BST:HM6A

Stock Analysis Report

Executive Summary

Hypera S.A. operates as a pharmaceutical company in Brazil.


Snowflake Analysis

Flawless balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HM6A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.4%

HM6A

2.9%

DE Pharmaceuticals

-0.6%

DE Market


1 Year Return

-20.1%

HM6A

-11.1%

DE Pharmaceuticals

-20.9%

DE Market

Return vs Industry: HM6A underperformed the German Pharmaceuticals industry which returned -10.8% over the past year.

Return vs Market: HM6A matched the German Market which returned -20.6% over the past year.


Shareholder returns

HM6AIndustryMarket
7 Day-10.4%2.9%-0.6%
30 Day-34.6%-19.1%-18.6%
90 Day-40.3%-20.9%-26.2%
1 Year-17.2%-20.1%-8.1%-11.1%-18.6%-20.9%
3 Year-37.8%-45.4%22.0%8.2%-19.0%-25.8%
5 Year-15.0%-27.9%11.5%-7.6%-21.2%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HM6A (€4.48) is trading below our estimate of fair value (€6.72)

Significantly Below Fair Value: HM6A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HM6A is good value based on its PE Ratio (15.2x) compared to the Pharmaceuticals industry average (20.5x).

PE vs Market: HM6A is good value based on its PE Ratio (15.2x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: HM6A is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HM6A is overvalued based on its PB Ratio (2.1x) compared to the DE Pharmaceuticals industry average (1.6x).


Next Steps

Future Growth

How is Hypera forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HM6A's forecast earnings growth (12.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: HM6A's earnings (12.6% per year) are forecast to grow slower than the German market (14.2% per year).

High Growth Earnings: HM6A's earnings are forecast to grow, but not significantly.

Revenue vs Market: HM6A's revenue (18.5% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: HM6A's revenue (18.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HM6A's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Hypera performed over the past 5 years?

29.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HM6A has a large one-off gain of R$588.3M impacting its December 31 2019 financial results.

Growing Profit Margin: HM6A's current net profit margins (36.1%) are higher than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: HM6A's earnings have grown significantly by 29.7% per year over the past 5 years.

Accelerating Growth: HM6A's earnings growth over the past year (4.7%) is below its 5-year average (29.7% per year).

Earnings vs Industry: HM6A earnings growth over the past year (4.7%) exceeded the Pharmaceuticals industry 1.9%.


Return on Equity

High ROE: HM6A's Return on Equity (13.7%) is considered low.


Next Steps

Financial Health

How is Hypera's financial position?


Financial Position Analysis

Short Term Liabilities: HM6A's short term assets (R$4.7B) exceed its short term liabilities (R$1.6B).

Long Term Liabilities: HM6A's short term assets (R$4.7B) exceed its long term liabilities (R$1.6B).


Debt to Equity History and Analysis

Debt Level: HM6A's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: HM6A's debt to equity ratio has reduced from 65% to 16.3% over the past 5 years.

Debt Coverage: HM6A's debt is well covered by operating cash flow (58.1%).

Interest Coverage: HM6A earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HM6A has a low level of unsold assets or inventory.

Debt Coverage by Assets: HM6A's debt is covered by short term assets (assets are 3.3x debt).


Next Steps

Dividend

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

3.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HM6A's dividend (3.73%) is higher than the bottom 25% of dividend payers in the German market (1.69%).

High Dividend: HM6A's dividend (3.73%) is low compared to the top 25% of dividend payers in the German market (4.85%).


Stability and Growth of Payments

Stable Dividend: HM6A has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HM6A's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.8%), HM6A's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HM6A's dividends in 3 years are forecast to be covered by earnings (53.9% payout ratio).


Next Steps

Management

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


CEO

Breno Pires de Oliveira

no data

Tenure

Mr. Breno Toledo Pires De Oliveira serves as Chief Executive Officer of Hypera S.A. Previously, he served as Chief Financial Officer and Investor Relations Officer at HYPERA S.A. (formerly known as Hyperma ...


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

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


Key Information

  • Name: Hypera S.A.
  • Ticker: HM6A
  • Exchange: BST
  • Founded: 2001
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: R$18.124b
  • Listing Market Cap: R$3.165b
  • Shares outstanding: 631.07m
  • Website: https://www.hyperapharma.com.br

Number of Employees


Location

  • Hypera S.A.
  • Av. Magalhães de Castro, 4800
  • 24° andar
  • São Paulo
  • São Paulo
  • 05676-120
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HYPE3BOVESPA (Bolsa de Valores de Sao Paulo)YesRegistered Common SharesBRBRLApr 2008
HYPM.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2010
HM6ABST (Boerse-Stuttgart)SPONSORED ADRDEEURApr 2010

Biography

Hypera S.A. operates as a pharmaceutical company in Brazil. The company offers prescription medications under the Farmasa, Neo Química, and Luper brands; and over-the-counter medications comprising laxative, antacid, antispasmodic, topical antiseptic, topical, nasal decongestant, and other drugs under Gelol, Anapyon, Biotônico Fontoura, Epocler, Merthiolate, Tamarine, and Rinosoro brands. It also provides similars and generics under the Neo Química brand; dermocosmetics under the Lanidrant, Agecare, Dersab, Epidac, Epidrat, Episol, Hidramamy, Creme rejuvenecedor, Blancy, and Pielus brands; and food supplements and sweeteners. The company was formerly known as Hypermarcas S.A. and changed its name to Hypera S.A. in February 2018. The company was founded in 2001 and is headquartered in São Paulo, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 02:12
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.