Technos (BOVESPA:TECN3) - Share price, News & Analysis

TECN3 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	4/6
Dividends	2/6

TECN3 Stock Overview

Technos S.A., together with its subsidiaries, develops, assembles, and distributes watches.

Rewards

Price-To-Earnings ratio (6.7x) is below the BR market (9x)

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Dividend of 3.33% is not well covered by earnings

Does not have a meaningful market cap (R$181M)

Technos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Technos
Historical stock prices
Current Share Price	R$2.43
52 Week High	R$4.20
52 Week Low	R$1.88
Beta	1.81
1 Month Change	-5.81%
3 Month Change	11.98%
1 Year Change	13.02%
3 Year Change	5.20%
5 Year Change	-42.55%
Change since IPO	-86.13%

Recent News & Updates

Mar 31

Is Technos (BVMF:TECN3) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	TECN3	BR Luxury	BR Market
7D	-5.4%	-3.0%	0.04%
1Y	13.0%	-30.1%	-19.7%

Return vs Industry: TECN3 exceeded the BR Luxury industry which returned -29.6% over the past year.

Return vs Market: TECN3 exceeded the BR Market which returned -19.1% over the past year.

Price Volatility

Is TECN3's price volatile compared to industry and market?
TECN3 volatility
TECN3 Average Weekly Movement	9.8%
Luxury Industry Average Movement	6.3%
Market Average Movement	6.3%
10% most volatile stocks in BR Market	9.9%
10% least volatile stocks in BR Market	3.0%

Stable Share Price: TECN3 is more volatile than 90% of BR stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TECN3'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
1956	n/a	Joaquim Pedro Ribeiro	https://www.grupotechnos.com.br

Technos S.A., together with its subsidiaries, develops, assembles, and distributes watches. The company offers watches under the Technos, Mormaii, Seiko, Euro, Mariner, Timex, Allora, Touch, Dumont, Condor, Fossil, Diesel, Marc Jacobs, Armani Exchange, DKNY, Empório Armani, Adidas, Michael Kors, Tory Burch, Burberry, and Skagen brands. As of December 31, 2019, it operated 15 outlets and 55 exclusive points of sale franchise stores.

Technos Fundamentals Summary

How do Technos's earnings and revenue compare to its market cap?
TECN3 fundamental statistics
Market Cap	R$180.73m
Earnings (TTM)	R$27.03m
Revenue (TTM)	R$333.25m

6.7x

P/E Ratio

0.5x

P/S Ratio

Is TECN3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TECN3 income statement (TTM)
Revenue	R$333.25m
Cost of Revenue	R$157.37m
Gross Profit	R$175.89m
Other Expenses	R$148.85m
Earnings	R$27.03m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 08, 2022

Earnings per share (EPS)	0.36
Gross Margin	52.78%
Net Profit Margin	8.11%
Debt/Equity Ratio	40.5%

How did TECN3 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Technos undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

6.69x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: TECN3 (R$2.43) is trading above our estimate of fair value (R$0.98)

Significantly Below Fair Value: TECN3 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: TECN3 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the BR Luxury industry average (8.8x).

PE vs Market: TECN3 is good value based on its Price-To-Earnings Ratio (6.7x) compared to the BR market (9x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TECN3's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: TECN3 is good value based on its Price-To-Book Ratio (0.6x) compared to the BR Luxury industry average (1.2x).

Future Growth

How is Technos 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 Technos 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 Technos 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

-8.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TECN3 has high quality earnings.

Growing Profit Margin: TECN3 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: TECN3 has become profitable over the past 5 years, growing earnings by -8.2% per year.

Accelerating Growth: TECN3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TECN3 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: TECN3's Return on Equity (8.4%) is considered low.

Financial Health

How is Technos's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: TECN3's short term assets (R$403.0M) exceed its short term liabilities (R$105.8M).

Long Term Liabilities: TECN3's short term assets (R$403.0M) exceed its long term liabilities (R$197.1M).

Debt to Equity History and Analysis

Debt Level: TECN3's net debt to equity ratio (15.7%) is considered satisfactory.

Reducing Debt: TECN3's debt to equity ratio has increased from 21.5% to 40.5% over the past 5 years.

Debt Coverage: TECN3's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: TECN3's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

Dividend

What is Technos's 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

3.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TECN3's dividend (3.33%) is higher than the bottom 25% of dividend payers in the BR market (1.39%).

High Dividend: TECN3's dividend (3.33%) is low compared to the top 25% of dividend payers in the BR market (6.54%).

Stability and Growth of Payments

Stable Dividend: TECN3's dividend payments have been volatile in the past 10 years.

Growing Dividend: TECN3's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22.3%), TECN3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (90.3%), TECN3'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?

3.3yrs

Average board tenure

CEO

Joaquim Pedro Ribeiro (45 yo)

3.33yrs

Tenure

Mr. Joaquim Pedro Andrés Ribeiro serves as Member of Executive Board of Technos S.A. Mr. Ribeiro also served as the Chief Executive Officer of Grupotechnos at Technos S.A. Mr. Ribeiro serves as a Director...

Board Members

Experienced Board: TECN3's board of directors are considered experienced (3.3 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	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31