Companhia de Fiação e Tecidos Cedro e Cachoeira (BOVESPA:CEDO3) - Share price, News & Analysis

CEDO3 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	0/6

CEDO3 Stock Overview

Companhia de Fiação e Tecidos Cedro e Cachoeira S.A.

Rewards

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (R$61M)

Price History & Performance

Summary of all time highs, changes and price drops for Companhia de Fiação e Tecidos Cedro e Cachoeira
Historical stock prices
Current Share Price	R$6.98
52 Week High	R$12.70
52 Week Low	R$6.50
Beta	1.07
1 Month Change	3.10%
3 Month Change	-0.29%
1 Year Change	-35.01%
3 Year Change	16.33%
5 Year Change	39.60%
Change since IPO	-51.11%

Shareholder Returns

	CEDO3	BR Luxury	BR Market
7D	-0.3%	-5.0%	-2.9%
1Y	-35.0%	-19.0%	-16.7%

Return vs Industry: CEDO3 underperformed the BR Luxury industry which returned -19.1% over the past year.

Return vs Market: CEDO3 underperformed the BR Market which returned -16.3% over the past year.

Price Volatility

Is CEDO3's price volatile compared to industry and market?
CEDO3 volatility
CEDO3 Average Weekly Movement	3.6%
Luxury Industry Average Movement	5.8%
Market Average Movement	6.0%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: CEDO3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CEDO3's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1872	n/a	Marco Branquinho	https://www.cedro.com.br

Companhia de Fiação e Tecidos Cedro e Cachoeira S.A. operates as a textile company in Brazil. It primarily offers denims, twills, and screens. The company was founded in 1872 and is headquartered in Belo Horizonte, Brazil.

Companhia de Fiação e Tecidos Cedro e Cachoeira Fundamentals Summary

How do Companhia de Fiação e Tecidos Cedro e Cachoeira's earnings and revenue compare to its market cap?
CEDO3 fundamental statistics
Market Cap	R$60.83m
Earnings (TTM)	R$1.53m
Revenue (TTM)	R$954.28m

31.9x

P/E Ratio

0.1x

P/S Ratio

Is CEDO3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEDO3 income statement (TTM)
Revenue	R$954.28m
Cost of Revenue	R$804.76m
Gross Profit	R$149.52m
Other Expenses	R$147.99m
Earnings	R$1.53m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.15
Gross Margin	15.67%
Net Profit Margin	0.16%
Debt/Equity Ratio	154.6%

How did CEDO3 perform over the long term?

See historical performance and comparison

Valuation

Is Companhia de Fiação e Tecidos Cedro e Cachoeira 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

31.92x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CEDO3's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CEDO3's fair value for valuation analysis.

Price To Earnings Ratio

PE vs Industry: CEDO3 is poor value based on its PE Ratio (31.9x) compared to the BR Luxury industry average (10.2x).

PE vs Market: CEDO3 is poor value based on its PE Ratio (31.9x) compared to the BR market (9.6x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CEDO3's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CEDO3 is good value based on its PB Ratio (0.4x) compared to the BR Luxury industry average (1.2x).

Future Growth

How is Companhia de Fiação e Tecidos Cedro e Cachoeira 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

20.4%

Forecasted Consumer Durables 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 Companhia de Fiação e Tecidos Cedro e Cachoeira 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.

Past Performance

How has Companhia de Fiação e Tecidos Cedro e Cachoeira performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEDO3 has a large one-off gain of R$670.0K impacting its December 31 2021 financial results.

Growing Profit Margin: CEDO3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CEDO3 has become profitable over the past 5 years, growing earnings by 11.4% per year.

Accelerating Growth: CEDO3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CEDO3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (133.6%).

Return on Equity

High ROE: CEDO3's Return on Equity (-1.4%) is considered low.

Financial Health

How is Companhia de Fiação e Tecidos Cedro e Cachoeira'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: CEDO3's short term assets (R$422.3M) do not cover its short term liabilities (R$485.2M).

Long Term Liabilities: CEDO3's short term assets (R$422.3M) exceed its long term liabilities (R$198.4M).

Debt to Equity History and Analysis

Debt Level: CEDO3's net debt to equity ratio (139.7%) is considered high.

Reducing Debt: CEDO3's debt to equity ratio has reduced from 304.3% to 154.6% over the past 5 years.

Debt Coverage: CEDO3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CEDO3's interest payments on its debt are not well covered by EBIT (1.5x coverage).

Balance Sheet

Dividend

What is Companhia de Fiação e Tecidos Cedro e Cachoeira current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CEDO3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CEDO3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CEDO3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CEDO3's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: CEDO3 is not paying a notable dividend for the BR market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CEDO3 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

6.8yrs

Average board tenure

CEO

Marco Branquinho

8.25yrs

Tenure

Mr. Marco Antônio Branquinho, Jr. has been Chief Executive Officer of Companhia de Fiação e Tecidos Cedro e Cachoeira since January 1, 2014 and served as its Chief Compliance and Chief Human Resources Mana...

Board Members

Experienced Board: CEDO3's board of directors are considered experienced (6.8 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/04/30 00:00
End of Day Share Price	2022/04/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31