: ARZZ3 exceeded the BR Luxury industry which returned -30.8% over the past year.

Return vs Market: ARZZ3 exceeded the BR Market which returned -19.5% over the past year.

Price Volatility

Is ARZZ3's price volatile compared to industry and market?
ARZZ3 volatility
ARZZ3 Average Weekly Movement4.5%
Luxury Industry Average Movement6.4%
Market Average Movement6.4%
10% most volatile stocks in BR Market9.8%
10% least volatile stocks in BR Market2.9%

Stable Share Price: ARZZ3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARZZ3's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19725,380Alexandre Birmanhttps://www.arezzo.com.br

Arezzo Indústria e Comércio S.A., together with its subsidiaries, engages in the manufacture, development, molding, and sale of women’s footwear, handbags, clothing, and accessories. The company offers its products under the Arezzo, Schutz, Anacapri, Alexandre Birman, and Fiever brands. As of December 31, 2019, it had 630 franchise-operated stores, and 45 company-operated stores in Brazil.

Arezzo Indústria e Comércio Fundamentals Summary

How do Arezzo Indústria e Comércio's earnings and revenue compare to its market cap?
ARZZ3 fundamental statistics
Market CapR$8.73b
Earnings (TTM)R$413.51m
Revenue (TTM)R$3.26b

21.1x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARZZ3 income statement (TTM)
RevenueR$3.26b
Cost of RevenueR$1.52b
Gross ProfitR$1.74b
Other ExpensesR$1.33b
EarningsR$413.51m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)3.77
Gross Margin53.41%
Net Profit Margin12.67%
Debt/Equity Ratio11.4%

How did ARZZ3 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Arezzo Indústria e Comércio undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


4.9%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ARZZ3 (R$79.51) is trading below our estimate of fair value (R$83.58)

Significantly Below Fair Value: ARZZ3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ARZZ3 is poor value based on its PE Ratio (21.1x) compared to the BR Luxury industry average (8.5x).

PE vs Market: ARZZ3 is poor value based on its PE Ratio (21.1x) compared to the BR market (8.8x).


Price to Earnings Growth Ratio

PEG Ratio: ARZZ3 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: ARZZ3 is overvalued based on its PB Ratio (3.5x) compared to the BR Luxury industry average (1.2x).


Future Growth

How is Arezzo Indústria e Comércio forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARZZ3's forecast earnings growth (18% per year) is above the savings rate (9.1%).

Earnings vs Market: ARZZ3's earnings (18% per year) are forecast to grow faster than the BR market (6.1% per year).

High Growth Earnings: ARZZ3's earnings are forecast to grow, but not significantly.

Revenue vs Market: ARZZ3's revenue (13.2% per year) is forecast to grow faster than the BR market (6.1% per year).

High Growth Revenue: ARZZ3's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARZZ3's Return on Equity is forecast to be high in 3 years time (20.5%)


Past Performance

How has Arezzo Indústria e Comércio 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


16.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARZZ3 has a high level of non-cash earnings.

Growing Profit Margin: ARZZ3's current net profit margins (12.7%) are higher than last year (3.1%).


Past Earnings Growth Analysis

Earnings Trend: ARZZ3's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: ARZZ3's earnings growth over the past year (688.1%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: ARZZ3 earnings growth over the past year (688.1%) exceeded the Luxury industry 112.5%.


Return on Equity

High ROE: ARZZ3's Return on Equity (16.5%) is considered low.


Financial Health

How is Arezzo Indústria e Comércio's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARZZ3's short term assets (R$2.1B) exceed its short term liabilities (R$1.3B).

Long Term Liabilities: ARZZ3's short term assets (R$2.1B) exceed its long term liabilities (R$256.6M).


Debt to Equity History and Analysis

Debt Level: ARZZ3 has more cash than its total debt.

Reducing Debt: ARZZ3's debt to equity ratio has reduced from 14.2% to 11.4% over the past 5 years.

Debt Coverage: ARZZ3's debt is well covered by operating cash flow (68.5%).

Interest Coverage: ARZZ3's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet


Dividend

What is Arezzo Indústria e Comércio 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


1.13%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ARZZ3's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.38%).

High Dividend: ARZZ3's dividend (1.13%) is low compared to the top 25% of dividend payers in the BR market (6.55%).


Stability and Growth of Payments

Stable Dividend: ARZZ3's dividend payments have been volatile in the past 10 years.

Growing Dividend: ARZZ3's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.1%), ARZZ3's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ARZZ3 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

9.3yrs

Average management tenure


CEO

Alexandre Birman (43 yo)

9.33yrs

Tenure

Mr. Alexandre Cafe Birman is a Co-Owner of Albir Participacoes SA. Mr. Birman serves as the Chief Executive Officer of Arezzo Industria e Comercio S.A. and has been its Member of Board of Executive Officer...


Leadership Team

Experienced Management: ARZZ3's management team is seasoned and experienced (9.3 years average tenure).


Board Members

Experienced Board: ARZZ3's board of directors are considered experienced (5 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 10.2%.


Top Shareholders

Company Information

Arezzo Indústria e Comércio S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Arezzo Indústria e Comércio S.A.
  • Ticker: ARZZ3
  • Exchange: BOVESPA
  • Founded: 1972
  • Industry: Footwear
  • Sector: Consumer Durables
  • Implied Market Cap: R$8.727b
  • Shares outstanding: 109.76m
  • Website: https://www.arezzo.com.br

Number of Employees


Location

  • Arezzo Indústria e Comércio S.A.
  • Rod Governador Mario Covas
  • 3255, Armz 01 Sala 210
  • Cariacica
  • Espírito Santo
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/24 00:00
End of Day Share Price2022/05/23 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.