Hypera (BOVESPA:HYPE3) - Share price, News & Analysis

Q: What is the Fair Price of HYPE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

HYPE3 (R$42.51) is trading above our estimate of [[fair value]] (R$40.73)

HYPE3 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

HYPE3 Stock Overview

Hypera S.A. operates as a pharmaceutical company in Brazil.

Rewards

Earnings are forecast to grow 16.98% per year

Earnings grew by 11.9% over the past year

Risk Analysis

Has a high level of debt

Dividend of 2.89% is not well covered by earnings

Hypera Competitors

Ouro Fino Saúde Animal Participações

BOVESPA:OFSA3

R$1.2b

Shijiazhuang Yiling Pharmaceutical

SZSE:002603

CN¥37.3b

Nanjing King-Friend Biochemical Pharmaceutical

SHSE:603707

CN¥30.9b

Porton Pharma Solutions

SZSE:300363

CN¥35.3b

Price History & Performance

Summary of all time highs, changes and price drops for Hypera
Historical stock prices
Current Share Price	R$42.51
52 Week High	R$43.37
52 Week Low	R$26.25
Beta	0.51
1 Month Change	7.68%
3 Month Change	14.06%
1 Year Change	16.24%
3 Year Change	33.39%
5 Year Change	47.40%
Change since IPO	409.10%

Recent News & Updates

Jul 31

Hypera S.A. (BVMF:HYPE3) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Hypera S.A. ( BVMF:HYPE3 ) shareholders, because the company has just released its latest...

Jul 19

Is Hypera (BVMF:HYPE3) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	HYPE3	BR Pharmaceuticals	BR Market
7D	-0.6%	-0.9%	2.8%
1Y	16.2%	9.5%	-18.9%

Return vs Industry: HYPE3 exceeded the BR Pharmaceuticals industry which returned 8.8% over the past year.

Return vs Market: HYPE3 exceeded the BR Market which returned -18.9% over the past year.

Price Volatility

Is HYPE3's price volatile compared to industry and market?
HYPE3 volatility
HYPE3 Average Weekly Movement	5.1%
Pharmaceuticals Industry Average Movement	6.2%
Market Average Movement	6.0%
10% most volatile stocks in BR Market	9.4%
10% least volatile stocks in BR Market	2.5%

Stable Share Price: HYPE3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: HYPE3's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	9,000	Breno Pires de Oliveira	https://www.hyperapharma.com.br

Hypera S.A. operates as a pharmaceutical company in Brazil. It offers prescription products under the Adacne, Addera, apri, AmpliumG, please, Celestamine, Celestone, Celestone Soluspan, Cizax, deciprax, Derive C Micro, Micro Drift, Dermotil Fusid, Digedrat, diprogent, Diprosalic, Diprosone, diprospan, Emprol XR, Flow, Garasone, Halobex, Lipanon, moon, Lydian, macrodantin, MaxSulid, milgamma, Mioflex – A, nesina, Novotram, oximax, peridal, Peridal Suspension, PredSim, pressaliv, Quadriderm, Rizi, Rizi M, softalm, tacroz, tinodin, umma, and velunid brands. The company also provides dermo-cosmetics products under the Mantecorp Skincare brands; and consumer health products under the Apracur, Benegrip, Coristina d, Engov, Epocler, Estomazil, and other brands.

Hypera Fundamentals Summary

How do Hypera's earnings and revenue compare to its market cap?
HYPE3 fundamental statistics
Market Cap	R$26.90b
Earnings (TTM)	R$1.64b
Revenue (TTM)	R$6.65b

16.4x

P/E Ratio

4.0x

P/S Ratio

Is HYPE3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HYPE3 income statement (TTM)
Revenue	R$6.65b
Cost of Revenue	R$2.44b
Gross Profit	R$4.21b
Other Expenses	R$2.57b
Earnings	R$1.64b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 28, 2022

Earnings per share (EPS)	2.58
Gross Margin	63.32%
Net Profit Margin	24.61%
Debt/Equity Ratio	79.0%

How did HYPE3 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

47%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is HYPE3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HYPE3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HYPE3. This is calculated by dividing HYPE3's market cap by their current preferred multiple.
What is HYPE3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$26.90b

HYPE3 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	5.1x
Enterprise Value/EBITDA	15.3x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does HYPE3's PE Ratio compare to its peers?

HYPE3 PE Ratio vs Peers

The above table shows the PE ratio for HYPE3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.5x
OFSA3 Ouro Fino Saúde Animal Participações	10.8x	n/a	R$1.2b
002603 Shijiazhuang Yiling Pharmaceutical	32.3x	24.9%	CN¥37.3b
603707 Nanjing King-Friend Biochemical Pharmaceutical	27.7x	26.6%	CN¥30.9b
300363 Porton Pharma Solutions	43.2x	22.3%	CN¥35.3b
HYPE3 Hypera	16.4x	17.0%	R$26.9b

Price-To-Earnings vs Peers: HYPE3 is good value based on its Price-To-Earnings Ratio (16.4x) compared to the peer average (28.5x).

Price to Earnings Ratio vs Industry

How does HYPE3's PE Ratio compare vs other companies in the Global Pharmaceuticals Industry?

Price-To-Earnings vs Industry: HYPE3 is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the South American Pharmaceuticals industry average (16.1x)

Price to Earnings Ratio vs Fair Ratio

What is HYPE3'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.

HYPE3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.4x
Fair PE Ratio	15.4x

Price-To-Earnings vs Fair Ratio: HYPE3 is expensive based on its Price-To-Earnings Ratio (16.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.4x).

Share Price vs Fair Value

What is the Fair Price of HYPE3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HYPE3 (R$42.51) is trading above our estimate of fair value (R$40.73)

Significantly Below Fair Value: HYPE3 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Hypera forecast to perform in the next 1 to 3 years based on estimates from 11 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

17.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HYPE3's forecast earnings growth (17% per year) is above the savings rate (9.2%).

Earnings vs Market: HYPE3's earnings (17% per year) are forecast to grow faster than the BR market (6.2% per year).

High Growth Earnings: HYPE3's earnings are forecast to grow, but not significantly.

Revenue vs Market: HYPE3's revenue (13.1% per year) is forecast to grow faster than the BR market (5.2% per year).

High Growth Revenue: HYPE3's revenue (13.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: HYPE3's Return on Equity is forecast to be high in 3 years time (20.4%)

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Past Performance

How has Hypera 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

10.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HYPE3 has high quality earnings.

Growing Profit Margin: HYPE3's current net profit margins (24.6%) are lower than last year (29.8%).

Past Earnings Growth Analysis

Earnings Trend: HYPE3's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: HYPE3's earnings growth over the past year (11.9%) exceeds its 5-year average (10.3% per year).

Earnings vs Industry: HYPE3 earnings growth over the past year (11.9%) exceeded the Pharmaceuticals industry 10.8%.

Return on Equity

High ROE: HYPE3's Return on Equity (16%) is considered low.

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Financial Health

How is Hypera's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: HYPE3's short term assets (R$6.4B) exceed its short term liabilities (R$3.6B).

Long Term Liabilities: HYPE3's short term assets (R$6.4B) do not cover its long term liabilities (R$7.1B).

Debt to Equity History and Analysis

Debt Level: HYPE3's net debt to equity ratio (64.4%) is considered high.

Reducing Debt: HYPE3's debt to equity ratio has increased from 8.4% to 79% over the past 5 years.

Debt Coverage: HYPE3's debt is well covered by operating cash flow (20.9%).

Interest Coverage: HYPE3's interest payments on its debt are well covered by EBIT (4.2x coverage).

Balance Sheet

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Dividend

What is Hypera 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
Cash Flow Coverage

2.89%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HYPE3's dividend (2.89%) is higher than the bottom 25% of dividend payers in the BR market (1.57%).

High Dividend: HYPE3's dividend (2.89%) is low compared to the top 25% of dividend payers in the BR market (7.46%).

Stability and Growth of Payments

Stable Dividend: HYPE3's dividend payments have been volatile in the past 10 years.

Growing Dividend: HYPE3's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (47.5%), HYPE3's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (815.9%), HYPE3's dividend payments are not well covered by cash flows.

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Management

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

CEO

Breno Pires de Oliveira

no data

Tenure

Mr. Breno Toledo Pires De Oliveira serves as Chief Executive Officer of Hypera S.A. Previously, he served as Chief Financial Officer and Investor Relations Officer at HYPERA S.A. (formerly known as Hyperma...

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	2022/08/12 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31