Companhia Tecidos Santanensea (BOVESPA:CTSA3) - Share price, News & Analysis

CTSA3 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	3/6

CTSA3 Stock Overview

Companhia Tecidos Santanense Ltda. engages in textile business in Brazil.

Rewards

Trading at 20.5% below our estimate of its fair value

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over the past 3 months

Unstable dividend track record

Large one-off items impacting financial results

+ 1 more risk

Price History & Performance

Summary of all time highs, changes and price drops for Companhia Tecidos Santanensea
Historical stock prices
Current Share Price	R$1.85
52 Week High	R$4.20
52 Week Low	R$1.65
Beta	0.85
1 Month Change	-6.57%
3 Month Change	0.54%
1 Year Change	-29.12%
3 Year Change	-64.35%
5 Year Change	-18.86%
Change since IPO	-35.09%

Shareholder Returns

	CTSA3	BR Luxury	BR Market
7D	-3.1%	-2.6%	-3.1%
1Y	-29.1%	-14.9%	-14.7%

Return vs Industry: CTSA3 underperformed the BR Luxury industry which returned -15.7% over the past year.

Return vs Market: CTSA3 underperformed the BR Market which returned -14.6% over the past year.

Price Volatility

Is CTSA3's price volatile compared to industry and market?
CTSA3 volatility
CTSA3 Average Weekly Movement	9.7%
Luxury Industry Average Movement	6.0%
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: CTSA3 is more volatile than 90% of BR stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CTSA3's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

Founded	Employees	CEO	Website
1891	n/a	Josué Gomes da Silva	https://www.santanense.com.br

Companhia Tecidos Santanense Ltda. engages in textile business in Brazil. The company manufactures and sells clothing products, including professional uniforms, as well as accessories and personal protective equipment for work safety; and sportwear and workwear products. It also exports its products.

Companhia Tecidos Santanensea Fundamentals Summary

How do Companhia Tecidos Santanensea's earnings and revenue compare to its market cap?
CTSA3 fundamental statistics
Market Cap	R$129.11m
Earnings (TTM)	R$27.11m
Revenue (TTM)	R$600.77m

4.8x

P/E Ratio

0.2x

P/S Ratio

Is CTSA3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTSA3 income statement (TTM)
Revenue	R$600.77m
Cost of Revenue	R$505.89m
Gross Profit	R$94.88m
Other Expenses	R$67.78m
Earnings	R$27.11m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.24
Gross Margin	15.79%
Net Profit Margin	4.51%
Debt/Equity Ratio	71.5%

How did CTSA3 perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

n/a

Payout Ratio

Valuation

Is Companhia Tecidos Santanensea undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

20.5%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CTSA3 (R$1.85) is trading below our estimate of fair value (R$2.33)

Significantly Below Fair Value: CTSA3 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CTSA3 is good value based on its PE Ratio (4.8x) compared to the BR Luxury industry average (10.6x).

PE vs Market: CTSA3 is good value based on its PE Ratio (4.8x) compared to the BR market (10x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CTSA3's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: CTSA3 is good value based on its PB Ratio (0.4x) compared to the BR Luxury industry average (1.2x).

Future Growth

How is Companhia Tecidos Santanensea 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

17.6%

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 Tecidos Santanensea 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 Tecidos Santanensea 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

1.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTSA3 has a large one-off gain of R$27.2M impacting its December 31 2021 financial results.

Growing Profit Margin: CTSA3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CTSA3 has become profitable over the past 5 years, growing earnings by 1% per year.

Accelerating Growth: CTSA3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTSA3 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: CTSA3's Return on Equity (8.9%) is considered low.

Financial Health

How is Companhia Tecidos Santanensea's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: CTSA3's short term assets (R$274.4M) exceed its short term liabilities (R$255.1M).

Long Term Liabilities: CTSA3's short term assets (R$274.4M) exceed its long term liabilities (R$111.4M).

Debt to Equity History and Analysis

Debt Level: CTSA3's net debt to equity ratio (59.9%) is considered high.

Reducing Debt: CTSA3's debt to equity ratio has increased from 62.5% to 71.5% over the past 5 years.

Debt Coverage: CTSA3's debt is well covered by operating cash flow (20.8%).

Interest Coverage: CTSA3's interest payments on its debt are not well covered by EBIT (1.6x coverage).

Balance Sheet

Dividend

What is Companhia Tecidos Santanensea current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

4.68%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: CTSA3's dividend (4.68%) is higher than the bottom 25% of dividend payers in the BR market (1.36%).

High Dividend: CTSA3's dividend (4.68%) is low compared to the top 25% of dividend payers in the BR market (6.39%).

Stability and Growth of Payments

Stable Dividend: CTSA3's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTSA3's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (13.5%), CTSA3's dividend payments are thoroughly covered by cash flows.

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?

CEO

Josué Gomes da Silva (57 yo)

no data

Tenure

Mr. Josué Christiano Gomes da Silva serves as the Chairman and Chief Executive Officer of Wembley SA and Companhia de Tecidos Norte de Minas. Mr. Gomes da Silva has been the Chief Executive Officer of Spri...

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	2022/04/25 00:00
End of Day Share Price	2022/04/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31