New Risk • Jul 25
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$494.2m (US$97.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Dividend is not well covered by earnings (254% payout ratio). Market cap is less than US$100m (R$494.2m market cap, or US$97.2m). Major Estimate Revision • Jun 12
Consensus revenue estimates fall by 12% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from R$3.96b to R$3.50b. EPS estimate fell from R$1.57 to R$1.17 per share. Net income forecast to grow 1,590% next year vs 34% growth forecast for Tech industry in Brazil. Consensus price target down from R$6.07 to R$5.73. Share price was steady at R$3.64 over the past week. Valuation Update With 7 Day Price Move • Jun 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to R$3.40, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 17x in the Tech industry globally. Total loss to shareholders of 51% over the past three years. New Risk • Jun 06
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$509.5m (US$98.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Dividend is not well covered by earnings (254% payout ratio). Market cap is less than US$100m (R$509.5m market cap, or US$98.8m). New Risk • May 29
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.6x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risk Dividend is not well covered by earnings (254% payout ratio). Reported Earnings • May 19
First quarter 2026 earnings: Revenues miss analyst expectations First quarter 2026 results: Revenue: R$741.4m (up 3.6% from 1Q 2025). Net loss: R$12.3m (loss narrowed 8.8% from 1Q 2025). Revenue missed analyst estimates by 6.6%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Global Tech industry. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 57 percentage points per year, which is a significant difference in performance. Buy Or Sell Opportunity • May 15
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.9% to R$3.88. The fair value is estimated to be R$4.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 10% over the last 3 years. Earnings per share has declined by 65%. Revenue is forecast to grow by 21% in 2 years. Earnings are forecast to grow by 1,966% in the next 2 years. Announcement • Mar 31
Positivo Tecnologia S.A., Annual General Meeting, Apr 30, 2026 Positivo Tecnologia S.A., Annual General Meeting, Apr 30, 2026. New Risk • Mar 30
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Dividend is not well covered by earnings (290% payout ratio). Profit margins are more than 30% lower than last year (0.3% net profit margin). New Risk • Mar 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 0.7x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (0.7x net interest cover). Minor Risks Paying a dividend despite being loss-making. Profit margins are more than 30% lower than last year (0.3% net profit margin). Reported Earnings • Mar 20
Full year 2025 earnings: Revenues miss analyst expectations Full year 2025 results: Revenue: R$3.35b (down 9.0% from FY 2024). Net income: R$8.64m (down 89% from FY 2024). Profit margin: 0.3% (down from 2.2% in FY 2024). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.9%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. New Risk • Dec 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$554.1m (US$99.4m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (R$554.1m market cap, or US$99.4m). Price Target Changed • Dec 10
Price target decreased by 18% to R$7.40 Down from R$9.03, the current price target is an average from 3 analysts. New target price is 72% above last closing price of R$4.30. Stock is down 22% over the past year. The company is forecast to post earnings per share of R$1.34 for next year compared to R$0.57 last year. Reported Earnings • Nov 17
Third quarter 2025 earnings: Revenues exceed analyst expectations Third quarter 2025 results: Revenue: R$805.6m (down 1.7% from 3Q 2024). Net income: R$943.0k (up 68% from 3Q 2024). Profit margin: 0.1% (in line with 3Q 2024). Revenue exceeded analyst estimates by 1.1%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Global Tech industry. Reported Earnings • Aug 15
Second quarter 2025 earnings released: EPS: R$0.016 (vs R$0.026 in 2Q 2024) Second quarter 2025 results: EPS: R$0.016 (down from R$0.026 in 2Q 2024). Revenue: R$842.3m (up 3.6% from 2Q 2024). Net income: R$2.30m (down 37% from 2Q 2024). Profit margin: 0.3% (down from 0.4% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has fallen by 32% per year whereas the company’s share price has fallen by 27% per year. New Risk • Aug 01
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$553.7m (US$98.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.8x net interest cover). Minor Risks Dividend is not well covered by earnings (dividend per share is over 13x earnings per share). Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (0.09% net profit margin). Market cap is less than US$100m (R$553.7m market cap, or US$98.9m). Major Estimate Revision • May 22
Consensus revenue estimates fall by 19% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from R$4.69b to R$3.79b. EPS estimate fell from R$2.48 to R$1.34 per share. Net income forecast to grow 6,549% next year vs 25% growth forecast for Tech industry in Brazil. Consensus price target down from R$10.53 to R$9.03. Share price fell 3.1% to R$4.96 over the past week. Price Target Changed • May 21
Price target decreased by 16% to R$9.03 Down from R$10.78, the current price target is an average from 4 analysts. New target price is 79% above last closing price of R$5.04. Stock is down 45% over the past year. The company is forecast to post earnings per share of R$1.34 for next year compared to R$0.57 last year. Reported Earnings • May 16
First quarter 2025 earnings: Revenues miss analyst expectations First quarter 2025 results: Revenue: R$715.4m (down 29% from 1Q 2024). Net loss: R$13.5m (down 121% from profit in 1Q 2024). Revenue missed analyst estimates by 33%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Board Change • Apr 25
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 6 experienced directors. 2 highly experienced directors. 4 independent directors (5 non-independent directors). Independent Director Fernando de Freitas was the last independent director to join the board, commencing their role in 2024. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Apr 25
Upcoming dividend of R$0.27 per share Eligible shareholders must have bought the stock before 02 May 2025. Payment date: 30 May 2025. Payout ratio is a comfortable 23% and this is well supported by cash flows. Trailing yield: 7.0%. Lower than top quartile of Brazilian dividend payers (9.6%). Higher than average of industry peers (0.9%). Valuation Update With 7 Day Price Move • Apr 23
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to R$5.93, the stock trades at a forward P/E ratio of 2x. Average forward P/E is 12x in the Tech industry globally. Total loss to shareholders of 14% over the past three years. Declared Dividend • Apr 07
Dividend of R$0.27 announced Shareholders will receive a dividend of R$0.27. Ex-date: 2nd May 2025 Payment date: 30th May 2025 Dividend yield will be 5.5%, which is higher than the industry average of 0.9%. Sustainability & Growth The dividend has increased by an average of 27% per year over the past 10 years. However, payments have been volatile during that time. Announcement • Apr 06
Positivo Tecnologia S.A. announces Annual dividend, payable on May 30, 2025 Positivo Tecnologia S.A. announced Annual dividend of BRL 0.2737 per share payable on May 30, 2025, ex-date on May 02, 2025 and record date on April 30, 2025. Announcement • Apr 02
Positivo Tecnologia S.A., Annual General Meeting, Apr 30, 2025 Positivo Tecnologia S.A., Annual General Meeting, Apr 30, 2025. New Risk • Mar 20
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.3% net profit margin). New Risk • Nov 26
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks High level of debt (47% net debt to equity). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.3% average weekly change). Reported Earnings • Nov 16
Third quarter 2024 earnings released: EPS: R$0.012 (vs R$0.19 in 3Q 2023) Third quarter 2024 results: EPS: R$0.012 (down from R$0.19 in 3Q 2023). Revenue: R$819.6m (down 3.5% from 3Q 2023). Net income: R$1.70m (down 94% from 3Q 2023). Profit margin: 0.2% (down from 3.2% in 3Q 2023). Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 25
Price target decreased by 8.9% to R$11.12 Down from R$12.20, the current price target is an average from 6 analysts. New target price is 71% above last closing price of R$6.49. Stock is down 3.4% over the past year. The company is forecast to post earnings per share of R$1.75 for next year compared to R$1.76 last year. Reported Earnings • Aug 18
Second quarter 2024 earnings: Revenues exceed analyst expectations Second quarter 2024 results: Revenue: R$813.1m (up 7.8% from 2Q 2023). Net income: R$3.65m (down 82% from 2Q 2023). Profit margin: 0.4% (down from 2.7% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.9%. Revenue is forecast to grow 2.8% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 19
First quarter 2024 earnings released: EPS: R$0.46 (vs R$0.054 in 1Q 2023) First quarter 2024 results: EPS: R$0.46 (up from R$0.054 in 1Q 2023). Revenue: R$994.7m (up 42% from 1Q 2023). Net income: R$64.0m (up R$56.4m from 1Q 2023). Profit margin: 6.4% (up from 1.1% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 6% per year. Price Target Changed • May 18
Price target increased by 12% to R$13.00 Up from R$11.58, the current price target is an average from 4 analysts. New target price is 30% above last closing price of R$9.99. Stock is up 48% over the past year. The company is forecast to post earnings per share of R$2.43 for next year compared to R$1.76 last year. Upcoming Dividend • Apr 25
Upcoming dividend of R$0.42 per share Eligible shareholders must have bought the stock before 02 May 2024. Payment date: 31 May 2024. Payout ratio is a comfortable 38% and this is well supported by cash flows. Trailing yield: 5.7%. Lower than top quartile of Brazilian dividend payers (8.8%). Higher than average of industry peers (1.0%). New Risk • Apr 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.5x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.2% average weekly change). Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R$10.02, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 18x in the Tech industry globally. Total returns to shareholders of 58% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$4.08 per share. Reported Earnings • Mar 24
Full year 2023 earnings: Revenues miss analyst expectations Full year 2023 results: Revenue: R$3.93b (down 21% from FY 2022). Net income: R$246.8m (down 19% from FY 2022). Profit margin: 6.3% (up from 6.1% in FY 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 13%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 17% per year, which means it is well ahead of earnings. Reported Earnings • Nov 16
Third quarter 2023 earnings: Revenues miss analyst expectations Third quarter 2023 results: Revenue: R$849.0m (down 20% from 3Q 2022). Net income: R$28.9m (down 41% from 3Q 2022). Profit margin: 3.4% (down from 4.6% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 29%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 15% per year. New Risk • Nov 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.0x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.9% average weekly change). Reported Earnings • Aug 14
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: R$0.14 (down from R$0.64 in 2Q 2022). Revenue: R$754.5m (down 54% from 2Q 2022). Net income: R$20.2m (down 78% from 2Q 2022). Profit margin: 2.7% (down from 5.5% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 16%. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 21% per year. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to R$9.05, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 18x in the Tech industry globally. Total returns to shareholders of 95% over the past three years. Reported Earnings • May 14
First quarter 2023 earnings released: EPS: R$0.054 (vs R$0.20 in 1Q 2022) First quarter 2023 results: EPS: R$0.054 (down from R$0.20 in 1Q 2022). Revenue: R$702.9m (down 32% from 1Q 2022). Net income: R$7.54m (down 73% from 1Q 2022). Profit margin: 1.1% (down from 2.7% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$8.00, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 14x in the Tech industry globally. Total returns to shareholders of 183% over the past three years. Upcoming Dividend • Apr 25
Upcoming dividend of R$0.51 per share at 6.9% yield Eligible shareholders must have bought the stock before 02 May 2023. Payment date: 31 May 2023. Payout ratio is a comfortable 24% but the company is not cash flow positive. Trailing yield: 6.9%. Lower than top quartile of Brazilian dividend payers (8.4%). Higher than average of industry peers (1.0%). Valuation Update With 7 Day Price Move • Mar 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$7.82, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 13x in the Tech industry globally. Total returns to shareholders of 144% over the past three years. Reported Earnings • Mar 24
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: R$2.17 (up from R$1.43 in FY 2021). Revenue: R$4.99b (up 48% from FY 2021). Net income: R$303.1m (up 51% from FY 2021). Profit margin: 6.1% (up from 6.0% in FY 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) exceeded analyst estimates by 27%. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 26% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 14
Price target decreased by 15% to R$12.43 Down from R$14.67, the current price target is an average from 3 analysts. New target price is 82% above last closing price of R$6.82. Stock is down 3.7% over the past year. The company posted earnings per share of R$1.43 last year. Valuation Update With 7 Day Price Move • Dec 23
Investor sentiment improved over the past week After last week's 17% share price gain to R$8.80, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 11x in the Tech industry globally. Total loss to shareholders of 7.3% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$3.80 per share. Reported Earnings • Nov 18
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: R$0.35 (down from R$0.38 in 3Q 2021). Revenue: R$1.06b (up 28% from 3Q 2021). Net income: R$48.8m (down 9.0% from 3Q 2021). Profit margin: 4.6% (down from 6.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) exceeded analyst estimates by 6.2%. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Gustavo Jobim was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 12
Third quarter 2022 earnings released: EPS: R$0.35 (vs R$0.38 in 3Q 2021) Third quarter 2022 results: EPS: R$0.35 (down from R$0.38 in 3Q 2021). Revenue: R$1.06b (up 28% from 3Q 2021). Net income: R$48.8m (down 9.0% from 3Q 2021). Profit margin: 4.6% (down from 6.5% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Global Tech industry. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment deteriorated over the past week After last week's 24% share price decline to R$9.52, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 11x in the Tech industry globally. Total returns to shareholders of 97% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at R$3.89 per share. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 37% share price gain to R$10.84, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Tech industry globally. Total returns to shareholders of 285% over the past three years. Reported Earnings • Aug 12
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: R$1.63b (up 108% from 2Q 2021). Net income: R$90.5m (up 77% from 2Q 2021). Profit margin: 5.5% (down from 6.5% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is expected to shrink by 8.8% compared to a 5.2% growth forecast for the industry in Brazil. Valuation Update With 7 Day Price Move • Jul 22
Investor sentiment improved over the past week After last week's 16% share price gain to R$6.64, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 12x in the Tech industry globally. Total returns to shareholders of 177% over the past three years. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment deteriorated over the past week After last week's 20% share price decline to R$6.89, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Tech industry globally. Total returns to shareholders of 209% over the past three years. Reported Earnings • May 21
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: R$0.20 (down from R$0.45 in 1Q 2021). Revenue: R$1.03b (up 53% from 1Q 2021). Net income: R$28.0m (down 49% from 1Q 2021). Profit margin: 2.7% (down from 8.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.1%. Earnings per share (EPS) also surpassed analyst estimates by 4.7%. Over the next year, revenue is forecast to grow 9.3%, compared to a 6.2% growth forecast for the industry in Brazil. Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has only increased by 51% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 3 were independent directors. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Director Gustavo Jobim was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment improved over the past week After last week's 16% share price gain to R$9.34, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Tech industry globally. Total returns to shareholders of 324% over the past three years.