BOVESPA:SEER3

Stock Analysis Report

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Executive Summary

Ser Educacional S.A. primarily engages in the development and management of on-campus and distance-learning undergraduate, graduate, professional training, and other areas of education in Brazil. More Details


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.

Share Price & News

How has Ser Educacional's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEER3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SEER3's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.5%

SEER3

-4.4%

BR Consumer Services

-3.5%

BR Market


1 Year Return

-52.3%

SEER3

-44.0%

BR Consumer Services

0.7%

BR Market

Return vs Industry: SEER3 underperformed the BR Consumer Services industry which returned -44% over the past year.

Return vs Market: SEER3 underperformed the BR Market which returned 0.7% over the past year.


Shareholder returns

SEER3IndustryMarket
7 Day-3.5%-4.4%-3.5%
30 Day-2.0%-1.8%0.5%
90 Day8.5%13.6%15.5%
1 Year-51.2%-52.3%-43.5%-44.0%3.4%0.7%
3 Year-46.3%-53.9%-43.4%-46.9%49.2%33.1%
5 Year139.5%97.6%134.2%111.9%195.5%145.1%

Long-Term Price Volatility Vs. Market

How volatile is Ser Educacional's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

47.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEER3 (R$15) is trading above our estimate of fair value (R$13.8)

Significantly Below Fair Value: SEER3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SEER3 is poor value based on its PE Ratio (47.2x) compared to the XX Consumer Services industry average (21.5x).

PE vs Market: SEER3 is poor value based on its PE Ratio (47.2x) compared to the BR market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: SEER3 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: SEER3 is good value based on its PB Ratio (1.4x) compared to the XS Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is Ser Educacional forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEER3's forecast earnings growth (17.7% per year) is above the savings rate (9.9%).

Earnings vs Market: SEER3's earnings (17.7% per year) are forecast to grow slower than the BR market (26.7% per year).

High Growth Earnings: SEER3's earnings are forecast to grow, but not significantly.

Revenue vs Market: SEER3's revenue (7.4% per year) is forecast to grow slower than the BR market (10.2% per year).

High Growth Revenue: SEER3's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEER3's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Ser Educacional performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEER3 has a large one-off loss of R$22.0M impacting its September 30 2020 financial results.

Growing Profit Margin: SEER3's current net profit margins (3.2%) are lower than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: SEER3's earnings have declined by 11.2% per year over the past 5 years.

Accelerating Growth: SEER3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SEER3 had negative earnings growth (-76.1%) over the past year, making it difficult to compare to the Consumer Services industry average (-3.3%).


Return on Equity

High ROE: SEER3's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Ser Educacional's financial position?


Financial Position Analysis

Short Term Liabilities: SEER3's short term assets (R$1.1B) exceed its short term liabilities (R$345.9M).

Long Term Liabilities: SEER3's short term assets (R$1.1B) do not cover its long term liabilities (R$1.3B).


Debt to Equity History and Analysis

Debt Level: SEER3's debt to equity ratio (45.7%) is considered high.

Reducing Debt: SEER3's debt to equity ratio has reduced from 50.3% to 45.7% over the past 5 years.

Debt Coverage: SEER3's debt is well covered by operating cash flow (29.8%).

Interest Coverage: SEER3's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Ser Educacional current dividend yield, its reliability and sustainability?

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEER3's dividend (1.06%) is higher than the bottom 25% of dividend payers in the BR market (0.96%).

High Dividend: SEER3's dividend (1.06%) is low compared to the top 25% of dividend payers in the BR market (5.15%).


Stability and Growth of Payments

Stable Dividend: SEER3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SEER3's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), SEER3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEER3's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Jânyo Janguiê Diniz

17.83yrs

Tenure

Mr. Jânyo Janguiê Bezerra Diniz has been the Chief Executive Officer at Grupo Ser Educacional S.A. since March 2003 and serves as its Member of Board of Executive Officers and served as its Director of Inv...


Leadership Team

NamePositionTenureCompensationOwnership
Jânyo Janguiê Diniz
CEO, Member of Board of Executive Officers & Director17.83yrsno datano data
Simone Bérgamo
Dean, Chief Academic Officer & Member of Board of Executive Officers8yrsno datano data
João Albérico de Aguiar
CFO & Member of Board of Executive Officers5.17yrsno datano data
Joaldo Janguiê Diniz
VP of Services & Member of Board of Executive Officersno datano datano data
Adriano Azevedo
COO & Member of Board of Executive Officersno datano datano data
Rodrigo de Macedo Alves
Investor Relations Officer & Member of Board of Executive Officersno datano datano data
Enzo Moreira
Director of Head & Member of Board of Executive Officersno datano datano data

8.0yrs

Average Tenure

Experienced Management: SEER3's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jânyo Janguiê Diniz
CEO, Member of Board of Executive Officers & Director17.83yrsno datano data
Sidney Levy
Independent Director1.75yrsno datano data
Flávio César Luz
Independent Director7.42yrsno datano data
Reginaldo Alexandre
Member of Fiscal Councilno datano datano data
José Janguiê Diniz
Chairman3.75yrsno datano data
Nazareno Habib Bichara
Member of Fiscal Councilno datano datano data
Francisco Barreto
Director7.08yrsno datano data
Herbet Steingberg
Vice-Chairman3.75yrsno datano data
Fernando Santos
Member of Fiscal Councilno datano datano data

5.4yrs

Average Tenure

61yo

Average Age

Experienced Board: SEER3's board of directors are considered experienced (5.4 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.


Top Shareholders

Company Information

Ser Educacional S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ser Educacional S.A.
  • Ticker: SEER3
  • Exchange: BOVESPA
  • Founded: 1993
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: R$1.931b
  • Shares outstanding: 128.72m
  • Website: https://www.sereducacional.com

Number of Employees


Location

  • Ser Educacional S.A.
  • Rua Treze de Maio, nº 254
  • Santo Amaro
  • Recife
  • Pernambuco
  • 50100-160
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEER3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLOct 2013

Biography

Ser Educacional S.A. primarily engages in the development and management of on-campus and distance-learning undergraduate, graduate, professional training, and other areas of education in Brazil. It manage...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/25 21:58
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.