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NTCO

Natura &Co HoldingBOVESPA:NTCO3 Stock Report

Last Price

R$23.24

Market Cap

R$31.9b

7D

14.8%

1Y

-53.6%

Updated

26 Jan, 2022

Data

Company Financials +
NTCO3 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends0/6

NTCO3 Stock Overview

Natura &Co Holding S.A. develops, manufactures, distributes, and sells cosmetics, fragrances, and personal care products.

Natura &Co Holding Competitors

Procter & Gamble

NYSE:PG

US$382.4b

LVMH Moët Hennessy - Louis Vuitton Société Européenne

ENXTPA:MC

€336.0b

L'Oréal

ENXTPA:OR

€206.3b

Unilever

LSE:ULVR

UK£100.8b

Price History & Performance

Summary of all time highs, changes and price drops for Natura &Co Holding
Historical stock prices
Current Share PriceR$23.24
52 Week HighR$61.29
52 Week LowR$20.23
Beta1.88
1 Month Change-9.50%
3 Month Change-41.27%
1 Year Change-53.61%
3 Year Changen/a
5 Year Changen/a
Change since IPO-36.78%

Recent News & Updates

Jan 20
What Is Natura &Co Holding S.A.'s (BVMF:NTCO3) Share Price Doing?

What Is Natura &Co Holding S.A.'s (BVMF:NTCO3) Share Price Doing?

While Natura &Co Holding S.A. ( BVMF:NTCO3 ) might not be the most widely known stock at the moment, it received a lot...

Dec 15
The Returns On Capital At Natura &Co Holding (BVMF:NTCO3) Don't Inspire Confidence

The Returns On Capital At Natura &Co Holding (BVMF:NTCO3) Don't Inspire Confidence

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Nov 24
We Think Natura &Co Holding (BVMF:NTCO3) Is Taking Some Risk With Its Debt

We Think Natura &Co Holding (BVMF:NTCO3) Is Taking Some Risk With Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

NTCO3BR Personal ProductsBR Market
7D14.8%0.1%3.7%
1Y-53.6%-1.6%-14.2%

Return vs Industry: NTCO3 underperformed the BR Personal Products industry which returned -1.9% over the past year.

Return vs Market: NTCO3 underperformed the BR Market which returned -17.4% over the past year.

Price Volatility

Is NTCO3's price volatile compared to industry and market?
NTCO3 volatility
NTCO3 Average Weekly Movement8.2%
Personal Products Industry Average Movement5.8%
Market Average Movement6.5%
10% most volatile stocks in BR Market10.6%
10% least volatile stocks in BR Market3.5%

Stable Share Price: NTCO3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: NTCO3's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1969n/aRoberto de Oliveira Marqueshttps://ri.naturaeco.com/en

Natura &Co Holding S.A. develops, manufactures, distributes, and sells cosmetics, fragrances, and personal care products. The company offers products for women and men, including skin care products for face and body, hair care and treatment products, makeup, soaps, deodorants, shower, cosmetics, fragrances, bath, sunscreen, oral hygiene, and baby and child toiletries, as well as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, travel kits and packages, entertainment and leisure products, children’s products, and nutritional products. It markets its products under the Natura, Aesop, Avon, and The Body Shop brands through signature and department stores, e-commerce, direct selling, franchises, third-party online resellers, amenity accounts, and physical multibrand retailers primarily in Asia, North America, South America, Europe, the Middle East, Africa, and Oceania.

Natura &Co Holding Fundamentals Summary

How do Natura &Co Holding's earnings and revenue compare to its market cap?
NTCO3 fundamental statistics
Market CapR$31.94b
Earnings (TTM)R$630.55m
Revenue (TTM)R$40.52b

50.8x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NTCO3 income statement (TTM)
RevenueR$40.52b
Cost of RevenueR$14.23b
Gross ProfitR$26.28b
ExpensesR$25.65b
EarningsR$630.55m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin64.87%
Net Profit Margin1.56%
Debt/Equity Ratio45.6%

How did NTCO3 perform over the long term?

See historical performance and comparison

Valuation

Is Natura &Co Holding undervalued compared to its fair value and its price relative to the market?

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTCO3 (R$23.24) is trading below our estimate of fair value (R$35.65)

Significantly Below Fair Value: NTCO3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NTCO3 is poor value based on its PE Ratio (50.8x) compared to the Global Personal Products industry average (23.3x).

PE vs Market: NTCO3 is poor value based on its PE Ratio (50.8x) compared to the BR market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: NTCO3 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: NTCO3 is good value based on its PB Ratio (1.2x) compared to the XX Personal Products industry average (2.1x).


Future Growth

How is Natura &Co Holding forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTCO3's forecast earnings growth (56.5% per year) is above the savings rate (9.1%).

Earnings vs Market: NTCO3's earnings (56.5% per year) are forecast to grow faster than the BR market (7.3% per year).

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

Revenue vs Market: NTCO3's revenue (8.4% per year) is forecast to grow faster than the BR market (6.5% per year).

High Growth Revenue: NTCO3's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTCO3's Return on Equity is forecast to be low in 3 years time (10%).


Past Performance

How has Natura &Co Holding performed over the past 5 years?

-25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTCO3 has a large one-off loss of R$828.4M impacting its September 30 2021 financial results.

Growing Profit Margin: NTCO3 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NTCO3's earnings have declined by 25.1% per year over the past 5 years.

Accelerating Growth: NTCO3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NTCO3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Personal Products industry (20.4%).


Return on Equity

High ROE: NTCO3's Return on Equity (2.2%) is considered low.


Financial Health

How is Natura &Co Holding's financial position?


Financial Position Analysis

Short Term Liabilities: NTCO3's short term assets (R$17.1B) exceed its short term liabilities (R$12.7B).

Long Term Liabilities: NTCO3's short term assets (R$17.1B) do not cover its long term liabilities (R$18.0B).


Debt to Equity History and Analysis

Debt Level: NTCO3's net debt to equity ratio (26.3%) is considered satisfactory.

Reducing Debt: NTCO3's debt to equity ratio has reduced from 425.7% to 45.6% over the past 5 years.

Debt Coverage: NTCO3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: NTCO3's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Dividend

What is Natura &Co Holding current dividend yield, its reliability and sustainability?

1.18%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NTCO3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NTCO3'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 NTCO3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NTCO3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NTCO3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NTCO3'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?

3.0yrs

Average board tenure


CEO

Roberto de Oliveira Marques (56 yo)

no data

Tenure

Mr. Roberto de Oliveira Marques serves as Director of the Body Shop International Limited since February 13, 2019. He served as an Executive Vice President and President of North America at Mondelez Intern...


Board Members

Experienced Board: NTCO3's board of directors are not considered experienced ( 3 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.


Top Shareholders

Company Information

Natura &Co Holding S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Natura &Co Holding S.A.
  • Ticker: NTCO3
  • Exchange: BOVESPA
  • Founded: 1969
  • Industry: Personal Products
  • Sector: Household
  • Implied Market Cap: R$31.944b
  • Shares outstanding: 1.38b
  • Website: https://ri.naturaeco.com/en

Number of Employees


Location

  • Natura &Co Holding S.A.
  • Avenida Alexandre Colares
  • No. 1188, Sala A17-Bloco A
  • São Paulo
  • São Paulo
  • 05106-000
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 02:53
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
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.