Buy Or Sell Opportunity • Jun 01
Now 22% undervalued Over the last 90 days, the stock has risen 10% to R$4.29. The fair value is estimated to be R$5.47, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Meanwhile, the company has become profitable. Reported Earnings • May 17
First quarter 2026 earnings released: EPS: R$0.099 (vs R$0.13 loss in 1Q 2025) First quarter 2026 results: EPS: R$0.099 (up from R$0.13 loss in 1Q 2025). Revenue: R$304.6m (up 15% from 1Q 2025). Net income: R$11.4m (up R$26.7m from 1Q 2025). Profit margin: 3.7% (up from net loss in 1Q 2025). The move to profitability was driven by higher revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 41 percentage points per year, which is a significant difference in performance. New Risk • May 03
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (R$407.0m market cap, or US$82.1m). Board Change • May 02
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Henry Costa was the last director to join the board, commencing their role in 2026. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Declared Dividend • Apr 20
Dividend increased to R$0.051 Dividend of R$0.051 is 3,556% higher than last year. Ex-date: 29th April 2026 Payment date: 29th May 2026 Dividend yield will be 1.3%, which is lower than the industry average of 5.4%. Payout Ratios Payout ratio: 0.782%. Cash payout ratio: 0.1609%. Announcement • Apr 19
Veste S.A. Estilo announces Annual dividend, payable on May 29, 2026 Veste S.A. Estilo announced Annual dividend of BRL 0.0507 per share payable on May 29, 2026, ex-date on April 29, 2026 and record date on April 28, 2026. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R$3.83, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 9x in the Luxury industry in Brazil. Total loss to shareholders of 75% over the past three years. Buy Or Sell Opportunity • Apr 13
Now 24% overvalued Over the last 90 days, the stock has fallen 4.0% to R$3.80. The fair value is estimated to be R$3.07, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.4% over the last 3 years. Earnings per share has declined by 88%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 584% in the next 2 years. Announcement • Mar 28
Veste S.A. Estilo, Annual General Meeting, Apr 28, 2026 Veste S.A. Estilo, Annual General Meeting, Apr 28, 2026. Location: rua othao, 405, vila leopoldina - city, and state of sao paulo., Brazil Reported Earnings • Nov 17
Third quarter 2025 earnings released: EPS: R$0.069 (vs R$0.10 loss in 3Q 2024) Third quarter 2025 results: EPS: R$0.069 (up from R$0.10 loss in 3Q 2024). Revenue: R$309.4m (up 17% from 3Q 2024). Net income: R$7.93m (up R$19.7m from 3Q 2024). Profit margin: 2.6% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 160% per year but the company’s share price has fallen by 27% per year, which means it is significantly lagging earnings. New Risk • Oct 11
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$547.7m (US$99.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (0.05% net profit margin). Market cap is less than US$100m (R$547.7m market cap, or US$99.5m). Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: R$0.14 (vs R$0.05 in 2Q 2024) Second quarter 2025 results: EPS: R$0.14 (up from R$0.05 in 2Q 2024). Revenue: R$319.9m (up 10% from 2Q 2024). Net income: R$15.6m (up 174% from 2Q 2024). Profit margin: 4.9% (up from 2.0% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 152% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Board Change • Jun 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. 1 highly experienced director. Chairman Marcelo de Lima is the most experienced director on the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • May 15
First quarter 2025 earnings released: R$0.13 loss per share (vs R$0.046 loss in 1Q 2024) First quarter 2025 results: R$0.13 loss per share (further deteriorated from R$0.046 loss in 1Q 2024). Revenue: R$265.9m (up 7.1% from 1Q 2024). Net loss: R$15.3m (loss widened 190% from 1Q 2024). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 140% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 28
Dividend reduced to R$0.0014 Dividend of R$0.0014 is 97% lower than last year. Ex-date: 2nd May 2025 Payment date: 31st May 2025 Dividend yield will be 0.02%, which is lower than the industry average of 5.4%. Announcement • Apr 27
Veste S.A. Estilo announces Annual dividend, payable on May 31, 2025 Veste S.A. Estilo announced Annual dividend of BRL 0.0014 per share payable on May 31, 2025, ex-date on May 02, 2025 and record date on April 30, 2025. Announcement • Apr 01
Veste S.A. Estilo, Annual General Meeting, Apr 30, 2025 Veste S.A. Estilo, Annual General Meeting, Apr 30, 2025. Location: rua othao, 405, vila leopoldina, city and state of sao paulo, sao paulo Brazil Reported Earnings • Feb 26
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: R$0.006 (down from R$0.20 in FY 2023). Revenue: R$1.11b (flat on FY 2023). Net income: R$665.0k (down 97% from FY 2023). Profit margin: 0.1% (down from 2.1% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has fallen by 22% per year, which means it is significantly lagging earnings. New Risk • Dec 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Nov 14
Third quarter 2024 earnings released: R$0.10 loss per share (vs R$0.012 profit in 3Q 2023) Third quarter 2024 results: R$0.10 loss per share (down from R$0.012 profit in 3Q 2023). Revenue: R$264.6m (down 3.6% from 3Q 2023). Net loss: R$11.8m (down R$13.1m from profit in 3Q 2023). Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 108% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 14
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: R$290.2m (flat on 2Q 2023). Net income: R$5.70m (up 11% from 2Q 2023). Profit margin: 2.0% (up from 1.8% in 2Q 2023). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Reported Earnings • May 15
First quarter 2024 earnings released: R$0.046 loss per share (vs R$0.06 profit in 1Q 2023) First quarter 2024 results: R$0.046 loss per share (down from R$0.06 profit in 1Q 2023). Revenue: R$248.1m (down 6.4% from 1Q 2023). Net loss: R$5.28m (down 180% from profit in 1Q 2023). Revenue is forecast to grow 16% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 22
Upcoming dividend of R$0.047 per share Eligible shareholders must have bought the stock before 29 April 2024. Payment date: 31 May 2024. Payout ratio is a comfortable 8.9% but the company is paying out more than the cash it is generating. Trailing yield: 0.8%. Lower than top quartile of Brazilian dividend payers (8.7%). Lower than average of industry peers (3.9%). Announcement • Mar 28
Veste S.A. Estilo, Annual General Meeting, Apr 26, 2024 Veste S.A. Estilo, Annual General Meeting, Apr 26, 2024, at 13:00 Coordinated Universal Time. New Risk • Mar 11
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 101% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.1% net profit margin). Reported Earnings • Mar 08
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: R$0.20 (down from R$0.52 in FY 2022). Revenue: R$1.11b (up 4.1% from FY 2022). Net income: R$22.8m (down 59% from FY 2022). Profit margin: 2.1% (down from 5.2% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 6.6%. Earnings per share (EPS) also missed analyst estimates by 52%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in Brazil. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Announcement • Feb 16
Veste S.A. Estilo to Report Q4, 2023 Results on Mar 04, 2024 Veste S.A. Estilo announced that they will report Q4, 2023 results After-Market on Mar 04, 2024 Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R$14.50, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 13x in the Luxury industry in Brazil. Total loss to shareholders of 63% over the past three years. New Risk • Nov 24
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 9.1% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.1% average weekly change). High level of non-cash earnings (21% accrual ratio). Minor Risk Shareholders have been diluted in the past year (6.9% increase in shares outstanding). New Risk • Nov 17
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (9.1% average weekly change). Shareholders have been diluted in the past year (6.9% increase in shares outstanding). New Risk • Oct 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Brazilian stocks, typically moving 8.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (8.9% average weekly change). Shareholders have been substantially diluted in the past year (over 12x increase in shares outstanding). Minor Risk Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to R$15.94, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 16x in the Luxury industry in Brazil. Total loss to shareholders of 64% over the past three years. Valuation Update With 7 Day Price Move • Apr 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to R$15.84, the stock trades at a trailing P/E ratio of 32.5x. Average trailing P/E is 15x in the Luxury industry in Brazil. Total loss to shareholders of 64% over the past three years. Reported Earnings • Mar 31
Full year 2022 earnings released: EPS: R$6.42 (vs R$93.46 loss in FY 2021) Full year 2022 results: EPS: R$6.42 (up from R$93.46 loss in FY 2021). Revenue: R$1.07b (up 22% from FY 2021). Net income: R$55.3m (up R$859.6m from FY 2021). Profit margin: 5.2% (up from net loss in FY 2021). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings. Board Change • Nov 16
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. 2 highly experienced directors. Chairman Marcelo de Lima is the most experienced director on the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 12
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: R$287.3m (up 28% from 3Q 2021). Net loss: R$66.7m (loss widened 36% from 3Q 2021). Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 56% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 12
Second quarter 2022 earnings released: R$0.64 loss per share (vs R$0.81 loss in 2Q 2021) Second quarter 2022 results: R$0.64 loss per share (up from R$0.81 loss in 2Q 2021). Revenue: R$268.4m (up 37% from 2Q 2021). Net loss: R$43.8m (loss narrowed 22% from 2Q 2021). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 58% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 15
First quarter 2022 earnings: Revenues miss analyst expectations First quarter 2022 results: Revenue: R$232.8m (up 39% from 1Q 2021). Net loss: R$59.1m (loss widened 55% from 1Q 2021). Revenue missed analyst estimates by 5.5%. Board Change • Apr 27
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. 2 highly experienced directors. Chairman Marcelo de Lima is the most experienced director on the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Apr 02
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: R$11.68 loss per share (up from R$29.12 loss in FY 2020). Revenue: R$875.9m (up 46% from FY 2020). Net loss: R$804.3m (loss narrowed 60% from FY 2020). Revenue missed analyst estimates by 5.5%. Earnings per share (EPS) exceeded analyst estimates by 18%. Over the last 3 years on average, earnings per share has fallen by 55% per year whereas the company’s share price has fallen by 59% per year. Reported Earnings • Nov 15
Third quarter 2021 earnings released: R$0.71 loss per share (vs R$1.63 loss in 3Q 2020) The company reported a solid third quarter result with reduced losses, improved revenues and improved control over expenses. Third quarter 2021 results: Revenue: R$225.1m (up 59% from 3Q 2020). Net loss: R$49.1m (loss narrowed 56% from 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 8 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 18
Second quarter 2021 earnings released: R$0.81 loss per share (vs R$2.13 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: R$195.6m (up 333% from 2Q 2020). Net loss: R$55.9m (loss narrowed 62% from 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 37 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Feb 19
New 90-day low: R$4.37 The company is down 6.0% from its price of R$4.66 on 20 November 2020. The Brazilian market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is flat over the same period. Price Target Changed • Feb 05
Price target lowered to R$22.10 Down from R$36.17, the current price target is an average from 2 analysts. The new target price is 368% above the current share price of R$4.72. As of last close, the stock is down 72% over the past year. Analyst Estimate Surprise Post Earnings • Nov 17
Revenue beats expectations Revenue exceeded analyst estimates by 7.8%. Over the next year, revenue is forecast to grow 81%, compared to a 15% growth forecast for the Luxury industry in Brazil. Reported Earnings • Nov 17
Third quarter 2020 earnings released: R$1.63 loss per share The company reported a poor third quarter result with increased losses and weaker revenues and control over expenses. Third quarter 2020 results: Revenue: R$141.8m (down 33% from 3Q 2019). Net loss: R$112.1m (loss widened 114% from 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 122% per year but the company’s share price has only fallen by 51% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Nov 05
Analysts update estimates The 2020 consensus revenue estimate increased from R$618.1m to R$955.7m. Earning per share (EPS) estimate was further reduced from -R$9.47 to -R$10.07 for the same period. The Luxury industry in Brazil is expected to see a 7.0% decline in net income next year. The consensus price target of R$22.10 was unchanged from the last update. Share price is down by 2.8% to R$4.21 over the past week. Is New 90 Day High Low • Oct 29
New 90-day low: R$4.83 The company is down 17% from its price of R$5.82 on 30 July 2020. The Brazilian market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 18% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is R$31.31 per share. Is New 90 Day High Low • Sep 29
New 90-day low: R$4.86 The company is down 30% from its price of R$6.92 on 01 July 2020. The Brazilian market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Luxury industry, which is up 13% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is R$31.31 per share.