Market Cap
R$38.7b
Last Updated
2021/01/22 21:56 UTC
Data Sources
Company Financials +
Executive Summary
Rumo S.A., through its subsidiaries, provides rail transportation services. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with imperfect balance sheet.
Share Price & News
How has Rumo's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RAIL3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RAIL3's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
RAIL3
-3.9%
BR Transportation
-2.6%
BR Market
1 Year Return
-14.3%
RAIL3
-2.0%
BR Transportation
-2.2%
BR Market
Return vs Industry: RAIL3 underperformed the BR Transportation industry which returned -2.1% over the past year.
Return vs Market: RAIL3 underperformed the BR Market which returned -1.4% over the past year.
Shareholder returns
| RAIL3 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -3.9% | -2.6% |
| 30 Day | 8.6% | 3.1% | 0.6% |
| 90 Day | 15.0% | 9.8% | 14.3% |
| 1 Year | -14.3%-14.3% | -1.4%-2.0% | 0.4%-2.2% |
| 3 Year | 49.1%49.1% | 113.5%109.2% | 47.3%31.4% |
| 5 Year | n/a | 876.1%807.9% | 195.4%144.8% |
Long-Term Price Volatility Vs. Market
How volatile is Rumo's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Rumo S.A. (BVMF:RAIL3) Delivered A Weaker ROE Than Its Industry3 weeks ago | Simply Wall St
We're Not Counting On Rumo (BVMF:RAIL3) To Sustain Its Statutory Profitability1 month ago | Simply Wall St
These 4 Measures Indicate That Rumo (BVMF:RAIL3) Is Using Debt ExtensivelyValuation
Is Rumo undervalued compared to its fair value and its price relative to the market?
66.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RAIL3 (R$20.85) is trading above our estimate of fair value (R$14.39)
Significantly Below Fair Value: RAIL3 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RAIL3 is poor value based on its PE Ratio (66.8x) compared to the BR Transportation industry average (56.4x).
PE vs Market: RAIL3 is poor value based on its PE Ratio (66.8x) compared to the BR market (17.3x).
Price to Earnings Growth Ratio
PEG Ratio: RAIL3 is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: RAIL3 is good value based on its PB Ratio (2.6x) compared to the BR Transportation industry average (3.1x).
Next Steps
Future Growth
How is Rumo forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
44.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RAIL3's forecast earnings growth (44.3% per year) is above the savings rate (9.9%).
Earnings vs Market: RAIL3's earnings (44.3% per year) are forecast to grow faster than the BR market (27.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RAIL3's revenue (14.8% per year) is forecast to grow faster than the BR market (10.4% per year).
High Growth Revenue: RAIL3's revenue (14.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RAIL3's Return on Equity is forecast to be low in 3 years time (10.3%).
Next Steps
Past Performance
How has Rumo performed over the past 5 years?
73.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RAIL3 has a large one-off gain of R$435.3M impacting its September 30 2020 financial results.
Growing Profit Margin: RAIL3's current net profit margins (7.1%) are lower than last year (10.1%).
Past Earnings Growth Analysis
Earnings Trend: RAIL3 has become profitable over the past 5 years, growing earnings by 73.2% per year.
Accelerating Growth: RAIL3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RAIL3 had negative earnings growth (-30.3%) over the past year, making it difficult to compare to the Transportation industry average (-18.5%).
Return on Equity
High ROE: RAIL3's Return on Equity (3.3%) is considered low.
Next Steps
Financial Health
How is Rumo's financial position?
Financial Position Analysis
Short Term Liabilities: RAIL3's short term assets (R$11.6B) exceed its short term liabilities (R$4.4B).
Long Term Liabilities: RAIL3's short term assets (R$11.6B) do not cover its long term liabilities (R$26.9B).
Debt to Equity History and Analysis
Debt Level: RAIL3's debt to equity ratio (137.7%) is considered high.
Reducing Debt: RAIL3's debt to equity ratio has reduced from 225.2% to 137.7% over the past 5 years.
Debt Coverage: RAIL3's debt is not well covered by operating cash flow (15.2%).
Interest Coverage: RAIL3's interest payments on its debt are not well covered by EBIT (1.1x coverage).
Balance Sheet
Next Steps
Dividend
What is Rumo current dividend yield, its reliability and sustainability?
1.21%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RAIL3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RAIL3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RAIL3's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RAIL3's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RAIL3's dividend in 3 years as they are not forecast to pay a notable one for the BR market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
João Alberto de Abreu (50 yo)
1.75yrs
Tenure
Mr. João Alberto Fernandez De Abreu has been Chief Executive Officer of Rumo Malha Norte S.A. since 2019. He has been Chief Executive Officer of Rumo S.A. since April 1, 2019. He has been Chief Operating O...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 1.75yrs | no data | no data | |
| Chief Financial & Investor Relations Officer | 2.75yrs | no data | no data | |
| Chief Services & Technology Officer and VP of Services & Technology | no data | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Financial & Investor Relations Officer | no data | no data | no data | |
| Chief Commercial Officer & VP of Agricultural Commodities | 8.5yrs | no data | no data | |
| Chief Investor Relations Officer | 5.83yrs | no data | no data | |
| Chief Operational Officer of South Operation | no data | no data | no data | |
| Chief Operational Officer of North Operation | no data | no data | no data | |
| Chief Commercial Officer | 0.42yr | no data | no data | |
| Personnel & Institutional Relations Officer | no data | no data | no data | |
| Investor Relations Analyst | no data | no data | no data |
2.8yrs
Average Tenure
Experienced Management: RAIL3's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 11yrs | no data | no data | |
| Director | 23.75yrs | no data | no data | |
| Director | no data | no data | no data | |
| Director | no data | no data | no data | |
| Chairman of the Board of Directors | 0.17yr | no data | no data | |
| Director | no data | no data | no data | |
| Director | no data | no data | no data | |
| President of Fiscal Council | 1yr | no data | no data | |
| Independent Director | 1.75yrs | no data | no data | |
| Independent Director | no data | no data | no data | |
| Independent Director | no data | no data | no data | |
| Vice Chairman | 0.17yr | no data | no data |
1.4yrs
Average Tenure
54yo
Average Age
Experienced Board: RAIL3's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.
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 18.9%.
Top Shareholders
Company Information
Rumo S.A.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Rumo S.A.
- Ticker: RAIL3
- Exchange: BOVESPA
- Founded: 1997
- Industry: Railroads
- Sector: Transportation
- Market Cap: R$38.733b
- Shares outstanding: 1.85b
- Website: https://rumolog.com
Number of Employees
Location
- Rumo S.A.
- Emílio Bertolini Street, 100
- Vila Oficinas
- Curitiba
- Paraná
- 82920-030
- Brazil
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RAIL3 | BOVESPA (Bolsa de Valores de Sao Paulo) | Yes | New Ordinary Shares | BR | BRL | Mar 2017 |
| RUMO.F | OTCPK (Pink Sheets LLC) | Yes | New Ordinary Shares | US | USD | Mar 2017 |
Biography
Rumo S.A., through its subsidiaries, provides rail transportation services. It operates through four segments: Northern Operations, South Operations, Central Operations, and Container Operations. The compa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 21:56 |
| End of Day Share Price | 2021/01/22 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.