NOT FOR DISTRIBUTION
Header cover image

Market Cap

R$78.3b

Last Updated

2021/05/08 00:02 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.


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

3.5%

JBSS3

2.1%

BR Food

1.7%

BR Market


1 Year Return

33.0%

JBSS3

31.6%

BR Food

47.3%

BR Market

Return vs Industry: JBSS3 exceeded the BR Food industry which returned 27.6% over the past year.

Return vs Market: JBSS3 underperformed the BR Market which returned 47.6% over the past year.


Shareholder returns

JBSS3IndustryMarket
7 Day3.5%2.1%1.7%
30 Day0%0.1%3.4%
90 Day24.0%15.3%-1.6%
1 Year37.4%33.0%34.9%31.6%53.1%47.3%
3 Year271.2%251.1%99.8%92.1%57.0%40.3%
5 Year216.7%197.0%69.1%61.7%143.4%100.4%

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?

45.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JBSS3 (R$31.18) is trading below our estimate of fair value (R$57.61)

Significantly Below Fair Value: JBSS3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: JBSS3 is poor value based on its PE Ratio (18x) compared to the BR Food industry average (15.3x).

PE vs Market: JBSS3 is poor value based on its PE Ratio (18x) compared to the BR market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: JBSS3 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: JBSS3's PB Ratio (2x) is in line with the BR Food industry average.


Future Growth

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

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JBSS3's forecast earnings growth (18.6% per year) is above the savings rate (9.3%).

Earnings vs Market: JBSS3's earnings (18.6% per year) are forecast to grow faster than the BR market (13.2% per year).

High Growth Earnings: JBSS3's earnings are forecast to grow, but not significantly.

Revenue vs Market: JBSS3's revenue (4% per year) is forecast to grow slower than the BR market (8.4% per year).

High Growth Revenue: JBSS3's revenue (4% 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 low in 3 years time (15.2%).


Past Performance

How has JBS performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JBSS3 has high quality earnings.

Growing Profit Margin: JBSS3's current net profit margins (1.7%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: JBSS3's earnings have grown by 12% 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 (-23.2%) over the past year, making it difficult to compare to the Food industry average (42.5%).


Return on Equity

High ROE: JBSS3's Return on Equity (10.7%) is considered low.


Financial Health

How is JBS's financial position?


Financial Position Analysis

Short Term Liabilities: JBSS3's short term assets (R$60.5B) exceed its short term liabilities (R$40.8B).

Long Term Liabilities: JBSS3's short term assets (R$60.5B) do not cover its long term liabilities (R$79.4B).


Debt to Equity History and Analysis

Debt Level: JBSS3's debt to equity ratio (156.2%) is considered high.

Reducing Debt: JBSS3's debt to equity ratio has reduced from 223% to 156.2% over the past 5 years.

Debt Coverage: JBSS3's debt is well covered by operating cash flow (35%).

Interest Coverage: JBSS3's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Dividend

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

1.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JBSS3's dividend (1.73%) is higher than the bottom 25% of dividend payers in the BR market (1.04%).

High Dividend: JBSS3's dividend (1.73%) is low compared to the top 25% of dividend payers in the BR market (4.85%).


Stability and Growth of Payments

Stable Dividend: JBSS3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JBSS3'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 (31.2%), JBSS3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JBSS3's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Gilberto Tomazoni (61 yo)

2.42yrs

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

Experienced Management: JBSS3's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: JBSS3's board of directors are considered experienced (3.8 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$78.297b
  • Shares outstanding: 2.51b
  • 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


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 Analysis2021/05/08 00:02
End of Day Share Price2021/05/07 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.