BOVESPA:JBSS3

Stock Analysis Report

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Executive Summary

JBS S.A., a food company, processes and trades in animal protein worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: JBSS3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JBSS3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

4.4%

JBSS3

3.4%

BR Food

2.4%

BR Market


1 Year Return

-18.2%

JBSS3

-13.1%

BR Food

2.7%

BR Market

Return vs Industry: JBSS3 underperformed the BR Food industry which returned -12.9% over the past year.

Return vs Market: JBSS3 underperformed the BR Market which returned 1.4% over the past year.


Shareholder returns

JBSS3IndustryMarket
7 Day4.4%3.4%2.4%
30 Day7.1%5.5%6.7%
90 Day-2.3%-2.4%7.6%
1 Year-16.3%-18.2%-11.7%-13.1%6.1%2.7%
3 Year197.8%189.5%40.8%37.6%60.2%42.6%
5 Year100.0%85.1%22.6%16.2%153.4%109.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBSS3 (R$22.58) is trading below our estimate of fair value (R$26.33)

Significantly Below Fair Value: JBSS3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JBSS3 is poor value based on its PE Ratio (19.9x) compared to the BR Food industry average (10.5x).

PE vs Market: JBSS3 is poor value based on its PE Ratio (19.9x) compared to the BR market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: JBSS3 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: JBSS3 is good value based on its PB Ratio (1.5x) compared to the BR Food industry average (1.8x).


Next Steps

Future Growth

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

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBSS3's forecast earnings growth (42.3% per year) is above the savings rate (10.7%).

Earnings vs Market: JBSS3's earnings (42.3% per year) are forecast to grow faster than the BR market (27.1% per year).

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

Revenue vs Market: JBSS3's revenue (3.9% per year) is forecast to grow slower than the BR market (10.3% per year).

High Growth Revenue: JBSS3's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JBSS3's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has JBS performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBSS3 has high quality earnings.

Growing Profit Margin: JBSS3's current net profit margins (1.2%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: JBSS3's earnings have declined by 6.6% per year over the past 5 years.

Accelerating Growth: JBSS3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JBSS3 had negative earnings growth (-28.5%) over the past year, making it difficult to compare to the Food industry average (49.1%).


Return on Equity

High ROE: JBSS3's Return on Equity (7.3%) is considered low.


Next Steps

Financial Health

How is JBS's financial position?


Financial Position Analysis

Short Term Liabilities: JBSS3's short term assets (R$64.0B) exceed its short term liabilities (R$37.9B).

Long Term Liabilities: JBSS3's short term assets (R$64.0B) do not cover its long term liabilities (R$85.6B).


Debt to Equity History and Analysis

Debt Level: JBSS3's debt to equity ratio (176.8%) is considered high.

Reducing Debt: JBSS3's debt to equity ratio has reduced from 199.9% to 176.8% over the past 5 years.

Debt Coverage: JBSS3's debt is well covered by operating cash flow (29.2%).

Interest Coverage: JBSS3's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.69%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate JBSS3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate JBSS3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if JBSS3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if JBSS3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: JBSS3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JBSS3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Gilberto Tomazoni (61 yo)

1.92yrs

Tenure

Mr. Gilberto Tomazoni has been the Global President and Chief Executive Officer at JBS Foods S.A. at JBS S.A. since 2013. Mr. Tomazoni has been the Chief Executive Officer at JBS Foods International B.V., ...


Leadership Team

NamePositionTenureCompensationOwnership
Jeremiah O'Callaghan
Member of Executive Board & Chairman of the Boardno datano datano data
Gilberto Tomazoni
CEO & Member of Executive Board1.92yrsno datano data
Russell Colaco
Chief Financial Officer of Jbs Foodno datano datano data
Guilherme Cavalcanti
CFO, Investor Relations Officer & Member of Executive Board1.83yrsno datano data
Eliseo Fernandez
Director of Administrative & Control and Member of the Executive Boardno datano datano data
Wesley Mendonça Filho
CEO of South Americano datano datano data
Christiane Assis
Investor Relations Directorno datano datano data
Marcelo Proença
Global Compliance Directorno datano datano data
Rodrigo Gagliardi
Sales Manager16.25yrsno datano data
Verônica Coelho
Human Resources Directorno datano datano data
Andrea Marighetto
Head of Contractsno datano datano data
Aquiles Tadeu
Head of Civil Litigationno datano datano data

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: JBSS3's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeremiah O'Callaghan
Member of Executive Board & Chairman of the Boardno datano datano data
Wesley Mendonça Filho
CEO of South Americano datano datano data
Cledorvino Belini
Independent Directorno datano datano data
José Sobrinho
Vice Chairman3.5yrsno datano data
Adrian Lima Hora
President of Fiscal Councilno datano datano data
Gilberto Meirelles Baptista
Director3.42yrsno datano data
Demétrius Macei
Member of Fiscal Councilno datano datano data
Umberto Conti
Substitute Independent Director9.58yrsno datano data
Aguinaldo Gomes Filho
Director3.17yrsno datano data
José Monforte
Independent Directorno datano datano data
Alba Pettengill
Independent Directorno datano datano data
Márcio Pereira
Independent Directorno datano datano data

3.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: JBSS3's board of directors are considered experienced (3.5 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

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


Key Information

  • Name: JBS S.A.
  • Ticker: JBSS3
  • Exchange: BOVESPA
  • Founded: 1953
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R$59.970b
  • Shares outstanding: 2.66b
  • Website: https://www.jbs.com.br

Number of Employees


Location

  • JBS S.A.
  • Avenida Marginal Direita do Tietê, 500
  • Bloco I
  • São Paulo
  • São Paulo
  • 05118-100
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JBSS3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon StockBRBRLMar 2007
JBSA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDNov 2008
YJ3ABST (Boerse-Stuttgart)SPONSORED ADRDEEURNov 2008
JBSAY NBMV (Bolsa Mexicana de Valores)SPONSORED ADRMXMXNNov 2008

Biography

JBS S.A., a food company, processes and trades in animal protein worldwide. It offers beef, pork, chicken, and lamb products and by-products; food products; pet food and concentrates; and bresaola. The com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 18:03
End of Day Share Price2020/11/24 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.