M. Dias Branco Indústria e Comércio de Alimentos (BOVESPA:MDIA3) - Share price, News & Analysis

MDIA3 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	5/6
Dividends	2/6

MDIA3 Stock Overview

M. Dias Branco S.A. Indústria e Comércio de Alimentos engages in the manufacture, distribution, and sale of cookies and crackers primarily in Brazil.

Rewards

Trading at 33.1% below our estimate of its fair value

Earnings are forecast to grow 18.79% per year

Risk Analysis

No risks detected for MDIA3 from our risk checks.

M. Dias Branco Indústria e Comércio de Alimentos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for M. Dias Branco Indústria e Comércio de Alimentos
Historical stock prices
Current Share Price	R$25.87
52 Week High	R$33.93
52 Week Low	R$18.90
Beta	0.67
1 Month Change	2.29%
3 Month Change	11.80%
1 Year Change	-19.83%
3 Year Change	-33.60%
5 Year Change	-47.53%
Change since IPO	266.95%

Recent News & Updates

Jun 02

Here's What's Concerning About M. Dias Branco Indústria e Comércio de Alimentos' (BVMF:MDIA3) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Ideally, a...

Shareholder Returns

	MDIA3	BR Food	BR Market
7D	7.2%	-0.8%	-0.8%
1Y	-19.8%	-7.5%	-29.7%

Return vs Industry: MDIA3 underperformed the BR Food industry which returned -9.6% over the past year.

Return vs Market: MDIA3 exceeded the BR Market which returned -31.2% over the past year.

Price Volatility

Is MDIA3's price volatile compared to industry and market?
MDIA3 volatility
MDIA3 Average Weekly Movement	5.5%
Food Industry Average Movement	5.6%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: MDIA3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MDIA3's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1936	15,596	Francisco de Sá Dias Branco	https://mdiasbranco.com.br

M. Dias Branco S.A. Indústria e Comércio de Alimentos engages in the manufacture, distribution, and sale of cookies and crackers primarily in Brazil. Its products include pasta, wheat flour and bran, cake mix, margarine and vegetable cream, cake, corn and wheat snack, toast, chocolate covered cookie and cracker, cereal bit, and powdered soft drink, as well as healthy foods, seasonings, sauces, and condiments.

M. Dias Branco Indústria e Comércio de Alimentos Fundamentals Summary

How do M. Dias Branco Indústria e Comércio de Alimentos's earnings and revenue compare to its market cap?
MDIA3 fundamental statistics
Market Cap	R$8.69b
Earnings (TTM)	R$527.72m
Revenue (TTM)	R$8.21b

16.5x

P/E Ratio

1.1x

P/S Ratio

Is MDIA3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDIA3 income statement (TTM)
Revenue	R$8.21b
Cost of Revenue	R$6.42b
Gross Profit	R$1.80b
Other Expenses	R$1.27b
Earnings	R$527.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 12, 2022

Earnings per share (EPS)	1.57
Gross Margin	21.87%
Net Profit Margin	6.43%
Debt/Equity Ratio	30.7%

How did MDIA3 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

16%

Payout Ratio

Does MDIA3 pay a reliable dividends?

See MDIA3 dividend history and benchmarks

When do you need to buy MDIA3 by to receive an upcoming dividend?
M. Dias Branco Indústria e Comércio de Alimentos dividend dates
Ex Dividend Date	Sep 19 2022
Dividend Pay Date	Sep 30 2022
Days until Ex dividend	85 days
Days until Dividend pay date	96 days

Does MDIA3 pay a reliable dividends?

See MDIA3 dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is MDIA3 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 MDIA3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MDIA3. This is calculated by dividing MDIA3's market cap by their current preferred multiple.
What is MDIA3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$8.69b

MDIA3 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/Revenue	1.2x
Enterprise Value/EBITDA	14x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does MDIA3's PE Ratio compare to its peers?

MDIA3 PE Ratio vs Peers

The above table shows the PE ratio for MDIA3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.1x

Forward PE

Price-To-Earnings vs Peers: MDIA3 is expensive based on its Price-To-Earnings Ratio (16.5x) compared to the peer average (9.1x).

Price to Earnings Ratio vs Industry

How does MDIA3's PE Ratio compare vs other companies in the Food Industry?

Price-To-Earnings vs Industry: MDIA3 is expensive based on its Price-To-Earnings Ratio (16.5x) compared to the BR Food industry average (8.4x)

Price to Earnings Ratio vs Fair Ratio

What is MDIA3'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.

MDIA3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.5x
Fair PE Ratio	13.2x

Price-To-Earnings vs Fair Ratio: MDIA3 is expensive based on its Price-To-Earnings Ratio (16.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).

Share Price vs Fair Value

What is the Fair Price of MDIA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDIA3 (R$25.87) is trading below our estimate of fair value (R$38.68)

Significantly Below Fair Value: MDIA3 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: MDIA3 is good value based on its PEG Ratio (0.9x)

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Future Growth

How is M. Dias Branco Indústria e Comércio de Alimentos forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDIA3's forecast earnings growth (18.8% per year) is above the savings rate (9.1%).

Earnings vs Market: MDIA3's earnings (18.8% per year) are forecast to grow faster than the BR market (7.1% per year).

High Growth Earnings: MDIA3's earnings are forecast to grow, but not significantly.

Revenue vs Market: MDIA3's revenue (0.1% per year) is forecast to grow slower than the BR market (5.7% per year).

High Growth Revenue: MDIA3's revenue (0.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MDIA3's Return on Equity is forecast to be low in 3 years time (7.6%).

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Past Performance

How has M. Dias Branco Indústria e Comércio de Alimentos performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-9.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MDIA3 has high quality earnings.

Growing Profit Margin: MDIA3's current net profit margins (6.4%) are lower than last year (9%).

Past Earnings Growth Analysis

Earnings Trend: MDIA3's earnings have declined by 9.1% per year over the past 5 years.

Accelerating Growth: MDIA3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MDIA3 had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Food industry average (54%).

Return on Equity

High ROE: MDIA3's Return on Equity (8.4%) is considered low.

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Financial Health

How is M. Dias Branco Indústria e Comércio de Alimentos's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MDIA3's short term assets (R$4.0B) exceed its short term liabilities (R$1.4B).

Long Term Liabilities: MDIA3's short term assets (R$4.0B) exceed its long term liabilities (R$2.2B).

Debt to Equity History and Analysis

Debt Level: MDIA3's net debt to equity ratio (17%) is considered satisfactory.

Reducing Debt: MDIA3's debt to equity ratio has increased from 12.6% to 30.7% over the past 5 years.

Debt Coverage: MDIA3's debt is well covered by operating cash flow (50.4%).

Interest Coverage: MDIA3 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is M. Dias Branco Indústria e Comércio de Alimentos's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.77%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: MDIA3's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: MDIA3's dividend (0.77%) is low compared to the top 25% of dividend payers in the BR market (7.74%).

Stability and Growth of Payments

Stable Dividend: MDIA3's dividend payments have been volatile in the past 10 years.

Growing Dividend: MDIA3's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (16.1%), MDIA3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (8.7%), MDIA3's dividend payments are thoroughly covered by cash flows.

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Management

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

0.5yrs

Average board tenure

CEO

Francisco de Sá Dias Branco (60 yo)

no data

Tenure

Mr. Francisco Ivens de Sá Dias Branco, Jr., serves as Chief Executive Officer at M. Dias Branco S.A. Indústria e Comércio de Alimentos. He served as President at M. Dias Branco S.A.Indústria e Comércio de...

Board Members

Experienced Board: MDIA3's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31