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NGRD

Neogrid Participações BOVESPA:NGRD3 Stock Report

Last Price

R$2.07

Market Cap

R$483.8m

7D

3.0%

1Y

-65.6%

Updated

26 Jun, 2022

Data

Company Financials +
NGRD3 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends0/6

NGRD3 Stock Overview

Neogrid Participações S.A., together with its subsidiaries, develops, licenses, sells, and implements customized software for the management and synchronization of supply chains worldwide.

Neogrid Participações Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Neogrid Participações
Historical stock prices
Current Share PriceR$2.07
52 Week HighR$7.46
52 Week LowR$1.98
Beta0
1 Month Change-8.00%
3 Month Change-24.18%
1 Year Change-65.56%
3 Year Changen/a
5 Year Changen/a
Change since IPO-53.27%

Recent News & Updates

Mar 29
Neogrid Participações' (BVMF:NGRD3) Returns On Capital Not Reflecting Well On The Business

Neogrid Participações' (BVMF:NGRD3) Returns On Capital Not Reflecting Well On The Business

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Shareholder Returns

NGRD3BR SoftwareBR Market
7D3.0%8.8%-0.8%
1Y-65.6%-19.3%-29.7%

Return vs Industry: NGRD3 underperformed the BR Software industry which returned -19.3% over the past year.

Return vs Market: NGRD3 underperformed the BR Market which returned -29.7% over the past year.

Price Volatility

Is NGRD3's price volatile compared to industry and market?
NGRD3 volatility
NGRD3 Average Weekly Movement6.3%
Software Industry Average Movement8.0%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: NGRD3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NGRD3's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1999n/aJean Klaumannhttps://www.neogrid.com

Neogrid Participações S.A., together with its subsidiaries, develops, licenses, sells, and implements customized software for the management and synchronization of supply chains worldwide. The company also provides related technical advisory and training services. In addition, it offers software and databases installation, configuration, maintenance, and technical IT support services.

Neogrid Participações Fundamentals Summary

How do Neogrid Participações's earnings and revenue compare to its market cap?
NGRD3 fundamental statistics
Market CapR$483.79m
Earnings (TTM)R$12.21m
Revenue (TTM)R$252.17m

39.6x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NGRD3 income statement (TTM)
RevenueR$252.17m
Cost of RevenueR$87.52m
Gross ProfitR$164.65m
Other ExpensesR$152.44m
EarningsR$12.21m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.052
Gross Margin65.29%
Net Profit Margin4.84%
Debt/Equity Ratio16.8%

How did NGRD3 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

29%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NGRD3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 NGRD3?

Other financial metrics that can be useful for relative valuation.

NGRD3 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/Revenue1.1x
Enterprise Value/EBITDA10.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does NGRD3's PE Ratio compare to its peers?

NGRD3 PE Ratio vs Peers
The above table shows the PE ratio for NGRD3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.5x

Price-To-Earnings vs Peers: NGRD3 is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the peer average (25.5x).


Price to Earnings Ratio vs Industry

How does NGRD3's PE Ratio compare vs other companies in the Global Software Industry?

Price-To-Earnings vs Industry: NGRD3 is expensive based on its Price-To-Earnings Ratio (39.6x) compared to the Global Software industry average (30.5x)


Price to Earnings Ratio vs Fair Ratio

What is NGRD3'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.

NGRD3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NGRD3's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of NGRD3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NGRD3 (R$2.07) is trading below our estimate of fair value (R$4.6)

Significantly Below Fair Value: NGRD3 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NGRD3's PEG Ratio to determine if it is good value.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.0%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NGRD3's forecast earnings growth is above the savings rate (9.1%).

Earnings vs Market: Insufficient data to determine if NGRD3's earnings are forecast to grow faster than the BR market

High Growth Earnings: Insufficient data to determine if NGRD3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NGRD3's revenue (14% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: NGRD3's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NGRD3's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Neogrid Participações 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


17.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NGRD3 has a large one-off loss of R$4.8M impacting its March 31 2022 financial results.

Growing Profit Margin: NGRD3's current net profit margins (4.8%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: NGRD3 has become profitable over the past 5 years, growing earnings by 17.4% per year.

Accelerating Growth: NGRD3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NGRD3 had negative earnings growth (-22.6%) over the past year, making it difficult to compare to the Software industry average (16.3%).


Return on Equity

High ROE: NGRD3's Return on Equity (2.6%) is considered low.


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Financial Health

How is Neogrid Participações'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: NGRD3's short term assets (R$354.4M) exceed its short term liabilities (R$123.1M).

Long Term Liabilities: NGRD3's short term assets (R$354.4M) exceed its long term liabilities (R$158.6M).


Debt to Equity History and Analysis

Debt Level: NGRD3 has more cash than its total debt.

Reducing Debt: NGRD3's debt to equity ratio has reduced from 22.2% to 16.8% over the past 5 years.

Debt Coverage: NGRD3's debt is well covered by operating cash flow (44.7%).

Interest Coverage: NGRD3 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.72%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NGRD3's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.72%).

High Dividend: NGRD3's dividend (0.72%) is low compared to the top 25% of dividend payers in the BR market (7.73%).


Stability and Growth of Payments

Stable Dividend: NGRD3 is not paying a notable dividend for the BR market, therefore no need to check if payments are stable.

Growing Dividend: NGRD3 is not paying a notable dividend for the BR market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: NGRD3 is not paying a notable dividend for the BR market.


Cash Payout to Shareholders

Cash Flow Coverage: NGRD3 is not paying a notable dividend for the BR market.


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Management

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

0.3yrs

Average management tenure


CEO

Jean Klaumann (46 yo)

0.25

Tenure

Mr. Jean Carlo Klaumann serves as Chief Executive Officer at Neogrid Participações S.A. since March 03, 2022. He has been Vice President of Operations at Linx S.A. since February 28, 2013. Mr. Klaumann ser...


Leadership Team

Experienced Management: NGRD3's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


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

Neogrid Participações S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Neogrid Participações S.A.
  • Ticker: NGRD3
  • Exchange: BOVESPA
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: R$483.790m
  • Shares outstanding: 233.71m
  • Website: https://www.neogrid.com

Location

  • Neogrid Participações S.A.
  • Avenida Santos Dumont, 935
  • Santo Antonio
  • Joinville
  • Santa Catarina
  • 89218-105
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.