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Smiles Fidelidade

Market Cap

R$2.7b

Last Updated

2021/05/09 23:35 UTC

Data Sources

Company Financials +

Executive Summary

Smiles Fidelidade S.A. provides loyalty programs to financial institutions, retail and entertainment customers, airline partners, and individuals. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

How has Smiles Fidelidade's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMLS3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SMLS3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.


Market Performance


7 Day Return

1.7%

SMLS3

0.5%

BR Media

2.3%

BR Market


1 Year Return

79.1%

SMLS3

46.8%

BR Media

46.5%

BR Market

Return vs Industry: SMLS3 exceeded the BR Media industry which returned 46.8% over the past year.

Return vs Market: SMLS3 exceeded the BR Market which returned 46.5% over the past year.


Shareholder returns

SMLS3IndustryMarket
7 Day1.7%0.5%2.3%
30 Day1.3%14.8%4.0%
90 Day-1.3%19.0%-0.8%
1 Year130.8%79.1%49.7%46.8%52.3%46.5%
3 Year-53.8%-66.9%-27.0%-30.9%57.9%41.0%
5 Yearn/a-36.7%-40.7%146.4%102.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Smiles Fidelidade undervalued compared to its fair value and its price relative to the market?

14.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMLS3 (R$21.8) is trading above our estimate of fair value (R$11.84)

Significantly Below Fair Value: SMLS3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SMLS3 is good value based on its PE Ratio (14.4x) compared to the XS Media industry average (18.3x).

PE vs Market: SMLS3 is good value based on its PE Ratio (14.4x) compared to the BR market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: SMLS3 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SMLS3 is overvalued based on its PB Ratio (3x) compared to the XS Media industry average (0.5x).


Future Growth

How is Smiles Fidelidade forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMLS3's forecast earnings growth (30.5% per year) is above the savings rate (9.3%).

Earnings vs Market: SMLS3's earnings (30.5% per year) are forecast to grow faster than the BR market (13.1% per year).

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

Revenue vs Market: SMLS3's revenue (27.8% per year) is forecast to grow faster than the BR market (8.5% per year).

High Growth Revenue: SMLS3's revenue (27.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMLS3's Return on Equity is forecast to be high in 3 years time (27.8%)


Past Performance

How has Smiles Fidelidade performed over the past 5 years?

11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMLS3 has a high level of non-cash earnings.

Growing Profit Margin: SMLS3's current net profit margins (33.9%) are lower than last year (55.1%).


Past Earnings Growth Analysis

Earnings Trend: SMLS3 has become profitable over the past 5 years, growing earnings by 11.2% per year.

Accelerating Growth: SMLS3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SMLS3 had negative earnings growth (-65.4%) over the past year, making it difficult to compare to the Media industry average (1%).


Return on Equity

High ROE: SMLS3's Return on Equity (20.9%) is considered high.


Financial Health

How is Smiles Fidelidade's financial position?


Financial Position Analysis

Short Term Liabilities: SMLS3's short term assets (R$2.1B) exceed its short term liabilities (R$2.0B).

Long Term Liabilities: SMLS3's short term assets (R$2.1B) exceed its long term liabilities (R$520.7M).


Debt to Equity History and Analysis

Debt Level: SMLS3 is debt free.

Reducing Debt: SMLS3 currently has no debt however we can't compare to 5 years ago as we have no data for that period.

Debt Coverage: SMLS3 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SMLS3 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Smiles Fidelidade current dividend yield, its reliability and sustainability?

20.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SMLS3's dividend (20.46%) is higher than the bottom 25% of dividend payers in the BR market (1.03%).

High Dividend: SMLS3's dividend (20.46%) is in the top 25% of dividend payers in the BR market (4.83%)


Stability and Growth of Payments

Stable Dividend: SMLS3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SMLS3's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (295.5%), SMLS3's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

André Fehlauer

0.92

Tenure

Mr. André Fehlauer has been CEO & Member of Management Board at Smiles Fidelidade S.A. since June 2020 and had been its Financial and Investor Relations Officer until June 2020. Mr. André holds a degree in...


Leadership Team

Experienced Management: SMLS3's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: SMLS3's board of directors are not considered experienced ( 0.3 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

Smiles Fidelidade S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smiles Fidelidade S.A.
  • Ticker: SMLS3
  • Exchange: BOVESPA
  • Founded: 1994
  • Industry: Advertising
  • Sector: Media
  • Market Cap: R$2.707b
  • Shares outstanding: 124.16m
  • Website: https://www.smiles.com.br

Number of Employees


Location

  • Smiles Fidelidade S.A.
  • Alameda Rio Negro
  • Bloco B, 2º Andar
  • Barueri
  • São Paulo
  • Brazil

Listings


Biography

Smiles Fidelidade S.A. provides loyalty programs to financial institutions, retail and entertainment customers, airline partners, and individuals. The company focuses on the development and management of t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 23:35
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
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.