BST:MGP1

Stock Analysis Report

Executive Summary

Marfrig Global Foods S.A. operates in the food and food service industries in Brazil and internationally.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Marfrig Global Foods's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

MGP1

-0.9%

DE Food

1.7%

DE Market


1 Year Return

76.1%

MGP1

-4.0%

DE Food

7.2%

DE Market

Return vs Industry: MGP1 exceeded the German Food industry which returned -4% over the past year.

Return vs Market: MGP1 exceeded the German Market which returned 7.2% over the past year.


Shareholder returns

MGP1IndustryMarket
7 Day-0.8%-0.9%1.7%
30 Day9.4%-7.0%2.4%
90 Day69.4%-5.6%2.3%
1 Year76.1%76.1%-2.4%-4.0%10.6%7.2%
3 Yearn/a-22.4%-27.2%18.4%8.1%
5 Yearn/a32.5%21.0%42.3%22.9%

Price Volatility Vs. Market

How volatile is Marfrig Global Foods's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Marfrig Global Foods undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MGP1 (€2.36) is trading below our estimate of fair value (€9.27)

Significantly Below Fair Value: MGP1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MGP1 is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: MGP1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGP1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MGP1 is overvalued based on its PB Ratio (8.7x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Marfrig Global Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGP1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: MGP1 is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: MGP1's loss is forecast to worsen by 0% next year.

Revenue vs Market: MGP1's revenue (3.6% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: MGP1's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGP1 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Marfrig Global Foods performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MGP1 is unprofitable, and losses have increased over the past 5 years at a rate of -11.6% per year.

Accelerating Growth: Unable to compare MGP1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MGP1 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (14.4%).


Return on Equity

High ROE: MGP1 has a negative Return on Equity (-6.31%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: MGP1 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MGP1 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Marfrig Global Foods's financial position?


Financial Position Analysis

Short Term Liabilities: MGP1's short term assets (R$12.3B) exceeds its short term liabilities (R$8.2B)

Long Term Liabilities: MGP1's short term assets (12.3B) do not cover its long term liabilities (16.2B)


Debt to Equity History and Analysis

Debt Level: MGP1's debt to equity ratio (405.9%) is considered high

Reducing Debt: MGP1's debt to equity ratio has increased from 388.8% to 405.9% over the past 5 years.


Balance Sheet

Inventory Level: MGP1 has a high level of physical assets or inventory.

Debt Coverage by Assets: MGP1's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MGP1 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MGP1 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -10% per year.


Next Steps

Dividend

What is Marfrig Global Foods's current dividend yield, its reliability and sustainability?

2.17%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MGP1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MGP1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MGP1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGP1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MGP1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGP1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Marfrig Global Foods's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Zairaz bin Ismail (38yo)

0yrs

Tenure

0

Zairaz bin Ismail serves as Project and Technical Manager of Muar Ban Lee Group Berhad. 


Management Age and Tenure

1.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: MGP1's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

11.1yrs

Average Tenure

62yo

Average Age

Experienced Board: MGP1's board of directors are seasoned and experienced ( 11.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rodrigo Marçal Filho (45yo)

    Executive Officer

    • Tenure: 12.6yrs
  • Zairaz bin Ismail (38yo)

    Project & Technical Manager

    • Tenure: 0yrs
  • Heraldo Geres

    Chief Legal Officer

    • Tenure: 0yrs
  • Tang David

    Executive Officer & Member of Board of Executive Officers

    • Tenure: 0yrs
  • Frank Ravndal (58yo)

    CEO & President of The Keystone Foods Division

    • Tenure: 6.8yrs
  • Eduardo de Oliveira Miron (56yo)

    CEO & Member of Board of Executive Officers

    • Tenure: 1.2yrs
  • Andrew Murchie

    Chief Executive Officer of Marfrig Beef Brazil

    • Tenure: 0yrs
  • Marco Spada

    Chief Financial & IR Officer

    • Tenure: 1.2yrs
  • Marcelo Arias

    Chief Executive Officer of Beef Internacional Division

    • Tenure: 0yrs
  • Miguel Gularte

    Chief Executive Officer of the South American Operation

    • Tenure: 0yrs

Board Members

  • Roberto Faldini (70yo)

    Independent Director

    • Tenure: 2.9yrs
  • Antonio Dos Santos Maciel Neto (62yo)

    Independent Director

    • Tenure: 12.4yrs
  • Marcos Antonio dos Santos (49yo)

    Chairman of the Board

    • Tenure: 12.6yrs
  • Axel Brod (62yo)

    Member of Fiscal Council

    • Tenure: 0yrs
  • Eduardo Pocetti (65yo)

    Member of Fiscal Council

    • Tenure: 0yrs
  • Márcia Aparecida Pascoal dos Santos (46yo)

    Director

    • Tenure: 12.6yrs
  • Rodrigo Marçal Filho (45yo)

    Executive Officer

    • Tenure: 12.6yrs
  • Herculano Alves (66yo)

    Independent Director

    • Tenure: 0.5yrs
  • Alain Emilie Martinet (70yo)

    Director

    • Tenure: 9.8yrs
  • Roberto Waack

    Independent Director

    • Tenure: 0.5yrs

Company Information

Marfrig Global Foods S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marfrig Global Foods S.A.
  • Ticker: MGP1
  • Exchange: BST
  • Founded: 1986
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: R$7.156b
  • Listing Market Cap: R$1.577b
  • Shares outstanding: 619.59m
  • Website: https://www.marfrig.com.br

Number of Employees


Location

  • Marfrig Global Foods S.A.
  • Av. Queiroz Filho, 1560
  • Bloco 5
  • São Paulo
  • São Paulo
  • 05319-000
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRFG3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLJun 2007
MRRT.YOTCPK (Pink Sheets LLC)SPON ADR EACH REPR 1 ORD SHSUSUSDSep 2010
MGP1BST (Boerse-Stuttgart)SPON ADR EACH REPR 1 ORD SHSDEEURSep 2010

Biography

Marfrig Global Foods S.A. operates in the food and food service industries in Brazil and internationally. It operates through Marfrig Beef and Keystone segments. The company is involved in the production,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:52
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.