Blau Farmacêutica (BOVESPA:BLAU3) - Share price, News & Analysis

Q: What is the Fair Price of BLAU3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BLAU3 (R$25.06) is trading above our estimate of [[fair value]] (R$20.67)

BLAU3 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	2/6

BLAU3 Stock Overview

Blau Farmacêutica S.A., a pharmaceutical company, engages in the manufacture, development, and commercialization of private label drugs in Brazil, Colombia, Uruguay, Chile, and internationally.

Rewards

Price-To-Earnings ratio (15x) is below the Biotechs industry average (26.9x)

Earnings are forecast to grow 16.59% per year

Risk Analysis

High level of non-cash earnings

Dividend of 1.81% is not well covered by earnings

Blau Farmacêutica Competitors

Ouro Fino Saúde Animal Participações

BOVESPA:OFSA3

R$1.1b

Shenzhen Weiguang Biological Products

SZSE:002880

CN¥6.0b

Hypera

BOVESPA:HYPE3

R$24.0b

Hugel

KOSDAQ:A145020

₩1.2t

Price History & Performance

Summary of all time highs, changes and price drops for Blau Farmacêutica
Historical stock prices
Current Share Price	R$25.06
52 Week High	R$54.92
52 Week Low	R$21.55
Beta	0
1 Month Change	5.21%
3 Month Change	-13.56%
1 Year Change	-48.25%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-39.03%

Recent News & Updates

Feb 24

Blau Farmacêutica S.A. Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Blau Farmacêutica S.A. ( BVMF:BLAU3 ) shareholders are probably feeling a little disappointed, since its shares fell...

Shareholder Returns

	BLAU3	BR Biotechs	BR Market
7D	2.4%	0.4%	-0.1%
1Y	-48.3%	-27.9%	-29.3%

Return vs Industry: BLAU3 underperformed the BR Biotechs industry which returned -27.3% over the past year.

Return vs Market: BLAU3 underperformed the BR Market which returned -29.1% over the past year.

Price Volatility

Is BLAU3's price volatile compared to industry and market?
BLAU3 volatility
BLAU3 Average Weekly Movement	5.6%
Biotechs Industry Average Movement	10.6%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.9%

Stable Share Price: BLAU3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BLAU3's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	1,300	Marcelo Hahn	https://www.blau.com

Blau Farmacêutica S.A., a pharmaceutical company, engages in the manufacture, development, and commercialization of private label drugs in Brazil, Colombia, Uruguay, Chile, and internationally. It operates through Institutional and Retail segments. The company’s medications cover various therapeutic classes, such as immunology, hematology, oncology, nephrology, specialties, and antibiotics.

Blau Farmacêutica Fundamentals Summary

How do Blau Farmacêutica's earnings and revenue compare to its market cap?
BLAU3 fundamental statistics
Market Cap	R$4.50b
Earnings (TTM)	R$300.52m
Revenue (TTM)	R$1.35b

15.0x

P/E Ratio

3.3x

P/S Ratio

Is BLAU3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BLAU3 income statement (TTM)
Revenue	R$1.35b
Cost of Revenue	R$697.09m
Gross Profit	R$656.54m
Other Expenses	R$356.02m
Earnings	R$300.52m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.68
Gross Margin	48.50%
Net Profit Margin	22.20%
Debt/Equity Ratio	19.2%

How did BLAU3 perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BLAU3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 BLAU3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BLAU3. This is calculated by dividing BLAU3's market cap by their current preferred multiple.
What is BLAU3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$4.50b

BLAU3 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	3x
Enterprise Value/EBITDA	8.7x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does BLAU3's PE Ratio compare to its peers?

BLAU3 PE Ratio vs Peers

The above table shows the PE ratio for BLAU3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	18.9x
OFSA3 Ouro Fino Saúde Animal Participações	8.9x	n/a	R$1.1b
002880 Shenzhen Weiguang Biological Products	29.2x	n/a	CN¥6.0b
HYPE3 Hypera	14.5x	18.2%	R$24.0b
A145020 Hugel	22.9x	25.4%	₩1.2t
BLAU3 Blau Farmacêutica	15x	16.6%	R$4.5b

Forward PE

Price-To-Earnings vs Peers: BLAU3 is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (18.9x).

Price to Earnings Ratio vs Industry

How does BLAU3's PE Ratio compare vs other companies in the Global Biotechs Industry?

Price-To-Earnings vs Industry: BLAU3 is good value based on its Price-To-Earnings Ratio (15x) compared to the Global Biotechs industry average (26.9x)

Price to Earnings Ratio vs Fair Ratio

What is BLAU3'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.

BLAU3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15x
Fair PE Ratio	14.1x

Price-To-Earnings vs Fair Ratio: BLAU3 is expensive based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (14.1x).

Share Price vs Fair Value

What is the Fair Price of BLAU3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BLAU3 (R$25.06) is trading above our estimate of fair value (R$20.67)

Significantly Below Fair Value: BLAU3 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: BLAU3 is good value based on its PEG Ratio (0.9x)

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Future Growth

How is Blau Farmacêutica forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

16.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLAU3's forecast earnings growth (16.6% per year) is above the savings rate (9.2%).

Earnings vs Market: BLAU3's earnings (16.6% per year) are forecast to grow faster than the BR market (6.6% per year).

High Growth Earnings: BLAU3's earnings are forecast to grow, but not significantly.

Revenue vs Market: BLAU3's revenue (16.4% per year) is forecast to grow faster than the BR market (5.6% per year).

High Growth Revenue: BLAU3's revenue (16.4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BLAU3's Return on Equity is forecast to be high in 3 years time (22.5%)

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Past Performance

How has Blau Farmacêutica performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

31.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BLAU3 has a high level of non-cash earnings.

Growing Profit Margin: BLAU3's current net profit margins (22.2%) are lower than last year (24%).

Past Earnings Growth Analysis

Earnings Trend: BLAU3's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: BLAU3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BLAU3 had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Biotechs industry average (8.2%).

Return on Equity

High ROE: BLAU3's Return on Equity (18%) is considered low.

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Financial Health

How is Blau Farmacêutica's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: BLAU3's short term assets (R$1.6B) exceed its short term liabilities (R$302.9M).

Long Term Liabilities: BLAU3's short term assets (R$1.6B) exceed its long term liabilities (R$332.7M).

Debt to Equity History and Analysis

Debt Level: BLAU3 has more cash than its total debt.

Reducing Debt: BLAU3's debt to equity ratio has reduced from 123% to 19.2% over the past 5 years.

Debt Coverage: BLAU3's debt is well covered by operating cash flow (43%).

Interest Coverage: BLAU3 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Blau Farmacêutica current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

1.81%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BLAU3's dividend (1.81%) is higher than the bottom 25% of dividend payers in the BR market (1.76%).

High Dividend: BLAU3's dividend (1.81%) is low compared to the top 25% of dividend payers in the BR market (7.89%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether BLAU3's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BLAU3's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8.7%), BLAU3's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: BLAU3 is paying a dividend but the company has no free cash flows.

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Management

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

CEO

Marcelo Hahn

no data

Tenure

Mr. Marcelo Rodolfo Hahn is the Founder and serves as Chief Executive Officer at Blau Farmacêutica S/A and serves as its Deputy Chairman of the Board. Mr. Hahn served as President at Blau Farmacêutica S/A.

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	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31