Grupo de Moda SOMA (BOVESPA:SOMA3) - Share price, News & Analysis

SOMA3 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	3/6
Financial Health	5/6
Dividends	1/6

SOMA3 Stock Overview

Grupo de Moda SOMA S.A. manufactures and sells clothing products in Brazil.

Rewards

Earnings are forecast to grow 25.58% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Grupo de Moda SOMA Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grupo de Moda SOMA
Historical stock prices
Current Share Price	R$11.06
52 Week High	R$20.30
52 Week Low	R$9.97
Beta	0
1 Month Change	-19.03%
3 Month Change	-16.21%
1 Year Change	-17.22%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	0.27%

Shareholder Returns

	SOMA3	BR Luxury	BR Market
7D	-3.2%	-1.9%	1.7%
1Y	-17.2%	-29.6%	-19.1%

Return vs Industry: SOMA3 exceeded the BR Luxury industry which returned -30.8% over the past year.

Return vs Market: SOMA3 exceeded the BR Market which returned -19.5% over the past year.

Price Volatility

Is SOMA3's price volatile compared to industry and market?
SOMA3 volatility
SOMA3 Average Weekly Movement	7.5%
Luxury Industry Average Movement	6.4%
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: SOMA3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SOMA3's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	n/a	Roberto Jatahy Gonçalves	https://www.somagrupo.com.br

Grupo de Moda SOMA S.A. manufactures and sells clothing products in Brazil. The company operates 786 stores, as well as an e-commerce site. It offers clothing under brand names Animale, Farm, Fabula, A.Brand, Foxton, Cris Barros, and Off Premium brands.

Grupo de Moda SOMA Fundamentals Summary

How do Grupo de Moda SOMA's earnings and revenue compare to its market cap?
SOMA3 fundamental statistics
Market Cap	R$8.68b
Earnings (TTM)	R$299.79m
Revenue (TTM)	R$2.79b

29.0x

P/E Ratio

3.1x

P/S Ratio

Is SOMA3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SOMA3 income statement (TTM)
Revenue	R$2.79b
Cost of Revenue	R$1.17b
Gross Profit	R$1.62b
Other Expenses	R$1.32b
Earnings	R$299.79m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.38
Gross Margin	57.97%
Net Profit Margin	10.74%
Debt/Equity Ratio	11.0%

How did SOMA3 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

15%

Payout Ratio

Valuation

Is Grupo de Moda SOMA undervalued compared to its fair value and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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

28.95x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: SOMA3 (R$11.06) is trading above our estimate of fair value (R$10.97)

Significantly Below Fair Value: SOMA3 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: SOMA3 is poor value based on its PE Ratio (29x) compared to the BR Luxury industry average (8.5x).

PE vs Market: SOMA3 is poor value based on its PE Ratio (29x) compared to the BR market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: SOMA3 is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: SOMA3's PB Ratio (1.2x) is in line with the BR Luxury industry average.

Future Growth

How is Grupo de Moda SOMA forecast to perform in the next 1 to 3 years based on estimates from 4 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

25.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOMA3's forecast earnings growth (25.6% per year) is above the savings rate (9.1%).

Earnings vs Market: SOMA3's earnings (25.6% per year) are forecast to grow faster than the BR market (6.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOMA3's revenue (18.6% per year) is forecast to grow faster than the BR market (6.1% per year).

High Growth Revenue: SOMA3's revenue (18.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SOMA3's Return on Equity is forecast to be low in 3 years time (8.7%).

Past Performance

How has Grupo de Moda SOMA performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

22.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SOMA3 has high quality earnings.

Growing Profit Margin: SOMA3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: SOMA3's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: SOMA3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SOMA3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (112.5%).

Return on Equity

High ROE: SOMA3's Return on Equity (4.2%) is considered low.

Financial Health

How is Grupo de Moda SOMA's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: SOMA3's short term assets (R$2.8B) exceed its short term liabilities (R$1.3B).

Long Term Liabilities: SOMA3's short term assets (R$2.8B) exceed its long term liabilities (R$1.6B).

Debt to Equity History and Analysis

Debt Level: SOMA3's net debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: SOMA3's debt to equity ratio has reduced from 41.5% to 11% over the past 5 years.

Debt Coverage: SOMA3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SOMA3's interest payments on its debt are well covered by EBIT (7.3x coverage).

Balance Sheet

Dividend

What is Grupo de Moda SOMA 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

0.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SOMA3's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.38%).

High Dividend: SOMA3's dividend (0.82%) is low compared to the top 25% of dividend payers in the BR market (6.55%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether SOMA3's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if SOMA3's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (14.6%), SOMA3's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SOMA3 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?

1.3yrs

Average management tenure

CEO

Roberto Jatahy Gonçalves (52 yo)

no data

Tenure

Mr. Roberto Luiz Jatahy Gonçalves is Chief Executive Officer, Director and Member of Executive Board at Grupo de Moda SOMA S.A. He acts as President of Grupo SOMA. He Graduated in Economics from Universida...

Leadership Team

Experienced Management: SOMA3's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

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 substantially diluted in the past year, with total shares outstanding growing by 62.9%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31