BOVESPA:GPCP3

Stock Analysis Report

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Executive Summary

GPC Participações S.A., through its subsidiaries, engages in the production and sale of thermosetting resins to the reconstituted wood panels industry in Brazil. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GPCP3 is more volatile than 90% of BR stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: GPCP3's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of BR stocks.


Market Performance


7 Day Return

-1.8%

GPCP3

-4.4%

BR Chemicals

-2.6%

BR Market


1 Year Return

207.1%

GPCP3

-0.6%

BR Chemicals

0.8%

BR Market

Return vs Industry: GPCP3 exceeded the BR Chemicals industry which returned -0.6% over the past year.

Return vs Market: GPCP3 exceeded the BR Market which returned 0.8% over the past year.


Shareholder returns

GPCP3IndustryMarket
7 Day-1.8%-4.4%-2.6%
30 Day26.2%4.6%3.2%
90 Day42.6%22.0%20.0%
1 Year209.0%207.1%5.1%-0.6%3.5%0.8%
3 Year740.3%721.7%3.4%-9.0%59.4%42.4%
5 Year1,866.2%1,822.5%50.7%25.4%223.1%167.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GPCP3 (R$25.8) is trading below our estimate of fair value (R$151.36)

Significantly Below Fair Value: GPCP3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GPCP3 is poor value based on its PE Ratio (13.2x) compared to the XS Chemicals industry average (11.3x).

PE vs Market: GPCP3 is good value based on its PE Ratio (13.2x) compared to the BR market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GPCP3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GPCP3 is overvalued based on its PB Ratio (2.9x) compared to the XS Chemicals industry average (1.3x).


Next Steps

Future Growth

How is GPC Participações forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.5%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as GPC Participações has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has GPC Participações performed over the past 5 years?

35.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPCP3 has a large one-off gain of R$36.5M impacting its September 30 2020 financial results.

Growing Profit Margin: GPCP3's current net profit margins (10.7%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: GPCP3 has become profitable over the past 5 years, growing earnings by 35.1% per year.

Accelerating Growth: GPCP3's earnings growth over the past year (233.5%) exceeds its 5-year average (35.1% per year).

Earnings vs Industry: GPCP3 earnings growth over the past year (233.5%) exceeded the Chemicals industry 11.7%.


Return on Equity

High ROE: GPCP3's Return on Equity (37.5%) is considered high.


Next Steps

Financial Health

How is GPC Participações's financial position?


Financial Position Analysis

Short Term Liabilities: GPCP3's short term assets (R$354.1M) exceed its short term liabilities (R$217.4M).

Long Term Liabilities: GPCP3's short term assets (R$354.1M) exceed its long term liabilities (R$310.4M).


Debt to Equity History and Analysis

Debt Level: GPCP3's debt to equity ratio (41.4%) is considered high.

Reducing Debt: GPCP3 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: GPCP3's debt is well covered by operating cash flow (69%).

Interest Coverage: GPCP3's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPCP3's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (0.93%).

High Dividend: GPCP3's dividend (0.24%) is low compared to the top 25% of dividend payers in the BR market (4.9%).


Stability and Growth of Payments

Stable Dividend: GPCP3 is not paying a notable dividend for the BR market, therefore no need to check if payments are stable.

Growing Dividend: GPCP3 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: GPCP3 is not paying a notable dividend for the BR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GPCP3'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?

1.3yrs

Average board tenure


CEO

Rafael Raphael

no data

Tenure

Rafael Alcides Raphael serves as Chief Executive Officer at GPC Participações S.A.


Board Members

NamePositionTenureCompensationOwnership
Emilio Filho
Corporate VPno datano data0.86%
R$ 7.0m
Luiz Fernando Lima
Independent Deputy Chairmanno datano datano data
Paulo Cesar Peixoto de Palhare
Chairman of the Boardno datano datano data
Amin Murad
Director1.5yrsno datano data
Adolpho Laydner
Chairman of Fiscal Councilno datano datano data
José Joaquim Neto
Member of Fiscal Councilno datano datano data
Demétrio José Costa Simões
Director1.25yrsno datano data
Cid Gabriel de Sampaio
Member of Fiscal Council0.50yrno datano data

1.3yrs

Average Tenure

Experienced Board: GPCP3's board of directors are not considered experienced ( 1.3 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

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


Key Information

  • Name: GPC Participações S.A.
  • Ticker: GPCP3
  • Exchange: BOVESPA
  • Founded: 1929
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: R$804.355m
  • Shares outstanding: 31.18m
  • Website: https://www.gpc.com.br

Location

  • GPC Participações S.A.
  • Rua do Passeio, 70
  • 5th Floor
  • Rio De Janeiro
  • Rio de Janeiro
  • 20021-290
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPCP3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLMar 2000
GPCP4BOVESPA (Bolsa de Valores de Sao Paulo)PRF NPVBRBRLMar 2017

Biography

GPC Participações S.A., through its subsidiaries, engages in the production and sale of thermosetting resins to the reconstituted wood panels industry in Brazil. It operates through Chemical and Steel Pipe...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 21:58
End of Day Share Price2021/01/15 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.