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SQIA

Sinqia BOVESPA:SQIA3 Stock Report

Last Price

R$16.78

Market Cap

R$1.4b

7D

1.4%

1Y

-30.0%

Updated

27 Jun, 2022

Data

Company Financials +
SQIA3 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends0/6

SQIA3 Stock Overview

Sinqia S.A operates as a technology provider for the financial industry in Brazil.

Sinqia Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sinqia
Historical stock prices
Current Share PriceR$16.78
52 Week HighR$31.30
52 Week LowR$12.66
Beta0.80
1 Month Change-15.47%
3 Month Change-15.51%
1 Year Change-30.03%
3 Year Change72.24%
5 Year Change277.29%
Change since IPO506.32%

Recent News & Updates

Jun 11
Here's Why We Think Sinqia (BVMF:SQIA3) Is Well Worth Watching

Here's Why We Think Sinqia (BVMF:SQIA3) Is Well Worth Watching

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

May 25
Analysts' Revenue Estimates For Sinqia S.A. (BVMF:SQIA3) Are Surging Higher

Analysts' Revenue Estimates For Sinqia S.A. (BVMF:SQIA3) Are Surging Higher

Shareholders in Sinqia S.A. ( BVMF:SQIA3 ) may be thrilled to learn that the analysts have just delivered a major...

May 11
What Does The Future Hold For Sinqia S.A. (BVMF:SQIA3)? These Analysts Have Been Cutting Their Estimates

What Does The Future Hold For Sinqia S.A. (BVMF:SQIA3)? These Analysts Have Been Cutting Their Estimates

The analysts covering Sinqia S.A. ( BVMF:SQIA3 ) delivered a dose of negativity to shareholders today, by making a...

Shareholder Returns

SQIA3BR SoftwareBR Market
7D1.4%7.3%0.7%
1Y-30.0%-21.3%-28.8%

Return vs Industry: SQIA3 underperformed the BR Software industry which returned -19.3% over the past year.

Return vs Market: SQIA3 matched the BR Market which returned -29.7% over the past year.

Price Volatility

Is SQIA3's price volatile compared to industry and market?
SQIA3 volatility
SQIA3 Average Weekly Movement8.2%
Software Industry Average Movement8.1%
Market Average Movement5.9%
10% most volatile stocks in BR Market9.2%
10% least volatile stocks in BR Market2.8%

Stable Share Price: SQIA3 is more volatile than 75% of BR stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SQIA3's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of BR stocks.

About the Company

FoundedEmployeesCEOWebsite
1996n/aBernardo Francisco Pereira Gomeshttps://www.sinqia.com.br

Sinqia S.A operates as a technology provider for the financial industry in Brazil. The company offers software platforms, such as Sinqia Banks, which offers solutions for the operation of banks in various main areas, such as current accounts, credits, receivables, treasury and investments, collections, and SPB and regulatory; Sinqia Funds, a package of solutions for custodians and managers; Sinqia Pensions, a solution for the management and control of the investment portfolios, and automation of the operational processes, as well as attendance of the social security, assistance, financial, and controllership areas; and Sinqia Consortium, which integrates various operational processes that guarantees the longevity and growth of a consortium administrator. It also provides service platforms comprising Sinqia Outsourcing, a solution for the allocation of professionals, factory supply, and ITO operation for the financial market; and Sinqia Consulting/Torq solution that provides business consulting, digital transformation, and agile development services.

Sinqia Fundamentals Summary

How do Sinqia's earnings and revenue compare to its market cap?
SQIA3 fundamental statistics
Market CapR$1.44b
Earnings (TTM)R$29.07m
Revenue (TTM)R$423.21m

49.5x

P/E Ratio

3.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SQIA3 income statement (TTM)
RevenueR$423.21m
Cost of RevenueR$255.47m
Gross ProfitR$167.74m
Other ExpensesR$138.67m
EarningsR$29.07m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)0.34
Gross Margin39.63%
Net Profit Margin6.87%
Debt/Equity Ratio21.9%

How did SQIA3 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

18%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SQIA3 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

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQIA3?

Other financial metrics that can be useful for relative valuation.

SQIA3 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/Revenue3.7x
Enterprise Value/EBITDA33.3x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does SQIA3's PE Ratio compare to its peers?

SQIA3 PE Ratio vs Peers
The above table shows the PE ratio for SQIA3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.1x
NGRD3 Neogrid Participações
39xn/aR$476.8m
CARD3 CSU Cardsystem
8.2xn/aR$519.6m
LOGO Logo Yazilim Sanayi ve Ticaret
13.2x26.0%₺4.0b
GETT3 Getnet Adquirência e Serviços para Meios de Pagamento
8x12.4%R$4.1b
SQIA3 Sinqia
49.5x38.4%R$1.4b

Price-To-Earnings vs Peers: SQIA3 is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does SQIA3's PE Ratio compare vs other companies in the Global Software Industry?

Price-To-Earnings vs Industry: SQIA3 is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the Global Software industry average (30.5x)


Price to Earnings Ratio vs Fair Ratio

What is SQIA3'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.

SQIA3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.5x
Fair PE Ratio21.3x

Price-To-Earnings vs Fair Ratio: SQIA3 is expensive based on its Price-To-Earnings Ratio (49.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.3x).


Share Price vs Fair Value

What is the Fair Price of SQIA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SQIA3 (R$16.78) is trading below our estimate of fair value (R$20.03)

Significantly Below Fair Value: SQIA3 is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: SQIA3 is poor value based on its PEG Ratio (1.3x)


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Future Growth

How is Sinqia forecast to perform in the next 1 to 3 years based on estimates from 4 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


38.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SQIA3's forecast earnings growth (38.4% per year) is above the savings rate (9.1%).

Earnings vs Market: SQIA3's earnings (38.4% per year) are forecast to grow faster than the BR market (6.9% per year).

High Growth Earnings: SQIA3's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SQIA3's revenue (16.6% per year) is forecast to grow faster than the BR market (5.7% per year).

High Growth Revenue: SQIA3's revenue (16.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SQIA3's Return on Equity is forecast to be low in 3 years time (9.6%).


Discover growth companies

Past Performance

How has Sinqia performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


29.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SQIA3 has high quality earnings.

Growing Profit Margin: SQIA3's current net profit margins (6.9%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: SQIA3's earnings have grown significantly by 29.5% per year over the past 5 years.

Accelerating Growth: SQIA3's earnings growth over the past year (449.2%) exceeds its 5-year average (29.5% per year).

Earnings vs Industry: SQIA3 earnings growth over the past year (449.2%) exceeded the Software industry 16.3%.


Return on Equity

High ROE: SQIA3's Return on Equity (4.3%) is considered low.


Discover strong past performing companies

Financial Health

How is Sinqia'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: SQIA3's short term assets (R$167.6M) do not cover its short term liabilities (R$190.4M).

Long Term Liabilities: SQIA3's short term assets (R$167.6M) do not cover its long term liabilities (R$474.8M).


Debt to Equity History and Analysis

Debt Level: SQIA3's net debt to equity ratio (8.4%) is considered satisfactory.

Reducing Debt: SQIA3's debt to equity ratio has reduced from 24.2% to 21.9% over the past 5 years.

Debt Coverage: SQIA3's debt is well covered by operating cash flow (44.6%).

Interest Coverage: SQIA3's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


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Dividend

What is Sinqia 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


0.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SQIA3's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.72%).

High Dividend: SQIA3's dividend (0.4%) is low compared to the top 25% of dividend payers in the BR market (7.73%).


Stability and Growth of Payments

Stable Dividend: SQIA3 is not paying a notable dividend for the BR market, therefore no need to check if payments are stable.

Growing Dividend: SQIA3 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: SQIA3 is not paying a notable dividend for the BR market.


Cash Payout to Shareholders

Cash Flow Coverage: SQIA3 is not paying a notable dividend for the BR market.


Discover strong dividend paying companies

Management

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


CEO

Bernardo Francisco Pereira Gomes (58 yo)

no data

Tenure

Mr. Bernardo Francisco Pereira Gomes serves as the Chief Executive Officer and Director at Sinqia S.A. (formerly known as Senior Solution S.A.) and served as its Investor Relations Officer. Mr. Francisco P...


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 been diluted in the past year, with total shares outstanding growing by 24.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Sinqia S.A.
  • Ticker: SQIA3
  • Exchange: BOVESPA
  • Founded: 1996
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: R$1.439b
  • Shares outstanding: 85.75m
  • Website: https://www.sinqia.com.br

Location

  • Sinqia S.A.
  • Rua Bela Cintra, 755
  • 7º andar
  • São Paulo
  • São Paulo
  • 01415-003
  • Brazil

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 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.