Stock Analysis
Rumo (BVMF:RAIL3) Full Year 2023 Results
Key Financial Results
- Revenue: R$10.9b (up 11% from FY 2022).
- Net income: R$719.7m (up 40% from FY 2022).
- Profit margin: 6.6% (up from 5.2% in FY 2022).
- EPS: R$0.39 (up from R$0.28 in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Rumo EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 15%.
The primary driver behind last 12 months revenue was the North Operations segment contributing a total revenue of R$8.35b (76% of total revenue). Notably, cost of sales worth R$6.84b amounted to 63% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling R$2.86b were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how RAIL3's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Transportation industry in Brazil.
Performance of the Brazilian Transportation industry.
The company's shares are up 1.8% from a week ago.
Risk Analysis
It's necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Rumo (at least 1 which is concerning), and understanding them should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About BOVESPA:RAIL3
Rumo
Through its subsidiaries, provides rail transportation services.
