Companhia Tecidos Santanensea (BOVESPA:CTSA4) - Share price, News & Analysis

Q: What is the Fair Price of CTSA4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CTSA4 (R$0.77) is trading above our estimate of [[fair value]] (R$0.5)

CTSA4 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	3/6

CTSA4 Stock Overview

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

Rewards

Price-To-Earnings ratio (4.1x) is below the BR market (7.9x)

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 7.75% is not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (R$86M)

Companhia Tecidos Santanensea Competitors

Cambuci

BOVESPA:CAMB3

R$183.9m

Technos

BOVESPA:TECN3

R$170.4m

Guararapes Confecções

BOVESPA:GUAR3

R$3.4b

Vivara Participações

BOVESPA:VIVA3

R$5.2b

Price History & Performance

Summary of all time highs, changes and price drops for Companhia Tecidos Santanensea
Historical stock prices
Current Share Price	R$0.77
52 Week High	R$3.32
52 Week Low	R$0.74
Beta	0.88
1 Month Change	-14.44%
3 Month Change	-36.36%
1 Year Change	-74.07%
3 Year Change	-59.99%
5 Year Change	-8.37%
Change since IPO	336.14%

Shareholder Returns

	CTSA4	BR Luxury	BR Market
7D	-1.3%	-6.1%	-0.1%
1Y	-74.1%	-46.2%	-29.3%

Return vs Industry: CTSA4 underperformed the BR Luxury industry which returned -46.5% over the past year.

Return vs Market: CTSA4 underperformed the BR Market which returned -29.1% over the past year.

Price Volatility

Is CTSA4's price volatile compared to industry and market?
CTSA4 volatility
CTSA4 Average Weekly Movement	4.9%
Luxury Industry Average Movement	6.1%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: CTSA4 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CTSA4's weekly volatility (5%) has been stable over the past year.

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?
CTSA4 fundamental statistics
Market Cap	R$85.70m
Earnings (TTM)	R$20.90m
Revenue (TTM)	R$601.62m

4.1x

P/E Ratio

0.1x

P/S Ratio

Is CTSA4 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CTSA4 income statement (TTM)
Revenue	R$601.62m
Cost of Revenue	R$512.55m
Gross Profit	R$89.07m
Other Expenses	R$68.17m
Earnings	R$20.90m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.19
Gross Margin	14.80%
Net Profit Margin	3.47%
Debt/Equity Ratio	70.8%

How did CTSA4 perform over the long term?

See historical performance and comparison

Dividends

7.8%

Current Dividend Yield

32%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CTSA4 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 CTSA4?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CTSA4. This is calculated by dividing CTSA4's market cap by their current preferred multiple.
What is CTSA4's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$85.70m

CTSA4 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	12.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CTSA4's PE Ratio compare to its peers?

CTSA4 PE Ratio vs Peers

The above table shows the PE ratio for CTSA4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.5x
CAMB3 Cambuci	5.2x	n/a	R$183.9m
TECN3 Technos	6.3x	n/a	R$170.4m
GUAR3 Guararapes Confecções	7.1x	21.3%	R$3.4b
VIVA3 Vivara Participações	15.2x	18.0%	R$5.2b
CTSA4 Companhia Tecidos Santanensea	4.1x	n/a	R$85.7m

Forward PE

Price-To-Earnings vs Peers: CTSA4 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (8.5x).

Price to Earnings Ratio vs Industry

How does CTSA4's PE Ratio compare vs other companies in the Global Luxury Industry?

Price-To-Earnings vs Industry: CTSA4 is good value based on its Price-To-Earnings Ratio (4.1x) compared to the BR Luxury industry average (7.1x)

Price to Earnings Ratio vs Fair Ratio

What is CTSA4'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.

CTSA4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.1x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CTSA4's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CTSA4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTSA4 (R$0.77) is trading above our estimate of fair value (R$0.5)

Significantly Below Fair Value: CTSA4 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CTSA4's PEG Ratio to determine if it is good value.

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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

18.9%

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.

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Take a look at our analysis of CTSA4’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

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

-5.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CTSA4 has a large one-off gain of R$27.2M impacting its March 31 2022 financial results.

Growing Profit Margin: CTSA4 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CTSA4 has become profitable over the past 5 years, growing earnings by -5.4% per year.

Accelerating Growth: CTSA4 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CTSA4 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (140.2%).

Return on Equity

High ROE: CTSA4's Return on Equity (6.9%) is considered low.

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Financial Health

How is Companhia Tecidos Santanensea'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: CTSA4's short term assets (R$242.0M) exceed its short term liabilities (R$226.1M).

Long Term Liabilities: CTSA4's short term assets (R$242.0M) exceed its long term liabilities (R$118.5M).

Debt to Equity History and Analysis

Debt Level: CTSA4's net debt to equity ratio (66.6%) is considered high.

Reducing Debt: CTSA4's debt to equity ratio has increased from 62.4% to 70.8% over the past 5 years.

Debt Coverage: CTSA4's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CTSA4's interest payments on its debt are not well covered by EBIT (0.8x coverage).

Balance Sheet

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Dividend

What is Companhia Tecidos Santanensea 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

7.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CTSA4's dividend (7.75%) is higher than the bottom 25% of dividend payers in the BR market (1.76%).

High Dividend: CTSA4's dividend (7.75%) is low compared to the top 25% of dividend payers in the BR market (7.89%).

Stability and Growth of Payments

Stable Dividend: CTSA4's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTSA4's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.8%), CTSA4's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: CTSA4 is paying a dividend but the company has no free cash flows.

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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	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31