Triunfo Participações e Investimentos (BOVESPA:TPIS3) - Share price, News & Analysis

TPIS3 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	1/6
Financial Health	1/6
Dividends	2/6

TPIS3 Stock Overview

Triunfo Participações e Investimentos S.A., through its subsidiaries, engages in the infrastructure business in Brazil.

Rewards

Trading at 80% below our estimate of its fair value

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.7%) are lower than last year (16.2%)

Does not have a meaningful market cap (R$215M)

Triunfo Participações e Investimentos Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Triunfo Participações e Investimentos
Historical stock prices
Current Share Price	R$1.24
52 Week High	R$3.85
52 Week Low	R$1.21
Beta	1.72
1 Month Change	-13.29%
3 Month Change	-36.74%
1 Year Change	-63.10%
3 Year Change	-22.98%
5 Year Change	-66.85%
Change since IPO	-86.95%

Recent News & Updates

Jan 07

Triunfo Participações e Investimentos (BVMF:TPIS3) Has Debt But No Earnings; Should You Worry?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

	TPIS3	BR Infrastructure	BR Market
7D	-3.1%	0.2%	-0.8%
1Y	-63.1%	0.9%	-29.7%

Return vs Industry: TPIS3 underperformed the BR Infrastructure industry which returned -1.5% over the past year.

Return vs Market: TPIS3 underperformed the BR Market which returned -31.2% over the past year.

Price Volatility

Is TPIS3's price volatile compared to industry and market?
TPIS3 volatility
TPIS3 Average Weekly Movement	7.0%
Infrastructure Industry Average Movement	5.7%
Market Average Movement	5.9%
10% most volatile stocks in BR Market	9.2%
10% least volatile stocks in BR Market	2.8%

Stable Share Price: TPIS3 is not significantly more volatile than the rest of BR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TPIS3's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	3,631	Carlo Bottarelli	https://www.triunfo.com

Triunfo Participações e Investimentos S.A., through its subsidiaries, engages in the infrastructure business in Brazil. The company provides highway operation, upkeep, and maintenance services. It also offers monitoring and pavement evaluation services; and airport management services.

Triunfo Participações e Investimentos Fundamentals Summary

How do Triunfo Participações e Investimentos's earnings and revenue compare to its market cap?
TPIS3 fundamental statistics
Market Cap	R$215.15m
Earnings (TTM)	R$26.84m
Revenue (TTM)	R$988.09m

8.0x

P/E Ratio

0.2x

P/S Ratio

Is TPIS3 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPIS3 income statement (TTM)
Revenue	R$988.09m
Cost of Revenue	R$519.41m
Gross Profit	R$468.68m
Other Expenses	R$441.85m
Earnings	R$26.84m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	0.15
Gross Margin	47.43%
Net Profit Margin	2.72%
Debt/Equity Ratio	191.6%

How did TPIS3 perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

12%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is TPIS3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 TPIS3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TPIS3. This is calculated by dividing TPIS3's market cap by their current preferred multiple.
What is TPIS3's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	R$215.15m

TPIS3 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/Revenue	1.9x
Enterprise Value/EBITDA	5.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does TPIS3's PE Ratio compare to its peers?

TPIS3 PE Ratio vs Peers

The above table shows the PE ratio for TPIS3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	14x

Forward PE

Price-To-Earnings vs Peers: TPIS3 is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does TPIS3's PE Ratio compare vs other companies in the Global Infrastructure Industry?

Price-To-Earnings vs Industry: TPIS3 is good value based on its Price-To-Earnings Ratio (8x) compared to the BR Infrastructure industry average (10.6x)

Price to Earnings Ratio vs Fair Ratio

What is TPIS3'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.

TPIS3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TPIS3's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of TPIS3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TPIS3 (R$1.24) is trading below our estimate of fair value (R$6.21)

Significantly Below Fair Value: TPIS3 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TPIS3's PEG Ratio to determine if it is good value.

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Future Growth

How is Triunfo Participações e Investimentos forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.0%

Forecasted Transportation industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Triunfo Participações e Investimentos has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Triunfo Participações e Investimentos is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Triunfo Participações e Investimentos performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

28.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TPIS3 has a large one-off gain of R$143.1M impacting its March 31 2022 financial results.

Growing Profit Margin: TPIS3's current net profit margins (2.7%) are lower than last year (16.2%).

Past Earnings Growth Analysis

Earnings Trend: TPIS3 has become profitable over the past 5 years, growing earnings by 28.8% per year.

Accelerating Growth: TPIS3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TPIS3 had negative earnings growth (-82.7%) over the past year, making it difficult to compare to the Infrastructure industry average (89%).

Return on Equity

High ROE: TPIS3's Return on Equity (3.3%) is considered low.

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Financial Health

How is Triunfo Participações e Investimentos's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TPIS3's short term assets (R$140.8M) do not cover its short term liabilities (R$539.5M).

Long Term Liabilities: TPIS3's short term assets (R$140.8M) do not cover its long term liabilities (R$1.6B).

Debt to Equity History and Analysis

Debt Level: TPIS3's net debt to equity ratio (188.3%) is considered high.

Reducing Debt: TPIS3's debt to equity ratio has reduced from 307.4% to 191.6% over the past 5 years.

Debt Coverage: TPIS3's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: TPIS3's interest payments on its debt are not well covered by EBIT (2.3x coverage).

Balance Sheet

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Dividend

What is Triunfo Participações e Investimentos's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TPIS3's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the BR market (1.74%).

High Dividend: TPIS3's dividend (1.51%) is low compared to the top 25% of dividend payers in the BR market (7.74%).

Stability and Growth of Payments

Stable Dividend: TPIS3 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TPIS3 has only been paying a dividend for 9 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.1%), TPIS3's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (2.8%), TPIS3's dividend payments are thoroughly covered by cash flows.

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Management

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

6.3yrs

Average management tenure

CEO

Carlo Bottarelli (68 yo)

17.42yrs

Tenure

Mr. Carlo Alberto Bottarelli has been the Chief Executive Officer of Triunfo Participações e Investimentos S.A. since 2005 and served as its Chief Energy Officer. Mr. Bottarelli has been a Member of Board...

Leadership Team

Experienced Management: TPIS3's management team is seasoned and experienced (6.3 years average tenure).

Board Members

Experienced Board: TPIS3's board of directors are considered experienced (5.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31