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BEEF

Minerva BOVESPA:BEEF3 Stock Report

Last Price

R$13.49

Market Cap

R$7.9b

7D

5.9%

1Y

38.9%

Updated

24 Jun, 2022

Data

Company Financials +
BEEF3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends3/6

BEEF3 Stock Overview

Minerva S.A. engages in the production and sale of fresh beef, livestock, and by-products in South America.

Minerva Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Minerva
Historical stock prices
Current Share PriceR$13.49
52 Week HighR$14.48
52 Week LowR$7.66
Beta0.88
1 Month Change4.66%
3 Month Change14.91%
1 Year Change38.93%
3 Year Change69.69%
5 Year Change9.59%
Change since IPO-29.74%

Recent News & Updates

Jun 18
Under The Bonnet, Minerva's (BVMF:BEEF3) Returns Look Impressive

Under The Bonnet, Minerva's (BVMF:BEEF3) Returns Look Impressive

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Apr 05
Should You Investigate Minerva S.A. (BVMF:BEEF3) At R$13.17?

Should You Investigate Minerva S.A. (BVMF:BEEF3) At R$13.17?

Minerva S.A. ( BVMF:BEEF3 ), might not be a large cap stock, but it received a lot of attention from a substantial...

Shareholder Returns

BEEF3BR FoodBR Market
7D5.9%-0.8%-0.8%
1Y38.9%-7.5%-29.7%

Return vs Industry: BEEF3 exceeded the BR Food industry which returned -9.6% over the past year.

Return vs Market: BEEF3 exceeded the BR Market which returned -31.2% over the past year.

Price Volatility

Is BEEF3's price volatile compared to industry and market?
BEEF3 volatility
BEEF3 Average Weekly Movement5.3%
Food Industry Average Movement5.6%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: BEEF3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BEEF3's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
195721,000Fernando de Queirozhttps://www.minervafoods.com

Minerva S.A. engages in the production and sale of fresh beef, livestock, and by-products in South America. It is also involved in slaughtering and deboning, and processing of cattle, meat, beef, and sheep meat; selling chilled, frozen, and processed meat, as well as beef, pork, and poultry products; exporting and selling live cattle; and breeding and selling live cattle, lambs, pigs, and other live animals. In addition, the company trades in and sells electric power; trades in food products; sells third parties’ brands primarily Swift products; and prepares products for animals, which include meat/bone meal, blood, and tallow.

Minerva Fundamentals Summary

How do Minerva's earnings and revenue compare to its market cap?
BEEF3 fundamental statistics
Market CapR$7.88b
Earnings (TTM)R$453.93m
Revenue (TTM)R$28.39b

17.4x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BEEF3 income statement (TTM)
RevenueR$28.39b
Cost of RevenueR$23.46b
Gross ProfitR$4.93b
Other ExpensesR$4.47b
EarningsR$453.93m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.78
Gross Margin17.35%
Net Profit Margin1.60%
Debt/Equity Ratio2,244.2%

How did BEEF3 perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

91%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BEEF3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BEEF3?

Other financial metrics that can be useful for relative valuation.

BEEF3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA5.7x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does BEEF3's PE Ratio compare to its peers?

BEEF3 PE Ratio vs Peers
The above table shows the PE ratio for BEEF3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x

Price-To-Earnings vs Peers: BEEF3 is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does BEEF3's PE Ratio compare vs other companies in the Food Industry?

Price-To-Earnings vs Industry: BEEF3 is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the BR Food industry average (8.4x)


Price to Earnings Ratio vs Fair Ratio

What is BEEF3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BEEF3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.4x
Fair PE Ratio15.1x

Price-To-Earnings vs Fair Ratio: BEEF3 is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.1x).


Share Price vs Fair Value

What is the Fair Price of BEEF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BEEF3 (R$13.49) is trading below our estimate of fair value (R$21.78)

Significantly Below Fair Value: BEEF3 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: BEEF3 is good value based on its PEG Ratio (0.6x)


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Future Growth

How is Minerva forecast to perform in the next 1 to 3 years based on estimates from 11 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


26.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEEF3's forecast earnings growth (26.8% per year) is above the savings rate (9.1%).

Earnings vs Market: BEEF3's earnings (26.8% per year) are forecast to grow faster than the BR market (7.1% per year).

High Growth Earnings: BEEF3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BEEF3's revenue (4.4% per year) is forecast to grow slower than the BR market (5.7% per year).

High Growth Revenue: BEEF3's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEEF3's Return on Equity is forecast to be very high in 3 years time (49.3%).


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Past Performance

How has Minerva 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


47.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BEEF3 has high quality earnings.

Growing Profit Margin: BEEF3's current net profit margins (1.6%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: BEEF3 has become profitable over the past 5 years, growing earnings by 47.7% per year.

Accelerating Growth: BEEF3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BEEF3 had negative earnings growth (-33.8%) over the past year, making it difficult to compare to the Food industry average (54%).


Return on Equity

High ROE: Whilst BEEF3's Return on Equity (86.42%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Minerva's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BEEF3's short term assets (R$11.3B) exceed its short term liabilities (R$6.4B).

Long Term Liabilities: BEEF3's short term assets (R$11.3B) exceed its long term liabilities (R$10.7B).


Debt to Equity History and Analysis

Debt Level: BEEF3's net debt to equity ratio (1237.1%) is considered high.

Reducing Debt: BEEF3's debt to equity ratio has increased from 1474.1% to 2244.2% over the past 5 years.

Debt Coverage: BEEF3's debt is well covered by operating cash flow (20.2%).

Interest Coverage: BEEF3's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


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Dividend

What is Minerva current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BEEF3's dividend (5.11%) is higher than the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: BEEF3's dividend (5.11%) is low compared to the top 25% of dividend payers in the BR market (7.74%).


Stability and Growth of Payments

Stable Dividend: BEEF3's dividend payments have been volatile in the past 10 years.

Growing Dividend: BEEF3's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (90.8%), BEEF3's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23%), BEEF3's dividend payments are well covered by cash flows.


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Management

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

15.1yrs

Average board tenure


CEO

Fernando de Queiroz

15.08yrs

Tenure

Mr. Fernando Galletti De Queiroz has been the Chief Executive Officer of Minerva S.A. since May 2, 2007. Mr. De Queiroz served as the Chief Commercial Officer of Minerva S.A. since joining in 1992 and also...


Board Members

Experienced Board: BEEF3's board of directors are seasoned and experienced ( 15.1 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 been diluted in the past year, with total shares outstanding growing by 10.9%.


Top Shareholders

Company Information

Minerva S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Minerva S.A.
  • Ticker: BEEF3
  • Exchange: BOVESPA
  • Founded: 1957
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: R$7.881b
  • Shares outstanding: 584.23m
  • Website: https://www.minervafoods.com

Number of Employees


Location

  • Minerva S.A.
  • Avenida Antônio Manço Bernardes s/nº
  • Barretos
  • São Paulo
  • 14781-545
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.