Irani Papel e Embalagem (BOVESPA:RANI3) - Share price, News & Analysis

RANI3 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	4/6

RANI3 Stock Overview

Irani Papel e Embalagem S.A. manufactures and sells paper for production of packaging products in Brazil and internationally.

Rewards

Price-To-Earnings ratio (4.9x) is below the BR market (8.1x)

Earnings have grown 74.9% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Dividend of 8.38% is not well covered by earnings

Irani Papel e Embalagem Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Irani Papel e Embalagem
Historical stock prices
Current Share Price	R$6.70
52 Week High	R$9.44
52 Week Low	R$5.39
Beta	0.51
1 Month Change	-8.09%
3 Month Change	-2.19%
1 Year Change	-26.37%
3 Year Change	150.00%
5 Year Change	163.78%
Change since IPO	570.00%

Recent News & Updates

Mar 21

Irani Papel e Embalagem (BVMF:RANI3) Is Looking To Continue Growing Its Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...

Shareholder Returns

	RANI3	BR Forestry	BR Market
7D	-1.5%	-1.5%	-0.8%
1Y	-26.4%	-23.4%	-29.7%

Return vs Industry: RANI3 exceeded the BR Forestry industry which returned -27.9% over the past year.

Return vs Market: RANI3 exceeded the BR Market which returned -31.2% over the past year.

Price Volatility

Is RANI3's price volatile compared to industry and market?
RANI3 volatility
RANI3 Average Weekly Movement	6.4%
Forestry Industry Average Movement	5.9%
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: RANI3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RANI3's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1941	2,210	Sérgio Luiz Ribas	https://irani.com.br

Irani Papel e Embalagem S.A. manufactures and sells paper for production of packaging products in Brazil and internationally. The company also offers boxes and sheets of white and recycled paper, kraft paper, and corrugated sheets. In addition, it offers forestry services and resins.

Irani Papel e Embalagem Fundamentals Summary

How do Irani Papel e Embalagem's earnings and revenue compare to its market cap?
RANI3 fundamental statistics
Market Cap	R$1.67b
Earnings (TTM)	R$340.76m
Revenue (TTM)	R$1.66b

4.9x

P/E Ratio

1.0x

P/S Ratio

Is RANI3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RANI3 income statement (TTM)
Revenue	R$1.66b
Cost of Revenue	R$1.01b
Gross Profit	R$644.49m
Other Expenses	R$303.73m
Earnings	R$340.76m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.37
Gross Margin	38.88%
Net Profit Margin	20.56%
Debt/Equity Ratio	83.9%

How did RANI3 perform over the long term?

See historical performance and comparison

Dividends

8.4%

Current Dividend Yield

38%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is RANI3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

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 RANI3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RANI3. This is calculated by dividing RANI3's market cap by their current preferred multiple.
What is RANI3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$1.67b

RANI3 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	1.3x
Enterprise Value/EBITDA	4.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does RANI3's PE Ratio compare to its peers?

RANI3 PE Ratio vs Peers

The above table shows the PE ratio for RANI3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	3.9x

Forward PE

Price-To-Earnings vs Peers: RANI3 is expensive based on its Price-To-Earnings Ratio (4.9x) compared to the peer average (3.9x).

Price to Earnings Ratio vs Industry

How does RANI3's PE Ratio compare vs other companies in the Global Forestry Industry?

Price-To-Earnings vs Industry: RANI3 is expensive based on its Price-To-Earnings Ratio (4.9x) compared to the South American Forestry industry average (4x)

Price to Earnings Ratio vs Fair Ratio

What is RANI3'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.

RANI3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RANI3's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of RANI3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RANI3 (R$6.7) is trading above our estimate of fair value (R$4.4)

Significantly Below Fair Value: RANI3 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RANI3's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Irani Papel e Embalagem forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

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

-3.6%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RANI3's forecast earnings growth is above the savings rate (9.1%).

Earnings vs Market: Insufficient data to determine if RANI3's earnings are forecast to grow faster than the BR market

High Growth Earnings: Insufficient data to determine if RANI3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RANI3's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: RANI3's revenue is forecast to decline over the next 3 years (-3.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if RANI3's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Irani Papel e Embalagem performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

74.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RANI3 has a high level of non-cash earnings.

Growing Profit Margin: RANI3's current net profit margins (20.6%) are higher than last year (11.4%).

Past Earnings Growth Analysis

Earnings Trend: RANI3 has become profitable over the past 5 years, growing earnings by 74.9% per year.

Accelerating Growth: RANI3's earnings growth over the past year (159.2%) exceeds its 5-year average (74.9% per year).

Earnings vs Industry: RANI3 earnings growth over the past year (159.2%) underperformed the Forestry industry 198.7%.

Return on Equity

High ROE: RANI3's Return on Equity (32.2%) is considered high.

Discover strong past performing companies

Financial Health

How is Irani Papel e Embalagem's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: RANI3's short term assets (R$856.5M) exceed its short term liabilities (R$292.7M).

Long Term Liabilities: RANI3's short term assets (R$856.5M) do not cover its long term liabilities (R$1.1B).

Debt to Equity History and Analysis

Debt Level: RANI3's net debt to equity ratio (45.2%) is considered high.

Reducing Debt: RANI3's debt to equity ratio has reduced from 197.2% to 83.9% over the past 5 years.

Debt Coverage: RANI3's debt is well covered by operating cash flow (41.5%).

Interest Coverage: RANI3's interest payments on its debt are well covered by EBIT (9.6x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Irani Papel e Embalagem current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

8.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RANI3's dividend (8.38%) is higher than the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: RANI3's dividend (8.38%) is in the top 25% of dividend payers in the BR market (7.74%)

Stability and Growth of Payments

Stable Dividend: RANI3's dividend payments have been volatile in the past 10 years.

Growing Dividend: RANI3's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.5%), RANI3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: RANI3 is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure

CEO

Sérgio Luiz Ribas

no data

Tenure

Mr. Sérgio Luiz Cotrim Ribas serves as Chief Executive Officer at Irani Papel e Embalagem S.A., since 2020 and serves as its Member of Executive Board also served as its President Director until 2020. He s...

Leadership Team

Experienced Management: RANI3's management team is considered experienced (2.4 years average tenure).

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