BOVESPA:NTCO3

Stock Analysis Report

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Executive Summary

Natura &Co Holding S.A. develops, produces, distributes, and sells cosmetics, fragrances, and toiletries products. More Details


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Natura &Co Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTCO3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NTCO3's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

NTCO3

-0.4%

BR Personal Products

-0.7%

BR Market


1 Year Return

-0.1%

NTCO3

4.9%

BR Personal Products

0.8%

BR Market

Return vs Industry: NTCO3 underperformed the BR Personal Products industry which returned 4.9% over the past year.

Return vs Market: NTCO3 matched the BR Market which returned 0.8% over the past year.


Shareholder returns

NTCO3IndustryMarket
7 Day-2.0%-0.4%-0.7%
30 Day-1.5%0.7%4.9%
90 Day-1.0%3.0%16.8%
1 Year-0.1%-0.1%6.6%4.9%3.5%0.8%
3 Yearn/a24.2%17.6%54.4%37.8%
5 Yearn/a65.9%51.5%219.0%164.3%

Long-Term Price Volatility Vs. Market

How volatile is Natura &Co Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

2.51x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NTCO3 (R$49.32) is trading above our estimate of fair value (R$31.59)

Significantly Below Fair Value: NTCO3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NTCO3 is unprofitable, so we can't compare its PE Ratio to the XX Personal Products industry average.

PE vs Market: NTCO3 is unprofitable, so we can't compare its PE Ratio to the BR market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NTCO3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NTCO3 is overvalued based on its PB Ratio (2.5x) compared to the XX Personal Products industry average (2.4x).


Next Steps

Future Growth

How is Natura &Co Holding forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

81.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTCO3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (9.9%).

Earnings vs Market: NTCO3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NTCO3's is expected to become profitable in the next 3 years.

Revenue vs Market: NTCO3's revenue (8.8% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: NTCO3's revenue (8.8% 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 (9.7%).


Next Steps

Past Performance

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

-34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTCO3 is currently unprofitable.

Growing Profit Margin: NTCO3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NTCO3 is unprofitable, and losses have increased over the past 5 years at a rate of 34.7% per year.

Accelerating Growth: Unable to compare NTCO3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NTCO3 is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (5.7%).


Return on Equity

High ROE: NTCO3 has a negative Return on Equity (-3.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Natura &Co Holding's financial position?


Financial Position Analysis

Short Term Liabilities: NTCO3's short term assets (R$19.1B) exceed its short term liabilities (R$16.7B).

Long Term Liabilities: NTCO3's short term assets (R$19.1B) do not cover its long term liabilities (R$23.0B).


Debt to Equity History and Analysis

Debt Level: NTCO3's debt to equity ratio (83.3%) is considered high.

Reducing Debt: NTCO3's debt to equity ratio has reduced from 647% to 83.3% over the past 5 years.

Debt Coverage: NTCO3's debt is not well covered by operating cash flow (4.3%).

Interest Coverage: NTCO3 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTCO3's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (0.95%).

High Dividend: NTCO3's dividend (0.26%) is low compared to the top 25% of dividend payers in the BR market (5%).


Stability and Growth of Payments

Stable Dividend: NTCO3 is not paying a notable dividend for the BR market, therefore no need to check if payments are stable.

Growing Dividend: NTCO3 is not paying a notable dividend for the BR market, therefore no need to check if payments are 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?

1.8yrs

Average board tenure


CEO

Roberto de Oliveira Marques (55 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

NamePositionTenureCompensationOwnership
Antonio da Cunha Seabra
Founder & Co-Chairman of the Boardno datano data14.49%
R$ 10.0b
Roberto de Oliveira Marques
Executive Chairman of the Board & Group CEOno datano datano data
W. Cornwell
Independent Director0.75yrno datano data
Andrew McMaster
Independent Director0.75yrno datano data
Pedro Luiz Passos
Co-Chairman of the Boardno datano data1.91%
R$ 1.3b
Guilherme Leal
Co-Chairman of the Boardno datano data7.23%
R$ 5.0b
Ian Bickley
Independent Director1.75yrsno datano data
Gilberto Mifano
Independent Director3.75yrsno datano data
Nancy Killefer
Independent Director0.75yrno datano data
Carla Schmitzberger
Independent Directorno datano datano data
Fabio Barbosa
Independent Director3.75yrsno datano data
Jessica Herrin
Independent Director2.17yrsno datano data

1.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: NTCO3's board of directors are not considered experienced ( 1.8 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 been diluted in the past year, with total shares outstanding growing by 15.8%.


Top Shareholders

Company Information

Natura &Co Holding S.A.'s company bio, 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
  • Market Cap: R$68.763b
  • Shares outstanding: 1.37b
  • Website: https://natu.infoinvest.com.br

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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTCO3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLDec 2019
NTCONYSE (New York Stock Exchange)ADSUSUSDJan 2020
NTCO NBMV (Bolsa Mexicana de Valores)ADSMXMXNJan 2020

Biography

Natura &Co Holding S.A. develops, produces, distributes, and sells cosmetics, fragrances, and toiletries products. The company offers products for women and men, including skin care products for face and b...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 22:01
End of Day Share Price2021/01/21 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.