BOVESPA:MOVI3

Stock Analysis Report

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Executive Summary

Movida Participações S.A., through its subsidiaries, provides car rental services in Brazil. More Details


Snowflake Analysis

Reasonable growth potential unattractive dividend payer.


Similar Companies

Share Price & News

How has Movida Participações's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MOVI3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MOVI3's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

MOVI3

-2.8%

BR Transportation

0.8%

BR Market


1 Year Return

13.3%

MOVI3

5.8%

BR Transportation

-0.9%

BR Market

Return vs Industry: MOVI3 exceeded the BR Transportation industry which returned 5.8% over the past year.

Return vs Market: MOVI3 exceeded the BR Market which returned -0.9% over the past year.


Shareholder returns

MOVI3IndustryMarket
7 Day1.6%-2.8%0.8%
30 Day-5.8%-2.5%3.8%
90 Day13.7%0.6%3.4%
1 Year14.0%13.3%6.4%5.8%2.3%-0.9%
3 Year179.8%160.2%126.9%122.4%53.1%36.7%
5 Yearn/a610.2%539.8%141.8%100.7%

Long-Term Price Volatility Vs. Market

How volatile is Movida Participações's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Movida Participações undervalued compared to its fair value and its price relative to the market?

576.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MOVI3 (R$18.97) is trading above our estimate of fair value (R$1.22)

Significantly Below Fair Value: MOVI3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MOVI3 is poor value based on its PE Ratio (576.4x) compared to the BR Transportation industry average (51.6x).

PE vs Market: MOVI3 is poor value based on its PE Ratio (576.4x) compared to the BR market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: MOVI3 is poor value based on its PEG Ratio (15.7x)


Price to Book Ratio

PB vs Industry: MOVI3 is good value based on its PB Ratio (2.5x) compared to the BR Transportation industry average (2.9x).


Next Steps

Future Growth

How is Movida Participações forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

36.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOVI3's forecast earnings growth (36.8% per year) is above the savings rate (10.7%).

Earnings vs Market: MOVI3's earnings (36.8% per year) are forecast to grow faster than the BR market (27.1% per year).

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

Revenue vs Market: MOVI3's revenue (15.1% per year) is forecast to grow faster than the BR market (10.4% per year).

High Growth Revenue: MOVI3's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MOVI3's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Movida Participações performed over the past 5 years?

21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOVI3 has a large one-off loss of R$245.7M impacting its September 30 2020 financial results.

Growing Profit Margin: MOVI3's current net profit margins (0.2%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: MOVI3's earnings have grown significantly by 21.4% per year over the past 5 years.

Accelerating Growth: MOVI3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MOVI3 had negative earnings growth (-95.1%) over the past year, making it difficult to compare to the Transportation industry average (-18.5%).


Return on Equity

High ROE: MOVI3's Return on Equity (0.4%) is considered low.


Next Steps

Financial Health

How is Movida Participações's financial position?


Financial Position Analysis

Short Term Liabilities: MOVI3's short term assets (R$2.3B) exceed its short term liabilities (R$2.3B).

Long Term Liabilities: MOVI3's short term assets (R$2.3B) do not cover its long term liabilities (R$3.2B).


Debt to Equity History and Analysis

Debt Level: MOVI3's debt to equity ratio (173.7%) is considered high.

Reducing Debt: MOVI3's debt to equity ratio has increased from 117.1% to 173.7% over the past 5 years.

Debt Coverage: MOVI3's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: MOVI3's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

2.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MOVI3's dividend (2%) is higher than the bottom 25% of dividend payers in the BR market (1.13%).

High Dividend: MOVI3's dividend (2%) is low compared to the top 25% of dividend payers in the BR market (5.46%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MOVI3 has been paying a dividend for less than 10 years.

Growing Dividend: MOVI3's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (406.3%), MOVI3's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOVI3's dividends in 3 years are forecast to be well covered by earnings (28.6% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Renato Franklin

5.83yrs

Tenure

Mr. Renato Horta Franklin has been the Chief Executive Officer at Movida Participações S.A. since 2015 and serves as its Member of Management Board. From 2010 to 2013, Mr. Franklin served as General Manage...


Leadership Team

NamePositionTenureCompensationOwnership
Renato Franklin
CEO & Member of Board of Executive Officers5.83yrsno datano data
Edmar Prado Neto
Chief Administrativeno datano datano data
Jamyl Junior
Commercial Director & Member of Board of Executive Officer2.83yrsno datano data
Flavio Sales
Member of Board of Executive Officers2.83yrsno datano data

2.8yrs

Average Tenure

Experienced Management: MOVI3's management team is considered experienced (2.8 years average tenure).


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

Movida Participações S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Movida Participações S.A.
  • Ticker: MOVI3
  • Exchange: BOVESPA
  • Founded: 2006
  • Industry: Trucking
  • Sector: Transportation
  • Market Cap: R$5.642b
  • Shares outstanding: 297.39m
  • Website: https://ri.movida.com.br

Number of Employees


Location

  • Movida Participações S.A.
  • Rua Dr. Renato Paes de Barros, 1017
  • 9º Andar
  • São Paulo
  • São Paulo
  • 04530-001
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOVI3BOVESPA (Bolsa de Valores de Sao Paulo)YesOrdinary SharesBRBRLFeb 2017

Biography

Movida Participações S.A., through its subsidiaries, provides car rental services in Brazil. It also offers light vehicle fleet management and outsourcing services. In addition, the company sells used cars...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 18:10
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.