EZTEC Empreendimentos e Participações (BOVESPA:EZTC3) - Share price, News & Analysis

EZTC3 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

EZTC3 Stock Overview

EZTEC Empreendimentos e Participações S.A.

Rewards

Trading at 42.7% below our estimate of its fair value

Earnings are forecast to grow 9.96% per year

Earnings have grown 16.6% per year over the past 5 years

Risk Analysis

Dividend of 2.6% is not well covered by earnings

EZTEC Empreendimentos e Participações Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EZTEC Empreendimentos e Participações
Historical stock prices
Current Share Price	R$17.69
52 Week High	R$34.84
52 Week Low	R$15.25
Beta	0.86
1 Month Change	8.13%
3 Month Change	-3.96%
1 Year Change	-40.03%
3 Year Change	-14.75%
5 Year Change	18.34%
Change since IPO	129.66%

Recent News & Updates

May 17

Is EZTEC Empreendimentos e Participações (BVMF:EZTC3) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	EZTC3	BR Consumer Durables	BR Market
7D	2.1%	-0.1%	1.7%
1Y	-40.0%	-40.8%	-19.1%

Return vs Industry: EZTC3 exceeded the BR Consumer Durables industry which returned -41.5% over the past year.

Return vs Market: EZTC3 underperformed the BR Market which returned -19.5% over the past year.

Price Volatility

Is EZTC3's price volatile compared to industry and market?
EZTC3 volatility
EZTC3 Average Weekly Movement	6.6%
Consumer Durables Industry Average Movement	7.6%
Market Average Movement	6.4%
10% most volatile stocks in BR Market	9.8%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: EZTC3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: EZTC3's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	2,182	Marcelo Zarzur	https://www.eztec.com.br

EZTEC Empreendimentos e Participações S.A. operates in the property development and construction sector in Brazil. The company undertakes residential and office projects. It has built and under construction area of 4.3 million square meters.

EZTEC Empreendimentos e Participações Fundamentals Summary

How do EZTEC Empreendimentos e Participações's earnings and revenue compare to its market cap?
EZTC3 fundamental statistics
Market Cap	R$3.93b
Earnings (TTM)	R$461.87m
Revenue (TTM)	R$1.05b

8.5x

P/E Ratio

3.7x

P/S Ratio

Is EZTC3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
EZTC3 income statement (TTM)
Revenue	R$1.05b
Cost of Revenue	R$578.91m
Gross Profit	R$471.15m
Other Expenses	R$9.28m
Earnings	R$461.87m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.08
Gross Margin	44.87%
Net Profit Margin	43.98%
Debt/Equity Ratio	0.9%

How did EZTC3 perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is EZTEC Empreendimentos e Participações undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

42.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: EZTC3 (R$17.69) is trading below our estimate of fair value (R$30.87)

Significantly Below Fair Value: EZTC3 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: EZTC3 is poor value based on its PE Ratio (8.5x) compared to the BR Consumer Durables industry average (6.5x).

PE vs Market: EZTC3 is good value based on its PE Ratio (8.5x) compared to the BR market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: EZTC3 is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: EZTC3 is overvalued based on its PB Ratio (0.9x) compared to the BR Consumer Durables industry average (0.8x).

Future Growth

How is EZTEC Empreendimentos e Participações forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

10.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: EZTC3's forecast earnings growth (10% per year) is above the savings rate (9.1%).

Earnings vs Market: EZTC3's earnings (10% per year) are forecast to grow faster than the BR market (6.1% per year).

High Growth Earnings: EZTC3's earnings are forecast to grow, but not significantly.

Revenue vs Market: EZTC3's revenue (13.4% per year) is forecast to grow faster than the BR market (6.1% per year).

High Growth Revenue: EZTC3's revenue (13.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: EZTC3's Return on Equity is forecast to be low in 3 years time (12.9%).

Past Performance

How has EZTEC Empreendimentos e Participações 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

16.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EZTC3 has high quality earnings.

Growing Profit Margin: EZTC3's current net profit margins (44%) are lower than last year (45.4%).

Past Earnings Growth Analysis

Earnings Trend: EZTC3's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: EZTC3's earnings growth over the past year (15.3%) is below its 5-year average (16.6% per year).

Earnings vs Industry: EZTC3 earnings growth over the past year (15.3%) underperformed the Consumer Durables industry 15.3%.

Return on Equity

High ROE: EZTC3's Return on Equity (10.9%) is considered low.

Financial Health

How is EZTEC Empreendimentos e Participações'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: EZTC3's short term assets (R$2.2B) exceed its short term liabilities (R$360.1M).

Long Term Liabilities: EZTC3's short term assets (R$2.2B) exceed its long term liabilities (R$233.3M).

Debt to Equity History and Analysis

Debt Level: EZTC3 has more cash than its total debt.

Reducing Debt: EZTC3's debt to equity ratio has reduced from 12.8% to 0.9% over the past 5 years.

Debt Coverage: EZTC3's debt is well covered by operating cash flow (135.1%).

Interest Coverage: EZTC3 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is EZTEC Empreendimentos e Participações's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

2.60%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EZTC3's dividend (2.6%) is higher than the bottom 25% of dividend payers in the BR market (1.38%).

High Dividend: EZTC3's dividend (2.6%) is low compared to the top 25% of dividend payers in the BR market (6.55%).

Stability and Growth of Payments

Stable Dividend: EZTC3's dividend payments have been volatile in the past 10 years.

Growing Dividend: EZTC3's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (24.2%), EZTC3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (687.1%), EZTC3's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

13.9yrs

Average management tenure

CEO

Marcelo Zarzur (58 yo)

15yrs

Tenure

Mr. Marcelo Ernesto Zarzur serves as the Chief Operating Officer of EZTEC Empreendimentos e Participações S/A since May 03, 2007 and serves as its Chief Executive Officer since May, 5 2021 and had been its...

Leadership Team

Experienced Management: EZTC3's management team is seasoned and experienced (13.9 years average tenure).

Board Members

Experienced Board: EZTC3's board of directors are considered experienced (6.6 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	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31