BOVESPA:BBSE3

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BB Seguridade Participações

Executive Summary

BB Seguridade Participações S.A., through its subsidiaries, invests in the insurance, pension plans, premium bonds, reinsurance, and dental insurance businesses in Brazil. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has BB Seguridade Participações's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BBSE3 is less volatile than 75% of BR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BBSE3's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

BBSE3

-3.6%

BR Insurance

-2.6%

BR Market


1 Year Return

-20.8%

BBSE3

-44.5%

BR Insurance

-2.2%

BR Market

Return vs Industry: BBSE3 exceeded the BR Insurance industry which returned -43.1% over the past year.

Return vs Market: BBSE3 underperformed the BR Market which returned -1.4% over the past year.


Shareholder returns

BBSE3IndustryMarket
7 Day-3.2%-3.6%-2.6%
30 Day-2.4%-2.7%0.6%
90 Day11.1%4.9%14.3%
1 Year-14.0%-20.8%-40.1%-44.5%0.4%-2.2%
3 Year16.0%-12.6%17.5%-6.9%47.3%31.4%
5 Year84.1%22.9%105.2%43.8%195.4%144.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is BB Seguridade Participações undervalued compared to its fair value and its price relative to the market?

13.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BBSE3 (R$28.42) is trading above our estimate of fair value (R$23.7)

Significantly Below Fair Value: BBSE3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BBSE3 is poor value based on its PE Ratio (13.8x) compared to the BR Insurance industry average (12x).

PE vs Market: BBSE3 is good value based on its PE Ratio (13.8x) compared to the BR market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: BBSE3 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: BBSE3 is overvalued based on its PB Ratio (8.9x) compared to the BR Insurance industry average (2x).


Next Steps

Future Growth

How is BB Seguridade Participações forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBSE3's forecast earnings growth (7.9% per year) is below the savings rate (9.9%).

Earnings vs Market: BBSE3's earnings (7.9% per year) are forecast to grow slower than the BR market (27.4% per year).

High Growth Earnings: BBSE3's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBSE3's revenue (10.2% per year) is forecast to grow slower than the BR market (10.4% per year).

High Growth Revenue: BBSE3's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBSE3's Return on Equity is forecast to be very high in 3 years time (73.2%).


Next Steps

Past Performance

How has BB Seguridade Participações performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBSE3 has a high level of non-cash earnings.

Growing Profit Margin: BBSE3's current net profit margins (77%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: BBSE3's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: BBSE3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BBSE3 had negative earnings growth (-34.1%) over the past year, making it difficult to compare to the Insurance industry average (9%).


Return on Equity

High ROE: BBSE3's Return on Equity (64.5%) is considered outstanding.


Next Steps

Financial Health

How is BB Seguridade Participações's financial position?


Financial Position Analysis

Short Term Liabilities: BBSE3's short term assets (R$3.3B) exceed its short term liabilities (R$1.7B).

Long Term Liabilities: BBSE3's short term assets (R$3.3B) exceed its long term liabilities (R$1.6B).


Debt to Equity History and Analysis

Debt Level: BBSE3 is debt free.

Reducing Debt: BBSE3 has not had any debt for past 5 years.

Debt Coverage: BBSE3 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BBSE3 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is BB Seguridade Participações's current dividend yield, its reliability and sustainability?

14.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBSE3's dividend (14.56%) is higher than the bottom 25% of dividend payers in the BR market (0.96%).

High Dividend: BBSE3's dividend (14.56%) is in the top 25% of dividend payers in the BR market (5.13%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BBSE3 has been paying a dividend for less than 10 years.

Growing Dividend: BBSE3's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (135.1%), BBSE3's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBSE3's dividends in 3 years are forecast to be covered by earnings (77.4% payout ratio).


Next Steps

Management

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

0.6yrs

Average board tenure


CEO

Marcio Ferreira (48 yo)

0.25

Tenure

Mr. Marcio Hamilton Ferreira has been Chief Executive Officer at BB Seguridade Participações S.A. since October 26, 2020 and its Member of Executive Board since October 26, 2020. Mr. Ferreira has been an I...


Board Members

NamePositionTenureCompensationOwnership
Marcio Ferreira
CEO, Member of Executive Board & Director0.25yrno datano data
Arnaldo Vollet
Independent Directorno datano datano data
Francisco Olinto Schmitt
Independent Member of Fiscal Council0.50yrno datano data
Isabel da Silva Ramos
Independent Director7.17yrsno datano data
Lucinéia Possar
President of Fiscal Councilno datano datano data
Carlos dos Santos
President of the Boardno datano datano data
Luis Felipe Vital Pereira
Member of Fiscal Councilno datano datano data
Mauro Neto
Vice Chairman of the Board0.75yrno datano data
Bruno Dalcolmo
Director1.75yrsno datano data
Claudio Xavier Filho
Director0.42yrno datano data

0.6yrs

Average Tenure

47yo

Average Age

Experienced Board: BBSE3's board of directors are not considered experienced ( 0.6 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

BB Seguridade Participações S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BB Seguridade Participações S.A.
  • Ticker: BBSE3
  • Exchange: BOVESPA
  • Founded: 2012
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: R$57.483b
  • Shares outstanding: 2.00b
  • Website: https://www.bbseguridaderi.com.br

Location

  • BB Seguridade Participações S.A.
  • Banco do Brasil Building, Asa Norte
  • Lot B, 3rd Floor
  • Brasília
  • Distrito Federal
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBSE3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLApr 2013
BBSE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2014

Biography

BB Seguridade Participações S.A., through its subsidiaries, invests in the insurance, pension plans, premium bonds, reinsurance, and dental insurance businesses in Brazil. It operates through two segments,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 22:00
End of Day Share Price2021/01/22 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.